Apple vs Samsung - Book Report/Review Example

Apple vs Samsung Introduction During the 20th century, there have been many electronic brands that have showed up to compete for the best of technology. Most of them were not able to even make it to the 21st century but a few of those ingenious ideas kept on coming and dominated the market like they did back in the day. With technological improvements and major market control, Samsung and Apple Inc are amongst the worlds largest and the most successful brands. These brands have many rivalries and with their aim to maximize their consumer strength, innovation is on its peak. These brands, thus, apply many strategic methodologies in and outside their company to insure their powerful market presence for longer run. Apple Inc. A multibillion, multinational corporation that started with Steve Jobs along with his colleagues in 1976, has to date 80,000 employees who work tirelessly to make consumer electronics, computer softwares and personal computers. Apple’s creativity led to its incorporation in the second year of running where the revenues doubled and Apple became to try out different electronics, such as cameras, television consoles, speakers etc. This was a loss during the 80’s but with the idea of creating low cost personal computers’ ‘Macintosh’, Apple stepped right back in with its innovation and durability. (Apple, 2011) Advancing through the timeline Most of the advancements happened for Apple during the end of the 20th century, where in the 1990’s Apple started to acquire different software’s and started making alliances with companies such as IBM and Motorola for creating better computer software’s and hardware’s. Macintosh computers were the major market for Apple and incorporating software’s such as “Final Cut” in 1998 were a major success for creating a better market for Apple in the future. (Staford, 2013) Profits in the 21st century With the advent of 21st century, Apple major restructuring happened where MAC OS X was launched in March, 2001 which was the operating system based on Unix with the ease of interface for both professionals and personalized computers. The same year Apple also opened their first official retail stores in Virginia and California. Apple then moved on launching iPOD, an audio player device that turned out to be highly successful, where customers had the option to download songs online for $0.99. This was amongst one of the most successful innovations that reaped billions in the coming years (Kerris, 2005). Steve Jobs then in 2005 at the Worldwide Developers Conference announced that he was to launch Intel based computers. This was the start of the era for Mac Books and iMac that ran MAC OS designed by Apple. Apple also introduced Boot Camp that allowed Windows XP or Windows Vista to run alongside with Mac operating system. The basic aim of Apple thus was to ensure maximum profitability while having ease of user interface for the consumers. (Kerris, 2005). During this time the shares of Apple went from $6 a share to $80, where in 2007 after successfully launching iPhones, iPods and better Mac Books the shares went up to a record $100 a share. As Apple reached its second decade of success, it started producing tablets, the iPAD which after its massive sales helped Apple success its competitor Microsoft, which couldn’t happen since 1989. (Weaver, 2006) Leadership changes 2011 onwards has been a success flow for Apple, with a major bump on the road as on October 5th, 2011 Apple announced that Steve Jobs passed away. This marked the end of an era for Apple Inc. Apple didn’t stop there and till date it launched Mac Book Air, Mac OS Lion and iPad Mini. The technological improvements still continue for Apple in terms of producing better iPhones taking the overall stocks of Apple to $545 a share. The company has been planning to further acquire and spread worldwide crossing borders and to leave its competitors behind. All this success lies within the customers and the strategic planning Apple has used since day one. A company only reaches its potential when it masters some strategic lags. Strategic Problems faced by Apple Being amongst one of the largest companies, no problem is too big or small, all of them have a direct relation with the success of the company. Acquisitions: This process in necessary to maintain stronghold in the competitive market. Acquiring strategy is important for Apple Inc. in ensure they can have maximum outreach. Unfortunately Apple hasn’t been very keen on this matter and they are lacking in successful big acquisitions. The deal of Siri for iPhones and Quattro Wireless was more or less unsuccessful, because the founders of those companies are now gone. With having this big name in the market, if Apple was to take over any company such as Twitter would it also end up unsuccessfully with their founders not making any progress? That is the question that is to be addressed amongst Apple leadership. (Jackson, 2013) Work Knowledge: Apple has been limited to a limited number of productively software’s. While buying a new company, Apple has to ensure that it has the staff to control that company or the necessary knowledge to ensure the easy workflow. Apple while starting its iCloud services relied on Amazon and Microsoft for its functionality because it had no house knowledge to develop this software. Hence, Apple strategically has a problem towards the growth, relating to in house knowledge about modern day software’s. This is causing ongoing problems within Apple, as they cannot reach out if they don’t have the skill set to start any new software’s, which is limiting their innovation. (Jackson, 2013) Loosing Talent: Apple’s strategy has been to work hard and work really hard. That is true for all the mistakes Apple makes but this also limits them to not be focused. Apple’s big staff numbers didn’t have much of the lost of talent but it still has limits towards growth in the company and ensuring that is a strategically problematic for Apple. The staff leaves not to join other competitors but to innovate other technologies and creative solutions. The Godfather of iPod, Tony Fedell who led the iPod team left because he didn’t get along with the team leader of iPhone. He left to start his own company NEST that sells sleek thermostats. This in future can be a part of Apply Ecosytems. Hence, Apple’s style of secret research and then bringing out their products to acquire market can loosen its grip if the staff is not provided growth and can be strategically very tough for Apple to gain its market control down the road. (Yarow, 2013) Strengths Apple has been a pioneer amongst the technology giants. It enjoys many benefits of having strengths to perfect its market face. With its external features of brand loyalty it enables to stand out in the market. Apple devices are generally highly priced and are considered a luxury; still they manage to flow in the market which shows the brand loyalty. This is due to their high skill sets while marketing that makes devoted customers. (Kahney, 2003) Design of the corporate culture is amongst one of its high strengths, where from attire to business style is different. Responsibility is divided in such a way that everyone is responsible for their work. With having one of the world’s best supply chain management systems, it enables the production to have no lags and slow inventories. This also enables the company to have higher profit margins as compared to other hardware companies. (Satariano & Burrows, 2011) Weaknesses Within the working labor, the production houses are in China. This accounts for many problems. Labor in China although cheap has its limitations. With workers working more than 60 hours a week and to have pay their renting and food that accounts for more than have their pay, Chinese workers have had problems with Apples’ way of production. Apple has numerous times launched investigations to insure labor rights and preventive measures to ensure the efficiency is at its maximum while providing rights for labor. Regardless of these measures, conditions in the factories become worse at times. (Musgove, 2006) Having high consumption of electricity for data centre, Apple doesn’t have the best record for consumption of electricity & global warming. Even after converting to renewable energy for data centres it still ends up having effects of global warming. (Gonsalves, 2008) Apple being a business leader needs to come through the obstacles in the path for being in the race. Looking into its competitor Samsung, it can learn new things and come through many conclusions. Samsung 1938 gave birth to Samsung in South Korea. Starting off as a trading company, advancement through the decades helped Samsung to join the timelines of becoming world’s largest information technology company. Samsung product and services were then divided into sub categories accordingly to growth and started dominating the world market having twice the revenue as compared to Apple and four times the employees. The meaning of the company in Korean meant three stars, three depicting something powerful and starts meaning eternity. Samsung discovered many range of areas that shows how versatile the company is. From securities, insurances and retail services, the company lived through the industrialization era when the company was run by Park Chung Hee. This enabled Samsung to be in control of market in wide variety of areas, having expertise in developing sector. (Olsen, 2008) During the 1960’s, the company joined electronics industry. Divisions such as Samsung Corning, Samsung Semiconductor and Telecommunication, Samsung Electro-Mechanics etc were many of the fields where Samsung started to advance. The first product of which was a black and while television. Since then the company invested heavily in electronics and till 1987 succeeded but after 1987, when the death of the founder Lee happened, the company was divided into four business groups-Samsung Groups, Shinsegae Group, CJ Group, and the Hansol Group. This was the separation between all these groups, from accounts, to management and working. Shinsagae group was relating to discount and retail stores, CJ Group was related to food, logistics, entertainment and chemicals where as Hansol Group was limited to Paper and Telecom sector. This complete separation gave autonomous powers towards Samsung group and its success in the future. (Joongang, 2000) Turn of the century for Samsung During the last ten years of the 20th century, Samsung started to move outside the borders of South Korea in becoming a international corporation, and soon got construction linkages in building Petronas Tower, Taipei 101 and Burj Khalifa in UAE. Lee Kun-hee then decided to downsize the divisions of Samsung group into just three parameters-Electronics, Engineering and Chemicals. In 1992, Samsung became the largest producers of the worlds memory chips and second largest chip maker after Intel Corporation. Samsung also launched Liquid Cristal Display panels in 1995 and in the next decade became the largest manufacturer of LCD Televisions. (Cho, 2009) 2000 and onwards marked new creations for Samsung technologies in terms of creating HDD, Consumer electronics and becoming the largest cell phone producer in the world. Samsung in whichever field they joined became the most successful and started to ensure through their innovation to incorporate new business ideas in their field of work. Strategic Problems for Samsung Samsung although having major returns and maximum revenue faced difference challenges in the upcoming market. Mobile Market Capture: Although Samsung holds the market, its rival Apple is prominent under the class as well. With new designs and competition. Both companies are up against producing the best products with high processor to have maximum sales. With both companies having their distinct style of manufacturing goods, it is upon the strategy of Samsung to get to the customers and dominate the ever competing market. Vague Focus: Samsung mind set it limited towards competing and limiting innovation, their style of constant shift towards interest is of concern. When business strategies are shifting, there can be big problems while controlling market shares. Although Samsung has wide variety of products, their acquisition is much less, and profitability is also limited. (Mick, 2013) Strengths Samsung with its wide variety of both cell phone and consumer electronics dominates the market. That is due to their constant struggle in introducing many products time after time that target the public directly. With its high 65% dominance of market in South Korea, Samsung dominates in the upcoming months. The only rival are Nokia and Apple, and breaking that barrier can only be withheld by either of the two companies. (Counterpoint, 2013) Conclusion Both Samsung and Apple are the companies of the modern day. These companies have been dominant in different aspect of their work, productivity, and their strengths. Samsung on one hand is much larger and more dominant in almost all aspects of their work. They are controlling and much linked to the public interest. Apple although has been consistent, they have been designing the same line of products as compared to Samsung. Imagining if Apple could have more divided line of work they could perhaps reap more profits. Samsung from the very start mastered different dimensions of work, which has played to its benefit as now they don’t have to hesitate to change their business in accordance with their line of work. This has enabled Samsung to be dominant in more than one aspect. They have more employee, much more benefits, more strategic partners and large area of influences to public. Apple being considered as a prime product has caught on much faster. Its spreading business in the large economy if China will help Apple to eventually catch up to Samsung. The strategy is not just about who makes more revenue, but who has more influence when the product comes out. Both companies have a culture within which they have been able to dominate and compete in the business ventures. 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Retrieved February 19, 2014, from http://www.apple.com/pr/library/2006/05/16Apple-Unveils-New-MacBook-Featuring-Intel-Core-Duo-Processors.html Read More