A Comparison of Apple and Samsung Companies Business Strategies

 

Introduction

The international smartphone industry is one of the strongest and quickest developing commercial ventures today. There is no indication of it softening at whatever time soon. The expanding demand and growth for smartphones is influenced by the huge numbers of developing nations that are coming online. Cell phones have experienced real changes since they were introduced in 1994. Organizations like Apple, Samsung, and numerous others, are occupied with a ceaseless rivalry to see who will be the most imaginative and prevalent with clients around the globe, in different markets and social settings. These items are continually advancing to meet client desires. The worldwide smartphone industry is best characterized by general market share and cost based upon item types. The business can be further characterized into three separate portions: low-end, middle, and top-line. In the worldwide cell phone industry, market share and scale are everything. The capacity to extend comprehensively is crucial as developing markets emerge and new potential clients approach. Notwithstanding, it is still conceivable to be productive in the business sector without extending quickly against wild rivalry by targeting a particular market segment. This is possible because cell phone substitutes are low, and rivalry is high with large Corporations like Apple and Samsung struggling to dominate the market.

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The existing business strategies, domestic and global environments, industry, and internal capabilities for both Apple and Samsung, and assessment of the significant manner in which each company’s mission and vision align with the long-terms goals and strategic direction of the organization. 

Apple and Samsung utilize completely different business strategies and business models. For instance, Apple discharges moderately few, however exceedingly praiseworthy, quality top of the line items. On the contrary, Samsung shells the business sector with a wide assortment of its items that do not attain the same abnormal amounts of flawlessness and quality that Apple achieves. First and foremost, Apple was exceptionally cautious about its portable and tablet discharges by initially considering long advancement cycles. These extended advancement cycles would build expectation for Apple’s new items. Apple’s strategy was to create and offer attractively new, imaginative, and famous items that wedded usefulness and technology. This strategy increased and streamlined client experience, and pushed Apple to the bleeding edge of cell phones. The result was that Apple turned into a pioneer in the cell phone market with the start of their unique arrival of the iPhone in 2007.

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Apple’s strategy amid the Chief Executive Officer Steve Job’s term was to utilize a long advancement cycle that created no less than one vast development for individual cycle. Apple would discharge these items typically on a yearly basis. Apple did this while similarly showcasing the prior models at affordable costs. This methodology permitted Apple to attract a lot of client fervor and foresight for its new items. Apple’s clients eventually started to anticipate something new and imaginative every time the company introduced a new item. The company was likewise ready to pull in and keep numerous customers by packaging its other item offerings, for example, iTunes, together with the utilization of the iPhone and iPad. After Steve Jobs surrendered his position as Chief Executive Officer of Apple, the succeeding leader, Tim Cook, apparently embraced another plan of action for Apple that was not so much the same as what Steve Jobs had made.

Tim Cook may have concurred with Steve Jobs’ strategies for new and imaginative items. Nonetheless, he began utilizing Apple’s extensive piece of the pie of faithful clients to give just incrementally changed items. Cook knew the organization’s huge and steadfast client base would move up to the most up-to-date gadgets being created regardless of the fact that the new items were just insignificantly enhanced. The plan of action of Apple moved from the time of Steve Jobs to Tim Cook. Occupations prioritized the development of just out of the plastic new, creative, advanced products. Tim Cook basically drained the past developments as much as he could. Cook produced marginally enhanced renditions of past and current Apple items.

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Under Cook’s tenure, Apple concentrated on fortifying its existing items and minimized technologies and mechanical progressions. For instance, as opposed to having any genuine development with the recently discharged iPhone 5, Cook concentrated on tightening up numerous parts of the current advanced cell show, the iPhone 4. Cook expanded the iphone 5’s size, permitting it to contend with other bigger smartphones, for example, those made by adversary Samsung. Cook likewise cut Apple’s agreement with Google for its Maps benefit and supplanted it with an Apple exclusive guide framework.

As a result of Cook’s efforts and the presence of advanced technology, another dynamic emerged inside Apple. The development design turned into a two to three year cycle for essentially better than ever items. The main item that was usually discharged was the new fittings update. This redesign brought new changes, for example, a bigger screen, a finer cam, and a speedier processor, and so on. After approximately one year, Apple discharged an upgraded adaptation of this equipment. The update principally comprised of slight redesigns and new chips. Apple frequently added new extravagant accessories to every iPhone discharge alongside an equipment overhaul, like Siri, distributed storage, and many others. Basically, the new two to three year cycle of substantial fittings redesigns was expanded with little yearly equipment and programming improvements.

Samsung’s commercial center procedure, on the other hand, has been to dominate the market with a plenty of new items within a short period of time. Samsung increases market presence by giving a huge number of devices, for example, mobile phones, advanced cells, tablets, and so forth, to both low and top of the line markets. This is a procedure to attempt to offer something new to all customers. Apple on the other hand centered around making a solitary magnificent item for its customers. Samsung has turned into a jack of all cell phones and an expert of none. While Apple turned into a jack of none and an expert of one, the iPhone.

Samsung has done well in the low-end market, yet has just as of late started expanding its vicinity in the advanced mobile phone market and has delighted in a decent measure of achievement up to now. Samsung’s quick piece of the overall industry increment in the advanced mobile phone commercial center can be ascribed to Samsung’s huge measure of distinctive gadgets as contrasted with Apple and different contenders.

In conclusion, Samsung is not just the greatest adopter of Google’s Android programming. However it additionally has advanced mobile phones running the Windows Phone OS. While Apple is centered and confined to it iOS, Samsung is not held by these same limits. Samsung has overwhelmed the business strategy and lives up to expectations so well in light of the fact that it is able to enhance its hardware, as well as the software that runs on its smartphones too. Whether engaging numerous markets or concentrated on a solitary one best remains to be resolved. Apple is acquiring more noteworthy business benefits than Samsung. This is most likely attributed to the way that Samsung works in a great deal of different business ranges and its items are profoundly separated. Samsung further breaks its general profit into three business sections: Consumer Electronics, IT & Mobile interchanges and Device Solutions such as LCD and OLED screens.

Analyze the business-level strategy of each company by conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Next, determine the fundamental way in which each sector influences its competitive position within the industry. Provide rationale to support the response.

            In performing a SWOT examination of Apple it gets to be clear that the organization’s interfaces are actually more progressive than the opposition. This bodes well given Apple’s center and quest for top of the line items; both in fittings and programming. Apple has a capable brand picture connected with quality and prevalent configuration. The company has a greatly reliable customer base. Apple puts billions of dollars yearly in its innovative work. The company invests in the future and it puts resources into advancement. Since Apple has separated its items as top of the line, it has the capacity to charge more. Apple has high capability in administration, software and hardware. Apple has the best planned cell phone in the market bringing about further strengthening of its business. Apple delights in, and has earned, a phenomenal marking and advertising picture. It has created a plenitude of top of the line applications and gimmicks for its iPhone. The company launched its iPhone 5 with a greater screen. Apple additionally dispatched its most recent working framework in an opportune way to keep the enthusiasm toward the iOS 7 in number and powerful.

Apple has a number of weaknesses. It has a predetermined number of items so clients with particular needs may change to the results of Samsung. Apple has an arrangement of constraining its clients to change to the most recent item by diminishing backing for the more seasoned items and applications. The company’s high costs contrasted with other smartphones with comparative capacities may not help its deals in creating markets like the Philippines. Apple has been encountering a decrease in its personal computer sales. Personal computer from Apple come without expandable memory, its batteries are altered. Accessories for Apple items are costly and most of the company’s items lack important features such as SMS forwarding and Bluetooth exchange.

Apple also has a number of opportunities. Its cell phone and tablets have been getting a charge out of expanding and growing demand. Apple items are engaging organizations. It delights in simple mix with iCloud. The company has an enormous undiscovered market outside of the business stadium. Apple is also a great deal more creative with the innovations and models it does produce.

Among Apple’s threats are other cell phone producers, for example, Samsung, that are cutting into Apple’s piece of the overall industry both in the United States and abroad. Apple’s items offer exceptionally restricted decision or customization ability. Economic turmoil will result in Apple to raise officially higher costs and that will not lead to positive public relations. The portable producers of cell phones are not utilizing the Apple OS yet, rather they are utilizing the Android OS. Apple experiences an absence of item decisions for shoppers to choose from. Additionally, Apple is debilitated from a plenty of less expensive smartphone substitutes.

Samsung, Apple’s primary rival, has numerous strengths. Samsung delights in the most extensive scope of items which incorporates modern smartphones, tablets of various features and sizes, television, sound and feature items, cameras, home apparatuses, personal computers, laptops, peripherals, printers, memory cards, and several other items. Samsung also delights in solid fittings mix with its OS and programming. Samsung has established solid brand esteem through various sponsorships. The company has picked up positive reputation for perfection in building and creation of fittings. Samsung has ended up being inventive and generally composed. Samsung has accomplished low generation costs. It has attained the biggest worldwide market segment in cell telephones and is the second largest producer of cell phones because of the lower costs. Samsung can effectively market its brand around the globe.

Samsung additionally has weaknesses. It has been liable of patent encroachment and experiences low overall revenues. Samsung’s primary rival, Apple, is likewise the biggest purchaser of cell phone parts. Samsung is centered around delivering an excess of items. It also experiences customer discernment that it has low quality items.

Samsung also has numerous opportunities. India’s developing cell phone business sector is pulled in to the lower costs of the Samsung items. Samsung has a chance to exploit the upcoming portable promoting industry. There is an increasing demand for Samsung’s application processor. There is development in the tablet business sector and Samsung offers numerous models. Samsung likewise has the chance to acquire licenses through procurement and maintain a strategic distance from patent encroachment claims.

Samsung also has numerous threats but are however not unconquerable. Samsung has immersed the cell phone showcase in a large number of the developed nations, for example, Canada, the United States, Europe and Australia. Samsung is debilitated by the minimal effort of Chinese creation. Samsung is undermined by the new nanotechnology which may supplant Samsung’s innovative points of demand. Additionally, the dispatch of Apple’s iTelevision is a danger to Samsung television items.

Analyze the central manner in which the strategies of each company’s business leaders have adapted to cultural differences in order to both facilitate effective operations within global markets and drive new strategic initiatives with improved innovation excellence. Provide one (1) example of such strategies in use from each company to support the response.

Both Apple and Samsung have adapted to cultural differences in order to both facilitate effective operations within global markets and drives strategic initiative with improved innovation excellence. The general threat of new entrants into the worldwide versatile and cell phone industry is low because the capital necessities for a start-up for cell phone organization are high. Samsung, for example, has directed a lot of cash into innovation which has given it the capacity to accomplish economies of scale that it blossoms with. Through this strategy, Samsung has managed to acquire in excess of 76% of the market.

Much capital needs to be gained and put into innovative work, engineering, and generation offices before any new product is produced (Marketline, 2009). The simplest path for another organization to enter the business sector would be whether it was at that point included in comparable operations and afterward expanded through mergers and acquisitions into portable generation. This would decrease the effect of spreading the organization’s benefits and keeping its structure stable. Likewise, most crude materials utilized as a part of creation are the same (Marketline, 2009). For example, this strategy was exhibited by Apple in 2007 with the expansion of the iPhone into the commercial center, focusing on the advanced mobile phone fragment.

Evaluate the superiority of each company’s organizational competencies in terms of entrepreneurial capabilities, organizational design capabilities, and strategic capabilities geared toward increased performance and profitability. Include one (1) example of such superiority from each company to support the response.

            Economies of scale assume an essential part in the top performing organizations in the business. One real total expense advantage in the business is a patent. Licenses are bounteous in the mobile business and particularly the cell phone industry. All top contenders hold different licenses, and keep on putting resources into licensed innovation to stay focused.

Apple’s iPhone is a decent example of expense focal point through patent holding. Apple has effectively documented claims against HTC for encroaching on twenty diverse Apple licenses identified with the iPhone’s client interface, construction modeling and fittings (Dowling, 2010). Licenses add to the high boundary of section for the business, and are the center innovation around mobile phones, which makes the smartphone industry both gainful and attractive, but the obstructions to passage are enormous all around (Foxtrot, 2009). Hardware separation has assumed a diminishing part in the estimation of cell phones and towards the improvement patterns of smartphones.

The real accentuation has as of late been put on separation in working frameworks, applications, and substance administrations. Application stores have additionally gotten to be prominent with Apple’s ‘Application Store’ heading the way. The application store business strategy is to seek engineers by profiting off its ubiquity to acquire favorable circumstances in products and administrations (My News Desk, 2010).

Apple has of late began making in-house processors for its cell phones (Foxtrot, 2009). Trademarked as the “A4,” Apple’s processor brags a 1ghz rate, in excess of 10 hours of battery life, and was emphasized in its most recent iphone 4 (Miller, 2010). Retreat obstructions are highly focused around the high expenses that are combined with rapid growth in the industry, thereby building competition (Foxtrot, 2009).

Samsung takes a considerable measure of pride in its workers and their commitments to the organization. For example, Samsung’s accomplished and overall prepared workers use the assets and resources they are given productively and viably, prompting high revenue. The result is the broad rundown of inventive and condition of the craftsmanship items. Samsung has even settled an instructive framework for the whole organization that touches on all parts of the nature, items, and offices. Fields of study incorporate, yet are not restricted to, ecological mindfulness, lawful training, and employment of specific instruction.

This therefore develops a shared opinion and attitude that imparts a green administration outlook in all of Samsung workers. The determination of its administration is additionally what permits Samsung to exceed expectations in the business. Innovativeness, cooperation, and perfection are the signs of initiative and administration at Samsung.

One of Samsung’s methodologies has been to give cutting edge innovation, including advancement and utilitarian item plan. Samsung is centered around nonstop advanced cell evolutionary upgrades. Samsung is additionally striving to be the smartphone market pioneer and make, and keep up, a solid and enduring separation advantage over Apple and its different rivals. Samsung is additionally trying to increase worldwide piece of the pie by esteeming and focusing on the limitless capability of the various developing markets.

Recommend one (1) appropriate new business strategy for each company that may maximize profitability and improved competitiveness in the industry. Provide a detailed rationale for this strategy.

While having greater market share of any given business sector is not so much the best strategy, not having a mid-evaluated smartphone simply may hamper Apple’s capacity to get clients into the Apple business system. Since its clients have a high probability of staying with Apple, the potential dispatch of an entry-level smartphone could have major long haul advantages for Apple.

The greatest and most persuasive assets for Samsung are the ability of its representatives and the determination of its administration. It is administration’s steady objective to draw on the planet’s most capable, and ceaselessly advance the organization’s society to help them. It is administration’s conviction that this will bring creative thoughts that development innovation and the organization’s method of making the most current items that enhance the lives of Samsung’s clients.

Evaluate the success of both companies’ corporate-level strategies in terms of horizontal integration, vertical integration, strategic outsourcing, or diversification. Next, determine the type of strategy that contributed most effectively to the creation of a successful and profitable multi-business model. Provide a detailed rationale to support the response.

Vertical integration allows an organization to control its final products and its market. In engineering, Apple for almost forty years has championed a vertical integration model, which offers a coordinated fittings and programming methodology. For example, the iPhone and iPad have software and hardware planned by Apple, which likewise outlined its own particular processors for the gadgets.

Currently, Apple has figured out how to adjust vertical reconciliation with an outsourcing model. For instance, Apple concentrates on outline and reconciliation. The company has conveyed a cross breed model, where it has control over the item and production network, thereby creating a successful and profitable multi-business model.

Corporate level strategies are used by both Apple and Samsung for the general achievement and to attain advantage in the business over their competitors. By taking the illustration of Apple, all the employees are fulfilled successfully on the grounds that this helped the workers in offering their best and in self-rule. On the other hand, the horizontal integration has permitted Samsung to have more prominent control of both costs and expenses, for example, better economy of scale (Wambui, 2013). Coupled with outsourcing, operational, regulatory and different costs, Samsung has been able to create a successful and profitable multi-business model. For example, Samsung’s multi-sided plan of action has enabled it to accomplish its objectives successfully (Segall, 2012).

Analyze the strategies that the internal leadership of both Apple and Samsung has taken to discourage unethical behavior. Provide at least three (3) examples of such leadership in action from both companies to support the response.

Apple and Samsung have taken a shot at executing different activities and techniques in their associations with a specific end goal to stay away from dishonest conduct and to make a decent picture in the worldwide business sector. There are a great deal of methodologies utilized by the administration of both Apple and Samsung to dishearten deceptive conduct (Schneiders, 2010).

The distinctive techniques utilized by Apple as a part of demoralizing dishonest conduct incorporates a well-written and effective code of conduct statement. This statement puts the organization on record for taking a stance on what is adequate and what is unsuitable (Katie, 2013).  Additionally, Apple conducts continuous training to encourage moral speculation which assuredly yields moral conduct. These training are conducted through open discussions, motivational talking, features and hand-outs to show the vitality of morals in the working environment (Sheehan, 2011).

Moreover, Apple’s Human Resource group must join the implicit rules into the introduction of new Apple staff. The morals trainings conducted by Apple through motivational talks and features and hand-outs to outline the imperativeness of morals in the working environment are likewise being utilized by human resource to advise all new contracts. For example, when the human resource groups of Apple recruits new employees, they must teach the new workers about respect to morals (Sull, 2005).

The Samsung Company likewise has actualized a few methods to get its moral message crosswise over to its administration and employees. Samsung has made a balanced check and balance. This is a standout amongst the most paramount strategies that are utilized by Samsung to support moral conduct. For instance, the organization makes an arrangement of balanced governance to minimize the opportunities for untrustworthy conduct (Srinivaas, 2014).

Samsung has likewise worked at building a corporate society of straightforwardness, openness, and correspondence with the workers and administration. Such activities helps the Samsung Company in encouraging and advancing the production of moral conduct in the representatives and administration, particularly administration (Katie, 2013).

The Samsung Company likewise utilizes different deliberate approaches and practices to improve moral conduct. For example, different methods are utilized by the organization’s human resource office in regards to morals infringement by characterizing, distinguishing, and reporting them (Sheehan, 2011).

Assume that both Apple and Samsung are in need of organizational change and must alter existing strategies. Recommend three (3) specific ways in which Apple and Samsung could change functional, business, and corporate strategies, as well as organizational structure and control in order to improve business performance and competitiveness in their industry. Provide a rationale to support the response.

            In today’s business world, there are different inventive and powerful ways, techniques and methodologies utilized by the business associations (Lewis, 2011). In the same way, diverse ways can be embraced and utilized by both Apple and Samsung for the hierarchical change. Notwithstanding this, both the associations, for example, Apple and Samsung would have the capacity to change utilitarian, business, and corporate systems, and in addition hierarchical structure and control keeping in mind the end goal to enhance business execution and aggressiveness in their industry (Hielkema, 2012). For example, both the business associations ought to concentrate on the given underneath ways/routines and systems for the general organizational change.

First, reengineering the organization’s procedures and methods is a standout amongst the best and exhaustive strategies that ought to be utilized by Apple and Samsung as a part of seeking after compelling change. Both organizations must concentrate on the work required to finish such change. Second, both Apple and Samsung ought to actualize the steps fundamental for executing changes. For instance, this procedure will help the association in concentrating on considerably enhancing profit, proficiency, and quality or client fulfillment (Davies, 2011). Third, both Apple and Samsung must envision and shape the future with strategy. This is a to a great degree paramount and generally utilized method needed to execute significant and enduring authoritative change. The Apple and Samsung administration must assume liability for effecting the association with positive change (Hielkema, 2012).

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