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Apple vs. Samsung
Transcript of Apple vs. Samsung
Has already made changes to the board, taking out two members.
Has assumed mistakes made by other.
Wants a team where people apologize and so not have big egos. Servant qualities. Apple vs. Samsung By Ellen Axenfeld, Dominic Natalizio, Tomaz Pimenta, Patrick Shiller, and Chao Huang * Headquarters: Cupertino, California
* Founded by Steve Jobs, Steve Wozniak and Ronald Wayne
* Sell a variety of related software, services, peripherals and networking solutions.
* 121 Countries, 35,000 employees
* In 2011, Apple Inc. reported more than $108 billion in revenue * Headquarters: Seoul, Korea
* Founded by Byung-Chull Lee
* Initially focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing
* In 1969, Samsung-Sanyo Electronics established (renamed Samsung Electro-Mechanics in March 1975 and merged with Samsung Electronics in March 1977).
* In 2011, Samsung reported more than $145 billion in revenue. vs. Apple's Mission Statement "Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings." Employee Reward Systems Apple
Less focused on monetary rewards
Cater to leisure and creative culture
Focused on education and training opportunities
Slight mention of leisure benefits SWOT Analysis Apple Inc. Samsung Electronics Company, LTD Apple CEO Tim Cook Samsung CEO Dr. Oh-hyun Kwon
Very large and loyal customer base
Sleek, user friendly products
High brand equity Strengths Threats Weaknesses Opportunities Many popular apps, especially Google ones, are not available on Apple
Overprotective of their software, making it difficult for 3rd parties to develop hardware Inter-connectivity between different Apple products encourages users to buy multiple products Many Apple products and innovations are being replicated
Other, cheaper alternatives with the same functionality of Apple products Very diverse range of products sold
Samsung has the first mover advantage with a lot of products
Samsung controls a large percentage of the market in many of its product categories Strengths Weaknesses Samsung specializes in hardware; It has too much dependence on 3rd party software developers Opportunities Improve its stake in the air conditioner market with new, unique technology
Gaining many new customers in the opening Indian market
Launch new creative and innovative products Threats Failure of one of Samsung’s many product lines could cause brand dilution
Samsung’s potential market in India is open to foreign players
Low cost Chinese products can erode profitability APPLE SAMSUNG Samsung Consultation Culture "Inspire the World. Create the Future." Samsung Mission Statement Mr. Kwon, CEO Transactional Transformational
Have a larger presence in the company
Be active and inspirational
Increase bottom-up communication
Empower and trust employees Cultural Improvements Opportunity to change culture with new leadership
Foster a culture of innovation and inspire creativity
Expand upon changes already made (dress code, flexible work hours, etc.)
Blue Sky Time
Flatten the structure
More autonomy and self-management Employee Rewards Suggestions Cater to well-being of employees beyond material benefits
Increase job enrichment
Task significance Took position from Kun-hee Lee in June 2012.
K.H. was very much of a pusher, nothing like Jobs was.
Has already made structural changes as well.
Mr. Lee was rarely seen in public, did not show up to shareholders meetings
Two influential companies, fierce competitors
Over $100B in revenue each in 2011
Apple had biggest market cap- world’s most valuable company
Our Goal- What has contributed to Apple's success? Why These Companies?