Based on what you have learned in this course, select two (2) companies from any industry of your choice, and compare their business models. Analyze the manner in which the set of strategies that each company pursues enables it to gain a competitive advantage.
Apple vs Samsung Business Models
Samsung and Apple are involved in manufacturing of tablets, smartphones as well as other cloud devices. The two companies are involved in a huge battle to control the tablets and smartphone markets. In order to gain competitive advantage over each other the two companies used different business models.
In the case of Apple it uses a virtual business integration model, whereby it pays attention to high input proportions for its different products that are outsourced from a number of external suppliers(Debelak, 2006). The company has been able to make use of its business model to gain competitive advantage by ensuring that it product development cost are kept low. The company usually invests in research as well as development of input components that it is best in and outsources the rest from other manufactures. This has enabled the company to price its products at a relatively lower price compared to those of the main competitors in the market, thus, being able to control a substantial market share in the long run.
On the contrary, uses vertically integrated business model when dealing with suppliers. In this model Samsung focuses mainly on internal development of its products and depends only on external supplies for key inputs needed to produce its products(Debelak, 2006). This has given the company compet