Capstone Project Essay Example for Free

Capstone Project Essayorchard apple tree has been cognize to be an inherently personal computer company. However, it is to a fault well admitn that t strikeher is no wagerer example of innovative strategic thinking and execution. apples dodging has re master(prenominal)ed to cralimentation and sustaining value for guests across the human. Jobs returned to orchard apple tree in 1997 and the company never looked back since. However, it is in like manner said that apple lost the pc p arntage beca hold of ignoring the trends in pc industry. orchard apple trees business strategy is primarily based on insertion for creating differentiated 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 stick out. However, Apple kept taking calculated risks and entered forward-looking trades boldly. It was circumpolar in the release of innovative products identical iPod, iPhone etc. Inhere ntly it is a pc company and uses its competencies in developing hardware and software for developing effective, efficient and innovative products. In detail, its iPad, iPod, iPhone and Mac are all told computers. (Harris, 2010) Apples success is mainly the yield of innovative technology and design pattern.In this itinerary we can condition that Apple has enjoyed continued success in the market through designing and unmatched design. Apples vision is in any showcase based on continuous innovation which is visible in the products it makes. Its mission is as well as to be the leader in the digital revolution by making ultra products. We know that Apple is the market leader in wrong of almost innovative electronic products and the customers resource besides. The business environment for Apple Company is passing competitive both domestically and globally. (Harris, 2010) However, its products qualify as global products and are preferred by customers all around the globe. In particular it is through innovation that the company has dwelled a global leader in terms of technology. Its iPhone in additionkthe field by storm in 2007. Apple has strong capabilities in product design and engineering as well. In fact the shining send for boom was sparked by Apple through its release of iPhone in 2007. Initially, the market was shaped by the customers in US and other developed markets. However, the growth for smart phone market is now attack from the Asian and developing countries mainly.However, if anyone is challenging its position then it is Samsung which has emerged as a competitor for Apple. Till a few years ago, Samsung was just act to catch up in the smart-phone market. Now, apart from cosmos the worlds largest technology company by revenue, Samsung has set Apple on its back foot. It is now nerve-wracking to oer coming back Apple. Samsungs galaxy series became the customers preference soon after entryway the market. In fact Samsung is consider ed to be the best when it comes to accomplishment from its competitors. But they besides remain customer center on at the same time. In fact Samsung keenly observes what its competitors are bringing to the market. It keeps a watch over the recent trends and does non take much time to release its own version of the innovation. (Nisen, 2013) Apple also has a huge cash pile, but when it comes to taking risks and putting the money behind it, Samsung appears to be farther forrard of Apple. by from that Samsung also spends a larger part of its revenue on research 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 make of chips, displays and a variety of other technology. Its main benefit to Samsung comes in the form of the major power to compete on legal injury and offering features which others can non. However, it is important to note that Samsung is more than just a smart-phone maker. It is a conglomerate, a compel as well as the worlds largest chip maker. These factors play in Samsungs favor. umpteen of the components of the smart phones are make by Samsung itself which gives it a cost advantage. (Nisen, 2013) When we compare Samsung with Apple we can turn over that Apple relies on foreign partners, which somewhattimes also leads to difficulties and delays. Though Apple has a well-managed and futurist tack chain, yet it does not spend a penny the cost advantage like Samsung. One important factor regarding Samsung is that it has provided some(prenominal) unhopefuler end options for the developing world. In case Samsung continues to bring game changing products to the market like its Galaxy series, it can move from a close second to being the market leader.Samsungs announce expenditureis also quite high which has really paid it as well. Samsung has been successful domestically as well as globally. Its most products especially 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 strengths of Apple is its incredible brand lealty. It has a very high yield of brand loyal customers. These customers pull up stakes even line up before Apple stores at night in freeze cold to be the first to lay their hands on a new released iPhone, iPad or Mac. industrial-strength financial strength is also a major strength off Apple. asunder from these things Apple is also known for its strong brand reputation 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 leader s, the pace of innovation at Apple has slowed obliterate a bit. Recently it also faced problems from its main supplier and producer Foxconn which led to unwanted difficulties and delays. So, its cartel on external suppliers gets to be one of its primary weaknesses. Apart from that Apple operates in a highly competitive industry and the competition sometimes affects its margins also. Its profits are also affected delinquent to akin(predicate) but low priced offerings from its competitors. Another important weakness which slackly 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 role of the company. However, in spite of all the above mentioned weaknesses it can certainly not be denied that Apple is a customer focused, futuristic and innovative company and it is certainly due to its focus on design and innovation that the company has a vast array of opportunities open before it.Its main opportuni ty lies in the growth of smart-phone and tablet market. change magnitude demand for iPhones and iPad also brought new opportunities for Apple. With iPad mini the company has also set its foot in the infinitesimal tablet market. Despite the innovations it has brought till now to the market, the company has withal significant room left to usher in further. 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 effortless to be and remain the market leader and it holds true regarding Apple also. Apart from that its reliance on external suppliers has also proved a threat for it. Competitors like Samsung have the cost advantage since they produce their separate themselves. This is a major threat for Apple which it cannot afford to neglect. The company is increasingly threatened by the price pressure from Samsung over key components.Samsungs main strength lies in its change product portfolio. In fact the company has a really large product portfolio which includes mobile phones, tablets, TV, camera, pc, printers and many more items. In most of these product categories Samsung itself holds a significant market share. It is immediately the number two in terms of market share in the cell phone industry. Not just this Samsung was able to catch Nokias market share by superior innovation in smart phones. Apart 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 growing economies. In fact it has been able to bear 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 advantageously be integrated with various softwares. It is not so with Apple and its devices are generally not compatible with different o perating 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 ad hoc operating system or software. It is a very important advantage for Apple and to become the number one in the industry Samsung would accept 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 increase 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 expansi on 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 will also subscribe to to acquaint consistently to remain at the position it is. Price wars as well as decreased margins also bring additional threats for Samsung. Generally companies have to adapt their business strategies and products to different cultures when they are trying to merchandise to various countries with different cultures.This is referred to as globalization. However, this thing does not become very important for companies like Apple which sell nothing but innovation. English is a global language and Apples designs are generally simple and easy to use. As s uch Apple does not face great difficulties trying to adapt to various cultures and its strategy roughly remains 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 topical anestheticization, 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 topically 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 urgencys. It is necessary to understand the local culture to understand the customers preferences. One important example of its globalization strategy is its establishing of Lifestyle research labs in various countries including UK and India as well as Singapore and China. (Samsung, 2013) Apple has some distinct organizational competencies which differentiate it from others. Its competencies include its business regulate, corporate culture focus on customer as well as control of the entire ecosystem. Why Apple is generally able to consecrate 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 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 sum total competency that is the key driver behind Samsungs success. Samsung believes in building an organizational culture of learning and development. Samsung has also established a work culture that promotes learning and development for its employ ees. The company has also established a Creative Development Research Institute System to provide its employees with the opportunity to pursue germinal 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 feasible Samsung should try to limit it so that it can focus on specifically important products. Apart from that Samsung would strike to invest much more in innovation and design to pull customers off iPhones. It will 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 technological market keeps changing rapidly. Samsung will need to specifically concentrate on design and better technological innovation. Apple has been winning 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 integrating can be highly helpful for Apple. In this way it will be able to have better control over its suppliers which will decrease delays and other difficulties. Apart from that it will also provide Apple with significant cost advantage.Apple has in fact used forward vertical integration to reach closer to its customers. It has opened Apple stores in multiple countries around the world. Apple is thinking of fount 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 reac h 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 higher 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 face structure of Apple is designed keeping in mind effective decision making as well as tolerate monitoring deviceing of compliance and performance. The control r oom of directors at Apple oversees the CEO and the senior management. This monitoring is done in order to ensure ethical and operation 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 board also conducts a self-evaluation to find if the board and its committees are working properly. The compensation committee does an annual examine 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 composed of seven members of which four are external directors. This ensures the independence and transparency of the boards decisions. The board of directors also meets regularly to discuss management issues and other important things. Th e 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 stop its owner centered managing system since due to it the company cannot remain independent 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 follow a structure where there is more transparency related to ownership.Apart from that to improve its profitability and sustain its position, Samsung will need 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 ne ed 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 shortly 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 segment cheap devices clam up drive the sales volume. A number of second tier Asian brands have also started eating into Apples market share. The fight between Apple a nd 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 target 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 has 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 conceal its leadership position. Still, taken together these companies seem 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 folk 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 Globally and Adapts Locally for Worldwide victor (2013). In Samsung. Retrieved September 6, 2014, from http//global.samsungtomorrow.com/?p=28148 Osawa, J., Grundb erg, 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 Product Marketscreate and dominate them Apple style In Harconllc. Retrieved September 6, 2014, from http//harconllc.com/wordpress/wp- content/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=2323716request_loc le=EN_US