Organizational Background
Apple and Samsung are the largest smartphone manufacturers and distributors in the smartphone industry. Both companies operate on a large scale with stores around the globe. While Apple has its headquarters in Cupertino, California, United States, Samsung has its headquarters in Seoul, South Korea. Multinational companies operate in different countries and economies with their business structure, legal policies, environment, and market structures.
Legal and Social Environment
While South Korea doesn’t follow proper federal legislation, it is mostly influenced by the European legal system, which has some recent developments from U.S. legislation. The legal environment is welcoming for private companies and encouraging multinational firms such as Samsung. Samsung has major international competition compared to the domestic market. On the other hand, Apple operated in the United States following federal legislation, which encourages local production and prohibits child labor. Apple has been reported to have been involved in illegal activities in their factories in China, which hires underage workers. Additionally, Apple has local competition as well, even though it has the biggest market share in the U.S.
Company Culture and Performance
Gaining most of the market share, Apple gave Samsung major competition. However, due to recent changes in their business and marketing strategies, Samsung has overtaken the iPhone as the most popular smartphone in the industry.
Samsung operates in a business culture that has products targeting different markets, such as the TV market, Tabs, medical electronics, other electric equipment, LEDs, gaming tools, and batteries. At the same time, Apple focuses on a few markets, such as smartphones, TVs, and iPads.
Promotion Policies
Samsung targets a larger market and customers from different income-level groups. On the other hand, Apple focuses on higher income groups with expensive prices of its smartphones and other products. Both multinational companies have adopted different promotional strategies that help them target their audience. Apple has the concept of a minimalist smartphone, while Samsung provides all the features for all types of customers, such as people who need to organize their work.
Strategic Decision-Making and Decision-Making Style
Samsung believes in being the market leader and learning from its competitor’s mistakes and new strategies. It has a competitive advantage of vertical integration and independence from competitors, while Apple depends on outsourcing and its rivals in the market which costs them billions of dollars.
Management and Leadership Style
Apple has adopted a democratic style of leadership, which helps them generate new ideas and innovations. Samsung has a similar approach to leadership and management. It believes in innovation and product development, which is encouraged through employee motivation and new ideas.
SWOT Analysis
Strengths:
Apple has achieved brand loyalty through constant innovation and the introduction of new models with up-to-date software. Apple employees are motivated and dedicated to their work. Samsung, on the other hand, controls everything internally, focusing on producing itself rather than outsourcing, which reduces its costs and dependence on other firms.
Weaknesses:
Samsung lacks effective leadership to move forward and achieve brand loyalty, as there is too much competition in the market for Android phones. Apple, on the other hand, requires producing products that are more innovative and have different features than its older products.
Opportunities:
There is a potential market for both companies in different parts of the world. Additionally, the cheaper labor rates in countries like China and India are major opportunities for reducing their production costs.
Threats:
There is too much competition in the smartphone industry, with companies like Microsoft, Huawei, Lenovo, and a few other major names introducing more innovative phones at cheaper rates.
