Introduction Competition between organizations is good for the consumer, because it makes the organization do its best to win the customer. Some of these competitions are direct, meaning, two companies in a firm, competing to have a sustainable competitive advantage. The competition between Apple and Samsung is an example of the direct competition. Apple and Samsung have a long history of competition, each company is trying to be step ahead of the other. In this report, our goal is study this competence between Apple and Samsung, and try to seek knowledge from the strategies they adapt to create a sustainable competitive advantage, compare between the two companies in the market. To do this report, we have searched articles, journals, and reliable websites to collect data and information, and we compared between the two companies in several ways. We will discuss the collected data in the literature review, then, we will compare between the market commonality and resource similarity of the two companies. Also, we will do a SWOT analysis, and finally we will discuss our results. Objective Rival organizations offers similar products, has the same resources and focuses on the same customers base. The main objective of this report is to study the competition between …show more content…
This assumption has been challenged by strategic-group literature which helps one recognize the significance of strategic group, which is likely to reveal how a firm may can compete in an industry. Thus, through most strategic group theorists dose not claim to be considering "competitors". From the point of view of predicting rivalry, the identity of a firm competitors is assumed to be known. Unfortunately, only a few researches (e.g., Smith, Grimm, Gannon, & Chen 1991; Zajac & Bazerman 1991) have identify the links between the analysis of competitors and the prediction of their behaviors. (Patrick,
The competition has been analyzed by using Porter’s Five Forces Model. By gathering an analysis of the threats that can come from competitive rivalry, potential new entrants, bargaining power of buyers, bargaining power of suppliers, and substitutes, Company G can be better compared to its competitors.
The monopolistic rivalry business structure incorporates numerous organizations offering somewhat separated items. There is a simple passage into the business sector by new firms over the long haul, and the organizations are sufficiently extensive to impact the aggregate supply. There are likewise various measurements of rivalry, including dissemination outlets, promoting, and item characteristics. The peripheral expense will be not exactly the cost at its benefit amplifying yield level. As indicated by the content, a monopolistic contender can't make long-run benefit (Colander, 2013).
High level, intense rivalry may result with profit lost for the company. In most cases, new entrant barriers are high due to the intensity of rivalry (Porter, 2008).
The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing
Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include:
In 2014 both Apple and Samsung sold a combined total of about 108.2 million units of their products! Samsung sold about 71 million units while on the other hand Apple sold 94.75 million units. For the past few years, the competing and comparison between Apple and Samsung was at its maximum. Fights started between people to prove an idea about which company is the best but they did not know that they were only comparing their smartphone. That is not the only thing a person should concentrate at while comparing two of the biggest multinationals in the world. People should look at the sales of all of the company’s products, their profits and losses, the history of the company, and the reviews of the people about their
Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high
Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry
Different organization looks at the level of technology that competitors used in production of their services. Another crucial thing is the evaluation of what the competitor’s customer are complaining about and takes it as an advantage of attract customers to the organization (Matthew, 2010).
Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012.[1] In the spring of 2011, Apple began litigating against Samsung in patent infringement suits, while Apple and Motorola Mobility were already engaged in a patent war on several fronts.[2] Apple's multinational litigation over technology patents became known as part of the mobile device patent wars: extensive litigation in fierce competition in the global market for consumer
As a consultant for Orb Ltd a company who specializes in organizational behavior. I have been asked by the CEO to research areas within organizational behavior on the two examples that I selected, so it can be used for future training.
In today’s business world, competition is a big concern for nearly every corporation. The competition on the market is getting stronger and more difficult to overcome, in many situations corporations terminate their products, production, or their services, just because it is impossible to continue; the cost is too high to focus on gathering development projects in marketing, production, market research, and product innovation, to fight against the competitors.
Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.
To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’
With more and more fierce market competition, much attention has been paid to the research on corporate competitiveness.