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Bus 599 Assignment 4 Capstone Project Apple and Samsung
Assignment 4: Capstone Project
Due Week 10 and worth 480 points
Use the Internet or the Strayer Library to research articles on strategic management of Apple Inc. and Samsung Group.
Write a ten to twelve (10-12) page paper in which you:
1. Analyze the existing business strategies, domestic and global environments, industry, and internal capabilities for both Apple
and Samsung. Assess the significant manner in which each company’s mission and vision align with the long-terms goals and
strategic direction of the organization.
2. Analyze the business-level strategy of each company by conducting a SWOT (Strengths, Weaknesses, Opportunities, and
Threats) analysis. Next, determine the fundamental way in which each sector influences its competitive position within the
industry. Provide rationale to support the response.
3. Analyze the central manner in which the strategies of each company’s business leaders have adapted to cultural differences
in order to both facilitate effective operations within global markets and drive new strategic initiatives with improved innovation
excellence. Provide one (1) example of such strategies in use from each company to support the response.
4. Evaluate the superiority of each company’s organizational competencies in terms of entrepreneurial capabilities,
organizational design capabilities, and strategic capabilities geared toward increased performance and profitability. Include one
(1) example of such superiority from each company to support the response.
5. Recommend one (1) appropriate new business strategy for each company that may maximize profitability and improved
competitiveness in the industry. Provide a detailed rationale for this strategy.
6. Evaluate the success of both companies’ corporate-level strategies in terms of horizontal integration, vertical integration,
strategic outsourcing, or diversification. Next, determine the type of strategy that contributed most effectively to the creation of a
successful and profitable multibusiness model. Provide a detailed rationale to support the response.
7. Analyze the strategies that the internal leadership of both Apple and Samsung has taken to discourage unethical behaviors.
Provide at least three (3) examples of such leadership in action from both companies to support the response.
8. Assume that both Apple and Samsung are in need of organizational change and must alter existing strategies. Recommend
three (3) specific ways in which Apple and Samsung could change functional, business, and corporate strategies, as well as
organizational structure and control in order to improve business performance and competitiveness in their industry. Provide a
rationale to support the response.
9. Use at least six (6) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as
academic resources.
Executive Summary
The mobile phone industry as a whole is a one of the fastest growing industries in the world
and expanding globally rapidly as developing countries emerge. Cell phones have gone
through major changes since their introduction in 1994, are constantly evolving to meet
customer expectations. In January 2009 the total number of mobile phone subscriptions in the
world reached over 4 billion. Worldwide, sales to end users in first quarter of 2010 totalled
over 314 million units recording a 17% surge compared to the same period in 2009 from a
recent Gartner report. This growth was majorly driven by double-digit growth of smart phone
sales in more mature markets. According to a recent analysis, IDC has predicted that “the
sales of cell phones are going to grow by an additional 11% 12% in the coming few
Concerning Porters Five Forces, buyer power is moderate/low, supplier power is
moderate/low, threat of new entrants is low, substitutes are low, and rivalry is high.

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The global mobile phone industry is best defined by overall market share and price based
upon product type. The industry can be further defined into three different segments: low-
end, middle, and high-end. In the global mobile industry, scale and market share are
everything. The ability to expand globally is crucial as emerging markets arise and new
potential customers come forth. However, it is still possible to be profitable in the market
without expanding rapidly against fierce competition by creating your niche.
Samsung has upheld its mission statement that responds both to its own change, and to new
developments in the world. Samsung’s management philosophy represents strong
determination to contribute directly to the prosperity of people all over the world.
Apple’s history is marred by technological advances and innovation. Apple’s plodding culture
is contributed to its inability to deliver phones to market as quickly as competitors and
furthermore hindering its competitive strategy.
Answer 5
Future strategies proposed for Samsung:
Provide latest in technology, innovation, and product design concerning smart phone
segment while attempting to be first to market and potentially creating a
differentiation advantage from a Cross Platform development perspective.
Compete for market share on a global level while recognizing potential of emerging
Future strategies proposed for Apple:
Utilize distribution and process methods to continue success of capitalizing off of
emerging markets
Answer 1 and Answer 7

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Introduction to business strategy of Apple and Samsung
Apple and Samsung, notably, utilize very different business strategies and models within the
marketplace; Apple releases few but highly anticipated high-end products while Samsung
inundates the market with a wide variety of products.
In the beginning, Apple was very careful about its mobile and tablet releases by originally
allowing for long development cycles that grow anticipation and showcased new innovations.
Dr. Panos Mourdoukoutas, a Professor and Chair of the Department of Economics at LIU
Post, succinctly describes the business model developed and utilized by Steve Jobs as, “based
on Schumpeterian entrepreneurship and churned out families of radically new products that
marry art and technology; and turning market niches into mass markets.”
The strategy of Apple was to develop and sell brand new, innovative products of which
blended art and technology in order to provide a simple and streamlined user experience; the
business strategy skyrocketed Apple to the forefront of smart phones making Apple a force to
be reckoned with beginning with their original release of the iPhone in 2007.
Apple’s strategy during Steve Jobs reign as Chief Executive Officer (CEO) was to use a long
development cycle that produced at least one large innovation each cycle. They would release
these products usually in a yearly selling period, while still marketing the earlier models at
cheaper prices. This allowed Apple to gain a large amount of anticipation for new products,
as consumers were expecting something new and innovative each time a new product was
announced while still offering cheaper alternatives to consumers via their old smart phone
models. Apple was also able to attract and keep many consumers by bundling their other
product offerings, such as iTunes, together with the use of the iPhone and iPad; the iPhone
can double as an iPod for all intents and purposes.
After Steve Jobs relinquished his position as CEO of Apple, the succeeding CEO became Tim
Cook who has seemingly adopted a new business model for Apple that is not necessarily akin

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