Strategic Management: Samsung Group and Apple Inc. Research Paper

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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.

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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….....

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