Samsung is not the market leader as far as innovation is concerned. So it increasingly focuses on competing on the basis of volume and price and superior supply chain techniques.
Pricing strategy used by Samsung is:
Value Pricing- This is a pricing strategy in which Samsung wins loyal customers by charging a fairly low price for a high quality offering. Indian customers are especially very price sensitive and thus Samsung’s pricing strategy has helped it gain market share
Samsung uses cost cutting measures to keep its prices low and give the customers value for their money. Customers get the latest technology at a reasonably low price
On the other hand Apple uses,
Skimming price/Perceived value pricing-the pricing is done based on the customer’s perception about the company and its product. Perceived value is made up of several elements such as buyer’s image of product performance, the channel deliverables, warranty, and quality and even softer attributes such as supplier’s reputation. Apple thus charges a premium price for its high quality products.
Samsung has the widest product portfolio which allows it to cater to different segments of the society at different price points whereas Apple sells a single model of the Iphone
Samsung has the highest volumes and revenues whereas apple has the highest profitability in the industry primarily due to the fact that it caters only to the premium segment
Apple does not wish to compete in the lower-end segment probably because it fears that its consumers will stop buying the iphone if it is not as expensive
The low price help create loyalty among the users as well
Samsung pivots and produces quickly, coming out with a variety of devices. It sees what the market responds to, and produces accordingly. It differentiated itself with larger screens, different features, successful marketing, and delivering what consumers want.
Samsung makes not only hardware but also its components; it is...