Innovation and Technology: Analysis of Samsung and Apple

Running Head: INNOVATION AND TECHNOLOGY
0
Innovation and
Technology
Student’s details:

INNOVATION AND TECHNOLOGY 1
Contents
Introduction......................................................................................................................................2
Porter’s five force analysis..............................................................................................................2
Degree of existing rivalry............................................................................................................2
Threat of potential entrants..........................................................................................................3
Bargaining power of suppliers.....................................................................................................3
Bargaining powers of buyers.......................................................................................................3
Threat of substitutes.....................................................................................................................3
Solutions to the problems faced by Samsung..............................................................................3
SWOT Analysis of Samsung...........................................................................................................4
Strengths.......................................................................................................................................4
Weaknesses..................................................................................................................................4
Opportunities................................................................................................................................4
Threats..........................................................................................................................................4
Solutions to the problems faced by Samsung..............................................................................5
PESTLE...........................................................................................................................................5
Political........................................................................................................................................6
Economic.....................................................................................................................................6
Social............................................................................................................................................6
Technological...............................................................................................................................6
Environmental..............................................................................................................................6
Legal.............................................................................................................................................7
Samsung McKinsey 7S Model........................................................................................................7
Hard elements..............................................................................................................................7
Strategy.....................................................................................................................................8
Structure...................................................................................................................................8
System......................................................................................................................................8
Soft element.................................................................................................................................8
Shared Values...........................................................................................................................8
Skills.........................................................................................................................................8

INNOVATION AND TECHNOLOGY 2
Style..........................................................................................................................................9
Staff..........................................................................................................................................9
Conclusion.......................................................................................................................................9
Bibliography..................................................................................................................................10

INNOVATION AND TECHNOLOGY 3
Introduction
The following report represents present conditions of a challenger industry over an incumbent
industry. An incumbent sector or industry is a group, which is beaten by another challenger. The
challenger is a group, which is earning profits and success. The report is made up on two mobile
provider companies Samsung and Apple. Herein, Samsung is as incumbent company and Apple
as a challenger company over which analysis will be conducted. The report includes numerous
methods of analysis like SWOT (strength, weakness, opportunity and threat), porter’s five force
model, Pestle (political, economic, social, technological, environmental and legal factors) and
Mc Kinsey’s seven S (strategy, structure, system, shared values, skills, style and staff) models of
analysis. All these models are relevant for performing analysis. After analyzing the current
conditions of incumbent Samsung detailed solutions are provided in relation to the innovation
and disruptive technology. At the end of the report, the reader may get an in depth knowledge
about the ways in which Samsung can deal with the problems.
Porter’s five force analysis
Degree of existing rivalry
The degree of risk from the end of existing rivalry is very high for Samsung as the market is full
of white companies like Nokia, LG, Apple and Motorola. The margins are very less for any of
these firms whereas the competition is very high. In order to reduce this risk Samsung must
introduce technological advancement in its products (Rothaermel, 2016).
Degree
of
existing
rivalry
Threat of
potential
entrants
Bargaini
ng power
of
suppliers
Bargaini
ng
powers
of
buyers
Threat of
substitute
s