1. Surf the Internet and look for two companies under the same industry.

Discuss the business level

APPLE

Differentiation Strategy

Apple has dominated the technology industry for a long time. This is fueled by the continued
introduction of new technologies on the iPad, iPhone, and Mac13ook. One area that the company beats
its competitors is the differentiation of its goods, where it has dominated in mobile phones, computers,
online music stores, and digital music players (Aliekperov, 2019). Apple contracts with a company to
provide hardware and operating systems for its products. This allows the company to focus on the
quality of its design. Besides, the business is positioned in the high-end market because of its reputation
for producing products of high value to its customers. Also, Apple uses a differentiation strategy in the
distribution of its products, where it has established retail stores around the world. Furthermore, the
business service delivery is superior and unique as it boasts an innovative bar for technical support,
dedicated and seamless customer service. Because of these techniques, the business maximizes its
profits by providing products that stand out in design and quality, ease of use, and advanced innovation.

Cost Leadership Strategy

In general, companies struggle to maximize profitability through effective production and delivery that
maximizes cost-savings. Apple Inc. has a heavy investment in product innovation through a vibrant
Research and Development (R&D) department (Lockamy III, 2017). Cost leadership strategy involves
providing high- value goods and acceptable to clients at a reasonably competitive and low price. This is
achieved by establishing efficient scale facilities, minimizing production and overhead costs, minimizing
costs related to sales, research and development, service delivery, and installing efficient and updated
production facilities (Lockamy III, 2017). The strategy is the most widely used and increases profitability.

Implemented by Apple Inc. this approach by providing cost-effective and high-quality products using
economical and affordable raw materials. This is enhanced by an innovative and influential staff and
management team in marketing, production, and delivery of products. Another cost leadership strategy
applied by Apple is forming business alliances with other famous corporations, allowing the corporation
to focus on market intelligence and innovation (Lockamy B1, 2017). For example, Apple provides an
iTunes service that helps other companies distribute videos, music, and games digitally at a lower cost,
thereby eliminating the need for physical tapes and disks. Finally, the cost leadership strategy became
more successful by eliminating intermediaries and distributing its products through its website.

SAMSUNG

Differentiation Strategy
The differentiation strategy allows Samsung to charge premium prices for its electronic products. This
strategy allowed Samsung to dominate the consumer electronics market, especially in Asia. The
management of Samsung Electronics was tasked with creating an organization with the capacity to
produce electronic products and services that consumers needed but had not imagined. The core
competence of an organization such as Samsung Electronics is that organization's strategic capability
and includes a cluster of organizational characteristics which allows the organization to achieve
competitive advantage against other organizations (Kim, 2007, p.129).

Cost leadership strategy

Samsung's cost leadership strategy enables the company to translate its vision into strategic business
processes and procedures. The cost leadership strategy or differentiation strategy is a collection of
initiatives carried out by the organization's management at different levels in the organization's
hierarchy and thus becomes more difficult to imitate by competitors, despite operating on standard
industry technology. This differentiation strategy is one of the capabilities of Samsung Electronics that
enables the organization to compete effectively with global rivals such as Sony Electronics and LG
Electronics, among others.

2. Mini-case. Read the mini-case of Shake Shack and answer the discussion questions comprehensively.

1. What was the business level strategy used by Shake Shack? How did Shake Shack proceed with the
strategy?

Shake Shack operates within the fast-casual segment of the restaurant industry under a broad
differentiation strategy (competitive strategy). The company aspires to be the "anti-chain"
restaurant chain by placing great emphasis on a culture of hospitality, quality ingredients and
commitment to the communities in which they operate at a premium relative to competitors
and create higher barriers to entry due to customer loyalty. Furthermore, the dimensions on
which they differ (hospitality, quality, and community commitment) are integrated throughout
the company's value chain as illustrated by relationships with locals sourcing quality ingredients
or their exceptional customer service.

2. Could Shake Shack hold itself against its legion of rivals? Discuss your answer.

Yes they can. Around the world, Shake Shack operates stores under a licensing contract with
exclusive partners. The exclusivity of international partnerships gives Shake Shack a greater
degree of control and ease of coordination, which helps it maintain its uniqueness as well as
keep general and administrative costs relatively low. Overall, Shake Shack's business-level,
corporate-level and international strategy is consistent with its organizational goals and
objectives, consistent with the external environment, feasible and a source of sustainable
competitive advantage. Shake Shack's competitive advantage cannot be attributed to one
factor; rather it consists of a combination of strong management, empowered employees
committed to providing superior hospitality and customer service, as well as a commitment to
local communities and quality ingredients in total. Together, these dynamics contribute to a
 sustainable competitive advantage that is valuable, rare, hard to imitate and hard to replace.
Most importantly, Shake Shack is structured to capture value from its competitive advantage in
the form of brand awareness, loyalty and ultimately, profits. Customers value the Shake Shack
experience and travel from far and wide to enjoy a Shack burger. It's also rare for a burger chain
to combine fine dining quality, taste and hospitality with an inexpensive burger that appeals to
the masses. The company's deep investment in the community further propagates the
company's caring culture of hospitality cultivated by its numerous founders and management.
Also, Shake Shack can adopt a hybrid strategy with cost leadership and differentiation to
improve their performance compared to just pursuing a competitive strategy. By using a dual
strategy, it can create sustainable advantage and create cost synergy at the same time.

3. What was Shake Shack truly worth?

A company's value is usually represented by its market capitalization, or the current stock price
multiplied by the number of shares outstanding. In this case, Shake Shack's net worth on October 28,
2022 is $2.35 billion. Market valuation is not only about the number of years a company has been
operating but also about how investors perceive your value. In the case of Shake Shack, when investors
look at it, they don't see the number of stores that are currently in place today. What they see instead is
the enormous growth potential the chain shows. They look at Shake Shack's current cult following and
wonder what it means for the future. Shake Shack operates in the fast casual market, with stiff
competition from both quick service restaurants and casual dining restaurants. But it may just be the
ownership of this space that sets Shake Shack apart and shows potential for its investors. It also helps to
know that compared to the current offerings of typical fast food restaurants, Shake Shack prides itself
on ethically sourced food of only the highest quality. Its simple menu and great customer service also set
it apart, giving customers an authentic Shake Shack experience they can't get at other restaurants. It's
clear that Shake Shack loyalists as well as investors appreciate it very much, and that seems to be saying
a lot.