.

Monday, March 11, 2019

Capstone Project Essay

apple has been known to be an inherently personal computer fraternity. However, it is as good well up known that there is no better example of mod strategical thinking and execution. apples scheme has remained to creating and sustaining value for customers crossways the humanity. Jobs returned to apple in 1997 and the ships comp either never looked back since. However, it is connatur tout ensembley said that orc substantial apple tree lost the pc job because of ignoring the trends in pc industry. apples crinkle strategy is primarily based on entry for creating secernate products. It has built products that are cool to use as well as simple and intuitive. Its products are best known for the amazing experience they provide. However, apple kept pickings calculated bumps and entered new marts boldly. It was visible in the judgement of dismissal of innovative products deal iPod, iPhone etc. Inherently it is a pc comp both and uses its competencies in developing ha rdware and software system for developing effective, efficient and innovative products. In occurrence, its iPad, iPod, iPhone and Mac are all computers. (Harris, 2010) apples triumph is mainly the result of innovative technology and devise innovation.In this stylus we can see that apple has enjoyed proceedd success in the commercialise by means of innovation and matchless initiation. apples vision is as well as based on continuous innovation which is visible in the products it makes. Its complaint is as well as to be the leader in the digital revolution by reservation revolutionary products. We know that orchard apple tree is the grocery leader in terms of most innovative electronic products and the customers choice as well. The business environs for orchard apple tree Company is highly competitive both domestically and orbicularly. (Harris, 2010) However, its products modify as globular products and are preferred by customers all almost the globe. In fact it is through innovation that the fraternity has remained a global leader in terms of technology. Its iPhone tookthe world by storm in 2007. apple has strong capabilities in product design and engineering as well. In fact the saucying telephony boom was sparked by apple through its release of iPhone in 2007. Initially, the trade was shaped by the customers in US and separate developed markets. However, the growth for smart phone market is now coming from the Asian and developing countries mainly.However, if anyone is challenging its position thusly it is Samsung which has emerged as a competitor for apple. Till a few years ago, Samsung was just trying to catch up in the smart-phone market. Now, by from creationness the worlds largest technology company by revenue, Samsung has set orchard apple tree on its back foot. It is now trying to overtake Apple. Samsungs wandf junior-gradeer series became the customers preference soon after light-emitting diodeger entry the mark et. In fact Samsung is considered to be the best when it comes to learning from its competitors. just they also remain customer centered at the same time. In fact Samsung keenly observes what its competitors are transmiting to the market. It keeps a watch over the new-made trends and does non take much time to release its own rendition of the innovation. (Nisen, 2013) Apple also has a huge cash pile, barely when it comes to taking risks and putting the money behind it, Samsung appears to be far forrader of Apple. by from that Samsung also spends a larger part of its revenue on interrogation as compared to Apple. It spends 5.7% of its revenue on research as compared to Apples 2.4.Actually, Samsung is a diverse business that is made of chips, displays and a variety of other(a) technology. Its main benefit to Samsung comes in the form of the ability to compete on price and killering features which others cannot. However, it is important to note that Samsung is to a greater e xtent than just a smart-phone maker. It is a conglomerate, a manufacture as well as the worlds largest chip maker. These constituents play in Samsungs favor. Many of the components of the smart phones are made by Samsung itself which gives it a represent advantage. (Nisen, 2013) When we compare Samsung with Apple we can see that Apple relies on external partners, which sometimes also leads to difficulties and delays. Though Apple has a well-managed and futuristic supply chain, yet it does not confine the live advantage compar competent Samsung. unmatched important factor counting Samsung is that it has provided many lower end options for the developing world. In cutting Samsung continues to bring game changing products to the market standardised its Galaxy series, it can light upon from a close minute of arc to being the market leader.Samsungs advertizement expenditureis also quite high which has unfeignedly paid it as well. Samsung has been successful domestically as well as globally. Its most products oddly the galaxy series has taken the markets in the developing world by storm. (Nisen, 2013) Apple is considered to be the market leader in the computer software and hardware industry. The main reason behind its growth and success over years are the innovative products it has brought to the market. One of the most important specialitys of Apple is its incredible check off loyalty. It has a genuinely high outcome of brand loyal customers. These customers provide even line up before Apple stores at night in freezing cold to be the offshoot to lay their hands on a new released iPhone, iPad or Mac. vehement financial strength is also a major strength off Apple. apart from these things Apple is also known for its strong brand personality and strong advertising and marketing teams and its retail stores. We already know of Apple as the leading innovator in the mobile device technology. However, apart from the above mentioned strengths there are some weaknesses also.As analysts have mentioned without Steve Jobs in leadership, the pace of innovation at Apple has slowed down a bit. late it also awaitd problems from its main supplier and producer Foxconn which led to throwaway(prenominal) difficulties and delays. So, its credence on external suppliers enamours to be one of its primary weaknesses. asunder from that Apple operates in a highly competitive industry and the argument sometimes affects its margins also. Its profits are also affected referable to similar but low priced religious offerings from its competitors. Another important weakness which largely goes in the favor of its competitors is that its products are generally high priced. This all has also led to a decline in the market contribution of the company. However, despite all the above mentioned weaknesses it can certainly not be denied that Apple is a customer contracted, futuristic and innovative company and it is certainly due to its focus on d esign and innovation that the company has a vast cast of opportunities open before it.Its main opportunity lies in the growth of smart-phone and digs market. Increased demand for iPhones and iPad also brought new opportunities for Apple. With iPad mini the company has also set its foot in the small tablet market. Despite the innovations it has brought process now to the market, the company has still significant room left to present kick upstairs. In fact its opportunities lie in continuous innovation. Release of the TV is also beingseen as a great opportunity for Apple to amaze its customers which it does like no one else. However, it is not easy to be and remain the market leader and it holds true regarding Apple also. by from that its reliance on external suppliers has also proved a affright for it. Competitors like Samsung have the cost advantage since they produce their parts themselves. This is a major threat for Apple which it cannot afford to neglect. The company is in creasingly threatened by the price pressure from Samsung over disclose components.Samsungs main strength lies in its diversified product portfolio. In fact the company has a really large product portfolio which accepts mobile phones, tablets, TV, camera, pc, printers and many more(prenominal) items. In most of these product categories Samsung itself holds a significant market share. It is today the number dickens in terms of market share in the carrel phone industry. Not just this Samsung was able to catch Nokias market share by superior innovation in smart phones. unconnected from that Samsung has also remained ahead consistently in terms of design and innovation. A very important strength of Samsung is that it has been able to take advantage of the markets of evolution economies. In fact it has been able to obtain a large market share in the growing economies because of its low end products. Another key strength of Samsung is that most of its products can easily be integrat ed with diverse softwares. It is not so with Apple and its devices are generally not compatible with different operating systems.Apart from being known for its innovation and design, Samsung is well known for its relatively cheap products. Added to all this is Samsungs global brand recognition. But apart from its strengths Samsung has some weaknesses also. Firstly, it is not as ahead in terms of software and hardware as Apple. It does not have either its specific operating system or software. It is a very important advantage for Apple and to become the number one in the industry Samsung would imbibe to beat Apple. Apart from it, Samsung is focused on making too many products and its profit margins are also very low. Its competitors like Apple are the largest buyers for its electronic equipments also. Still there is a large pool of opportunities lying open before Samsung which is mainly due to increased demand for smart phones in the developing economies.Its galaxy series has been a great hit globally. Apart from that demand for quality products from Samsung has also risen greatly. The expansion of tablet market has also brought newopportunities for Samsung and the company has also obtained large benefits from it. The main threat before Samsung is the fall in the prices of smart phones. Samsung faces increased threats from Apple because of its innovative technology and design also. Apples release of ITV is also being seen as a threat for Samsung. Technological change is happening rapidly and Samsung testament also convey to innovate consistently to remain at the position it is. Price wars as well as decreased margins also bring additional threats for Samsung. broadly speaking companies have to adapt their business strategies and products to different goals when they are trying to treat to various countries with different conclusions.This is referred to as globalization. However, this thing does not become very important for companies like Apple which s ell nothing but innovation. side of meat is a global language and Apples designs are generally simple and easy to use. As such Apple does not face great difficulties trying to adapt to various cultures and its strategy roughly remain the same across cultures. As we can see that cultural differences do matter in business. Yet, Apple sells the same iPad in Tokyo as it does in Toronto. (Jacobs, 2010) Instead of competing on localization, Apples competes on the pace of innovation across cultures and countries. It is due to its pace of innovation that today it is a global brand. However, the case is different for Samsung, which is said to design globally but adapt locally for success.Every day it ships millions of products to customers around the world. Samsung believes that it is important t to understand the local culture to meet the local get hold ofs. It is necessary to understand the local culture to understand the customers preferences. One important example of its globalizati on strategy is its establishing of modus vivendi research labs in various countries including UK and India as well as capital of Singapore and China. (Samsung, 2013) Apple has some distinct organizational competencies which differentiate it from others. Its competencies include its business model, corporeal culture focus on customer as well as control of the entire ecosystem. Why Apple is generally able to generate lots of buzz is because of its fastidious attention to design like its founder Steve Jobs. Most importantly it is the ability and practice of putting drug user experience first that keeps Apple ahead of others. Apple is known for being customer focused and it reflects in the success of its products.Apple is known for its design and ease of use. Its iPhone isin fact a great example of the same. Apart from innovation and technology there is one other core susceptibility that is the key driver behind Samsungs success. Samsung believes in building an organizational cultur e of learning and development. Samsung has also established a work culture that promotes learning and development for its employees. The company has also established a fanciful Development Research Institute System to provide its employees with the opportunity to adopt creative ideas. This initiative is aimed at encouraging the employees to develop creative ideas and be more entrepreneurial. Samsung has a highly diversified product portfolio and it is also in more places than Apple. But it sometimes also results in diverted focus. If executable Samsung should try to limit it so that it can focus on specifically important products. Apart from that Samsung would regard to invest much more in innovation and design to pull customers off iPhones. It get out also need to go beyond marketing and just bigger screens.Samsung has been concentrating on offering cheap products for the markets in developing countries. Yet it remains to do more on innovation as the scientific market keeps c hanging rapidly. Samsung will need to specifically concentrate on design and better technological innovation. Apple has been amiable due to its focus on innovation and design. However, it is not having a very significant advantage which is of producing the components for its iPhones. It is also relying on external suppliers and it leads to difficulties and delays. Apple should especially concentrate on its suppliers. In this backward desegregation can be highly helpful for Apple. In this way it will be able to have better control over its suppliers which will minimize delays and other difficulties. Apart from that it will also provide Apple with significant cost advantage.Apple has in fact used before vertical integration to stint closer to its customers. It has opened Apple stores in multiple countries around the world. Apple is thinking of opening newer Apples stores in the markets it has tapped newly. In fact it does not just bring Apple closer to its customers but is also an example of effective corporate level strategy. The popularity and demand of Apples products is high. As a result Apple is trying to reach a larger number of customers through its own stores, since scalpers jack up the prices. However, the strategy that worked in the favor of Apple was that of diversification. Apple diversified itself from computers to consumer digital lifestyle andentered the mobile phone market also. Since then it also brought a vast range of game changing products to the market which became highly successful. In case of Samsung the backward vertical integration strategy has worked. Many of the components that go into the smart-phones are made by Samsung itself and the company also gains significant cost advantage due to it. Apart from that this strategy also benefits it by allowing it high flexibility in terms of what and when it produces.In fact Samsungs business model is based to a great extent on this competency. The corporate governance structure of Apple is designed keeping in sack dog effective decision making as well as steal monitoring of compliance and performance. The dialog box of directors at Apple oversees the CEO and the elderly management. This monitoring is done in order to ensure ethical and transaction of Apple Inc. In fact it is an efficient method to monitor that the top management is working ethically and properly. Apart from that this method also ensures that there are no frauds or manipulations as well as prevents any problem at the corporate level. Apart from that the climb on also conducts a self-evaluation to find if the board and its committees are working properly. The compensation committee does an yearbook review of the executive performance including the CEO. This review is also evaluated by the board to ensure the CEO is providing effective leadership to the company.The board of directors at Samsung is cool of seven members of which four are external directors. This ensures the independence and tran sparency of the boards decisions. The board of directors also meets regularly to discuss management issues and other important things. The directors are not allowed to engage in business activities in the same industry without approval from the board. It has been done especially to minimize any risk of conflict of interest or unethical behavior. Samsung is a company considered to be over hierarchical and also to be dominated by its founding family. There has been significant criticism of its governance structure. Firstly, the company should renounce its owner centered managing system since due to it the company cannot remain unconditional of its chairman. The rights of minority shareholders as well as economic justice get eroded in this system. Samsung will need to change this structure. (Kim, 2012) The company should get married a structure where there is more transparency related to ownership.Apart from that to improve its profitability and sustain its position, Samsung will ne ed to invest more andmove further in terms of innovation. It will also need to move its focus from products to customers. In case of Apple, it will need to adopt its business strategy to obtain cost advantage like Samsung. One major drawback of Apple is that its products are very costly generally. In this regard Apple should go for backward integration to obtain significant cost advantage. Apart from that the company should continue to focus on innovation and design to remain competitive. Apple has been using forward vertical integration successfully but it also needs to use backward integration for further success and managing costs. Pressure from competitors like Samsung is rising and company will need to be focused on managing the price issue to beat the competition. The smart phone market is before long driven by two factors.These include large screens as well as cheap products. However, Apple currently provides none of these. Despite not being the most attractive member cheap devices still drive the sales volume. A number of second tier Asian brands have also started eating into Apples market share. The fight between Apple and Samsung is going to be really hard. Apart from it both companies will also have to fight hard for their respective positions in the market against the emerging challengers. Apples manoeuvre continues to remain the high end market. It has still held itself from releasing a low cost product since it may eat into its profitability. Currently, Apple and Samsung are the only vendors who have their market shares in double digits.Yet, their combined market share fell in 2013 which denotes that the road ahead is going to be tough. Still, the two are the most dominant players in the global smart phone market. In fact the decline was largely due to inability of Apple to grow according to the broader smart phone market. However, it is still the market leader. (Osawa & Grundberg, 2014)But on the other side it cannot be denied that Samsung h as been inching closer through its strategy of innovation and price competition. In fact if Samsung is able to manage its winning spree as it did in case of Galaxy smart phones, it will grow at faster pace than Apple. Apple would have to stick out attention to certain other things also apart from differentiation through design and innovation to retain its leadership position. Still, taken together these companies reckon to be dominating the smart phone market and will continue to for the coming years.ReferencesNisen, M. (2013). Samsung Has A Totally Different Strategy From Apple, And Its working Great. In Business Insider. Retrieved family 6, 2014, from http//www.businessinsider.in/Samsung-Has-A-Totally-Different-Strategy-From-Apple And-Its-Working-Great/articleshow/21250813.cmsJacobs, E. (2010). Navigating cultural differences. In Financial Times. Retrieved September 6, 2014, from http//www.ft.com/cms/s/0/f3e2f464-937e-11df-bb9a 00144feab49a.htmlaxzz2w9RbDZqJSamsung Designs Glob ally and Adapts Locally for Worldwide Success (2013). In Samsung. Retrieved September 6, 2014, from http//global.samsungtomorrow.com/?p=28148 Osawa, J., & Grundberg, S. (2014). Apples Smartphone Market Share Drops as Samsungs Edges Up. In Wall Street Journal. Retrieved October 16, 2014, from http//blogs.wsj.com/digits/2014/01/28/apples-smartphone-market-share-drops-as-samsungs-edges-up/ Harris, M. (2010). New crossroad Marketscreate and dominate them Apple style In Harconllc. Retrieved September 6, 2014, from http//harconllc.com/wordpress/wp- subject/uploads/2013/04/DominateMarketsAppleStyle.pdfKim, L. (2012). Samsungs family battles over corporate governance, will it be a risk? In Quamnet. Retrieved September 6, 2014, fromhttp//www.quamnet.com/newscolumnistcontent.action?articleId=2323716&request_loc le=EN_US

No comments:

Post a Comment