Posted: May 25th, 2022

Background information about Apple Inc.

Apple Inc. And Samsung Group)

Background information about Apple Inc. And Samsung

Apple is the global trendsetter in the electronic industry with its tablets, smart phones and computers. The computer manufacture were their core strength for a long time, but it gained momentum in other tech segments later as well. With the introduction of Macintosh contributed significantly to the sustenance of the company. Its solid financial performance is a testimony to its reliance and focus on design and creativity, not to mention durability. Hence, Apple has garnered a huge fan base for itself over the years with its simple design and high end market (Apple, 2012). The stakeholders interests were protected which furthered support from their side generating more profits from its product sales.

Apple Corporation is well-known for it’s out of budget priced products as it believes in differentiation strategy to maintain a market edge. For example, their products (iPod, iPhone) had elevated prices which signified high quality and durability and added to their market share (The New York Times, 2012). The iPod had wonderful new features and its cost was lessened in 2010 as well which escalated its sales and deepened consumer’s bond with Apple. The competitors were left behind by many a mile (Apple, 2012). This worked well with Apple’s ideology as no competitor came close to them with their quality and creativity. Sustaining a fan base is very necessary as far as long-term relationship is concerned and keeping stakeholder’s interest is concerned. In theory, it’s easy to maintain and sustain a dedicated audience instead of entering new markets. Hence, Apple was able to forge long-term affiliations with their fan base and that’s their competitive edge.

Back in 2010, Apple made inroads in the tablet computer market by releasing its infamous iPad which remained in development till 2011. But, tablet computers and Smartphones were somehow similar to each other. iPad has been helped along due to its strong distribution networks, the rivals are offering their tablets with Adobe flash rather than HTML supported by Apple (AAPL, 2012). From Apple first computer to its recent product releases, it’s apparent that Apple believes in sharp product design which has been the focal point of its products which appeals to its consumers. Macintosh was a computer which captivated its users due to its interactive user and graphic interface (Sadeghi, 2012).

Meanwhile, Samsung is a well-known tech corporation working globally. It has 78 companies under its umbrella and has affiliation with wide variety of business as well. Samsung has been devoted for 70 years to making the world better by diverse business which now encompass fashion, hotels, finance, petrochemicals, plant construction, skyscraper, semiconductors and advanced technology and many more (Samsung, 2014). Samsung Electronics is its flagship name which is a global name in overall electronics development and manufacture as well as digital media. Its product portfolio consists of:

Washing machines

Refrigerator

Computers

Smartphones

Kitchen equipment

Television

Samsung also offers a broad variety of products at different price scales in order to fulfill the customer demand from different income groups. For example, the LE32B554 is Samsung’s low end LCD television for low end customers. It’s smart and lowest in price range from Samsung lineup. Internet shopping enables carefree shopping since they are safe to buy from. But its presence it also there in retail outlets all across the globe for that matter (Samsung, 2014). There is a discount offer for all one time transactions via credit cards and eBay. Samsung has products for kinds of income groups so consumers are enticed.

The primary distinction both corporation’s business ideologies is that Apple believes in differentiation whilst Samsung believes in diversification in their work ethic. Apple’s product portfolio is smaller than that of Samsung. Apple as apparent as daylight serves to a high end market only which comprises of high end users whilst Samsung is working on both fronts for the low end as well as the high end. Samsung offers a broad range of products to different income groups which can afford as they please. But the interesting aspect to note here is that, both strategies are crafted to attain their long-term goals (Hitt et al., 2014).

2.0 SWOT Analysis

SWOT Analysis for Apple (Hitt et al., 2014)

Strengths

-Its selling point is its unique design

-Apple has its own operating system which can’t be pirated

-Apple believes in differentiation since its inception

Weaknesses

-Apple doesn’t work with Windows at all found on most computers

-Its prices are out of range for moderate users

-Apple mainly focuses on the high end market most of the time

Opportunities

-Apple can tap into new markets

-Apple can afford to conduct R&D and continue its brilliant work

-It can make use of information and tools of communication to run its operations

Threats

-PC market is ripe with competition

— the consumers’ needs alter a lot which Apple needs to adjust to.

-Their products can be substituted by many products.

SWOT analysis for Samsung (Hitt et al., 2014)

Strengths

-Its brand image is its selling point

-Their products are designed stunningly

-Samsung believes in diversification and its products are priced accordingly

Weaknesses

-Its business ideology is somewhat all encompassing and can be threat to its own products

Opportunities

-Samsung is always bent on growing and tapping new markets

-Samsung makes use of new data, information and communication to perform its operations.

Threats

— the tech industry provides tough opposition

— the consumers tastes alter a lot with new products and features

3.0 How leaders of both companies have adopted cultural differences

According to research, leaders who are driven and adamant on attainment of their goals keep their employees motivated and generate results as anticipated, while on the other hand, leaders who fail in this regard can’t generate desired results due to lack of performance from their workforce (Robbins, 1993). After in-depth examination of the leadership in Apple Corporation, it can be concluded that its result driven performance can be credited to its core leadership which was solely concerned with obtaining the product they desired and having a top benchmark of performance. For example, in Wall Street Journal magazine, Tim Cook stated that Apple kept the focus on demand and supply aspect close to its chest. Hence, a corporation’s performance is boosted when its top management is strong and goal driven. Apple Corporation stands purely for the high end customers and protects its needs and interests. But Samsung addresses diversity in a different way; by inclusion in its operations. As per its website, Samsung Corporation is an international tech corporation which is present in different countries and works with people from diverse backgrounds to fulfil their needs and develop a strong brand image (Hitt et al., 2014).

4.0 Evaluation of each Company’s superiority

The primary factor Apple offers is its quality features and superb design which its high end consumers are a huge fan of. Hence, lies the difference factor as Apple works and thinks differently in comparison to its rivals (Porter, 1985). Their products are simple yet complex, whilst the consumers appreciate the creativity and effort they put in their products. In case of product design, Apple remains unmatched as no other tech corporation has come close to their product design. They are unmatched and unparalleled. For instance, iPhones and iPad have won by a landslide since various products from competitors lag behind in terms of quality and creativity (UKessays, 2014).

Correspondingly, Samsung has been focusing on concentrating its efforts on strengthening its competitive edge which is brand image and technology, whilst establishing the grounds for further growth engine (Samsung, 2014). The corporation is well-known for basing its efforts on its technology and keeping up its self-image in check as well. The brand image is an added advantage Samsung has strengthened since its assists in builds an image of quality products on offer only globally. The corporation has penetrated into many parts of the world and has managed to meet the demands and requirements of different consumers all across the world (Hitt et al., 2014).

Both Samsung and Apple have attracted their own particular audience hence giving birth to a halo effect. The halo effect basically means developing a certain idea about something on just one characteristic only (Robbins, 1993). On one hand, Apple’s large fan base is basically happy with their line-up of iPhone and iPod with its own unique traits, which drives them towards their products. Hence, a long lasting competitive advantage is developed when customer loyalty is strengthened and consumers remain loyal to the brand. As far as the financial functioning of the company is concerned, the relevant agencies / authorities should address the demands of the customers and help in building a cordial connection with them. Apple has fortified its customer base with this loyalty factor and attained long-term relationship with them, whilst being in total control of their operations (Hitt et al., 2014).

Correspondingly, Samsung has attracted its own fan base by keeping the interests of its low end users by offering cost effective products. For example, Samsung LE32B554 is quite a low priced, yet smart and useful LCD television for its low end audience (Hitt et al., 2014).

5.0 Alternative strategy

Alternative strategy for Apple

Meanwhile, Apple needs to step outside its comfort zone and enter unchartered territories to gain more market share as rivals are closing in due to Apple’s sheer focus on targeted markets only. On the other hand, they need to cut their prices down making it affordable for common population to buy their qualitative products. Premium costs are usually kept to appeal to a particular audience of high end users. But, in the present market climate, being technologically savvy is the new mantra hence Apple should tap into that market and generate more profits (Hitt et al., 2014).

Alternative strategy for Samsung

Samsung needs a boost in its customer and market share hence it should pursue such strategies. By boosting its sales, its profit margin will also rise as it continues to sell its products in new markets. With the help of market expansion, Samsung keeps its presence in all parts of the world. Apart from that, it will address the demands and requirements of different groups. For instance, the corporation can tap into each market and develop products targeting their needs and price range (Hitt et al., 2014).

Recommended Strategy for Apple

Market penetration scheme is quite feasible in case of Apple. It’s highly suggested that Apple Corporation should tap into new markets and ground itself there. For applying this strategy, market research needs to be carried out first to present their products to different groups. After market research has been completed, Apple can release its products in the market, but it needs to be a step-by-step process. After the products are launched in the market, the marketers should release the product reviews as well to solidify its worthiness. The top level management and marketers should purse this strategy at the earliest convenience (Marino & Gamble, 2010).

Recommended strategy for Samsung

It’s highly suggestive that in order to Samsung to retain its competitive edge, by working on its product development and offer latest and modified products to its dedicated consumer as well. The primary benefit of this tactic is to be in the position to deliver what consumers requires and continues to adjust itself as well. Hence, the corporation will be able to cater to all kinds of markets this way (Marino & Gamble, 2010).

6.0 Internal leadership

Another factor has worked well in conjunction with corporation’s performance its leadership. In both cases of Steve Jobs and Tim Cook, they remained in their position firmly while in case of other companies, CEO’s continuously alternated. The leadership needs to be inspirational in order to drive productivity and creativity within the company whilst boosting its operations side by side maintaining its performance. In case of business, customerloyalty is of primary importance since long-term relationship and stakeholders are to be kept in consideration at all times (Forsyth, 2009).

Maintaining customer loyalty and satisfaction is quite easier on one hand, while entering new markets is a different ball game altogether. Politics and power struggle also bears some side effects on the workforce within a company. The CEO exercises the maximum power in case of carrying out orders and implementing decisions. On the other hand, the board also exercises some extent of power which restricts the power of CEO’s. For instance, Steve Jobs couldn’t remove Sculley as he didn’t exercise necessary power to put in effect his resignation. Power and authority isn’t the domain of CEO’s as they are appointed by the board themselves to carry out their company’s operations whilst being within the bylaws of the corporation (Forsyth, 2009).

The internal leadership of Samsung is focused on the mantra “New Management” to address new challenges due to the fast speed at which globalization spreads (Samsung, 2014). Hence, this made Samsung Corporation the leading IT Corporation in the world at present. With the help of new management, it keeps pooling in fresh ideas that are injected in the company to sustain its viability. Its leadership basically decides its own success and failure options. Samsung put in effect this mantra in order to stay ahead of the rivals. The top leadership plays an instrumental role in keeping its workforce motivated in order to be productive at work. The top management of both corporations has moved mountains by keeping their workforce motivated and delivering the goods. They have fulfilled market needs of different groupsand taken diversity as its strong point. Disagreements and absenteeism is a rarity as it is counterproductive (Hitt et al., 2014).

7.0 Companies corporate level strategies

From a corporate perspective, a company’s success is credited due to its top leadership. The board exercises the power to hire and muscle out if necessary the CEO of a corporation. The CEO wields the power to manoeuvre the operations according to his own will, but they shouldn’t contradict those of the board. The board makes sure that operations are in sync with their expectations and goals. CEO has the power take decisions which are followed by his subordinates, but the board wields greater power in order to avoid power struggles and manage its operations seamlessly. Costly decisions are reviewed by the board and given the green signal when their future outcomes are weighed in. board can also strip CEO’s of their power and restrict their power as they requiresince their goals and vision shouldn’t contradict (Mele & Guillen, 2006).

The decisions taken by a company matters in case of its performance and that’s the reason for Apple’s board continuous monitoring in this regard. It guarantees that Apple’s primary focus and operations remain unscathed and even. Holistic strategy can also be taken since certain decisions can have a positive effect on the operations of a company while sometimes, it can have a bad effect on performance too. Hence, in case of Apple, their decision-making framework works out seamlessly as it’s synchronous and goal driven (Sadeghi, 2012).

The company’s strategy is also designed to offer better communication to all the shareholders and other members of the investor community to share its sustainable growth vision through proactive IR activities as observed by Oh Hyun Kown, the CEO of Samsung Company (Samsung, 2014). The board of directors is also given the autonomy to make decisions in different aspects that impact on the operations of the firm. Correspondingly, Samsung is on a swansong itself with its corporate strategies working out well in case of strong business delivery and boosting value of shareholder (Samsung, 2014).The strategy of the company has been shaped to keep all the shareholders in loop as well as the investors by its IR efforts done by the CEO of Samsung Corporation, Oh Hyun Kown himself. Board of directors have their own domain of control over the activities and operations of Samsung Corporation (Michell, 2011).

8. Steps that can be taken in case of organizational change of Apple and Samsung

Looking from Apple’s perspective, it may alter its business strategy slightly by:

The product portfolio needs to be broadened, so it can cater to a wider segment of the audience

The corporation will cut down its product’s prices to spike sales

The corporation will tap into new markets to entice more buyers (Mele & Guillen, 2006).

Looking for Samsung’s perspective, its needs to add these postulates to its strategy:

It should choose a product for fortifying its brand image

Its organizational setup should be flat to embed its operations in different locations

For broadening its market, it should continue market research and meet the demands of different groups (Mele & Guillen, 2006).

References

APPLE (APPL) viewed from

Porter, M.E. (1985). Competitive Advantage; Creating and Sustaining Superior Performance. The Free Press, New York.

Marino, L. & Gamble, J.E.(2010), Apple Inc. In 2010, Crafting and executing strategy: The Quest for competitive advantage, concepts and cases, 18th Global Edition.

Mele, D. & Guillen, M. (2006).The intellectual evolution of strategic management and its relationship with ethics and social responsibility, IESE Business School, University of Navara.

Robbins, S.P. (1993). Organizational Behaviour: Concepts, Controversies and applications. New Jersey: Englewood Cliffs.

Samsung (2014).Viewed from: http://www.samsung.com/us/aboutsamsung/

UKEssays. (2014). PESTEL five forces and SWOT analysis of Apple http://www.*****/essays/marketing/pestel-five-forces-and-SWOT-analysis-of-apple-marketing-essay.php

Hitt, M.R. Duane Ireland, Robert Hoskisson. (2014). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Cengage Learning.

Forsyth, D. (2009). Group Dynamics. Cengage Learning.

Michell, A. (2011). Samsung Electronics and the Struggle for Leadership of the Electronics Industry. John Wiley & Sons.

Sadeghi, S. (2012). Defensive Strategy — Apple’s Overlooked Key to Success. Epublications.

New York Times 26 January, 2012, viewed from,

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