Apple And Samsung Case Study

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1. Analyze the existing business strategies, domestic and global environments, industry, and tour phượng hoàng cổ trấn internal capabilities for both Apple and Samsung. Assess the significant manner in which each company mission and vision align with the long-terms goals and strategic direction of the organization.


Apple Inc is a leading global smartphone provider and an asset management firm. It is one of the companies that focuses on producing software and hardware. Apple allows its smartphone customers to share and buyer contents through their Apple devices including iPad, iPhone and Mac by an exclusive selling media platform known as iTunes. The IDC�s 2012 report indicated that Samsung and Apple were the largest producers and smartphone sellers. Although Samsung has been the leader, Apple has seen a tremendous annual increase of 8.8% of the total cell phone market and a whopping 24.2% of the global smartphone market (Kaln, 2012). By creating an emotional connection with customers, Apple has succeeded in creating customer loyalty. Global loyalty has been critical in Apple global ascendance. Apple�s mission states the belief of the company. The mission states " Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers globally through innovative hardware, software, and internet offering." According to Piston (2013) most Apple customers believe the company is dedicated to education, and it is the most innovative company.
Porter�s Five Force analysis is critical in evaluating the global and industry analysis. The Porter�s model focuses on the intensity of rivalry within the industry and factors driving competition within the industry. Apple has great strengths in offering customers technical support, nurturing customer loyalty, and producing high-quality products. The level of rivalry within the industry is very high. Both Apple and Samsung are the lead competitors in the smartphone industry. Innovation and dynamic customer needs are driving the industry competition high as company�s country to outdo each other in providing the best experience for their customers.
Apple and Samsung use distinctive business strategies and models within the marketplace to compete. Apple focuses on producing few but highly anticipated high-quality and tour phượng hoàng cổ trấn high-end products while Samsung floods the market with a wide variety of products. Initially, Apple product development cycle was long thus allowing anticipation among customers. According to Professor Panos, such model is based on Schumpeterian entrepreneurship and produced a family of radically new products. Steve Job�s main strategy was to develop and sell brand new and innovative products that combine high technology and art to produce simple and streamlined user experience. The strategy is successful in skyrocketing Apple to the international prominence. It is under the leadership of Steve Jobs that Apple was able to build a strong customer loyalty through smartphone innovativeness. The use of long product development cycle allowed the company to produce high-quality products that were preceded with vibrant marketing and hyped release dates. The delayed development period allowed the new product to gain a lot of anticipation as customers were expecting something new and innovative every time. Apple has also succeeded in attracting and retaining customers by bundling its other product offering such as iTunes together with the use of iPhone and iPad.
Unlike Steve Job, who focused on brand new innovative technologies, the current CEO, Tim Cook focuses on producing improved version of the existing products. Under Tim Cook, Apple has been focusing on strengthening the existing products. For example, instead of producing a uniquely different iPhone 5, Apple focused on improving and tightening most aspects of the existing model. The iPhone 5 is larger in size than iPhone 4, thus making it compete with other large phones produced by Samsung and Google. In addition, Apple cut its map contract with Google thus allowing Apple to operate its novice service platform. The differences in Steve and Tim�s strategies has resulted in Apple adopting a 2-3 years product development cycle with every release bring change to the existing products. Every upgrade is associated with features such as better cameras, larger screens, faster processors and long battery life. Apple also adds a significant number of new features to the upgraded version such as Siri and cloud storage (Gustin, 2012). Apple strategy focuses on winning the high-end market through high-quality and innovative products.
On the other hand, Samsung greatest marketplace strategy is to realize a variety of products into the market. Samsung strategy is to appeal to the market by producing a large number of gadgets including smartphones, cell phones, home appliances, tablets, etc. to both high-end and low-end market niche. Over the years, Samsung has succeeded in the low-end market and also offer high-quality products to the high-end niche. Recently, its market share has seen a steady increase most probably due to the wide variety of Samsung smartphones. For example, in the first quarter of 2012, the enormous revenue gain was due to the sale of Samsung Galaxy S III. In addition, Samsung relies on the Google Android software and also has phones running on Windows Os. On the other hand, Apple narrows its smartphones to its iOS. Samsung can serve a diverse market because they offer a large number of devices.
2. 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.
SWOT Analysis
Apple
Apple�s business strategy focuses on producing mobile phones, personal computers, networking solutions, peripheral software and music players. It advantaged market position is evidence of the strong operating performance that has steadily increased investors� confidence.
Strengths
Apple succeeded to rise to prominence under the leadership of Steve Jobs using innovation as the key driver of its success. The innovation vigor of the company came to the limelight in 2007 when the Apple launched its first iPhone and later iPad in 2014. Despite the change of leadership, the company believes that Tim Cook will be able to stir the company to a greater height of innovativeness. In 2014, the company launched the iPhone 6 which add new features giving more competition to Samsung Galaxy. The company also bride in other innovative products such as iPad Mini 3, iPad Air 2, and Macbooks. The new and innovative products create a powerful tailwind that increases Apple�s revenue. The company was voted in 2012 as the most innovative company in the globe. The innovativeness position the company as a key competitor kynghidongduong.vn in the industry.
Apple has enjoyed good cash flow since the launch of its first iPhone. The company has cash assets worth approximately US $ 38 billion and long-term marketable securities worth US $ 127 billion as of 2014. The financial strength allows the company to acquire strategic companies such as Beat Electronics. Thanks to pressure from activists and stakeholders, Apple has paid dividends consistently since 2012. The company also has high-profit margins than most of its competitors (40%). Apple also has no debt, and it is not affected directly by credit markets or interest. In 2012, Apple was acknowledged as the second most valuable brand with its brand value being estimated as worth US $ 76.5 billion. The company has a good reputation of a highly competitive, well-functioning and perfectly designed products.
Apple has an unparalleled brand loyalty all over the global. The brand loyalty of its stylish iPhones position Apple is a global brand associated with innovativeness and high technology. The strong marketing and advertising activities to continue to help the company attract more clients. Through vibrant advertising, Apple can build strong and expensive brands and market them in a compelling way. The strong brand reputation of high-value and high-quality products contributes to building a strong customer loyalty.
Weaknesses
Apple focuses on serving the high-end customers and as such most of its products are costly. The high cost of Apple smartphones places it at a disadvantage considering the existence of numerous substitutes in the market. Although Apple has attempted to produce products targeting the low end such as the iPhone 5c, the luxury position continues to be a major threat. The luxury positioning has made it hard for Apple to penetrate the international market effectively. In addition, Apple�s iPad sales have been declining in USA and Europe. The slowdown relates to the softness in the broader tablet space and competition from Google�s Android-powered device that stock at much lower prices.
Apple smartphones are incompatible with other Os and most software. The customer bounding through services such as the iTunes makes most customers to shun their product and adapt their competitor due to their flexibility. In addition, Apple iPhone design is very consistent and does not offer a variety provided by other companies. Several competitors have accused Apply of infringing patent laws. The consequent legal litigation and loss often dent the reputation of the company. The death of Steve Jobs also has some influence on the performance of the company due to leadership change.

References
Panos M (2012). Can Microsoft adopt Apple�s business model." Forbes Magazine, October 10, 2012.
Gustin S (2012). Why Apple is winning: Innovation, Opportunity, and execution. Business times.
Pison C & Brosdah D (2012). The church of Mac: Exploratory examination on the loyalty of Apple customers. Journal of marketing and management research.

Maha A & Mac A (2012). Students brand preference between Apple and Samsung smartphones. M�lardalen University.
Daniels Fund Ethics Initiatives (2014). Apple Inc�.s Ethical Success and challenges.