Discuss about the Strategic Management Process Of Apple And Samsung.
The purpose of this report is to provide a brief view of the strategic management process and its applications on various companies. The report discusses the strategic management practices” href=”https://#”>strategic management practices of two organizations namely Apple and Samsung. Both the companies are present in same industry and have attained success in the market differently. The report discusses about the strategies used by these organization to produce sustainable advantage in the target market (Barney, & Hesterly, 2010). Further, it talks about the ongoing inefficient strategic management practices of another company present in the market. Nokia is the organization that is being used under this case. The latter part of the report proposes a strategy for the company Nokia looking at the strategies under by the company Apple. It explains the performance management of Nokia with the use of effective and efficient strategic processes used by Apple. Strategic management is an important tool that helps businesses to run successfully in the current environment. An organization that uses this tool gains the capacity to effectively sustain their competitive advantage in the external market. An organization cannot sustain in the current environment without using these strategic, further, more details about the strategic management process is discussed below:
Strategy is a process that converts the theory of business into performance for the organization. This process helps the manager to achieve the results that they aim to achieve for the organization. According to Freeman, 2010 strategy is an aspect that helps the business to initiate activities that helps them to achieve their goals and objectives even in unpredictable circumstances. Strategy is a tool that allows all the organizations to become purposefully opportunistic. The strategic activities initiated in an organization not only converts the theory into actual performance for the organization but it also tests the theory that it is good for the organization or not. According to David, 2011 the strategic management refers to the activity initiated in an organization that helps them adequately address the opportunities and initiates activities that helps them in sustaining competitive advantage in the target market. The process help the organization reach the targets that the organization was unable achieve earlier. Barney, 2014 said that the strategic management process adequately identifies the growth objective and target of the organization, and then imply the resources and capabilities of the company into strategic so as to gain output from every activity. With the use of strategic management, an organization can easily change their negative growth into positive by using resources properly and satisfying the requirements of the customers present in the target market.
Further, it should be noted that strategic management is a combination of managerial decisions and actions that evaluates the long term performance of the organization. The strategic management process involves the environmental scanning under the employees analyze the internal and external environmental aspects related to the organization and then formulate certain strategies that for the long term growth of the organization (Xu, Wang, & Liang, 2017). The study of strategic management lays emphasis on the monitoring and analyzing the opportunities and threats present in the external environment and relating it to the strength and weakness of the company. The strategic management process involves implementation of business policy concerning the external abilities present in the environment and changing them in a way to provide effective business outcomes. An organization usually uses four phases of strategic management to gain success in the external market (Hitt, Ireland, & Hoskisson, 2012). These four phases are discussed below:
Both the companies Apple and Samsung are well renowned organizations present in the industry of technology. Both the companies use differentiated strategies according to their resources and capabilities present in the internal as well as external market. Further, talking about the strategies it should be noted that the vision and mission of the company are the most important aspects that motivate the activities of the company to improve in the right direction. The vision, mission and strategies of the Apple are discussed below:
Furthermore, talking about the strategy that the company uses to gain advantage in the market, it should be noted that the company adequately used its resources to achieve satisfaction. The porter’s generic model used of the company Apple adequately explains about the strategies of the company that are discussed below:
The second company present in the same industry is Samsung. Samsung also earned reputation in the target market by using their resources in such a way that it provides identification to them in the eyes of prospective customers. The company gained success in the market by creating an identified position in the market through differentiated pricing strategies (Heracleous, 2013). Further the strategies of Samsung are discussed below:
Nokia is a multinational Finnish information, consumer electronic and telecommunication company. The company was originated in the year 1865 in Espoo. The company in the current era is employed with 102,000 people worldwide. Nokia has initiated its operations in more than 130 countries worldwide. The annual revenue of Nokia in the previous year was around €23 billion. It is a public limited organization that is listed in Helsinki Stock Exchange and New York Stock Exchange as well. Further, Nokia is placed on the 415th place in the terms of actions in external market and revenue according to the Fortune Global 500. The company is also a part of Euro Stoxx 50 stock market index. It should be noted that the company in the late 20s had efficient growth and reputation in the market but with the increasing competition and technology in the external market the company started losing its effectiveness. The company was unable to compete in the external market due to which they failed in the upcoming tough market (Otranen, et. al., 2016). The company did not have strong value position that changed its image in the eyes of target customers.
In the current business environment, every organization needs to gain competitive advantage in some way or other so that they can easily attract the customers and initiate sales in the market. Like, in the above given cases of Apple and Samsung, Apple company uses the advantage of product differentiation in the market and Samsung proposes its value in the market as most versatile and cost effective product producing organization in the market (Paek, & Lee, 2017). Thus, every organization needs to have value proposition in the market to gain reputation and sustain its growth as well. The company Nokia is not connected to any such strategy in the market, they do not have product differentiation nor they have effective pricing strategy or people in the company that can help them to overcome growth. Resulting to which, the company failed in the external market (Leiblein, Chen, & Posen, 2017).
Further, the below mentioned is the strategy that the company should use concerning the strategies of the company Apple. The company should gain value proposition in the external market by using the below mentioned:
Conclusion
Thus, in the limelight of above mentioned events, it should be noted that the company Nokia should use the above mentioned strategies to gain reputation in the target market. The company should earn value proposition in the market to earn the interest of customer and attract them towards the products of the company. Further, the company Apple and Samsung both compete with each other still they have an identified position in the market. Apple uses the product differentiation strategy to revenue and on the other hand, Samsung uses the cost effectiveness strategy to attract customers. Lastly, it should be noted that strategic management is the most important aspect that helps a business to earn optimum revenue in the external market.
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