Essay on Samsung Competitive Lead

1619 Words Apr 16th, 2013 7 Pages
Executive Summary This paper provides an analysis on the success of Samsung over recent months which has allowed the company to crush its long term competitor, Apple. Methods of analysis include Samsung’s unique quality management practices, supply chain structures, partnerships and financial performance. Results of the analysis show Samsung’s high quality methods on all its business processes, and the business model structure which has allowed it to gain an upper hand in the market. The report finds the prospects of the company in its current position are positive compared to its competitors. The areas of weakness are mainly regarding patenting, in which the company’s recent partner Google has announced to improve with their services. …show more content…
Samsung focuses greatly on product differentiation and has a large product market ranging from household appliances, televisions, computers to mobile phones, and almost all of the components for these products are manufactured in house. Having these capabilities makes for a large organization such as Samsung to control its progression to a considerable extent. (Emerald Group Limited, 2006) explains this is especially significant in view of the threat posed by small manufacturers ready to jump as soon as an existing product becomes commodities. However, the main advantage to this capability is easy implementation to total quality control measures as described above, across the supply chain. Samsung’s integration approach is somewhat different to Apples (See Appendix C for a breakdown), Samsung follows a completely vertical integrated approach, whereas Apple is only partly integrated. One of the major advantages Samsung has over Apple is that Apple’s ‘connecting devices’ segment in which majority of its products lie, uses approximately 26% of Samsung manufactured parts. Samsung is one of Apples biggest suppliers, and Apple is one of Samsung’s largest customers, giving this competitive relationship an ironic purpose. This vertical integrated approach is actually a part of Samsung’s business model, acting as a supplier of essential manufacturing components for other firms within the market gives

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