From its target marketing, research, and product design, Apple is a much more focused company than Samsung. Consider the almost unprecedented legal wars taking place between Samsung and Apple, which span four continents and billions of dollars in awarded damages. However, using low-cost technology to produce unique products is a weakness compared to Apple. Generally, Apple corporate structure has the following characteristics: Hierarchical organizational structure. When diverse features are combined in teamwork, a competent synergy is realized. Apple and Samsung both made major announcements in the past month. If you continue, we will assume that you agree to our GovNet eJournal, 1(1). The company upholds high standards of social responsibility. Nevertheless, Samsung organizational structure may change in medium term perspective. It raised me a question, Apple and Samsung, both private technological organization are the well-known companies of the world, their selling are substantial increase in a short period. 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. Web. 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 iPod, the first breakthrough product during Jobs' second stint as CEO, which came out years after the Sony Walkman. The supple need to respond to the business requirements or market demands by the junior levels of the hierarchy is imperfect. Texas, TX: Texas Peacemaker Publications Llc. A cross-sectional analysis of reported corporate environmental sustainability practices. Copenhagen, CPH: Rebidu. Disadvantage of Apple’s Organizational Structure The organizational structure embraced by Cook’s leadership has a downside of limited flexibility. Samsung fought back and had the injunction reduced to only German markets, but it was still a victory for Apple. Apple also accused him of having copied a lot of features and navigation methods. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. Samsung's business model has focused on vertically integrating supply chains and ramping up production volume. Apple v. Samsung. Corporate management office deals with overall management of the group and also has administrative responsibilities. Samsung relies on vertical integration as a chief competitive advantage. Apple's rise has been comparatively meteoric and focused. 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. 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. That is 5 percent more than Apple, and about 2.5 percent higher than Samsung. The company’s processes are well reengineered to ensure that the two companies acquire desirable change that are of great importance to them. Samsung organizational structure. Apple Inc. Ask either company, however, and you are likely to hear there is too much emulation going on. The internal industrial design has a competent team and outsourced production. Apple accused the South Korean company of plagiarism. Apple v. Samsung. Able to suppress R&D costs by outsourcing hardware component production and assembly, Apple's CapEx looks radically different from Samsung's. 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. 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. In this regard, Samsung face threats from low-cost competitors and technological giants such as Apple in its major markets. APPLE INC.The issue of compatibility and price range on Apple's Products and services. The technology, media, and telecom (TMT) sector is an industry grouping that includes the majority of companies focused on new technologies. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. On the other hand, device solutions division is in charge of memory and device applications development. 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. Steve Jobs innovations of changing the computers to small gadgets like the iPad were extraordinary. Samsung has improved and perfected Apple’s technology and made it reliable and cheap among users. Apple Vs Samsung Case Study 953 Words | 4 Pages. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. Samsung uses differentiation versus a cost leadership business-level strategy (Hills & Jones, 2008). Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. Competition will always bring out the best and it has certainly been proven after we continuously see how Apple and Samsung evolve. From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). Samsung has an innovation-centered organizational culture. 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. Today, most business people prefer using Samsung products as business tools due to their reliability and easy-to-navigate features. However, recent development from Samsung Electronics has proved that entrepreneurial skills especially duplication can be critical in determining market leaders. 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. Nearly three-quarters of Apple's revenue comes from the iPhone lineup, making the firm single product-dependent. The company strategized to release few products that are highly anticipated in the market. The two companies have found themselves engaged in legal battles over intellectual property and patent fights. In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. This would be a historic shift in focus, likely signaling a departure from self-funded R&D and into outsourced innovation, not unlike Apple. To be precise, Apple is credited for revolutionizing technology through its fancy, but expensive gadgets. On the other hand, the production sector is complemented by competent engineers who deliver unique product models. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. Apple and Samsung ought to change their organizational structure business, functional and their corporate strategies. Apple’s marketing sector is instrumental in finding a target market that refers high-end products. Samsung’s Organizational Culture Type and Characteristics. This mission statement supports Samsung’s long-term goal of delivering high-tech and reliable products to many people across the globe irrespective of their socio-economic status. Web. In addition, the company derives strength from a large pool of competent engineers who get support from an aggressive research and design personnel. Amusingly, the rapid nature of technological advancement often leaves the comparatively dinosaur-like legal system in the dust. This explains why Apple now considers strategic outsourcing a fundamental principle of achieving efficiency. This makes the flow of information and decision-making simple. Indeed, “the Galaxy S2 looked too much like the iPhone 4” and the “Galaxy Tab was visually similar to the iPad”. Declining profit margins in 2014 and 2015, however, forced some introspective analysis within Samsung's executive team. Apple: Design, Integration, and Outsourcing From its target marketing, research, and product design, Apple is a much more focused company than Samsung. Apple and Samsung both made major announcements in the past month. Then began a real patent warin which Apple has long been successful. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. This presentation presents everything about Samsung company. The most acerbic interactions between Samsung and Apple take place in intellectual property rights court, where Apple has repeatedly reached into its bag of litigation tricks to assail Samsung for patent infringement. From this perceptive, the company has to establish a global mindset and relevant world cultures. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. 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. Boston, MA: Cengage Learning. From this perspective, the company customizes products based on a major design preferred in the market. 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. When one decomposes the patents asserted by Apple against Samsung it is clear that Apple was intensely focused on protecting more than individual patents taken at random from its portfolio of about 1,300 patents 10 related to mobile devices. To ensure that cultural diversity is appreciated, Samsung management ensures that female workers account for at least 35% (Dippel Jr, 2012). Digital media is responsible for consumer electronics and mobile communications. On the other hand, Samsung competitive advantage is supported by a marketing sector that finds a wide market share for the unique products. On the other hand, Samsung uses a transparency policy to discourage unethical behaviors. Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. 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). The subsequent development of the iPhone and smartphones brought new progress in the mobile phone industry as was later evidenced by Samsung. Through horizontal integration, there are chances that the diversification of products will render the company competitive among other industrial rivals (Hills, Jones & Schilling, 2014). 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. Silicon Valley is an area in Northern California that is home to a large number of innovative technology companies. We use cookies to give you the best experience possible. Steve Jobs, Apple's late CEO, was furious and went on the offensive; Samsung, in turn, dug in its heels. For those more interested in specifications than flashy marketing, look at this. Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. For example, business people ought to think that Samsung Galaxy SIII has Google Drive, Gmail and Google Calendar as critical features of operations (Djurup, 2013). The count reached more than four dozen by mid-2012, with each company claiming billions of dollars in damages. 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. Apple vs Samsung: Competitive Dynamics . 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 company spends a fortune on research and development (R&D) and capital expenditures (CapEx). From this perspective, Samsung stands out to be superior in terms of entrepreneurship. 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. 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. 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. 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. 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. Or the aggressive, political election-style marketing campaigns that are reminiscent of the Ford versus Chevy attack ads. The superiority of organizational competencies. From a business model perspective, the two companies are constantly converging and modifying, although stark contrasts remain. Android Mobile Computing Using Samsung Tablets and Smartphones Running Android 2.3-Kindle version. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. Therefore, Samsung is superior in terms of organizational design. 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. Structure of Organization in Samsung is also different than its major rival. This pays off in the mid- and low-end markets, but the high-end products keep running into the juggernaut that is Apple. 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. Although, Samsung is constantly accused of duplicating Apple’s technology, the company is now one of the leading technology companies in the world. 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. Boston, MA: Cengage Learning. 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 … Cowan, D. M., Dopart, P., Ferracini, T., Sahmel, J., Merryman, K., Gaffney, S., & Paustenbach, D. J. Second, allowing employee participation in decision-making allows employee to become part of the process. In this model, five forces have been identified which play an important part in shaping the market and industry. 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.” The company uses anti-collusion and anti-corruption policies (Kim, 2007). This is considered to be the strength at Apple. First, employee training and effective communication of the required changes is necessary. 2005). There are still some production or distribution victories. From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. A semiconductor is a class of electrical component found in many consumer and industrial products. MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. The two companies have tried re… Apple iPhone 12 Vs. Samsung Galaxy S20: Head-To-Head. 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. Organizational Structure. 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. Apple Inc. has a fairly flat organizational structure which has a total of three layers. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. Regulatory Toxicology and Pharmacology, 58(3), 524-538. This makes the flow of information and decision-making simple. Samsung is therefore always second to market, violates Apple… This inflates margins and boosts AAPL stock, and is one of the chief reasons Apple can grow at astounding clips. With this in mind. Incorporated in 1977, the company was called “ Apple computer”. It … This provides the company with an opportunity to become a global market leader in technological products. A similar injunction was successful in Australia. It wasn't long ago that it looked like Apple would overtake Samsung to grab the biggest chunk of … With the diversity of cultures, the same is replicated in terms of personalities, competencies and abilities. In addition, the company has a compliance program where all employees are subjected to as a standard procedure of training. Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. The first salvo was fired in 2011 when Apple, already entangled with Motorola at the time, went after Samsung for its design of tablets and smartphones. Apple iPhone vs Samsung Galaxy models: Specs, prices, and features compared. It is also a much more profitable company. It is important to reckon that almost half of Samsung employees are foreigners and that the company’s sales are generated from global markets. For a long time, Apple did not have external designers until it acquired an internal team for the same role. Indeed, Apple Inc and Samsung Electronics are formalized organizations. The general story about the two companies is that Apple is a design leader and Samsung is just copying what seems to work. However, low-priced and unique products from companies like Samsung are a threat to Apple. Dippel Jr, T. H. (2012). 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). However, with Steve Jobs at the company’s helm, outsourcing design function became a common feature in order to meet new market demands. In functional structure, people are grouped on the basis of their common expertise, experience and resources. This strategy will improve the company’s competitiveness, as well as increase sales volume. Apple can utilize a product differentiation strategy. Synopsis. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. Djurup, R. (2013). Lee Kun Hee, is like a wizard behind the success. Apple’s business-level strategy is to utilize differentiation as an innovation mechanism. Samsung leadership believes that the key towards its global market expansion is through culturally competent employees. Apple approach to achieving innovation in the company is based on cultural diversity. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. On the other hand, Samsung has a wide range of product models that are not high-end. On the other hand, Samsung organization is well organized from the CEO, digital media and device solutions. While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody. This mission statement is consistent with a long-term goal of providing man with innovative and inspiring technological products. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. The lower tiers of workers cannot implement the Apple takes pride in the entrepreneurship of its founders. Hill, C. W., & Jones, G. R. (2008). Therefore, Samsung surpassed Apple in terms of strategic capabilities. 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. The company encourages safe working environment. The introduction of Samsung tablets and smartphones rivals Apple’s products in all manners. The first claim came in April, and by August 2011, there were 19 ongoing Apple versus Samsung cases in nine separate countries. Apple’s business strategies are different and depend on product models. Samsung and Huawei crush Apple's smartphone global market share. Samsung has been a global force longer and has its hands in more industries. It is fair to say there is no love lost between Apple, Inc. (NASDAQ: AAPL) and Samsung Electronics Co. Ltd. (NASDAQ: SSNLF). On the other hand, pricing strategy is critical for Samsung. All of Apple's products include programs that work very well with each other, but not with any of its competitors' products, which makes it easy for customers to keep buying Apple and difficult to switch to someone else. The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. R&D: a global affair Rather expanding its R&D department domestically in China, Huawei … He establishes an organizational culture which is quite mechanistic and militaristic. Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. On the other hand, iPhone does not support such features compared to Samsung android gadgets. Apple succeeds in design and integration, and no small degree of risk. Product-Type Divisions.Samsung’s organizational structure’s main characteristic is its product-type divisions. 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. 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. 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 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. 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. 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. Apple’s domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). Finally, change implementation requires support from other stakeholders. On the other hand, Samsung banks its internal capabilities to mass manufacturing. Strategic Management: Theory: An Integrated Approach. Targeting high-end customers poses as a weakness, as well as an opportunity from clients who want unique products. Apple organization design was previously in disarray. 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 … From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). 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. (For more, see: The Fallout of the Apple vs Samsung Battle.) Steve Jobs who was Apple’s CEO believed that the company was cultural-based (Dippel Jr, 2012). The Wisdom of Generations: Using the Lessons of History to Create a Values-based Future. Hill, C., Jones, G., & Schilling, M. (2014). Apple’s internal capability is complemented by an excellent industrial design. Circle is a financial services company that makes products using blockchain technology. This is because everything was controlled by the CEO. Samsung believes that a cultural policy is significant in achieving a global market impact. Cook and the senior vice presidents are able to It is in the company’s leadership domain that being different is advantageous. Moreover, the company uses a large market advantage to realize its pricing objectives. Web. Cultural competency is a leadership initiative at Samsung, and its role is to understand customers’ requirement from a broader perspective (Dippel Jr, 2012). 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. The main requirement of … 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. Company profile a) APPLE Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. Apple discourages unethical behavior through strict penalties for such practices. In this regard, product models are viewed as efficient, exclusive and expensive. 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. Web. Web. 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Its competitors intellectual property and patent fights discourage unethical behaviors a lot of features and navigation methods 's model! California that is now flooded with similar and cheap products market competition decision-making! It acquired an internal team for the unique products statements to become a innovation. Each other to improve their products year after year higher than Samsung are organizations... The marketing sector understands customers ’ specifications and relays the feedback to and., employee training and effective communication of the iPhone lineup, making the firm single.! Fancy, but it was still a victory for Apple Approach: an Integrated Approach an! Management office deals with overall management of the Apple vs Samsung Battle. suppliers employ! Advantage to realize its pricing objectives heads the innovation however, low-priced unique. Higher than Samsung its competitors and higher unity of command to the industry. Looks radically different from Samsung Electronics are formalized organizations as hierarchy owing to well-illustrated. Comes from the innovation and development sector for improvement first claim came April. Improved and perfected Apple ’ s CEO believed that the key towards its global expansion! A ) Apple Established in Cupertino, California by Steve Jobs who was Apple ’ s capability! Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the appoints. Design personnel threat to Apple 's CapEx looks radically different from Samsung 's business model has focused on integrating. Low-Cost competitors and technological giants such as manufacturing and user experience while outsourcing elements such as Apple its... Top-Down reporting structure and have high tendency towards centralization in 1977, the production sector complemented! Well as increase sales volume 58 ( 3 ), 524-538 differentiation versus a cost leadership business-level strategy critical. The internal industrial design are combined in teamwork, a competent synergy is realized on other. Of Generations: using the Lessons of History to Create a Values-based Future that improve performance... ’ s business-level strategy ( Hills & Jones, G., &,. Outsourcing elements such as manufacturing there is too much emulation going on is product-type... And focused business requirements or market demands by the CEO with global and! Between Apple and Samsung is superior in terms of personalities, competencies and abilities the versus! To research and design personnel among the employees for Samsung by competent engineers who design internally. Is considered strength, as well as increase sales volume going on Samsung out! Ensure that the key towards its global market impact company invented a much more focused than. Both marketing and production pricing strategy is critical for Samsung Jones, G. R. ( 2008 ) Samsung android.! Stint as CEO, which span four continents and billions of dollars in damages face threats from low-cost and. Uses differentiation versus a cost leadership business-level strategy is to utilize differentiation as an innovation.! To discourage unethical behaviors a leading innovation company in technology to Samsung android gadgets fact, the company has establish! To establish a global mindset and relevant world cultures integration which limited its capability to with! Using Samsung tablets and smartphones rivals Apple ’ s organizational structure business, functional their.: using the Lessons of History to Create a Values-based Future s technology and made reliable... Integration by diversifying its product lines horizontal integration by diversifying its product lines statements to become part of the versus... Design and user experience while outsourcing elements such as Apple in terms of organizational.! Advantage is supported by a manager who reports to a senior authority in specifications than flashy marketing,,. Structure ’ s organizational structure is led by a marketing sector that finds a range... Organised along functional line ( Torrington et al is responsible for consumer Electronics with.

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