1.

Introduction of Samsung Vietnam Formatted: Font: Bold

Formatted: Justified, Line spacing: 1.5 lines

Samsung organization is a multi-national conglomerate company which originated from

South Korea, which headquartered in Samsung Town, Seoul. Around the 1990s, Samsung began
globalizing its business activities with a concentration in electronic sector, particularly mobile
phones, which are now becoming the Samsung’s most crucial business for this company (Ping
Sin, 2013). In 2009, when the global mobile phone market is starting to be more competitive due
to the emergence of new competitors from China, Samsung began investing in the Vietnamese
market with the first manufacturing factory in Yen Phong industrial zone. Since then, Samsung
has built 3 more plants with the total investment approximately 20 billion of Vietnam Dong
(Linh, 2017). The inception of Samsung in Vietnam became the most successful project of its
worldwide plan, which had produced up to 100 million mobile phones until the end of 2017.
Based on the report from IDC Indochina (Mishra, 2018), Samsung remained their first place with
37% after the second quarter of 2018 in term of market share.

Figure 1Exhibit 1: Vietnam Smartphone Shipments Share by Brands

Source: Counterpoint Research: Quarterly Market Monitor Q2 2018 Formatted: Line spacing: 1.5 lines

This report is aiming to schedule and develop the business strategy and policies against the Formatted: Justified, Line spacing: 1.5 lines

currently or upcoming competitors in the world market in general and and especially within
Vietnam ese smartphone market where is gradually dominated by Chinese brands.

Formatted: Font: Bold

2. The introduction of Samsung’s three3 Samsung’s competitors
Formatted: Font: Bold
2.1. Huawei. Formatted: Font: Italic
Formatted: English (United States)
 Huawei was founded in 1987 by Ren Zhenfei and developed from a one-room business in
Shenzhen, China, into the world's largest provider of ICT solutions and services. Huawei is now
the only Chinese company which has higher revenues from non-China markets (67%) than from
the domestic market (De Cremer and Tao, 2015). In Vietnam, the company currently represents
the same percentage (at 5 percent) in market shipping with Apple and its local competitor, the
so-called Xiaomi.

2.2. Xiaomi Formatted: Font: Italic

Besides, Xiaomi which was a young smartphone brand originated from China which was
established in 2010 by serial entrepreneur has joined Vietnam via a new cooperation with local
distributor Digiworld in 2017 (Eileen Yu, 2017). Since 2017, Xiaomi has become the most
noticeable opponent of Apple in Vietnam market for the third place in term of market share with
5%.

2.3. Apple Formatted: Font: Italic

Apple is a multinational corporation from America, which joined the Vietnamese mobile
phone market with a different systerm so-call IOS in mobile phone sector, which attracted a large
amount of customers. According to Counterpoint research (2018), Apple remained their position
in term of shipment market share in Vietnam with 5% which is equal to Xiaomi and Huawei in
the same sector.

3. The growth of international business environment Formatted: Font: Bold

In 2018, the interpenetration of Chinese competitors affected Vietnamese mobile phone

market which slightly influenced the market share ranking in recent years.

However, the sales of smartphone among Apple and 2 others Chinese brands did not
present correctly their total revenue of selling phone because of different business strategy as
well as the focusing group of customers. In fact, Apple positioned itself as a premium brand
offering products with advance functions and capabilities for additional costs. Hence, Apple
targets well-off consumers who are more likely to spend extra amount of money for products and
services with better design, capabilities and functions. On the other hand, the Chinese
smartphone representatives specialized in developing mobile phone for middle income level, the
low-end of the smart phone market and especially young people with special feature like
advanced selfie camera and fast charging. Phone makers from China were trying to dominant the
“fortune at the bottom of the pyramid” (Prahalad, 2009).

Not only in Vietnam, the world mobile market also experienced the dominant of Chinese
representatives. In fact six out of top 10 global brands were Chinese root (Hagoort, 2016). Since
then, although Chinese firms seem to slowly grow but surely increasing their ranking in term of
market share and maintained their position in top 6 smartphone brands by active devices each
month with 2 big representatives namely HUWEI and Xiaomi (van der Wielen, 2018).

Formatted: Line spacing: 1.5 lines

Source: Global mobile market report 2018

Globally, 2018 was the historic break of the two tech giants when the collective market Formatted: Justified, Line spacing: 1.5 lines

share of Samsung and Apple had decreased to 49,9% in 2018 after maintaining their total market
share higher than 50% for years according to van der Wielen (2018). In spite of the visible
effects of Chinese companies, Apple and Samsung still remained as the two most popular brands
evaluated by active users among the world with proportion of market share at 26,2% and 23,7%
respectively (van der Wielen, 2018). Nevertheless, Samsung, Apple and Chinese firms followed
different business inception focusing on different main groups of customers, which are high-end
and low-end or middle range consumers in various nations.

Net Income Margin: Apple vs Samsun g Formatted: Line spacing: 1.5 lines

(SourceOURCE: KOYFIN)

4. The development of 3 Samsung’s three competitors Formatted: Font: Bold

Formatted: Font: Bold
4.1. The bBackground detail
Formatted: Justified, Line spacing: 1.5 lines
4.1.1. OPPO Formatted: Font: Italic

Huawei is a leading global company of ICT solutions for information and communication
technology, founded in 1987 by Ren Zhengfei in Shenzhen, China. The company We built a
strong ICT range of end-to-end services in telecom and enterprise networks, cloud computing
and devices, powered by responsible operations, open collaboration and ongoing innovation.
Over the years, it has developed capabilities across carrier networks, businesses and consumer
sectors. Huawei is the only Chinese company to generate higher revenues from non-China
market (67%) than from the domestic market (De Cremer and Tao, 2015).

4.1.2. Apple Formatted: Font: Italic

Formatted: Font: Italic

Apple is a corporation specialized in developing and selling

computer software, portable devices internationally. The company was
created in 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak.
Only after 2007 when the company successfully completed their plan
of making IPhone, the iPod and iPad worldwide, it became a part of
S&P 500 and NASDAQ-100 under the ticker AAPL. (source????)

4.1.3. Xiaomi Formatted: Font: Italic

Formatted: Font: Italic

Xiaomi is a private Chinese company specialized in electronic

devices which headquartered in Beijing in time????. Nowadays,
Xiaomi is widening quickly with operations in over 30 nations in the
world. Xiaomi followed a unique concept in which Xiaomi based on
the feedback from fans to make its products better. Xiaomi stated
that the “MI” in their name represents for “Mobile internet” which
also means “Mission impossible due to the severe challenges faced
by it during the starting years.”

4.2. Products and Service Formatted: Font: Bold

4.2.1. Huawei Formatted: Font: Italic

 Today, Huawei provides three3 major types of products and service which are enterprise
solutions, carrier networks and consumer services and products.

Huawei manufactures products such as home devices, tablets, mobile broadband device,
smartphone and applications for these given devices.

4.2.2. Apple Formatted: Font: Italic

Apple keeps its high standards of quality so-called “great product” strategy which focuses on
the quality more than the quantity in term of smartphone sales in units. Apple focuses on the
high-end customers in the world market with 10 main product lines namely: iPad, iPhone, Mac,
Apple TV, Apple watch, iPod, cloud service, software, accessories and digital content.

Source: Mashable India Formatted: Line spacing: 1.5 lines

4.2.3. Xiaomi: Formatted: Font: Italic

Formatted: Justified, Line spacing: 1.5 lines
 The company offers a range of electronics products such as smartphones, TV, Notebooks,
smart devices, speakers, headphones, drones.

Until now, the two biggest sellers of Xiaomi were smartphone with 2 most noticeable
names were MI and RedMi series.

4.3. Size and scope of organization Formatted: Font: Bold

The size of organization can be views based on 6 mains features as followed:

 Numbers employed

 Volume of output

 Volume of sales

 Assets employed

 Profits earned

 Net worth in real terms

Furthermore, there are two main scopes of organizations, namely: Profits and Non-Profits
business. The former is represented for the company established to make money through the
sales of products and services while the latter is the organization which focuses on improving
society, community and providing value.

Based on the ownership, organization can be classified into 3 sectors which are Private
sector, public sector and voluntary sector.
 Public sector Private sector Voluntary sector

• organizations are • Private sector • Voluntary sector

usually set up in the organizations are organizations are non-
interests of the usually set up for profit driven, non-
community and are personal gain and are statutory, autonomous
funded wholly or funded by issued and run by individuals
partly by the shares, loans from who do not get paid
government from the banks, overdrafts. for running the
public funds and are organization.
answerable to a
government
department or
Treasury.

In detail, the sizes and scopes of these companies are expressed in the table below.

Company Total Total Size Ownership Benefits/objectives Formatted: Font: Bold

Formatted: Centered, Line spacing: 1.5 lines
name revenue employees
Formatted: Line spacing: 1.5 lines
(billion Formatted Table

US$)
Huawei 100 188,000 Large Private Huawei can easily expand their Formatted: Justified, Line spacing: 1.5 lines

(Chen, (Huawei business in the world market,

2019) Corporatio increase sales and profits with
n, 2018) tax advantage strategy, and also
can completely focus on
customers’ satisfaction
objectives without worrying
about governmental
interference.
Apple 265,8 132,000 Large Public Apple successfully achieved the Formatted: Justified, Line spacing: 1.5 lines

(Marketwa (Marketwa objectives of increasing

 tch, 2019) tch, 2019) company’s total revenue as well
as the value of company in the
market. For example, Apple
became the most valuable traded
company with 1trilion $ market
value (Selyukh, 2018).
Xiaomi 23,53 15,686 Large Public Providing competitive Formatted: Justified, Line spacing: 1.5 lines

(Zhang, (Xiaomi advantages, opportunity to

2019) corporatio approach to a large number of
n, 2018) customers, protection from
public interest and great
flexibility regarding company’s
operations.
After joining public sector,
Xiaomi step by step approach to
the objective of nurturing fan in
number as well as culture.
Formatted: Font: Bold
Formatted: Justified, Line spacing: 1.5 lines

4.4. Vision, mission and objectives

A meaningful strategy plan of a business is required to establish by a set of vision, mission,

objectives and goals. In detail, vision statement can be seen as a document which shows the
strategic intentions or the “dream” of the organization. After having a clear vision of the
business, the company has to determine these following categories:
 Mission Goal Value Objectives
statement
• the outline • The more • The ideology • Objectives are
covers the understandable goals and aims the short-term
specific long- statement for of organization and medium-
term role which various group which was term goals
company needs of stakeholders created based which company
to fulfill within than general in the beliefs, willing to
society. mission attitudes and achieve.
statement. values.

4.4.1. Huawei Formatted: Font: Italic

According to Huawei corporation (2018), the company’s vision and mission is “to bring
digital to every person, home and organization for a fully connected, intelligent world”.

 Provide omnipresent connectivity to ensure equal access to connections for everyone;

 Provide widespread intelligence to drive companies forward;
 Build digital platforms to support the agility, efficiency and vibration of all industries
and organizations;
 Give everyone a personalized experience, respect everybody's unique character, and
enable every person's full potential to be realized.

Formatted: Line spacing: 1.5 lines

Source: Huawei Investment and Holding Co. Ltd. 2018 Annual report

4.4.2. Apple Formatted: Font: Italic

Formatted: Justified, Line spacing: 1.5 lines
 Vision Statement: The corporate vision of Apple Inc. influences strategic management in
terms of the decisions made by managers of the company to reach a future of leadership in the
different industries in which the company operates.

Mission statement: Apple was established with the mission of providing the best
individual’s computing experience through its hardware, easy-to-use IOS software

Objectives: offering high-quality service, users’ experiences, developing its own

operating system, applicants and service, and increasing sales volume by widening its stores’
distribution and producing new products.

4.4.3. Xiaomi Formatted: Font: Italic

Vision statement: Xiaomi has a vision of globalizing and with the special focus on
developing users’ experience in all aspect.

Mission statement: The mission of Xiaomi is to make quality technology accessible to

everyone with an honest price (Mi.com, 2019), with the commitment to continuous innovation
and firmly focus on quality and efficiency.

Objectives: By saying “Just for fan” as their belief, Xiaomi showed its objectives of
enhancing the best using experience possible. (Mi.com, 2019)

4.5. Organizational legal structure Formatted: Font: Bold

There are 3 noticeable legal forms, namely: Sole traders, partnerships and companies or
corporations. Each legal form has the similarities as well as differences in term of profits,
ownership and losses.
 Sole traders Partnerships Corporations

• Sole traders are single • Partnerships are • Corporations are

individuals owning the companies which separately artificial
business by established by two or “person” established
themselves who earns more than two to distinct legal
all the profits but also individuals who responsibilities in
covers the losses of associated with the business’s aspect from
their venture. same purpose. Each people affairs who
owners or partnership owns the company. In
agree with the similar other words, the
method of sharing business liabilities,
profits, salaries and assets, profits or losses
interests. are those of the
company and not
related to its members
especially its
shareholders.

Based on the theory mentioned, Therefore, all the competitors of Samsung are classified as
corporation in terms of legal form.

4.6. Stakeholders Formatted: Font: Bold

Stakeholder was defined as the groups of people or organizations which support or have
interest in the company. In particular, there are three3 types of stakeholders in detail.as follows:
 Internal stakeholders Connected stakeholders External stakeholders

• This group’s main • The group of • This group has diverse

interests are the shareholders and owners objectives and also has a
continuation and the or suppliers has the great impact on business.
development of the purpose of earning For example, the
organization. profits or maximizing government influence is
• Internal stakeholders the return on their clear in success business
(employees, investment in the with the represent of
management, co- company, while laws and policies.
founders.) customers want products • External stakeholders
and service with a (the community,
reasonable price. government, pressure
Therefore, connected group.)
stakeholders can be seen
as having a powerful
influence in the decision-
making of business.
• Connected stakeholders
(shareholders,
customers, suppliers,
financiers.).

Based on the power and interest of these groups, business can classify stakeholders into 4
main groups as represent of the figure below.

Formatted: Line spacing: 1.5 lines

However, each smartphone companies focused on different type of stakeholders. Formatted: Justified, Line spacing: 1.5 lines

4.6.1. Huawei Formatted: Font: Italic

4.6.2. Apple Formatted: Font: Italic

In Apple’s case, there are four main stakeholders who have significantly impact on the
company’s business activities and decisions namely: Consumers, investors, employees and
employee of suppliers and distributors.

HIGH POWER Keep satisfied Key players

+ Consumers + Investors Formatted: Justified, Line spacing: 1.5 lines

+ Employees of Suppliers
and Distributors

LOW POWER Minimal effort Keep informed Formatted: Justified, Line spacing: 1.5 lines
 + Apple employee Formatted: Justified, Line spacing: 1.5 lines

LOW INTERST HIGH INTEREST Formatted: Justified, Line spacing: 1.5 lines

Formatted: Justified, Line spacing: 1.5 lines

4.6.3. Xiaomi Formatted: Font: Italic

Formatted: Line spacing: 1.5 lines

HIGH POWER Keep satisfied Key players Formatted: Justified, Line spacing: 1.5 lines

+ Investors + Customers Formatted: Justified, Line spacing: 1.5 lines

+ Third-party developers

+ Suppliers

LOW POWER Minimal effort Keep informed Formatted: Justified, Line spacing: 1.5 lines

+ Co-founders Formatted: Justified, Line spacing: 1.5 lines

+ Employees

LOW INTERST HIGH INTEREST Formatted: Justified, Line spacing: 1.5 lines

Formatted: Justified, Line spacing: 1.5 lines

5. Business function of 3 competitors Formatted: Font: Bold

5.1. Forms and span of control of organizational structure Formatted: Font: Italic

 Span of control refers to the number of subordinates reporting to higher official

 Tall organizations represents for large number of levels of management hierarchy and
narrow span of control, while flat organization has a small number of hierarchical levels
and wide span of control.
 Centralization and decentralization are two levels at which decisions are taken in
hierarchy. The former means that the concentration of authority in decision-making is the
top management, while the latter represents for company which provides dispersion of
authority to make decision to all levels of organization.
5.2. Organizational structure Formatted: Font: Italic

 Functional organization separated employees who do the same tasks in to a particular

department and general administration.
Advantages

- It avoids dubplication and - Poor co-ordination

economic of scale - Communication problems
- It helps the recuitment among different specialism
process easier due to their culture and
- Competence is pooled and language.
the technology or - Functional structure
equipment efficiently focuses on internal
Disadvantages

accessed processes and inputs, rather

than outcomes and
consumers' demand.

 Company organized by geography or regional retains some authority at Head office, but
the daily operations are relied on a territorial basis.
 Advantages

- Organizational structure of - Dublication or loss of scale

geography provides a local might arise.
decision-making at contact - Inconsistency in standard
point between organization may appear from one to
with suppliers, others another area.
stakeholders and especially its
customers
- It lower the cost of the

Disadvantages
estaplishment of local factoríe
and officers than to service
market from only one location

5.3. The relationship between different organizational functions Formatted: Font: Bold

The functions of business are departments specializing in various sectors of the company
such as production, sales, marketing, research and billing. The functional structure of the
organization defines the relationship and interaction between the parts of your business and
identifies how the chain of command runs through the different levels. The relation between
organizational functions and structure in a company is like a flowchart in which top management
received reports from senior managers of different departments. Therefore, the company
maintaining a functional structure can create clear authority and responsibility for each job
positions in order to achieve overall tasks and basic objectives as follows:

 Achieve effectiveness and efficiency in term of resource utilization

 Offer opportunities for monitoring organizational performance
 Ensure the ability to respond of individuals.
 Create an effective mean of communication within organization
 Easily adapt to rapid or abnormal changes of internal and external developments
 Create a good working environment including promotion and job satisfaction
 Increase co-ordination among employees or different departments in organization
5.4. Huawei’s organizational structures
 Formatted: Line spacing: 1.5 lines

Source: Huawei Annual Report 2015

According to Ahmed A Mawgoud (2015), Huawei is organized based on 3 business Formatted: Justified, Line spacing: 1.5 lines

groups: Operation Group, Enterprise Service Group and Consumer Group, which are is
established with the purposes of achieving these following objectives:
 •Building communication and electronic systems for establishments.
1

•Enterprise Business, supplying all the needed equipment for the

2 enterprise customers.

•Manufacturing telecommunication devices.

3

• Providing the needed network infrastructure, wireless network

4 and network computing for telecommunication companies.

5.5. Apple’s organizational structure Formatted: Font: Italic

 Formatted: Line spacing: 1.5 lines

Figure: Apple Organizational structure

Source: Pen My Paper

5.6. Xiaomi’s organizational structure Formatted: Font: Italic

Formatted: Justified, Line spacing: 1.5 lines
 Formatted: Line spacing: 1.5 lines

Figure..: Xiaomi’s organizational structure

Source: Research Methodology

The chain may consist only of employees and the owner or employees to the CEO's Formatted: Justified, Line spacing: 1.5 lines

manager, making it a very short chain of command. Without bureaucracy, flat organizations can
mobilize readily to meet the conditions of the market. This structure is an obstacle for company
in the process of transferring from a software company to an internet firms (Yang et al., 2015)

Based on the organizational structure of three competitors above, the structure of them
can be classified in the table below:

Tall Flat Centralization Decentralization Geography Function The matrix

structure structure structure
Huawei x x x x Formatted: Justified, Line spacing: 1.5 lines

Apple x x x x Formatted: Justified, Line spacing: 1.5 lines

Xiaomi x x x Formatted: Justified, Line spacing: 1.5 lines

Formatted: Justified, Line spacing: 1.5 lines

Formatted: Justified, Line spacing: 1.5 lines

6. The interrelationships among departments within an organization Formatted: Font: Bold

Eg: Profitability analysis can be seen as the

Finance major feature in marketing control and planning
Human
resource
Eg: Accounting data plays an
Accoungting important role in the sales
quality evaluation

Eg: R&D can benefit Marketing

from marketing R&D Production
Eg: An exact sales
research inputs on the forecast for the product
most desirable product line is important for
features of different efficient manufacturing
target market segments operations
Procurement
Customer
service

Eg: Marketing research can benefit Eg: The number and type of
procurement research aimed at grievances is an important
finding and analyzing new contribution to the marketing
materials and supply sources decisions of the company.

Figure: the interrelationship between marketing and others departments Formatted: Line spacing: 1.5 lines

7. Complexity Formatted: Font: Bold

Formatted: Justified, Line spacing: 1.5 lines
 Organizational complexity can be defined as the amount of differentiation that exists within
the various elements of the organization. Complexity is basically equivalent to variety in this
way (Dooley, 2002)

7.1. Complexity of functional organizational structure Formatted: Font: Italic

In this structure, top manager has control of the organization and also the only person who
supervises all departments. There will be a complexity when the top management vacates his or
her position which leads to no others having the authority to give decision.

Hostility between different departments is also a complexity of functional structure when the
objectives do not accurately match up. Another complexity occurs when several departments
work with the same customer, while not all organizational units have prior information of what is
transpired between others departments with that customers. Particularly, functional
organization’s conflicts are often caused communication breakdowns among different functions.

7.2. Complexity of matrix organizational structure Formatted: Font: Italic

The complexity of matrix structure is often generated by dual lines of authority. In fact,
project managers and functional department managers do not have the same thinking about the
assignment of each individual. Dual accountability may leads to confusing reports, or even
competing directives received from different managers

Within this organizational structure, there are both solid lines and pointed lines of reporting,
which means the marketing manager can report directly to the marketing director and others
department managers having the equal responsibility with marketing director at the same time.
Such organizational structure frequently contributes to power struggles between personnel
members and administrators caused by control and authority dispersal combined with the
complexity of structural form

8. Conclusion:

All in all, tThis report is an analysis of smartphone competitors of Samsung including their
size, legal structures, visions, missions and core objectives. In general, Apple still remained its
business strategy of providing high-quality products for high-end customers, while Chinese
companies slowly increase their position in the world market as well as in Vietnamese one. In
addition, the organizational structure information of these above companies are collected to have
an in-depth knowledge about how structure of an organization effect the company’s growth, and
how it helps these companies achieve their objectives. Besides, this report provides a critical
analysis about the influence of complexity of different organizational structure and the
relationship between various functional departments within an organization. However, each
company has joined the world market and also has the same mission of globalizing their
products. In order to achieve that goal, Apple needs to slightly change the pricing strategy with
the purpose of maintaining the rapid growth of Huawei and Xiaomi. Therefore, this report is
necessary for Samsung company to make a prior step in smartphone sector.