Smartphone Industry: A Firm's Business Model Essay

The second objective is to find disruptive innovations that threaten the product roadmap and which, ideally, can be incorporated into corporate strategy to yield a competitive advantage [3].

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

The study looks in-depth at the direct effect of new ideas on the progress of any business. The study focused on trying to look past the overt benefits like profit, dividends, revenues etc. that a new business model would bring to a striving organization. The study researched into the adaptability of many of these companies interest into entering the always changing local and international markets, and also what steps that would need from each model to be successful in doing so. It also showed that trust is part of making strong business sense decision.it also spoke of developing more business links and better understanding of standard principles were fostered by the incorporation of new ideas into any business. This study was useful in the sense that it uses a business model which allows companies to follow a business plan and not to go into a major business idea without a sound thought process.

Technology Strategies for New Product Development Rationalist approaches to technology strategy, such as that of Porter,1 view technological innovation as a relatively unproblematic aspect of corporate strategy. This article will attempt to show that the development of new products by a rm is a more complex, dynamic and uncertain activity than this, dependent for success on organizational as well as technological factors. It will be argued that strategies for technological innovation are, by implication, risk management systems. Here we are referring to the introduction of some means of control over the cost and direction of new technologies,

Apple and Samsung are the major competitors in the smartphone field. We would, like to discuss why they’re leading and conclude which one is better. In the electronic industry these two companies fight are considered as the highest massive ever. They mainly clash for brand image and brand reputation but any consequences regarding this fight, the impact should be faced by both these companies in terms of brand reputation loss and also the loss of huge amount of money over the litigations We would like to discuss the following,

A business model design and innovation is the value a company brings to the market. Osterwalder, & Pigneur (2010) mentions four mapping four primary areas of environment, market forces, industry forces, key trends, and macroeconomics forces (p. 200). Each one of these four factors are important to a business model. The innovation that is required to make each mapping to become a success is much needed.

This course for juniors and seniors explores firm strategies related to innovation and technological change. We focus on how the success of technological innovations—new products, processes, and services—depends on the firm’s business model. Other key topics include intellectual property rights and the management of technological uncertainty through organizational arrangements such as corporate venturing, spinoffs, and alliances.

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

When examining Jeff Hawkins business model during his time as CEO with handspring there was no definitive answer. Hawkins Business model seemed more like a question. “How do you make an exciting product that's pushing the envelope in some ways, but on the other hand is usable and accessible to a very broad populace?”(Barnett, 2000). Hawkins had a business model that relied on strategic partners to perform business tasks such as manufacturing and distribution.

Two operating systems currently dominate the smartphone market, Apple and Android. It all started six years ago when Google launched its android system. However, its approach was much different. Google had made just the software, not the device, giving the software free to phone makers to alter and adjust in anyway they pleased to fit their over 70 different phones. Google believed that by offering it free, in the long run would create more internet friendly phones and more ad views for Google. I think that this strategy was successful due to the fact that Android is the world’s most popular operating system loved by many smartphone users. My point here, that Android is the better operating system, than Apple, should interest those who are

“Business Modeling is often seen as process to rearrange the building blocks to an innovative business model. What people forget is that a business model is not just the building plan of your business but also should give answer to the question “Why should your business exist from a customer perspective?” So a business model is not just a building plan but also how you give meaning to your customers and your employees” ( blog- business model,2016).

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.

Tidd and Bessant (2009) argued that “Unless an organization is able to move into further innovation, it risks being left behind as others take the lead in changing their offerings, their operational processes or the underlying models that drive their business”.

The game of strategy is about being different and staying different. How is this achieved? Formulating a business model need not be as complicated as predicting the future market and the actions of competitors. However, as Magretta mentions, strategic thinking is necessarily an

However, this paper chooses this definition as theoretical perspective of analysis for this paper subject to the following modifications: A business model is overall framework and philosophy by which a company (intends or) creates value in the market place through enhancement of its own combination of raw or in-put materials to create products (tangible and intangible including services), product packaging and systematic distribution in order to generate some or the best possible profit.