Comparative study two companies in the same area with regard to their innovation activity - Term Paper Example

Task: Comparative Studies of Samsung and Apple based on Innovation Activity Background Information Innovation is a techniquethat enables organizations to improve the quality of products available to consumers. This leads to the production of conventional and unique items that address the immediate needs of customers. This process has been instrumental when driving operations in the electronic industry. Samsung and Apple focus on innovation to enhance growth. According to scholars, innovation entails improving the standards of operations, integration of new systems or infrastructure, value addition and enhancement of product range in institutions. It applies quality techniques that transform an institution to a source of income position as stated in the porters five forces model. Innovation improves a brand through the development of quality products that serve consumer needs effectively. It is achievable through research activities, hiring qualified and creative staff with excellent intellectual capacity and heavy investment. Managers in Samsung and Apple corporations recognize that innovation and creativity are crucial in the current competitive world. It is necessary to use innovation to enhance administration, product development and formulation of credible solutions that address consumer needs (Fernando, Rene & Ileana 27). Innovation also sets the stage for effective administration and formulation of communication systems. It is necessary to explore innovation as a performance measure while focusing on Samsung and Apple because they are big electronic producing corporations. Comparative Study of Companies based on the Innovative Background and Product Overview Apple and Samsung are high-ranking organizations with a global network. The corporations produce quality electronic products that match consumer desires and specifications. This is achievable through the innovative processes within their production systems. This has enabled them to produce quality and efficient electronic products, for example, TVs, phones, computers and operating soft wares that match consumer expectations (Horibe 20). The corporations also produce innovative items with modern features, for example, smart phones, IPods, LCD screens and flat screen TVs. Following their inception, Apple and Samsung have refocused their synergies into improving their innovative potentials (Gaynor 2). They conduct research studies on consumer needs and respond to existing items. The organizations are strengthening their production chain through adoption of lean concepts. Additionally, the organization is adopting measures that streamline the value chain within the production sequence. This is with the intention of achieving quality at every level of operation. This enables them maximize their potentials and bridge the performance gap that may compromise their ability to realize of objectives (Gaynor 5). Apple Company became operational in 1976. It manufactures and supplies consumer electronic designs that include computer software’s and personal PCs. Subsequently, the company has revolutionized its product portfolio and quality through creative processes that have enhanced performance. It has new products in the market that explains the effectiveness of its innovative practices (Cobbenhagen 49). It has developed viable distribution techniques and improved its quality standards and product specification designs. This has made the company produce new products, for example, Macintosh PCs, computer software’s and iPod phones. These items are portable and efficient enabling users to use them appropriately. Samsung Corporation is a big institution that produces quality electronic. It has strong operating units that distribute items to consumers in real time. The products contribute immensely to the growth of individuals socially and economically (Cardoso, Rene, & Ileana 26). This has seen the corporation record excellent performance over the years Innovation has enabled the companies to meet the operating threshold as indicated in the porter’s generic model. The model defines performance by enhancement of consumer buyer power, advancement of supplier power, barriers to market entry, eradication of rivalry and threats to new entry. The performance standards within the model are achievable through innovative practices and development of creative performance procedures (Cobbenhagen 49). The incentives have enabled the companies to rise from small in-house business outsourcing institutions to renowned distributor of electronic items. Analysis of the Similarities and Differences under BCG, SWOT and Porters Generic Models The similarities between the two corporations are evident in their mission and innovative strategies. They have elaborate and effective production plans that boost operational processes (Prather 12). The companies adopt performance elements spelt out in various operating business models. The BCG, porter’s generic strategy and SWOT analysis provide companies with the requisite innovative incentives (Doyle 23). This allows corporations to operate under best business practices that enhance production of quality items. These have enabled the companies to produce electronic products that conform to consumer terms. The aim of such organizations is to manufacture products that provide economic and social solutions to users effectively. The products are also eco-friendly and portable to match the technological trend of production (Bundy 121). The companies have also adopted quality administration system known as lean management that enhances optimal utilization of resources. This concept allows innovative use of the available resources under the institution’s portfolio. This ensures that resources are utilized effectively when strengthening the production chain (Sawyer 127). The corporations differ based on the approaches used to execute their innovative ideals. This is apparent in terms of scope and implementation process. Samsung Company is adopting a vibrant approach that requires heavy financial input. However, Apple Corporation has a systematic approach. This is a cost measure system that guarantees sustainability. The corporations have diversified product portfolios because Samsung Corporation is focusing on the production of TVs and phones while Apple focuses on computer software and PCs. The corporations also differ on their marketing approach. This explains the performance variations reported (West & Farr 9). Samsung adopts a strategic marketing approach that enhances its global presence. It engages in strategic alliances and business mergers that act as potential distribution networks. However, Apple’s marketing strategy is to develop its own regional centers with few strategic alliances. They do not encourage the formulation of strategic and merger alliances SWOT Analysis of corporations under innovative ideals Swot analysis is an evaluation technique that managers apply in establishing the performance capacity in institutions. The technique identifies operating strengths and opportunities. It also establishes the gaps that may compromise exemplary performance (Segal, 2011). The two electronic producing corporations display fundamental strengths that steer exemplary performance. Particularly, Samsung Corporation has a strong brand name, innovative ideals, determined personnel, diversified revenue capacity and the ability to meet consumers’ demands (Hill & Jones 122). Consistent research and focus on emerging markets and comprehensive studies on the new use of smart phones form the company’s credible strengths. Its key weaknesses include an allegation of unethical business practices, compliance issues and microeconomic factors. This analysis enables the institution to understand its current position based on integration of innovative concepts that steer growth (Sloane 23). Consequently, Apple Company has a strong product brands, qualified personnel and modern iPods phones. Apart from these, it has effective distribution channels, good infrastructural set up and expansive market share. Its weaknesses and threats include the possibility of new entrance, limited network and diminishing raw materials Show how companies operate innovative wise in a similar environment. Govindarajan (1) indicates that companies are innovative because they adopt conventional techniques during operation that lead to production of quality items. This element is significant since it enable institutions to enhance consumer satisfaction. Govindarajan (1) notes that innovation should lead to production of items that meet environmental and individuals’ needs. This means that innovative ideals should not create business rivalry. He noted that institutions in the same industry, for example, electronic field should embrace innovation to improving the quality in service delivery. The concept is applicable when advancing the efficiency of the current operating systems and approaches. Institutions should streamline their production through value addition, increase of product portfolio, new product development and adoption of vibrant operating framework. Companies can also operate innovatively in the current business environment through the adoption of essential performance pillars within business models (Shavinina 89). These models provide diverse and essential business guidelines that suit every organization regardless of their operating capacity. This is vital since it enables organizations to adopt appropriate performance strategies that are sustainable. Contribution of Innovation in the Companies’ Growth According to Pangarkar (2), innovation is behind the production of effective electronic items that Samsung and Apple corporations are focusing on. This is reliant on Porter’s generic and BCG model elements. It has led to the realization of consumer needs by ensuring that the products such as mobile phones conform to their needs. Imperatively, innovation has been the key contributor to the corporations’ exemplary performance, high productivity, sales and effective distribution networks (Thompson & Martin 52). The companies have determined staff that provides strategic and innovative ideas that enhance product development. The ideas from the professionals enhance sales and identification of quality distribution channels. The corporations have improved their performance and market growth. This has been due to the innovative operating framework and policies. Secondly, the innovative ideas and prowess that characterize the company’s operations improve their productivity level. They have doubled their production capacity across the operating business units. The ideas have also doubled their financial performance. This is attributable to the adoption of viable business incentives contained in the porter’s generic model. Namgyoo, Lee, Suh and Kim (23) noted that Samsung meets its customer needs globally through the innovative concepts. The concepts have enabled the company to streamline its production stream by adopting conventional electronic gadget manufacturing techniques. It is insinuated that these techniques save time, ensure optimal utilization of resources and adherence to quality specifications (Cardoso, Rene & Ileana 27). This has seen the company double production of mobile phones, TV sets, Computers and LCD screens. It has also enabled the company to increase its product range or portfolio by introducing new items or brands in the market. Consequently, they are utilizing the innovative ideas in driving new product development by adding essential features in the items to meet the needs of consumers (Cardoso, Rene, & Ileana 28). Apple Corporation has also been able to advance its product portfolio through NPD to suit the consumer needs. The company has introduced efficient electronic gadgets or equipments that are cost effective, portable, decent and fitted with basic electronic features. Its latest items include mackintosh PCs, iPod phones and effective software. The companies have greatly benefited from the innovative concepts that they focus on. For example, the iphone produced by Apple in a systematic manner has the stage for further progress within the organization. Recently, this strategy has allowed the organization to win the case battle against Samsung. Thirdly, the corporations have innovatively used porter’s generic model concept effectively to advance their sales units through identification of credible distribution channels. This has enabled them the gain supplier power of electronic products in the environment that presents stiff competitions with immense business dynamics. The innovative product distribution is a key contributor to the institutions high record of sales units. This has enabled them to make more sales by reaching out to many consumers globally (Horibe, 20). This has expanded their market share and income capacities that explain their rising levels from question mark entities to sources of income. Indeed, the organizations should strengthen their innovative and creativity ideals to advance their fortunes in the electronic sector. This process will allow the organization to comprehend the intricacies surrounding the market process, and adapt approaches that boost performance. Additionally, it will bring them closer to consumers, as well as distributors who understand their needs. Conclusion Managers in various institutions, for example, in the electronic sector are obligated to set up innovative operating ideals and systems. They should adopt conventional management practices and product development programs that meet consumer demands. This is critical in meeting the definite expectations of consumers. This is in light of the fact that the sector is facing increasing changes in terms of quality specifications, size of products and efficiency. This calls for the development of innovative ideas and new production techniques that addresses consumer needs. It also calls for the development of realistic, attainable, measurable and definite quality performance ideals. This facilitates the development of sustainable and innovative plans that are economically viable and meet the targets of the organization. Works Cited Bundy, Wayne M. Innovation, Creativity, and Discovery in Modern Organizations. Westport CT: Quorum Books, 2002. Print. Cobbenhagen, Jacob. Successful innovation: Towards a new theory for the management of small and medium-sized enterprises. Cheltenham: Elgar. 2000. Print. Doyle, Paula. Value-based marketing: Marketing strategies for corporate growth and shareholder value. Chichester, England: John Wiley & Sons. 2008. Print. Cardoso, Fernando, Rene Pellissier, and Ileana Pardal Monteiro. "Creativity, Innovation and Collaborative Organizations." International Journal of Organizational Innovation (Online) 5.1 (2012): 26-64. ABI/INFORM Complete. Web. 9 Dec. 2012. Gaynor, Gerard. H Innovation by design: What it takes to keep your company on the cutting edge. New York: AMACOM. 2002. Print. Govindarajan, Vijay. (2010). Innovation is Not Creativity. 2012. Web. Aug. 2010. Horibe, Frances. "Innovation, Creativity, and Improvement: WORKING THE RIGHT LEVER TO PROSPERITY." The Canadian Manager 28.1 (2003): 20, 20: Page count = 3. ABI/INFORM Complete. Web. 9 Dec. 2012. Hill, Charles W. L, and Gareth R. Jones. Strategic Management Theory. New York, NY: 2013. Print. Namgyoo, K. Park, et al. Changes in the Global Mobile Market and New Challenges for LG Mobile. Cullowhee, United States, Cullowhee: The Dream Catchers Group, LLC, 2012. ABI/INFORM Complete. Web. 9 Dec. 2012. Prather, Charles. Manager's guide to fostering innovation and creativity in teams. New York: McGraw-Hill.2010. Print. Pangarkar, Nitin. High performance companies: Successful strategies from the world's top achievers. San Francisco, CA: Jossey-Bass. 2011. Print. Sawyer, Keith. Explaining creativity: The science of human innovation. New York: Oxford University Press. 2012. Print. Shavinina, Larisa. V.The international handbook on innovation. Oxford: Pergamon. 2003. Print Sloane, Paul. The innovative leader: How to inspire your team and drive creativity. London: Kogan Page, 2007. Print. Segal, Saul. Corporate value of enterprise risk management: The next step in business management. Hoboken, N.J: Wiley. 2011. Print. Thompson, John. L., & Martin, Frank. Strategic management: Awareness and change. London: Thomson Learning, 2005. Print. West, Michael. A., & Farr, James. L. Innovation and creativity at work: Psychological and organizational strategies. Chichester, England: Wiley. 1990. Print. Read More