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. Indeed, “the Galaxy S2 looked too much like the iPhone 4” and the “Galaxy Tab was visually similar to the iPad”. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. 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. Apple Inc. Therefore, Samsung is superior in terms of organizational design. 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. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. APPLE INC.The issue of compatibility and price range on Apple's Products and services. This strategy will improve the company’s competitiveness, as well as increase sales volume. The two companies have found themselves engaged in legal battles over intellectual property and patent fights. 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. Although, Samsung is constantly accused of duplicating Apple’s technology, the company is now one of the leading technology companies in the world. In this regard, Samsung has achieved crucial collaborations from other technological firms that act as suppliers and external designers of critical product components. A cross-sectional analysis of reported corporate environmental sustainability practices. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. 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 … In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. There are still some production or distribution victories. It wasn't long ago that it looked like Apple would overtake Samsung to grab the biggest chunk of … The superiority of organizational competencies. On the other hand, Samsung organization is well organized from the CEO, digital media and device solutions. Therefore, Samsung surpassed Apple in terms of strategic capabilities. (For more, see: The Fallout of the Apple vs Samsung Battle.) 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 … The first claim came in April, and by August 2011, there were 19 ongoing Apple versus Samsung cases in nine separate countries. This inflates margins and boosts AAPL stock, and is one of the chief reasons Apple can grow at astounding clips. 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. MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. 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. This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. Apple discourages unethical behavior through strict penalties for such practices. Structure of Organization in Samsung is also different than its major rival. From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. This makes the flow of information and decision-making simple. While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody. Samsung is aware of product plan and development of Apple. 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. The two companies have tried re… From this perspective, the company customizes products based on a major design preferred in the market. 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. Cowan, D. M., Dopart, P., Ferracini, T., Sahmel, J., Merryman, K., Gaffney, S., & Paustenbach, D. J. Ask either company, however, and you are likely to hear there is too much emulation going on. Apple approach to achieving innovation in the company is based on cultural diversity. Apple: Design, Integration, and Outsourcing From its target marketing, research, and product design, Apple is a much more focused company than Samsung. Samsung leadership believes that the key towards its global market expansion is through culturally competent employees. 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. In this model, five forces have been identified which play an important part in shaping the market and industry. Kim, Y. J. For a long time, Apple did not have external designers until it acquired an internal team for the same role. Apple takes pride in the entrepreneurship of its founders. This explains why Samsung has always preferred horizontal integration by diversifying its product lines. Hill, C. W., & Jones, G. R. (2008). Samsung believes that a cultural policy is significant in achieving a global market impact. Apple accused the South Korean company of plagiarism. On the other hand, Samsung competitive advantage is supported by a marketing sector that finds a wide market share for the unique products. 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. 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. The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). 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. Apple's rise has been comparatively meteoric and focused. Digital media is responsible for consumer electronics and mobile communications. Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Apple Inc. has a fairly flat organizational structure which has a total of three layers. 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). Samsung relies on vertical integration as a chief competitive advantage. Apple’s internal capability is complemented by an excellent industrial design. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. 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. Dippel Jr, T. H. (2012). 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. Silicon Valley is an area in Northern California that is home to a large number of innovative technology companies. However, low-priced and unique products from companies like Samsung are a threat to Apple. Samsung's business model has focused on vertically integrating supply chains and ramping up production volume. On the other hand, Samsung has a large pool of engineers who design products internally. Cultural competency is a leadership initiative at Samsung, and its role is to understand customers’ requirement from a broader perspective (Dippel Jr, 2012). Apple v. Samsung. Android Mobile Computing Using Samsung Tablets and Smartphones Running Android 2.3-Kindle version. Incorporated in 1977, the company was called “ Apple computer”. With the diversity of cultures, the same is replicated in terms of personalities, competencies and abilities. This provides employees with an opportunity to reflect and own the ideas of change. Second, allowing employee participation in decision-making allows employee to become part of the process. First, employee training and effective communication of the required changes is necessary. Web. It is important to reckon that almost half of Samsung employees are foreigners and that the company’s sales are generated from global markets. To be precise, Apple is credited for revolutionizing technology through its fancy, but expensive gadgets. Indeed, Apple cemented its name as a technology leader in terms of innovations. 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. Company profile a) APPLE Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. This is because everything was controlled by the CEO. This is considered strength, as well as an opportunity for the company. Apple organization design was previously in disarray. 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). 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. The company uses anti-collusion and anti-corruption policies (Kim, 2007). Strategic Management: Theory: An Integrated Approach. Apple’s business-level strategy is to utilize differentiation as an innovation mechanism. Web. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. It is fair to say there is no love lost between Apple, Inc. (NASDAQ: AAPL) and Samsung Electronics Co. Ltd. (NASDAQ: SSNLF). Hill, C., Jones, G., & Schilling, M. (2014). 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. Nevertheless, Samsung organizational structure may change in medium term perspective. R&D: a global affair Rather expanding its R&D department domestically in China, … 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… The competition between Apple and Samsung is great thing for consumers because they are forcing each other to improve their products year after year. Each level of organizational structure is led by a manager who reports to a senior authority. Djurup, R. (2013). 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 is using its mission and vision statements to become a leading innovation company in technology. Circle is a financial services company that makes products using blockchain technology. On the other hand, Samsung banks its internal capabilities to mass manufacturing. 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. For those more interested in specifications than flashy marketing, look at this. This is critical in reducing the cost of production. Or the aggressive, political election-style marketing campaigns that are reminiscent of the Ford versus Chevy attack ads. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. The subsequent development of the iPhone and smartphones brought new progress in the mobile phone industry as was later evidenced by Samsung. Web. The main requirement of … 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. This pays off in the mid- and low-end markets, but the high-end products keep running into the juggernaut that is Apple. A semiconductor is a class of electrical component found in many consumer and industrial products. Finally, the company does not trade with suppliers who employ children. Able to suppress R&D costs by outsourcing hardware component production and assembly, Apple's CapEx looks radically different from Samsung's. 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 Apple now considers strategic outsourcing a fundamental principle of achieving efficiency. Therefore, Samsung is superior in terms of organizational design. It is in the company’s leadership domain that being different is advantageous. 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. 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. Apple iPhone 12 Vs. Samsung Galaxy S20: Head-To-Head. This presentation presents everything about Samsung company. 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. The company upholds high standards of social responsibility. Moreover, the company uses a large market advantage to realize its pricing objectives. Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. 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 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. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. If you continue, we will assume that you agree to our Apple iPhone vs Samsung Galaxy models: Specs, prices, and features compared. The company encourages safe working environment. Apple and Samsung both made major announcements in the past month. Boston, MA: Cengage Learning. On the other hand, Samsung uses a transparency policy to discourage unethical behaviors. Corporate management office deals with overall management of the group and also has administrative responsibilities. Samsung organizational structure. It is also a much more profitable company. Today, most business people prefer using Samsung products as business tools due to their reliability and easy-to-navigate features. Samsung has an innovation-centered organizational culture. To ensure that cultural diversity is appreciated, Samsung management ensures that female workers account for at least 35% (Dippel Jr, 2012). 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. Synopsis. 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. Consider the iPod, the first breakthrough product during Jobs' second stint as CEO, which came out years after the Sony Walkman. Apple’s marketing sector is instrumental in finding a target market that refers high-end products. 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. On the other hand, the production sector is complemented by competent engineers who deliver unique product models. He establishes an organizational culture which is quite mechanistic and militaristic. 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. 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. This provides the company with an opportunity to become a global market leader in technological products. Finally, change implementation requires support from other stakeholders. 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. Apple can utilize a product differentiation strategy. However, using low-cost technology to produce unique products is a weakness compared to 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). Disadvantage of Apple’s Organizational Structure The organizational structure embraced by Cook’s leadership has a downside of limited flexibility. When diverse features are combined in teamwork, a competent synergy is realized. Declining profit margins in 2014 and 2015, however, forced some introspective analysis within Samsung's executive team. On the other hand, device solutions division is in charge of memory and device applications development. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. Samsung has been a global force longer and has its hands in more industries. Samsung is therefore always second to market, violates Apple… 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. 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 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. Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. 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. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. From a business model perspective, the two companies are constantly converging and modifying, although stark contrasts remain. From this perspective, Samsung stands out to be superior in terms of entrepreneurship. From this perceptive, the company has to establish a global mindset and relevant world cultures. 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. Then began a real patent warin which Apple has long been successful. The introduction of Samsung tablets and smartphones rivals Apple’s products in all manners. 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. Competition will always bring out the best and it has certainly been proven after we continuously see how Apple and Samsung evolve. R&D: a global affair Rather expanding its R&D department domestically in China, Huawei … 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, product models are viewed as efficient, exclusive and expensive. Apple Vs Samsung Case Study 953 Words | 4 Pages. Targeting high-end customers poses as a weakness, as well as an opportunity from clients who want unique products. Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. In functional structure, people are grouped on the basis of their common expertise, experience and resources. On the other hand, pricing strategy is critical for Samsung. 2005). That is 5 percent more than Apple, and about 2.5 percent higher than Samsung. The internal industrial design has a competent team and outsourced production. (2010). This is considered to be the strength at Apple. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. In this regard, the company promotes diversity of cultures among the employees. Apple and Samsung both made major announcements in the past month. The company’s processes are well reengineered to ensure that the two companies acquire desirable change that are of great importance to them. This would be a historic shift in focus, likely signaling a departure from self-funded R&D and into outsourced innovation, not unlike Apple. 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. Samsung’s Organizational Culture Type and Characteristics. Each level of organizational structure is led by a manager who reports to a senior authority. 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. The count reached more than four dozen by mid-2012, with each company claiming billions of dollars in damages. Apple and Samsung ought to change their organizational structure business, functional and their corporate strategies. From this perspective, personnel from diverse cultural backgrounds are employed to provide the company with the required competencies. The internal design team has been credited with innovations of modern mobile technologies. (2007). Samsung has improved and perfected Apple’s technology and made it reliable and cheap among users. It … Apple also accused him of having copied a lot of features and navigation methods. 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