Apple Inc. The count reached more than four dozen by mid-2012, with each company claiming billions of dollars in damages. The main requirement of … 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. Samsung's business model has focused on vertically integrating supply chains and ramping up production volume. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. Djurup, R. (2013). The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. It … We use cookies to give you the best experience possible. Boston, MA: Cengage Learning. Indeed, “the Galaxy S2 looked too much like the iPhone 4” and the “Galaxy Tab was visually similar to the iPad”. Or the aggressive, political election-style marketing campaigns that are reminiscent of the Ford versus Chevy attack ads. Samsung has improved and perfected Apple’s technology and made it reliable and cheap among users. A cross-sectional analysis of reported corporate environmental sustainability practices. 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. Apple approach to achieving innovation in the company is based on cultural diversity. Samsung has an innovation-centered organizational culture. This provides the company with an opportunity to become a global market leader in technological products. In this model, five forces have been identified which play an important part in shaping the market and industry. The introduction of Samsung tablets and smartphones rivals Apple’s products in all manners. 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. From this perspective, the company customizes products based on a major design preferred in the market. Nevertheless, Samsung organizational structure may change in medium term perspective. Texas, TX: Texas Peacemaker Publications Llc. 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. However, recent development from Samsung Electronics has proved that entrepreneurial skills especially duplication can be critical in determining market leaders. Samsung is aware of product plan and development of Apple. Finally, change implementation requires support from other stakeholders. In this regard, Samsung face threats from low-cost competitors and technological giants such as Apple in its major markets. It is fair to say there is no love lost between Apple, Inc. (NASDAQ: AAPL) and Samsung Electronics Co. Ltd. (NASDAQ: SSNLF). The internal design team has been credited with innovations of modern mobile technologies. 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. With the diversity of cultures, the same is replicated in terms of personalities, competencies and abilities. The marketing sector understands customers’ specifications and relays the feedback to research and development sector for improvement. The company’s processes are well reengineered to ensure that the two companies acquire desirable change that are of great importance to them. However, using low-cost technology to produce unique products is a weakness compared to Apple. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. First, employee training and effective communication of the required changes is necessary. APPLE’S ORGANIZATIONAL STRUCTURE ANALYSIS 5 . Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. Apple’s business strategies are different and depend on product models. For a long time, Apple did not have external designers until it acquired an internal team for the same role. Second, allowing employee participation in decision-making allows employee to become part of the process. 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. Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Apple can utilize a product differentiation strategy. Steve Jobs innovations of changing the computers to small gadgets like the iPad were extraordinary. The company strategized to release few products that are highly anticipated in the market. Android Mobile Computing Using Samsung Tablets and Smartphones Running Android 2.3-Kindle version. Samsung is therefore always second to market, violates 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. 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. Apple accused the South Korean company of plagiarism. From this perspective, personnel from diverse cultural backgrounds are employed to provide the company with the required competencies. The two companies have tried re… (2007). 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. The internal industrial design has a competent team and outsourced production. Apple organization design was previously in disarray. This is because everything was controlled by the CEO. With this in mind. Samsung uses differentiation versus a cost leadership business-level strategy (Hills & Jones, 2008). Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. Indeed, Apple Inc and Samsung Electronics are formalized organizations. In fact, the company prefers to keep its organization structure a secret from its competitors. Apple vs Samsung: Competitive Dynamics . Boston, MA: Cengage Learning. 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 … On the other hand, Samsung organization is well organized from the CEO, digital media and device solutions. Apple Inc. has a fairly flat organizational structure which has a total of three layers. 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. Kim, Y. J. However, the company appoints a brand manager who heads the innovation and development of a product model. This makes the flow of information and decision-making simple. Steve Jobs, Apple's late CEO, was furious and went on the offensive; Samsung, in turn, dug in its heels. Strategic Management: An Integrated Approach: An Integrated Approach. 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. This is considered to be the strength at Apple. Finally, the company does not trade with suppliers who employ children. 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. 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. A semiconductor is a class of electrical component found in many consumer and industrial products. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. Through horizontal integration, there are chances that the diversification of products will render the company competitive among other industrial rivals (Hills, Jones & Schilling, 2014). R&D: a global affair Rather expanding its R&D department domestically in China, Huawei … 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.” Although, Samsung is constantly accused of duplicating Apple’s technology, the company is now one of the leading technology companies in the world. In functional structure, people are grouped on the basis of their common expertise, experience and resources. 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 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. This provides employees with an opportunity to reflect and own the ideas of change. 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)." 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). On the other hand, Samsung has a wide range of product models that are not high-end. 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. 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 competition between Apple and Samsung is great thing for consumers because they are forcing each other to improve their products year after year. 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 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. In addition, the company has a compliance program where all employees are subjected to as a standard procedure of training. On the other hand, device solutions division is in charge of memory and device applications development. It wasn't long ago that it looked like Apple would overtake Samsung to grab the biggest chunk of … Lee Kun Hee, is like a wizard behind the success. In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. 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 … Nevertheless, Samsung organizational structure may change in medium term perspective. In addition, the company derives strength from a large pool of competent engineers who get support from an aggressive research and design personnel. Synopsis. Apple v. Samsung. This makes the flow of information and decision-making simple. In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. Declining profit margins in 2014 and 2015, however, forced some introspective analysis within Samsung's executive team. Therefore, Samsung surpassed Apple in terms of strategic capabilities. 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 … Disadvantage of Apple’s Organizational Structure The organizational structure embraced by Cook’s leadership has a downside of limited flexibility. From its target marketing, research, and product design, Apple is a much more focused company than Samsung. Competition will always bring out the best and it has certainly been proven after we continuously see how Apple and Samsung evolve. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. For a long time, Apple did not have external designers until it acquired an internal team for the same role. He establishes an organizational culture which is quite mechanistic and militaristic. The offers that appear in this table are from partnerships from which Investopedia receives compensation. On the other hand, the production sector is complemented by competent engineers who deliver unique product models. 2005). 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. Regulatory Toxicology and Pharmacology, 58(3), 524-538. Each level of organizational structure is led by a manager who reports to a senior authority. From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). 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. Strategic Management: Theory: An Integrated Approach. APPLE INC.The issue of compatibility and price range on Apple's Products and services. This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. In this regard, product models are viewed as efficient, exclusive and expensive. Apple's rise has been comparatively meteoric and focused. Steve Jobs who was Apple’s CEO believed that the company was cultural-based (Dippel Jr, 2012). 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. According to the information obtained from various sources, it can be concluded that Apple has a wide span of control while Samsung has a narrow span of control. 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). From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. Apple succeeds in design and integration, and no small degree of risk. 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. 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. Samsung and Huawei crush Apple's smartphone global market share. On the other hand, Samsung competitive advantage is supported by a marketing sector that finds a wide market share for the unique products. Samsung relies on vertical integration as a chief competitive advantage. 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. If you continue, we will assume that you agree to our From this perceptive, the company has to establish a global mindset and relevant world cultures. 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. Generally, Apple corporate structure has the following characteristics: Hierarchical organizational structure. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. That is 5 percent more than Apple, and about 2.5 percent higher than Samsung. 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 upholds high standards of social responsibility. Samsung’s Organizational Culture Type and Characteristics. In this regard, the company promotes diversity of cultures among the employees. Apple also accused him of having copied a lot of features and navigation methods. This is critical in reducing the cost of production. 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 explains why Samsung has always preferred horizontal integration by diversifying its product lines. Product-Type Divisions.Samsung’s organizational structure’s main characteristic is its product-type divisions. The first claim came in April, and by August 2011, there were 19 ongoing Apple versus Samsung cases in nine separate countries. 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. Web. The lower tiers of workers cannot implement the Incorporated in 1977, the company was called “ Apple computer”. This strategy will improve the company’s competitiveness, as well as increase sales volume. Apple discourages unethical behavior through strict penalties for such practices. Indeed, Apple cemented its name as a technology leader in terms of innovations. The technology, media, and telecom (TMT) sector is an industry grouping that includes the majority of companies focused on new technologies. Apple: Design, Integration, and Outsourcing From its target marketing, research, and product design, Apple is a much more focused company than Samsung. Company profile a) APPLE Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. GovNet eJournal, 1(1). The company uses anti-collusion and anti-corruption policies (Kim, 2007). Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. R&D: a global affair Rather expanding its R&D department domestically in China, … 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). Samsung believes that a cultural policy is significant in achieving a global market impact. 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. (For more, see: The Fallout of the Apple vs Samsung Battle.) The company aligns its business strategy to both marketing and production. In this regard, Samsung has achieved crucial collaborations from other technological firms that act as suppliers and external designers of critical product components. 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. Web. Therefore, Samsung is superior in terms of organizational design. 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. 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). 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. On the other hand, Samsung uses a transparency policy to discourage unethical behaviors. Apple v. Samsung. 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. 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. From this perspective, Samsung stands out to be superior in terms of entrepreneurship. Circle is a financial services company that makes products using blockchain technology. Apple’s business-level strategy is to utilize differentiation as an innovation mechanism. Silicon Valley is an area in Northern California that is home to a large number of innovative technology companies. Cook and the senior vice presidents are able to MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. Apple is using its mission and vision statements to become a leading innovation company in technology. Web. 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. Able to suppress R&D costs by outsourcing hardware component production and assembly, Apple's CapEx looks radically different from Samsung's. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. The New Paradigm of Anti-corruption Policies in Korea: A Focus on the Lobbying Disclosure Act. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. Apple Vs Samsung Case Study 953 Words | 4 Pages. Samsung organizational structure. 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. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. To ensure that cultural diversity is appreciated, Samsung management ensures that female workers account for at least 35% (Dippel Jr, 2012). Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. Apple’s domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). This presentation presents everything about Samsung company. 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. Cultural competency is a leadership initiative at Samsung, and its role is to understand customers’ requirement from a broader perspective (Dippel Jr, 2012). Copenhagen, CPH: Rebidu. 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