- 1. Presented by The Dream Team James Bryan Taylor Butler Casie
Cadwallader Courtney Dobbs Matt Lee Iris Oscos Eddie Zaldivar
2. Order of Discussion Introduction Production Problem
Production Problem Solution Distribution Problem Distribution
Problem Solution Consumption Problem Consumption Problem
SolutionSolutions Affect On SocietyRecommendationsSummary 3.
Factors of production of the germane resource Changes in efficiency
and profitability Germane resource re-plan Firm attributes Internal
capacity Partner firms 4. Factors of Production ofThe Germane
ResourceApple Inc. SamsungiTunes App StoreMacBook AiriPad 80%
tablet market shareiPhone 5 mil sold first 3 daysiPod $200 mil in
salesAlpha Processor Inc. 20% of total salesTFT LCD Screens 18%
market shareSmartphones 2.4 bil in profits 5. Changes In Efficiency
&ProfitabilityApple Inc. Samsung 37.50% 40.20% - 5 yr.
avg.Gross ProfitMargin 26.7% 23.46% 5 yr. avg.Net ProfitMargin
10.81 17.65 5 yr. avg.P/E RatioGross Profit Margin 37.02%Net Profit
Margin 11.86%P/E Ratio 9.59 6. Germane Resource Re-PlanApple Inc.
Samsung Safari 8% total net traffic Apple Pages Apple Game Center
Apple NumbersProductPortfolioSunset: Customer
service-levelSoftwareBugs TV Tablet SmartphoneProductEcosystem 7.
Company AttributesApple Inc. SamsungStock Exchange$457 mil/share940
mil sharesGross Profit Margin37.50%P/E
Ratio10.82Dividends$3.05/shareRank1stStock Exchange$1,410 /share22
mil sharesGross Profit Margin37.02%P/E
Ratio9.59Dividends$7,500/shareRank20th 8. Internal CapacityApple
Inc. SamsungPre-Tax Earnings 2012 - $34.21 bil 2011 - $55.76
bilTotal Revenue $60.06 bilExpenses $13.42 bilNet Gain $46.64
bilCash Holdings 2012 - $50.86 bil 2011 - $37.53 bilAssets 2012 -
$176.06 bil 2011 - $116.37 bilPre-Tax Earnings 2012 - $17 mil 2011
- $19 milTotal Revenue $165 milExpenses $23 milNet Gain $141 MMCash
Holdings 2012 - $22 mil 2011 $23 milAssets 2012 - $134 mil 2011 -
$112 mil 9. Partner FirmsApple Inc. Samsung LG Sharp Toshiba
BlackBerry Microsoft 10. Germane resource comparison Training
programs Research and development programs Solutions 11. Germane
ResourceSamsungApple Inc. Since Inception iPhone iPhone 3 iPhone
3GS iPhone 4 2013 iPhone 5 Future Products Apple TV I-View Galaxy
Tab2 Multimedia Samsung Hubs Android OS 12. Training ProgramsApple
Inc. SamsungPoint of Sale (POS) Mobile communication Advertise
Apparel Luxury AppealSamsung SDS Basic Job function related
Leadership trainingMulticampus & e-Campus Task based education
13. Research &Development ProgramsApple Inc. Samsung $78.5 mil
perproductLess Than4% ofRevenue 33% growthOver TheLastDecade Six
centers inKorea 18 centersabroad9% ofRevenue 14. Production Problem
SolutionsApple Inc. Samsung Innovation Problem Big Ticket Item?
$137 bil cash pile $1 trillion injection Apple Inc. Lawsuit New
& Renovated Ideas New Product Apple Competition Consumers 15.
Locations Incentive programs Solutions 16. Locations
forDistribution CentersApple Inc. Samsung Elk Grove, CaliforniaOne
center-20 yrs. Silicon Valley Austin, TXNewCenters next 10
yrs.Twenty-four Centers InternationalDistribution CentersN. America
Coppell, TX Romeoville, Illinois Joliet, Illinois San Diego,
California 17. Incentive Programs forDistributionApple Inc.
SamsungEmployee Focus Education Language Skills ComputersSupplier
Code of Conduct Principles & Values Working Conditions Employee
TreatmentFair Labor Association New infrastructure 30 new field
reps New solution providersPower Partner Program 18. Distribution
Problem SolutionsApple Inc. Samsung Centers Only in California
Ingram Micro Austin & Silicon Valley Power Partner Program New
infrastructure 30 new field reps New solution providers 19.
Resource pricing Advertising Sales Solutions 20. Resource
PricingApple Inc. SamsungiPad $499ElasticPremium PricesGalaxy Tab 2
$299InelasticSettle Prices 21. AdvertisingApple Inc. Samsung2012 $1
bilSlogans None2012 $4.3 bilSlogans It doesnt take a genius 22.
SalesApple Inc. SamsungiPad Production 34 milSales $19 bil2012
$156.6 bilGalaxy Tab 2 Production 1.4 milSales $644 mil2013 $187.85
bil 23. Consumption SolutionsApple Inc. SamsungMore Affordable
Tablet Same price range ascompetitors Undercut competitionBecome
MoreInnovative Rip off & piggy back 24. Solutions effects on
society Recommendations Summary References Appendixes 25. Solutions
Effects on SocietyApple Inc.Lowering the price of the
iPadInnovation Win for the consumerDistribution centers Increase in
product sales Foreign marketR&D Reinvest in the futureSamsung
Increase in satisfaction New products backlogMass Demand
Preparation 26. RecommendationsApple Inc. Samsung Larger share of
marketOpen moredistributions centers Compete with lower-end
marketLower their prices Grass rootsReinvest in R&D New
technologyDiversify theirportfolioInnovationFuture TechnologyRaise
Tablet Prices Stigma & reputation 27. SummaryLess than 5 years
ago, a device that introduced the tablet market. This 10 by 8touch
screen tablet was capable of serving as a calculator, alarm clock,
library,research apparatus, GPS device, music library and fashion
accessory. Consumersand businesses were so impressed with this new
technology, which millions oftablets were sold within the first
week. Not even the creator, Steve Jobs, anticipatedsuch a high
demand for the product.As of November 2012, Apple successfully
released the iPad 4th generation. In justthree days, the iPad 4
sold over 3 million units. Undoubtedly, the iPad continues
todominate the tablet market. Currently, the iPad controls 75% of
tablet PC sales. Asof 2013, Apples Third Quarter results reported
an iPad sales growth of 183% . Theirnet profit was recorded as
$7.31 billion including a gross margin of 41.7%. With thecreation
of thousands of Apps, longer battery life, retina display and
higher storagecapacity, Apple has consistently shown progress and
development with theirproducts. It is expected that Apple will
continue to increase their sales and profitsat steady rates. 28.
SummaryThe Samsung Galaxy Tab 2 was announced and launched in 2012.
It is smaller andlighter that the iPad, and is just as easy to use.
With quick web access, over 400,000apps, a high definition camera
and millions of e-books, the public respondedpositively to the
product. During the first month, Samsung reportedly sold overhalf a
million tabs. As of the past year, the company has successfully
added multi-party video calls and ChatON.In 2013, Samsung announced
the production of the S-Band. This wristbandcalculates the amount
of steps taken and the amount of calories burned duringyour work
out. It is also capable of synchronizing into your Tab and cell
phone. By2018, the company hopes to sell approximately 500 million
units. Samsung haspredicted that the S-Band will bring in health
profit margins. 29. SummaryIn 2013, Samsung Electronics first
quarterly numbers were highly impressive. Thenet profit showed an
astounding $6.4 billion increase. A 9.3% increase as of
2012.However, Samsung was only able to sell 37,000 tabs in their
last quarter. His is adecrease of over 85% as of the past year.
Currently, Samsung invests 9% of theiryearly revenue towards
research and development. In May 2013, it was reportedthat Apple
and Samsung (combined) made up $6.5 Billion dollars (out of
$9.5Billion) in technological sales. Thats an astounding 68% of the
market.Unmistakably, these two companies are dominating the sales
of tabs.Apples $1 billion lawsuit on trademark infringement, has
greatly affectedSamsung. The 2012 lawsuit has led to a hostile
rivalry between the two billiondollar companies. It has also
encouraged Samsung to push forward in technologicprogress. With
such high competition between Apple and Samsung, Samsung
isdetermined to surpass Apple and become a global leader in
electronics. 30. References10 Significant Apple Business Partners.
(n.d.). Retrieved fromhttp://www.cnbc.com/id/44269115/page/1AAPL -
Stock Quote and Charts for Apple. (n.d.). Retrieved
fromhttp://ycharts.com/companies/AAPLAAPL Annual Cash Flow
Statement - Apple Inc. Annual Financials. (n.d.). Retrievedfrom
http://www.marketwatch.com/investing/stock/AAPL/financials/cash-flowAbout
SAMSUNG - SAMSUNG. (n.d.). Retrieved
fromhttp://www.samsung.com/us/aboutsamsung/corpcitizenship/environmentsocialreport/environmentsocialreport_RecyclingInKorea.html
31. ReferencesApple - Press Info - Apple Reports Second Quarter
Results. (n.d.). Retrieved
fromhttp://www.apple.com/pr/library/2013/04/23Apple-Reports-Second-Quarter-Results.htmlApple
- Supplier Responsibility - Accountability. (n.d.). Retrieved
fromhttp://www.apple.com/supplierresponsibility/accountability.htmlApple
growing? Just not at its Elk Grove campus - Sacramento Business
Journal.(n.d.). Retrieved from
http://www.bizjournals.com/sacramento/print-edition/2012/03/23/apple-growing-but-not-elk-grove-campus.html?page=allApple
Has Doubled Its Ad Budget To $1 Billion A Year - Business Insider.
(n.d.).Retrieved from
http://www.businessinsider.com/apple-has-doubled-its-ad-budget-to-1-billion-a-year-2012-11
32. ReferencesApple iPad vs. Samsung Galaxy Tab Sales: Where They
Stand Outside of Court. (n.d.).Retrieved
fromhttp://www.tabletpcreview.com/default.asp?newsID=3442&news=Apple+ipad+vs+Samsung+Galaxy+TabApple
Is Getting Clobbered In India - Business Insider. (n.d.). Retrieved
fromhttp://www.businessinsider.com/apple-is-getting-clobbered-in-india-2012-10Apple
Retail Store - Store List. (n.d.). Retrieved
fromhttp://www.apple.com/retail/storelist/Apples fiscal 2012 in
numbers: 125M iPhones, 58.31M iPads | Apple - CNET News.(n.d.).
Retrieved from
http://news.cnet.com/8301-13579_3-57540705-37/apples-fiscal-2012-in-numbers-125m-iphones-58.31m-ipads/
33. ReferencesCRN Channel Programs News for VARs and Technology
Integrators. (n.d.). Retrievedfrom
http://www.crn.com/news/channel-programsGoogle Finance: Stock
market quotes, news, currency conversions & more.
(n.d.).Retrieved from http://google.com/financeThe history of
Samsung. (n.d.). Retrieved
fromhttp://components.about.com/od/Companies/p/The-History-Of-Samsung.htmMorningstar.com
Error Page. (n.d.). Retrieved
fromhttp://financials.morningstar.com/balance-sheet/bs.html?t=SSNLFion=USA&culture=en-us
34. ReferencesNew URL. (n.d.). Retrieved from
http://Samsung.comSamsung announces Rough Trade East partnership |
What Digital Camera. (n.d.).Retrieved from
http://www.whatdigitalcamera.com/news/519676/samsung-announces-rough-trade-east-partnership.htmlSamsung
Electronics Co Ltd, A005930:KSC company performance - FT.com.
(n.d.).Retrieved
fromhttp://markets.ft.com/research/Markets/Tearsheets/Financials?s=A005930:KSCSamsung
Electronics on the Forbes Global 2000 List. (n.d.). Retrieved
fromhttp://www.forbes.com/companies/samsung-electronics/ 35.
ReferencesSamsung Galaxy S4 release date affected by supply issues
in US - News - TrustedReviews. (n.d.). Retrieved from
http://www.trustedreviews.com/news/samsung-galaxy-s4-release-date-affected-by-supply-issues-in-usSamsung
India to use mobile strategy in other businesses - Times Of India.
(n.d.).Retrieved from
http://articles.timesofindia.indiatimes.com/2013-03-19/strategy/37842404_1_samsung-india-south-west-asia-samsung-todaySamsung
is Still Pissed That They Owe Apple a Billion Bucks | Geekosystem.
(n.d.).Retrieved from
http://www.geekosystem.com/samsungs-still-mad-at-apple/Samsung
takes more smartphone market share from Apple| Reuters.
(n.d.).Retrieved from
http://www.reuters.com/article/2013/04/26/us-apple-samsung-phones-idUSBRE93P05F20130426
36. ReferencesSamsungs $4.3B ad budget: Its not just for mocking
Apple - Apple 2.0 -Fortune Tech.(n.d.). Retrieved from
http://tech.fortune.cnn.com/2013/04/04/apple-samsung-advertising-2/Surprise!
Samsung Earned a Profit of $7.9 Billion in Q1 2013 | Android News
-AndroidHeadlines.com. (n.d.). Retrieved
fromhttp://androidheadlines.com/2013/04/surprise-samsung-earned-a-profit-of-7-9-billion-in-q1-2013.htmlVisit
Your Country Site - SAMSUNG. (n.d.). Retrieved
fromhttp://www.samsung.com/us/common/visitcountrysite.html 37.
Appendix A 38. Appendix B 39. Questions
