Strategic Management of Apple Inc. and Samsung Group
BUS 599: Strategic Management
March 17, 2014
Analyze the existing business strategies, domestic and global environments, industry, and internal capabilities for both Apple and Samsung. Assess the significant manner in which company’s mission and vision align with the long-term goals and strategic direction of the organization.
The strategy used for the young Apple Inc. was considered as non-cooperative strategy; Steve Jobs one of the original founders and innovator of Apple Inc. did not want to share the company’s software with any other companies. Jobs wanted total exclusion of Apple’s software and hardware products. The ...view middle of the document...
Upon Jobs’ return the strategy of Apple was focused differentiation, only to contend with a premium PC market.
Apple Inc. is now considered as a first mover in the industry; Apple currently has global brand loyalty, increased sales volume and the company stock has become the most valuable.
Initially Samsung started in a different industry in China in the late 1930’s. Samsung Group did not come into the electronic industry until the 1980’s and later moving into the 1990’s the Samsung Group entered into the semiconductor industry developing low-cost memory chips and LCD displays for colored screen devices. Samsung Group adopted the cost-leadership business model in the 1930’s because the company wanted to always been seen as a low-cost manufacturer in the industry. According to Charles W. L. Hill and Garth R. Jones, the cost-leadership business model takes every avenue to lower costs for products and services to surpass the competition in sales (Hill & Jones, p. 168).
Samsung has been in existence for over 75 years in China. Samsung has different divisions one being the Samsung Group that evolved in the 1990’s later becoming the a leader in the digital world and globally. Samsung Group was dedicated then and still dedicated today in creating innovative products and services that make lives better for people and continuing to be a global digital leader. “Samsung Group makes a conscience effort to stay aware of the global economy and believe it’s important to develop new technologies as the world changes”(Samsung.com, March 13, 2014). Samsung has a vision to become number one in the industry surpassing its competitors in the next six years.
Analyze the business-level strategy of each company by conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Next, determine the fundamental way in which each sector influences its competitive position within the industry. Provide rationale to support the response.
Apple’s business-level strategy is differentiation and Samsung’s business-level strategy is cost leadership. A SWOT analysis for Apple would first include mobile device innovator, customer service, capital, business processes, global leader, brand loyalty, retail stores and online sells and marketing all of which are strengths for Apple, Inc. Weaknesses would include high prices, incompatible operating system and changes in management. The opportunities for Apple, Inc. would include increase demand of new technologies to compete with Android devices, cloud service development and reputation due to patent infringement case. The threats that would affect Apple are Android operating system growth, competitors, new entries, patent infringement by another company and high prices.
A SWOT analysis for Samsung Group would include low costs in products and production, capital, low consumer pricing, brand reputation and engineering technology success are all strengths for Samsung Group. Weaknesses...