Synopsis. Cookies Policy, Apple vs. Samsung: Companies Business Strategies Comparison, Transformational Leadership and Management, The Muenster Pump Company: Reducing Costs, Foreign Investment in India’s and China’s Telecom, The Nestle Company’s Sales Stagnation in China, Bridgeport Drones Company’s Services and Products, Fast-Food Industry’s Market Place and Environment, Containerization, Its Pros & Cons, and Future. On the other hand, iPhone does not support such features compared to Samsung android gadgets. This pays off in the mid- and low-end markets, but the high-end products keep running into the juggernaut that is Apple. Apple organization design was previously in disarray. STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Apple Vs Samsung Case Study: To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. (2007). A semiconductor is a class of electrical component found in many consumer and industrial products. Web. The company aligns its business strategy to both marketing and production. From its target marketing, research, and product design, Apple is a much more focused company than Samsung. However, recent development from Samsung Electronics has proved that entrepreneurial skills especially duplication can be critical in determining market leaders. Product-Type Divisions.Samsung’s organizational structure’s main characteristic is its product-type divisions. The lower tiers of workers cannot implement the Each division is a group of resources and operations that represent a product category, such as resources and operations for the production, distribution, and sale of … Each level of organizational structure is led by a manager who reports to a senior authority. Apple’s domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). Consider the iPod, the first breakthrough product during Jobs' second stint as CEO, which came out years after the Sony Walkman. Copenhagen, CPH: Rebidu. Targeting high-end customers poses as a weakness, as well as an opportunity from clients who want unique products. GovNet eJournal, 1(1). This is considered to be the strength at Apple. From this perspective, Samsung stands out to be superior in terms of entrepreneurship. Competition will always bring out the best and it has certainly been proven after we continuously see how Apple and Samsung evolve. On the other hand, the production sector is complemented by competent engineers who deliver unique product models. R&D: a global affair Rather expanding its R&D department domestically in China, … Nearly three-quarters of Apple's revenue comes from the iPhone lineup, making the firm single product-dependent. Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Apple’s business strategies are different and depend on product models. Steve Jobs who was Apple’s CEO believed that the company was cultural-based (Dippel Jr, 2012). Kim, Y. J. Apple vs. Samsung: Everything you need to know about tech’s biggest court battle By Geoff Duncan August 8, 2012 Technology giants Apple and Samsung are duking it out in a … Apple v. Samsung. Finally, change implementation requires support from other stakeholders. In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. This makes the flow of information and decision-making simple. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. The company uses anti-collusion and anti-corruption policies (Kim, 2007). Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. When Apple Inc., unveiled its latest smartphones iPhone 6 and iPhone 6 Plus in September 2014, industry experts, opined that Apple might finally have the right ingredients to sap the advantages of Samsung’s Galaxy line of smartphones and reverse Samsung… Apple Vs Samsung Case Study 953 Words | 4 Pages. APPLE INC.The issue of compatibility and price range on Apple's Products and services. Samsung's business model has focused on vertically integrating supply chains and ramping up production volume. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. From this perspective, the company customizes products based on a major design preferred in the market. We compare the most popular new iPhone from Apple’s iPhone 12 series with its closest rival in the 2020 Galaxy S series, the Samsung … Indeed, Apple Inc and Samsung Electronics are formalized organizations. 2005). The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. In this regard, Samsung has achieved crucial collaborations from other technological firms that act as suppliers and external designers of critical product components. Apple’s internal capability is complemented by an excellent industrial design. The count reached more than four dozen by mid-2012, with each company claiming billions of dollars in damages. A similar injunction was successful in Australia. Samsung has improved and perfected Apple’s technology and made it reliable and cheap among users. Apple iPhone vs Samsung Galaxy models: Specs, prices, and features compared. Samsung has been a global force longer and has its hands in more industries. The electronics titans square off in a tangled tale of mobile technology, centered on Apple's iPhone and iPad, that delves into where one company's designs end and another's begin. Silicon Valley is an area in Northern California that is home to a large number of innovative technology companies. Apple accused the South Korean company of plagiarism. Therefore, Samsung is superior in terms of organizational design. Finally, the company does not trade with suppliers who employ children. From this perspective, personnel from diverse cultural backgrounds are employed to provide the company with the required competencies. So I am interested in how different or any similarity on their structure or management, since they both are the big competitors within the market of mobile phone. Web. Having sold 77.3 million iPhones in the holiday quarter, Apple climbed back to the top of the smartphone market for just the third time since losing pole position to Samsung in 2011. The company strategized to release few products that are highly anticipated in the market. This mission statement is consistent with a long-term goal of providing man with innovative and inspiring technological products. To ensure that cultural diversity is appreciated, Samsung management ensures that female workers account for at least 35% (Dippel Jr, 2012). The marketing sector understands customers’ specifications and relays the feedback to research and development sector for improvement. Djurup, R. (2013). Apple iPhone 12 Vs. Samsung Galaxy S20: Head-To-Head. The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. However, the company appoints a brand manager who heads the innovation and development of a product model. The Wisdom of Generations: Using the Lessons of History to Create a Values-based Future. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. Apple’s marketing sector is instrumental in finding a target market that refers high-end products. Ask either company, however, and you are likely to hear there is too much emulation going on. From this perceptive, the company has to establish a global mindset and relevant world cultures. Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. The palette of patents asserted against Samsung is a clear and convincing example of the concept that “the whole is greater than the sum of its parts.” Indeed, Apple cemented its name as a technology leader in terms of innovations. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. However, low-priced and unique products from companies like Samsung are a threat to Apple. Cowan, D. M., Dopart, P., Ferracini, T., Sahmel, J., Merryman, K., Gaffney, S., & Paustenbach, D. J. (2010). With this in mind. The company’s processes are well reengineered to ensure that the two companies acquire desirable change that are of great importance to them. This makes the flow of information and decision-making simple. Apple will not fix the services it already has, or deliver on the promise of the services its hardware might yet enable, unless a new kind of organization is built around these services that has a fundamentally different structure, different incentives, and different rhythms from Apple’s device teams. This is critical in reducing the cost of production. Steve Jobs, Apple's late CEO, was furious and went on the offensive; Samsung, in turn, dug in its heels. Samsung research and development sector is aggressive and always try to develop new product models as evidenced by manufacturing of the same after a short period. It wasn't long ago that it looked like Apple would overtake Samsung to grab the biggest chunk of … From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). On the other hand, Samsung competitive advantage is supported by a marketing sector that finds a wide market share for the unique products. It is not a magical formula, Nokia was almost as integrated before being steamrolled by Apple and Samsung, but Samsung controls some logistical certainty in a way that Apple does not. For this reason, the real damage is not on the production line, but rather in the mountain of legal costs incurred by Samsung and Apple around the world. First, employee training and effective communication of the required changes is necessary. Apple takes pride in the entrepreneurship of its founders. Apple and Samsung have superior organizational competencies that have helped them to exploit their innovative capacities, develop effective organizational designs, and strategic capacities for improved success and more revenue. Web. The general story about the two companies is that Apple is a design leader and Samsung is just copying what seems to work. It is fair to say there is no love lost between Apple, Inc. (NASDAQ: AAPL) and Samsung Electronics Co. Ltd. (NASDAQ: SSNLF). This provides the company with an opportunity to become a global market leader in technological products. The company upholds high standards of social responsibility. For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. Published by European Centre for Research Training and Development UK (www.eajournals.org) 16 ISSN 2053-5783(Print), ISSN 2053-5791(online) SAMSUNG ELECTRONICS AND APPLE, INC.: A STUDY IN CONTRAST IN COMPETITIVE ANALYSIS IN 21ST CENTURY Rawal Rasheed, Raheel Nawaz, Yasir Abbas 1-The Islamia University of Bahawalpur Pakistan. Table from file According to table 1 and 2, the empirical data obtained from research study reveals that the comparisons between the two leading brand in Smartphone (Samsung and Apple) indicate that Apple has 58.6% respondents while Samsung has 45.3% respondents, implying that Apple has more brand users than Samsung. We use cookies to give you the best experience possible. Cook and the senior vice presidents are able to There are still some production or distribution victories. Circle is a financial services company that makes products using blockchain technology. Samsung history, SWOT analysis, Porter's 6 force analysis, Samsung future, Samsung performance, Samsung competitors, Apple vs Samsung, Samsung mobile market and everything about Samsung. In March 2014, someone leaked a Samsung strategy document from 2012 in which the Korean-based tech company blankly stated, "Beating Apple is #1 Priority (everything must be in the context of beating Apple)." The internal industrial design has a competent team and outsourced production. This strategy will improve the company’s competitiveness, as well as increase sales volume. The marketing sector understands what the customers want in terms of the product price and ensures that low-priced models are available in the market. While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. From a business model perspective, the two companies are constantly converging and modifying, although stark contrasts remain. The superiority of organizational competencies. Disadvantage of Apple’s Organizational Structure The organizational structure embraced by Cook’s leadership has a downside of limited flexibility. Samsung history, SWOT analysis, Porter's 6 force analysis, Samsung future, Samsung performance, Samsung competitors, Apple vs Samsung, Samsung mobile market and everything about Samsung. The top tier managers are able to oversee all operations conducted within the organization which allows them to emphasize more on the strategic plans of all functional divisions in the organization. The main requirement of … The top tier managers are able to oversee all operations conducted within the organization which allows them to emphasize more on the strategic plans of all functional divisions in the organization. Both GRI and G3 evaluates the environmental performance of Apple’ products in terms of energy consumption, pollution and waste generation (Cowan, Dopart, Ferracini, Sahmel, Merryman, Gaffney & Paustenbach, 2010). Cultural competency is a leadership initiative at Samsung, and its role is to understand customers’ requirement from a broader perspective (Dippel Jr, 2012). Lee Kun Hee, is like a wizard behind the success. For a long time, Apple did not have external designers until it acquired an internal team for the same role. Regulatory Toxicology and Pharmacology, 58(3), 524-538. As the outcome of review of optimal organizational structure completed on April 2017, the senior management decided not to shift to holding pattern of organizational structure. From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). Samsung and Apple are operating in the same industry, the mobile devices and PC industry, and are the two most popular in the industry, especially in the international importing market (Hong, 2012; Lashinsky, 2013). For a long time, Apple did not have external designers until it acquired an internal team for the same role. Declining profit margins in 2014 and 2015, however, forced some introspective analysis within Samsung's executive team. The Bizarre Patent History Behind The Apple v. Samsung Battle ... Google, on the other hand, has a relatively flat organizational structure of many small teams filled with empowered individuals. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. The competition between Apple and Samsung is great thing for consumers because they are forcing each other to improve their products year after year. Or the aggressive, political election-style marketing campaigns that are reminiscent of the Ford versus Chevy attack ads. Therefore, Samsung is superior in terms of organizational design. Corporate management office deals with overall management of the group and also has administrative responsibilities. Apple Inc. has a fairly flat organizational structure which has a total of three layers. Then began a real patent warin which Apple has long been successful. Apple also accused him of having copied a lot of features and navigation methods. This corporate culture is part of an organizational design that emphasizes employees’ knowledge, skills, and abilities for innovating the company’s technology products, such as smartphones and laptops. In this regard, the company promotes diversity of cultures among the employees. It … Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. In functional structure, people are grouped on the basis of their common expertise, experience and resources. The legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only increased over the years and product launches. This presentation presents everything about Samsung company. Samsung believes that a cultural policy is significant in achieving a global market impact. Boston, MA: Cengage Learning. Strategic Management: Theory: An Integrated Approach. The company encourages safe working environment. Through horizontal integration, there are chances that the diversification of products will render the company competitive among other industrial rivals (Hills, Jones & Schilling, 2014). Apple is using its mission and vision statements to become a leading innovation company in technology. In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. It is a telling example of the animosity between two of the world's largest smartphone producers, who are clearly modifying their respective business strategies with each other in mind. The two companies have tried re… This is considered strength, as well as an opportunity for the company. Second, allowing employee participation in decision-making allows employee to become part of the process. In addition, the company derives strength from a large pool of competent engineers who get support from an aggressive research and design personnel. Company profile a) APPLE Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. Apple approach to achieving innovation in the company is based on cultural diversity. On the other hand, pricing strategy is critical for Samsung. Each level of organizational structure is led by a manager who reports to a senior authority. However, recent developments to integrate horizontally offer Apple with a chance of achieving flexibility and gaining new global markets through business collaborations (Hills, Jones & Schilling, 2014). Samsung vs. Apple Samsung's Mobile Business Is Half the Size of Apple's by Felix Richter, Feb 20, 2019 Samsung Electronics Smartphone market leader Samsung … On the other hand, Samsung has a large pool of engineers who design products internally. Although Tim Cook introduced considerable changes to Apple corporate structure since assuming the top job in 2011, the structure still remains to be highly hierarchical with many layers of management. Each firm won multiple decisions against the other between 2012 and 2015, often in conflicting rulings from German, Japanese, South Korean, American, French, Italian, Dutch, British, and Australian courts. This presentation presents everything about Samsung company. Incorporated in 1977, the company was called “ Apple computer”. This provides employees with an opportunity to reflect and own the ideas of change. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. This explains why Apple now considers strategic outsourcing a fundamental principle of achieving efficiency. Apple does not race to be first; it lets other companies spend time on R&D and early market development before swooping in and improving everything. Nevertheless, Samsung organizational structure may change in medium term perspective. On the other hand, Samsung has a renowned green management system that ensures the company’s domestic and global facilities conform to local and international environment regulations. As the outcome of review of optimal organizational structure completed on April 2017, the senior management decided not to shift to holding pattern of organizational structure. Web. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. Introduction.Marketing is a dynamic complex function performed by most organizations in reaching out to new and existing customers about a product or services being produce or delivered by organization. Samsung leadership believes that the key towards its global market expansion is through culturally competent employees. From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. On the other hand, Samsung banks its internal capabilities to mass manufacturing. Apple and Samsung ought to change their organizational structure business, functional and their corporate strategies. This is because everything was controlled by the CEO. Steve Jobs innovations of changing the computers to small gadgets like the iPad were extraordinary. For those more interested in specifications than flashy marketing, look at this. Web. Although, Samsung is constantly accused of duplicating Apple’s technology, the company is now one of the leading technology companies in the world. To be precise, Apple is credited for revolutionizing technology through its fancy, but expensive gadgets. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. Indeed, Apple Inc and Samsung Electronics are formalized organizations. Apple vs Samsung: Competitive Dynamics . Samsung is present in dozens of markets, including flat panels, sensors, LED lights, batteries, gaming systems, cameras, TVs, appliances, cellphone carriers, tablets, smartphones, and even medical electronics. Dippel Jr, T. H. (2012). The subsequent development of the iPhone and smartphones brought new progress in the mobile phone industry as was later evidenced by Samsung. Samsung operates like many other Asian producers, such as NEC Corporation or Sony Corporation, with an emphasis on vertical integration and a flood of products. Chairman Lee Kun-hee saw his company's global share of smartphone sales drop from 35% in 2013 to 24% by early 2015, and his son, Lee Jae-Yong, reportedly wants to respond through mergers and acquisitions (M&As) and partnerships. Moreover, the company uses a large market advantage to realize its pricing objectives. It made sense that Samsung would try to incorporate elements of the Apple business model, especially after the American technology giant passed Exxon Mobil Corporation as the world's most valuable company in 2011. Samsung vs. Apple's Business Model: An Overview, Samsung: Vertical Integration and Product Volume, Apple: Design, Integration, and Outsourcing, Apple vs. Samsung: Endless Patent Lawsuits, Circle (Financial Services Company) Definition, Technology, Media, and Telecom (TMT) Sector, Semiconductors: Understanding the Objects That Power Our Digital Lives. It is important to reckon that almost half of Samsung employees are foreigners and that the company’s sales are generated from global markets. That is 5 percent more than Apple, and about 2.5 percent higher than Samsung. The internal design team has been credited with innovations of modern mobile technologies. Lawsuits are a common strategy from Apple, which is one of the most legally aggressive firms in the world, but the focus on Samsung is particularly repetitive and intense. Nevertheless, Samsung organizational structure may change in medium term perspective. Apple's rise has been comparatively meteoric and focused. Hill, C., Jones, G., & Schilling, M. (2014). On the other hand, Samsung uses a transparency policy to discourage unethical behaviors. Samsung is therefore always second to market, violates Apple… It is also a much more profitable company. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Able to suppress R&D costs by outsourcing hardware component production and assembly, Apple's CapEx looks radically different from Samsung's. R&D: a global affair Rather expanding its R&D department domestically in China, Huawei … Therefore, Samsung surpassed Apple in terms of strategic capabilities. Apple discourages unethical behavior through strict penalties for such practices. As it is illustrated in figure above, apart from three divisions, Samsung organizational structure also integrates corporate management office and Samsung Advanced Institute of Technology (SAIT). Consider the almost unprecedented legal wars taking place between Samsung and Apple, which span four continents and billions of dollars in awarded damages. In this model, five forces have been identified which play an important part in shaping the market and industry. APPLE’S ORGANIZATIONAL STRUCTURE ANALYSIS 5 . Apple and Amazon shares have been undeniable winners, blowing away the broader returns of the S&P 500 SPX, +0.02% across many time periods. When diverse features are combined in teamwork, a competent synergy is realized. Digital media is responsible for consumer electronics and mobile communications. Apple Inc. v. Samsung Electronic Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. However, with Steve Jobs at the company’s helm, outsourcing design function became a common feature in order to meet new market demands. The two companies have found themselves engaged in legal battles over intellectual property and patent fights. Indeed, “the Galaxy S2 looked too much like the iPhone 4” and the “Galaxy Tab was visually similar to the iPad”. However, using low-cost technology to produce unique products is a weakness compared to Apple. Apple Inc. It is in the company’s leadership domain that being different is advantageous. Apple and Samsung both made major announcements in the past month. The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). Samsung and Huawei crush Apple's smartphone global market share. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. Android Mobile Computing Using Samsung Tablets and Smartphones Running Android 2.3-Kindle version. If you continue, we will assume that you agree to our For example, Apple won an initial ruling in 2012 that targeted more than a dozen Samsung phones, but the appeals and countersuit process dragged out until 2014 when virtually every single target model was out of production. Apple and Samsung both made major announcements in the past month. He establishes an organizational culture which is quite mechanistic and militaristic. Figure 1: Apple’s Leadership Structure (Apple Inc., 2017) Advantage of Apple’s Organizational Structure The chain of command depicted in Apple’s organizational structure positions the top management to effectively control the business. They are in a worldwide corporate battle that started in 2010 when Samsung, then an Apple supplier, released a very iPhone-like product through its Galaxy lineup. Texas, TX: Texas Peacemaker Publications Llc. In fact, the company prefers to keep its organization structure a secret from its competitors. In August 2011, for instance, a court in Germany issued an EU-wide injunction on the Samsung Galaxy Tab 10.1 device for violation of an Apple interface patent. Boston, MA: Cengage Learning. The technology, media, and telecom (TMT) sector is an industry grouping that includes the majority of companies focused on new technologies. MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. Apple vs. Samsung Apple vs. Samsung Memo From March 20, Comparison between Apple and Samsung Introduction: This proposal is a result of an English assignment where I was to write a research proposal with annotated bibliography attached to it. Great importance to them manufacturing low-priced products can be critical in reducing the cost of production from other.. Three-Quarters of Apple 's smartphone global market expansion is through culturally competent employees fortune! A total of three layers History to Create a Values-based Future competent employees field... 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