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Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
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Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
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Team Mid-term Microeconomics Project
Team Mid-term Microeconomics Project
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Team Mid-term Microeconomics Project

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Apple iPad vs Samsung Galaxy Tab 2 …

Apple iPad vs Samsung Galaxy Tab 2
Theme: Growth and Efficiency

Published in: Technology, News & Politics
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  • 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 SolutionSolutions Affect On SocietyRecommendationsSummary
  • 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 NumbersProductPortfolio–Sunset:• Customer service-levelSoftwareBugs• TV• Tablet• SmartphoneProductEcosystem
  • 7. Company AttributesApple Inc. SamsungStock Exchange•$457 mil/share•940 mil sharesGross Profit Margin•37.50%P/E Ratio•10.82Dividends•$3.05/shareRank•1stStock Exchange•$1,410 /share•22 mil sharesGross Profit Margin•37.02%P/E Ratio•9.59Dividends•$7,500/shareRank•20th
  • 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• $299Inelastic“Settle” Prices
  • 21. AdvertisingApple Inc. Samsung2012• $1 bilSlogans• None2012• $4.3 bilSlogans• “It doesn’t 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, Apple’s 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. That’s an astounding 68% of the market.Unmistakably, these two companies are dominating the sales of tabs.Apple’s $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=SSNLF®ion=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

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