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Running Head: COMPARISON OF COMPETITORS IN PHONE INDUSTRY

Comparison of Competitors in Phone Industry

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COMPARISON OF COMPETITORS IN PHONE INDUSTRY 2

With the entry of smartphones in the market in 2007, phone industry has grown rapidly.

Smartphones have revolutionized the industry greatly offering consumers a touch screen

interface and a computer-generated keyboard. The first phone to run on Android got into the

marketplace in 2008. The industry has been growing since then, developing new features,

gaining entry into new markets, increasing the number of models as well as suppliers. A third of

people in the world is estimated to have a smartphones that is about 2.6 billion people. The

leading global competitors in the phone industry arena have been Apple, Samsung, and Huawei.

According to data by Worldwide Quarterly Mobile Phone Tracker, Samsung continues to

be the leader of the smartphone market due to its large success with Galaxy S7 and Galaxy S7

Edge flagship handsets. Samsung products are considered to be cheaper compared to Apple’s

products. Samsung offers a wide range of products hence ensuring there is a model for everyone

at different prices. Apple holds the second place after Samsung in terms of market share. Huawei

is at the third place thanks to strong domestic sales and higher sales in Europe. At the moment,

Huawei’s biggest challenge is to penetrate U.S market and develop products that will

successfully compete with Samsung and Apple. Huawei is slowly becoming a threat to both

Samsung and Apple in the market.

Organizations adopt different types of culture models that best suit their products. One of

the culture model used in companies is Power Culture. The culture of the organization is

illustrated as a spider web, with the most important aspects of the organization situated at the

center of the web. Organizations with this type of culture are able to respond to events quickly,

but their effectiveness depends on the people at the center of the web. A power culture

organization derives its power from control of resources, and it attracts individuals who are

power-oriented and politically minded. These companies find it difficult to link and maintain

COMPARISON OF COMPETITORS IN PHONE INDUSTRY 3

control of activities, and they rely on abilities of individuals rather than on committees. The

second type of culture model is task culture. This model is job-oriented, and it emphasizes on

having tasks completed. It strives to bring resources and people with the right skills and abilities

together to complete a project. It unifies people to enhance efficiency, and it is more influenced

by expert power instead of individual power or position. Task culture is more appropriate when

flexibility and sensitivity in the industry are more imperative and the market is very competitive.

The third type of culture model is role culture model. Institutions operating using this

culture in their operations are characterized by strong functional areas which are controlled and

coordinated by a limited number of senior management members, and they are highly

formalized. Relationships among employee are controlled by rules and procedures defining jobs,

the authority of each person, and how disputes should be settled. The success of this culture

model is dependent on work allocation and responsibilities rather than on personality of

individuals. This culture is likely to be successful in stable environments if the life cycle of the

product is long if the market is steady and predictable. Economies of scale and expertise are

more important than innovation and cost of service.

I would classify Samsung as a task-oriented culture. Samsung is innovative driven, and it

is focused on improving its products. Samsung changes its product line every nine months, and it

can have a generation of new products on the market while its competitors have its products in

the last generation. Change of management is key in Samsung which has resulted in reduced

manufacturing costs, quick time to the market, and a leading profit margin in the industry.

Expertise is also key in the company. Samsung put in place design centers in San Francisco,

London, and Tokyo that are used for research and design. The top engineers and designers in the

centers work 24/7 to solve the toughest product designs and specifications. Samsung avoids

COMPARISON OF COMPETITORS IN PHONE INDUSTRY 4

bureaucracies based on the argument that bureaucracy kills new ideas and innovativeness

(Mujtaba, A 2016).

Despite economic advancement globally, some countries continue to lag behind in terms

of development. One of the reasons that make countries to lag behind is the failure to invest in

technology and science. In the contemporary world, technology has become the key driver of

change. Although the underdeveloped countries have shown ability science and technology.

They have failed to develop their ideas in an organized manner. Secondly, developing countries,

especially in Africa, are characterized by corruption and greed. Those in power work towards

enriching themselves, therefore, the continued widening gap between the wealthy and the rich.

Thirdly, the underdeveloped countries have marked with poor governance policies. These

countries have failed in the implementation of governance policies due to corrupt policies.

Resources are focused on the rich people in the society while the poverty continues to increase

leading weak economies in such countries.

I would choose to become CEO at Huawei. This decision is informed by the fact that

Huawei has not yet gained wide international recognition in the market, compared to Apple and

Samsung. This means that there better chances of increasing its market share by penetrating new

markets. Also, there is more knowledge and management skills I can bring in Huawei because

the organization is less developed compared to Apple and Samsung. Additionally, Huawei has

been performing well in the market gaining more revenues abroad than in its home country. The

company is customer-oriented and management strong giving employees a direction. I like

giving people the best and with the support of strong management I can grow the organization to

be at par with other giant companies in the industry. As the CEO in Huawei, I would increase

Huawei stores in U.S because there is a large potential market that has not been yet. I would also

COMPARISON OF COMPETITORS IN PHONE INDUSTRY 5

create a modernized research and design center that would solely focus on developing new

products that are more advanced to create a competitive advantage, and which would address the

specific needs of customers (Scott, 2016).

Marketing of international brand is hectic before it gains acceptance. One challenge of

marketing is a language barrier. Huawei is in different countries, with different cultures and

languages. As the head of the company, I would hire locals in specific countries where the stores

are located. Locals understand their cultures better than a foreigner, and language will not be a

problem. The company will also create a positive public image because of creating employment

opportunities for locals. This can increase sales in the long-run. Further, I would create

scholarship projects to fund education for the poor children who are less fortunate. Huawei has

its presence in both the developed and developing countries. Most people in developing countries

have the will to learn, but they cannot afford the cost of education. It would, therefore, be

important to provide opportunities for such people.

People are an essential asset of the organization. Competition is stiff; I would, therefore,

work towards retaining the top talent. This would include paying employees competitive salaries,

giving them incentives, creating a comfortable working environment, attractive retirement

package and promoting from within. I would also bring more experts on board to increase

creativity and development of new ideas in the organization. Any organization has its share of

conflict issues, and Huawei is no exceptional. I would lay out guidelines for resolving conflicts

to develop healthy relationships among employees (Devinney et al. 2010). Most conflicts among

employees arise from overlapping job descriptions. To solve this problem, I would ensure proper

job descriptions.

COMPARISON OF COMPETITORS IN PHONE INDUSTRY 6

As technology continues to advance, smartphones with the sophisticated feature are being

developed. The smartphone industry has grown, and it is expected to continue growing into the

future. But management of international companies is a big and complicated task that needs to be

handled with care. However, if the company has the right management and right talent, it can

grow and penetrate markets worldwide. Management is the key driver of success in any

organization.

COMPARISON OF COMPETITORS IN PHONE INDUSTRY 7

References

Devinney, M et al (2010). The Past, Present and Future of International Business & Management. 1st

ed., Bingley, UK, Emerald, 2010.

Mujtaba, A (2016).

http://file:///C:/Users/dmin/AppData/Local/Temp/Temp1_fid_159155117_files.zip/159155117_S

amsung_GL_case(1)_(1)_1.pdf.

Scott, J. (2016). "Can Huawei Compete With Apple and Samsung? Computer weekly, 2017.

http://www.computerweekly.com/news/2240178506/Can-Huawei-compete-with-Apple-and-

Samsung.

Trigg, M. (2010). International business management. Geelong, Vic.: Deakin University.

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