Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. Boston, MA: Cengage Learning. However, the company appoints a brand manager who heads the innovation and development of a product model. Ask either company, however, and you are likely to hear there is too much emulation going on. From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). Apple Inc. Therefore, Samsung is superior in terms of organizational design. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. 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. We use cookies to give you the best experience possible. Second, allowing employee participation in decision-making allows employee to become part of the process. This vision is shared by Samsung whose mission is to be a global leader in electronic manufacturing and digital media. He establishes an organizational culture which is quite mechanistic and militaristic. 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). Through horizontal integration, there are chances that the diversification of products will render the company competitive among other industrial rivals (Hills, Jones & Schilling, 2014). 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 … The supple need to respond to the business requirements or market demands by the junior levels of the hierarchy is imperfect. This would be a historic shift in focus, likely signaling a departure from self-funded R&D and into outsourced innovation, not unlike Apple. Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. R&D: a global affair Rather expanding its R&D department domestically in China, Huawei … The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). First, employee training and effective communication of the required changes is necessary. Indeed, Apple Inc and Samsung Electronics are formalized organizations. Finally, the company does not trade with suppliers who employ children. From this perceptive, the company has to establish a global mindset and relevant world cultures. Samsung organizational structure. It is in the company’s leadership domain that being different is advantageous. On the other hand, Samsung competitive advantage is supported by a marketing sector that finds a wide market share for the unique products. This pays off in the mid- and low-end markets, but the high-end products keep running into the juggernaut that is Apple. The company strategized to release few products that are highly anticipated in the market. 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 strategy will improve the company’s competitiveness, as well as increase sales volume. Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. Apple takes pride in the entrepreneurship of its founders. Apple’s business-level strategy is to utilize differentiation as an innovation mechanism. Apple can utilize a product differentiation strategy. From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). On the other hand, Samsung has a wide range of product models that are not high-end. 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 lower tiers of workers cannot implement the While Apple still imports billions of dollars' worth of components from its rival every year, Samsung is beholden to nobody. Apple: Design, Integration, and Outsourcing 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. Steve Jobs who was Apple’s CEO believed that the company was cultural-based (Dippel Jr, 2012). It … Apple succeeds in design and integration, and no small degree of risk. Apple Inc. has a fairly flat organizational structure which has a total of three layers. The offers that appear in this table are from partnerships from which Investopedia receives compensation. (2010). (2007). On the other hand, device solutions division is in charge of memory and device applications development. 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. Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Consider the iPod, the first breakthrough product during Jobs' second stint as CEO, which came out years after the Sony Walkman. MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. The count reached more than four dozen by mid-2012, with each company claiming billions of dollars in damages. Steve Jobs, Apple's late CEO, was furious and went on the offensive; Samsung, in turn, dug in its heels. This is critical in reducing the cost of production. This inflates margins and boosts AAPL stock, and is one of the chief reasons Apple can grow at astounding clips. For a long time, Apple did not have external designers until it acquired an internal team for the same role. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. 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 … Kim, Y. J. On the other hand, pricing strategy is critical for Samsung. On the other hand, Samsung banks its internal capabilities to mass manufacturing. There are still some production or distribution victories. Strategic Management: Theory: An Integrated Approach. Samsung fought back and had the injunction reduced to only German markets, but it was still a victory for Apple. Synopsis. Sometimes, this can only be achieved through encouragement, manipulation and coercion if the resistance towards change is inevitable. 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. GovNet eJournal, 1(1). The superiority of organizational competencies. From this perspective, personnel from diverse cultural backgrounds are employed to provide the company with the required competencies. This provides the company with an opportunity to become a global market leader in technological products. The subsequent development of the iPhone and smartphones brought new progress in the mobile phone industry as was later evidenced by 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. Indeed, Apple cemented its name as a technology leader in terms of innovations. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. Apple’s domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). On the other hand, Samsung organization is well organized from the CEO, digital media and device solutions. On the other hand, iPhone does not support such features compared to Samsung android gadgets. 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. However, recent development from Samsung Electronics has proved that entrepreneurial skills especially duplication can be critical in determining market leaders. Company profile a) APPLE Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. A cross-sectional analysis of reported corporate environmental sustainability practices. Samsung is aware of product plan and development of Apple. Circle is a financial services company that makes products using blockchain technology. 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). The marketing sector understands customers’ specifications and relays the feedback to research and development sector for improvement. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. This presentation presents everything about Samsung company. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. Indeed, Apple Inc and Samsung Electronics are formalized organizations. 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. 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