{"id":15,"date":"2016-10-02T21:07:27","date_gmt":"2016-10-03T04:07:27","guid":{"rendered":"https:\/\/blogs.ubc.ca\/makeday\/?p=15"},"modified":"2016-10-03T09:37:59","modified_gmt":"2016-10-03T16:37:59","slug":"apple-vs-samsung-competitive-strategy","status":"publish","type":"post","link":"https:\/\/blogs.ubc.ca\/makeday\/2016\/10\/02\/apple-vs-samsung-competitive-strategy\/","title":{"rendered":"Apple vs. Samsung: Competitive Strategy"},"content":{"rendered":"

An ongoing battle that has impacted us all, that has forced us to make a choice and has ultimately changed our interaction with the face of technology is the mobile war between Apple and Samsung. According to \u201cThe Great Smartphone War\u201d<\/a> , Apple and Samsung have engaged in a fierce legal war \u201ccosting more than a billion dollars.\u201d With constant legal wars based on the claim of stolen intangible assets, legal intellectual property, Apple was stunned when Samsung first introduced the Galaxy S into the market triggering this technological war. However, while these two companies\u2019 products might look similar, their business strategies don\u2019t.<\/p>\n

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Image source: http:\/\/www.andymator.co.uk\/2016\/02\/battle-of-smartphones-apple-vs-samsung\/<\/figcaption><\/figure>\n

Looking at these companies, we can discern that their business models are ones that are continuously subject to change and innovation, classified by Rita McGrath as what\u2019s now known as transient advantage.<\/a> Understanding that their competitive advantage will be short lived, these two multibillion companies are consistently innovating strategies that helps them create new advantages.<\/p>\n

Aside from being present in multiple market segments, Samsung\u2019s major competitive advantage comes from its focus on vertical integration, according to this article. <\/a>While spending a generous amount of money investing on research development and capital expenditures, vertical integration allows Samsung to get closer to the larger consumers in the supply chain. In contrast, Apple loses a large sum of money by depending on others for the supply of it inputs. However, I would like to emphasise that what works well for one company doesn\u2019t mean it will for another.<\/p>\n

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Image source: http:\/\/ http:\/\/www.technewstoday.com\/26905-apple-vs-samsung-is-overpriced-ipad-pro-better-than-tab-s2\/<\/figcaption><\/figure>\n

Yes, Apple does not<\/i> produce its own inputs, instead it uses technology produced by other suppliers and in doing so, Apple dramatically reduces its research and developmental costs. This, to my understanding, was how Dell was able to get ahead of the game. If you look at it closely, Apple follows the same strategy that Michael Dell <\/a>metaphorically presented in his interview: \u201cIf you\u2019ve got a race with 20 players that are all vying to produce the fastest graphics chip in the world, do you want to be the twenty-first horse, or do you want to evaluate the field of 20 and pick the best one?\u201d The twenty-first horse being Apple, which is currently ahead of the race.<\/p>\n

However, it\u2019s important to evaluate the long and short term effects of these strategies. While Samsung\u2019s expenditure on research appears to be costly, it\u2019s serves as an investment that creates long term advantage such as new and innovative products. Apple\u2019s dependency on other companies for research development inhibits their ability to be as competitive and innovative as Samsung in the future, a consequence of short-termism. Apple, while it is still ahead, should take control over its innovative strategies.<\/p>\n

Word Count – 448<\/p>\n","protected":false},"excerpt":{"rendered":"

An ongoing battle that has impacted us all, that has forced us to make a choice and has ultimately changed…<\/p>\n","protected":false},"author":42319,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-15","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/posts\/15","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/users\/42319"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/comments?post=15"}],"version-history":[{"count":3,"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/posts\/15\/revisions"}],"predecessor-version":[{"id":20,"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/posts\/15\/revisions\/20"}],"wp:attachment":[{"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/media?parent=15"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/categories?post=15"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/makeday\/wp-json\/wp\/v2\/tags?post=15"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}