apple vs samsung organizational structure

Silicon Valley is an area in Northern California that is home to a large number of innovative technology companies. Apple v. Samsung. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. Apple’s domestic and global environmental policy is evaluated using a Global Reporting Initiative (GRI) and Sustainability Reporting Guidelines (G3). Each level of organizational structure is led by a manager who reports to a senior authority. Apple approach to achieving innovation in the company is based on cultural diversity. Steve Jobs who was Apple’s CEO believed that the company was cultural-based (Dippel Jr, 2012). Lee Kun Hee, is like a wizard behind the success. On the other hand, Samsung has a large pool of engineers who design products internally. Today, most business people prefer using Samsung products as business tools due to their reliability and easy-to-navigate features. Apple can utilize a product differentiation strategy. Apple and Samsung both made major announcements in the past month. For those more interested in specifications than flashy marketing, look at this. The company’s processes are well reengineered to ensure that the two companies acquire desirable change that are of great importance to them. R&D: a global affair Rather expanding its R&D department domestically in China, Huawei … Regulatory Toxicology and Pharmacology, 58(3), 524-538. When diverse features are combined in teamwork, a competent synergy is realized. Samsung has an innovation-centered organizational culture. From this perspective, the company customizes products based on a major design preferred in the market. Strategic Management: Theory: An Integrated Approach. This provides the company with an opportunity to become a global market leader in technological products. The technology, media, and telecom (TMT) sector is an industry grouping that includes the majority of companies focused on new technologies. Indeed, Apple Inc and Samsung Electronics are formalized organizations. From this perspective, Samsung stands out to be superior in terms of entrepreneurship. It is in the company’s leadership domain that being different is advantageous. Organizational Structure. The integrative organizational structure of Apple provides a wider span of control and higher unity of command to the organizational managers. The legal battle between the two giants of the mobile market has been the starting point for a quarrel that has only increased over the years and product launches. The company spends a fortune on research and development (R&D) and capital expenditures (CapEx). This presentation presents everything about Samsung company. Through horizontal integration, there are chances that the diversification of products will render the company competitive among other industrial rivals (Hills, Jones & Schilling, 2014). On the other hand, Samsung uses a transparency policy to discourage unethical behaviors. In August 2011, for instance, a court in Germany issued an EU-wide injunction on the Samsung Galaxy Tab 10.1 device for violation of an Apple interface patent. Each firm won multiple decisions against the other between 2012 and 2015, often in conflicting rulings from German, Japanese, South Korean, American, French, Italian, Dutch, British, and Australian courts. As the outcome of review of optimal organizational structure completed on April 2017, the senior management decided not to shift to holding pattern of organizational structure. In addition, the company has a compliance program where all employees are subjected to as a standard procedure of training. In this regard, Samsung has achieved crucial collaborations from other technological firms that act as suppliers and external designers of critical product components. From this perspective, the company always has a ready market that prefers uniqueness in terms of product specifications and price (Hills & Jones, 2008). On the other hand, device solutions division is in charge of memory and device applications development. R&D: a global affair Rather expanding its R&D department domestically in China, … Consider the almost unprecedented legal wars taking place between Samsung and Apple, which span four continents and billions of dollars in awarded damages. Web. Cook and the senior vice presidents are able to In this regard, the company promotes diversity of cultures among the employees. On the other hand, iPhone does not support such features compared to Samsung android gadgets. This is because everything was controlled by the CEO. Formalized organizational structure comprised of a hierarchical and top-down reporting structure and have high tendency towards centralization. Hill, C., Jones, G., & Schilling, M. (2014). Samsung relies on vertical integration as a chief competitive advantage. Competition will always bring out the best and it has certainly been proven after we continuously see how Apple and Samsung evolve. The top tier managers are able to oversee all operations conducted within the organization which allows them to emphasize more on the strategic plans of all functional divisions in the organization. (2010). With this in mind. It is not a magical formula, Nokia was almost as integrated before being steamrolled by Apple and Samsung, but Samsung controls some logistical certainty in a way that Apple does not. The count reached more than four dozen by mid-2012, with each company claiming billions of dollars in damages. In fact, the company prefers to keep its organization structure a secret from its competitors. Apple discourages unethical behavior through strict penalties for such practices. Apple Inc. v. Samsung Electronic Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. Apple is using its mission and vision statements to become a leading innovation company in technology. Introducing changes that improve organizational performance and competitiveness at Apple and Samsung requires the following. This mission statement is consistent with a long-term goal of providing man with innovative and inspiring technological products. Steve Jobs innovations of changing the computers to small gadgets like the iPad were extraordinary. Apple and Samsung both made major announcements in the past month. Apple iPhone vs Samsung Galaxy models: Specs, prices, and features compared. Significantly, Apple’s organizational structure is described as hierarchy owing to its well-illustrated line of authority. Declining profit margins in 2014 and 2015, however, forced some introspective analysis within Samsung's executive team. Apple Vs Samsung Case Study 953 Words | 4 Pages. For a long time, Apple did not have external designers until it acquired an internal team for the same role. 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. The internal design team has been credited with innovations of modern mobile technologies. Corporate management office deals with overall management of the group and also has administrative responsibilities. Samsung history, SWOT analysis, Porter's 6 force analysis, Samsung future, Samsung performance, Samsung competitors, Apple vs Samsung, Samsung mobile market and everything about Samsung. Web. For years, Apple preferred vertical integration which limited its capability to collaborate with other business partners and achieve flexibility. Cowan, D. M., Dopart, P., Ferracini, T., Sahmel, J., Merryman, K., Gaffney, S., & Paustenbach, D. J. If you continue, we will assume that you agree to our Samsung and Apple are operating in the same industry, the mobile devices and PC industry, and are the two most popular in the industry, especially in the international importing market (Hong, 2012; Lashinsky, 2013). Samsung leadership believes that the key towards its global market expansion is through culturally competent employees. There are similar stories with the smartphone and tablet markets, each considered pillars of Apple innovation but neither of which the company invented. Texas, TX: Texas Peacemaker Publications Llc. A similar injunction was successful in Australia. The two companies have found themselves engaged in legal battles over intellectual property and patent fights. It wasn't long ago that it looked like Apple would overtake Samsung to grab the biggest chunk of … Digital media is responsible for consumer electronics and mobile communications. Apple vs Samsung: Competitive Dynamics . The electronics titans square off in a tangled tale of mobile technology, centered on Apple's iPhone and iPad, that delves into where one company's designs end and another's begin. For this reason, the real damage is not on the production line, but rather in the mountain of legal costs incurred by Samsung and Apple around the world. Company profile a) APPLE Established in Cupertino, California by Steve Jobs and Steve Wozniak in 1976. We compare the most popular new iPhone from Apple’s iPhone 12 series with its closest rival in the 2020 Galaxy S series, the Samsung … Product-Type Divisions.Samsung’s organizational structure’s main characteristic is its product-type divisions. 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. Therefore, Samsung is superior in terms of organizational design. Apple’s internal capability is complemented by an excellent industrial design. Web. Manufacturing low-priced products can be necessary for Samsung to survive in a market that is now flooded with similar and cheap products. However, low-priced and unique products from companies like Samsung are a threat to Apple. The marketing sector understands what the customers want in terms of the product price and ensures that low-priced models are available in the market. The company aligns its business strategy to both marketing and production. This mission statement supports Samsung’s long-term goal of delivering high-tech and reliable products to many people across the globe irrespective of their socio-economic status. Then began a real patent warin which Apple has long been successful. Having sold 77.3 million iPhones in the holiday quarter, Apple climbed back to the top of the smartphone market for just the third time since losing pole position to Samsung in 2011. Generally, Apple corporate structure has the following characteristics: Hierarchical organizational structure. Circle is a financial services company that makes products using blockchain technology. Both Apple and Samsung companies are in the electronics industry with specialty in mobile and computer technologies. Before turning its sights to Apple, Samsung competed with, and in many cases bested, Japanese technology companies in the 1980s and 1990s. It … Android Mobile Computing Using Samsung Tablets and Smartphones Running Android 2.3-Kindle version. Finally, change implementation requires support from other stakeholders. The first salvo was fired in 2011 when Apple, already entangled with Motorola at the time, went after Samsung for its design of tablets and smartphones. The internal industrial design has a competent team and outsourced production. In March 2014, someone leaked a Samsung strategy document from 2012 in which the Korean-based tech company blankly stated, "Beating Apple is #1 Priority (everything must be in the context of beating Apple)." The top tier managers are able to oversee all operations conducted within the organization which allows them to emphasize more on the strategic plans of all functional divisions in the organization. For example, business people ought to think that Samsung Galaxy SIII has Google Drive, Gmail and Google Calendar as critical features of operations (Djurup, 2013). In addition, the creation of the iPod was relieving to the music industry that flourished from the innovation. This is considered to be the strength at Apple. Web. From a business model perspective, the two companies are constantly converging and modifying, although stark contrasts remain. In this model, five forces have been identified which play an important part in shaping the market and industry. The company encourages safe working environment. When one decomposes the patents asserted by Apple against Samsung it is clear that Apple was intensely focused on protecting more than individual patents taken at random from its portfolio of about 1,300 patents 10 related to mobile devices. The most acerbic interactions between Samsung and Apple take place in intellectual property rights court, where Apple has repeatedly reached into its bag of litigation tricks to assail Samsung for patent infringement. Each level of organizational structure is led by a manager who reports to a senior authority. Nevertheless, Samsung organizational structure may change in medium term perspective. Apple organization design was previously in disarray. For a long time, Apple did not have external designers until it acquired an internal team for the same role. (For more, see: The Fallout of the Apple vs Samsung Battle.) He establishes an organizational culture which is quite mechanistic and militaristic. Samsung history, SWOT analysis, Porter's 6 force analysis, Samsung future, Samsung performance, Samsung competitors, Apple vs Samsung, Samsung mobile market and everything about Samsung. Kim, Y. J. This presentation presents everything about Samsung company. Apple's rise has been comparatively meteoric and focused. Apple v. Samsung. Hill, C. W., & Jones, G. R. (2008). On the other hand, Samsung has a wide range of product models that are not high-end. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. However, with Steve Jobs at the company’s helm, outsourcing design function became a common feature in order to meet new market demands. We use cookies to give you the best experience possible. Samsung organizational structure. The first claim came in April, and by August 2011, there were 19 ongoing Apple versus Samsung cases in nine separate countries. The introduction of Samsung tablets and smartphones rivals Apple’s products in all manners. 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). To ensure that cultural diversity is appreciated, Samsung management ensures that female workers account for at least 35% (Dippel Jr, 2012). In functional structure, people are grouped on the basis of their common expertise, experience and resources. 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. Apple Inc. 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. This corporate culture is part of an organizational design that emphasizes employees’ knowledge, skills, and abilities for innovating the company’s technology products, such as smartphones and laptops. Samsung believes that a cultural policy is significant in achieving a global market impact. As the outcome of review of optimal organizational structure completed on April 2017, the senior management decided not to shift to holding pattern of organizational structure. Web. A cross-sectional analysis of reported corporate environmental sustainability practices. Apple does not race to be first; it lets other companies spend time on R&D and early market development before swooping in and improving everything. MARKETING STRATEGY AND 4Ps ANALYSIS: APPLE VS. SAMSUNG I. However, using low-cost technology to produce unique products is a weakness compared to Apple. Apple has made a business strategy of focusing on design and user experience while outsourcing elements such as manufacturing. The competition between Apple and Samsung is great thing for consumers because they are forcing each other to improve their products year after year. 2005). Apple Inc. has a fairly flat organizational structure which has a total of three layers. Structure of Organization in Samsung is also different than its major rival. However, recent development from Samsung Electronics has proved that entrepreneurial skills especially duplication can be critical in determining market leaders. Samsung is therefore always second to market, violates Apple… When Apple Inc., unveiled its latest smartphones iPhone 6 and iPhone 6 Plus in September 2014, industry experts, opined that Apple might finally have the right ingredients to sap the advantages of Samsung’s Galaxy line of smartphones and reverse Samsung… The electronics titans square off in a tangled tale of mobile technology, centered on Apple's iPhone and iPad, that delves into where one company's designs end and another's begin. Figure 1: Apple’s Leadership Structure (Apple Inc., 2017) Advantage of Apple’s Organizational Structure The chain of command depicted in Apple’s organizational structure positions the top management to effectively control the business. Samsung operates like many other Asian producers, such as NEC Corporation or Sony Corporation, with an emphasis on vertical integration and a flood of products. Not content to just throw out an imitator product, Apple worked diligently with record labels and created a small, sleek-looking replacement. In this regard, product models are viewed as efficient, exclusive and expensive. The Bizarre Patent History Behind The Apple v. Samsung Battle ... Google, on the other hand, has a relatively flat organizational structure of many small teams filled with empowered individuals. Samsung and Huawei crush Apple's smartphone global market share. This makes the flow of information and decision-making simple. Samsung and Apple are two consumer electronics giants with global reach and loyal customer bases. Apple: Design, Integration, and Outsourcing From its target marketing, research, and product design, Apple is a much more focused company than Samsung. Samsung fought back and had the injunction reduced to only German markets, but it was still a victory for Apple. That is 5 percent more than Apple, and about 2.5 percent higher than Samsung. On the other hand, Samsung has a renowned green management system that ensures the company’s domestic and global facilities conform to local and international environment regulations. Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Although Tim Cook introduced considerable changes to Apple corporate structure since assuming the top job in 2011, the structure still remains to be highly hierarchical with many layers of management. Therefore, Samsung surpassed Apple in terms of strategic capabilities. This inflates margins and boosts AAPL stock, and is one of the chief reasons Apple can grow at astounding clips. Boston, MA: Cengage Learning. It made sense that Samsung would try to incorporate elements of the Apple business model, especially after the American technology giant passed Exxon Mobil Corporation as the world's most valuable company in 2011. Ask either company, however, and you are likely to hear there is too much emulation going on. It is also a much more profitable company. With the diversity of cultures, the same is replicated in terms of personalities, competencies and abilities. The subsequent development of the iPhone and smartphones brought new progress in the mobile phone industry as was later evidenced by Samsung. From this perspective, personnel from diverse cultural backgrounds are employed to provide the company with the required competencies. 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 … From this perceptive, the company has to establish a global mindset and relevant world cultures. Chairman Lee Kun-hee saw his company's global share of smartphone sales drop from 35% in 2013 to 24% by early 2015, and his son, Lee Jae-Yong, reportedly wants to respond through mergers and acquisitions (M&As) and partnerships. Apple’s marketing sector is instrumental in finding a target market that refers high-end products. 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. From this perspective, the company understands the need to provoke creativity among staff members to achieve profitable innovations. Samsung's business model has focused on vertically integrating supply chains and ramping up production volume. From the new strategy, the company can optimize on diverse product models that serve the interest of large market share (Hills, Jones & Schilling, 2014). Synopsis. In addition, Samsung promotes cultural diversity through disabled vocational trainee programs that empower the disabled within the company. Indeed, Apple cemented its name as a technology leader in terms of innovations. This pays off in the mid- and low-end markets, but the high-end products keep running into the juggernaut that is Apple. Introduction.Marketing is a dynamic complex function performed by most organizations in reaching out to new and existing customers about a product or services being produce or delivered by organization. Dippel Jr, T. H. (2012). Moreover, the company uses a large market advantage to realize its pricing objectives. Table from file According to table 1 and 2, the empirical data obtained from research study reveals that the comparisons between the two leading brand in Smartphone (Samsung and Apple) indicate that Apple has 58.6% respondents while Samsung has 45.3% respondents, implying that Apple has more brand users than Samsung.

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