Apple and Samsung are the largest smartphone manufacturers and distributors in the smartphone industry. Both the 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. The 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 European legal system with 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 the 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 a major competition. However, due to recent changes in their business and marketing strategies, Samsung has overthrown iPhone as the most popular smartphone in the industry.
Samsung operates in a business culture which has products targeting different markets such the TV market, Tabs, medical electronics, other electric equipment, LEDs, gaming tools and batteries, while Apple focuses on a few markets such as smartphones, TV, and iPads.
Samsung targets the larger market and customers from different groups of income level. On the other hand, Apple focuses on higher income groups with expensive prices of its smartphones and other products. Both the multinational companies has adopted different promotional strategies that help them target their audience. Apple has the concept of a minimalist smartphone while Samsung provides all features for all types of customers such as people who require 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 with the new ideas and innovations. Samsung has a similar approach when it comes to leadership and management. It believes in innovation and development of its products which is encouraged through the motivation of employees and generating new ideas.
Apple has achieved brand loyalty through constant innovation and introducing new models with up to date software. The employees of apple are motivated and dedicated to their work. Samsung on the other hand, controls everything internally, focusing on producing themselves than outsourcing which reduces their costs and dependence on other firms
Samsung lacks effective leadership for the company 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 to produces products that are more innovative and has different features than their older products.
There is potential market for both of the companies in different parts of the world. Additionally, the cheaper rates of labor force in countries like China and India are major opportunities for reducing their costs of production.
There is too much competition in the industry of smartphones from companies like Microsoft, Huawei, Lenovo and a few other major names that are introducing more innovative phones for cheaper rates.