Entrepreneurial Spirit at Samsung: A Key to Success

The Samsung Company has demonstrated entrepreneurial aspects such as innovativeness, adaptability, and proactiveness. The company has successfully created a corporate entrepreneurial climate by adopting innovative and developing new products. Support from the Korean government in terms of free tax incentives and investment capitals has also contributed to the company's success. Moreover, Samsung has focused on existing markets, studying them thoroughly before innovating within them. As a result, the company has gained a reputation as a 'fast follower' after Apple Inc. Additionally, innovation and entrepreneurship are key features that contribute to the success of an organization, with corporate venturing allowing business organizations to create productive organizational behavior.

Running Head: CORPORATE VENTURING-SAMSUNG COMPANY 1
Corporate Venturing-Samsung Company
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Corporate Venturing-Samsung Company 2
EXECUTIVE SUMMARY
Corporate venturing is described as the investment of the business fund directly to the
external companies. It also outlines as the practice where a business entity takes equity stakes in
innovative firms, where the corporate strategy allows the business form to gain the competitive
advantage in the market. While innovation is, explain the process of translating an intervention
of ideas into goods and services needed in the market. On the other hand, entrepreneurship is the
process of conducting business activities in front of all business risk. The primary purpose of this
paper is to explain the general concepts of corporate venturing in relating to entrepreneurship and
innovation. The paper will discuss the main concepts, as it will analyst relevant information
relating to the selected corporation.

Corporate Venturing-Samsung Company 3
Table Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Samsung Company..........................................................................................................................4
Samsung Logo.................................................................................................................................4
THEORETICAL CONCEPTS........................................................................................................5
Marketing Strategies........................................................................................................................5
Marketing communication...............................................................................................................6
Advertisement..................................................................................................................................6
Sales promotion...............................................................................................................................7
Internet marketing............................................................................................................................7
Samsung innovative Strategy..........................................................................................................7
Samsung Company totally different strategy from Apple...............................................................8
RESEARCH APPROACH..............................................................................................................9
Research Approach..........................................................................................................................9
DATA ANALYSIS AND DISCUSSION.......................................................................................9
Part A...............................................................................................................................................9
Entrepreneurial Intensity.................................................................................................................9
Measuring innovation at Samsung Company................................................................................10
New path to sustainable competitive advantage............................................................................10
Part B.............................................................................................................................................11
Climate for Corporate Entrepreneurship.......................................................................................11
CONCLUSION..............................................................................................................................12

Corporate Venturing-Samsung Company 4
References......................................................................................................................................13
Appendix A....................................................................................................................................14
Personnel Management System.....................................................................................................14
Appendix B....................................................................................................................................15
Management and Entrepreneurship...............................................................................................15

Corporate Venturing-Samsung Company 5
INTRODUCTION
Samsung Company
Samsung Company is an international corporation that is involved in producing
electronic products such as radios, televisions, and phones. Lee Byung-Chul founded the
Samsung Company in 1938 as a traditional company. The name Samsung literally means
“Korean hanja”, this means “Tri-Star” implying something big and powerful. Samsung Company
has been in the international electronics industry for the last decades because of its prevailing
technological intervention and innovation, the company main competitors in the market include
Sony, Apple Inc., and Motorola (Lee, 2006).
Despite operating in a competitive market, Samsung Company has posted a KRW 53.33
trillion in consolidated revenue, the company has also reported over KRW 9.22 trillion operating
profit for the quarter. In 2016, the company reported KRW 201.87 trillion and operating of KRW
29.24 trillion. The fourth quarter earnings in 2016 were driven by the essential business
strategies inaugurated by the company top management (Mitchell, 2010). The company success
is ordained by the corporate venturing on different business components mainly on the Memory
and Display Panel segment, their manufactures are OLED and LCD screens. The excellent sales
value is contributed by the high performance of the memory products, large shipment of large-
size UHD panels and OLED. These business strategies led to increase in company operating
profits (Hayton, 2005).
Samsung Logo
A business logo has been defined as a source of every business success. Samsung
Company Logo has played a fundamental role in ensuring that the corporation name is known in

Corporate Venturing-Samsung Company 6
the work technological industry, it is one of the models of marketing that is used by the company
to gain more success. According to the study, the first enlargement of the company image was
started in 1993. Samsung Company has driven its business strategies that will enhance corporate
identity of its products in the market (Madhavaram, Badrinarayanan, & McDonald, 2005).
Currently, the company is using a blue background that was designed to show the indefinite
shape that elaborates on the impression of modernization as well as advanced business corporate
strategies. The consumers in the market recognize the company products by viewing at the logo
(Percy, 2014).
Samsung Company has released different types of products that are considered to meet
the demands and needs of the consumers in the market. The company informed it’s all new
products by using a business slogan, “Inspire the World, Create the Future”, this slogan as used
by the Samsung Company implies the essence of chasing the future with new inspirable products
(Hayton, 2005). The slogan is used by the company to inform its consumers that they are moving
forward towards improving its products and brands in the market.
THEORETICAL CONCEPTS
Since the foundation of the Samsung Company in 1969, the company has counted its
success based on many business components and concepts that are critical to any business
enterprise, especially those that operate in the large market. The company has expanded in many
areas of business, the executives of the company have capitalized on strategic measures that are
recognized to have positive influential approach to the business organization (Banerjee, 2009).

Corporate Venturing-Samsung Company 7
Marketing Strategies
Management is explained as the process that entails coordinating the fundamental
activities of the business organization with an aim of accomplishing the strategic goals and
objectives of the company (Pride & Ferrell, 2016). Management comprises the vital approaches
of marketing, marketing is outlined as a strategic management approach that involves the process
of transforming goods from their original concept to the consumer. Marketing strategies
comprise the implementation of marketing mix approach, where 4ps are considered as the
essential components (Pitts, 2017).
Marketing communication
Marketing is a fundamental part of management that comprises the process through
which goods and services are transformed from their original concepts to the consumers, it
entails the process of coordinating the four components of marketing, the four elements are the
product, price, place, and promotion (Madhavaram, Badrinarayanan, & McDonald, 2005).
Marketing communication is part of marketing that ensures that all the important
information reasonably linked together with the purpose of accomplishing the company goals
and objectives (Lee, 2006). The marketing communication is described as the marketing
component that enhances that all the marketing promotional tools are harmonized collectively.
Marketing communication is the important part of organization management strategies, it defines
the communication channels, media that are used to convey important information to the
consumers (Percy, 2014). Samsung Company has confirmed the importance of implementing
marketing and communication policies, the company has coordinated all marketing approaches
that are recognized to positively influence the company business activities.

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Advertisement
The advertisement is the main element of marketing communication. It entails the
process of using TV, radio, and posters to promote products and services. The Samsung
Company certifies the importance of advertisement marketing approach The Company has made
TV advertisement to promote brand awareness in the market. Samsung Company and Chile
Worldwide Agency have recently focus to implement the advertising campaigns about its new
products in the market (Banerjee, 2009).
Sales promotion
Sales promotion in marketing acts as the pivot of the company success. Marketing
communication in an organization advocates the process of implementing sales promotion as a
fundamental constituent of marketing. The Samsung Company has offered bonus to the
consumers who purchase new products and trading-off their products with previous one. By
implementing on sales promotion, the consumers are allowed to receive the value of their
products (Madhavaram, Badrinarayanan, & McDonald, 2005).
Internet marketing
The Internet is considered as an essential element of marketing communication in a
business organization. Samsung Company has capitalized on internet marketing where social
media is considered as a primary element of internet market. YouTube and Facebook are the
largest social media that are used by Samsung Company to attained its marketing objectives
(Singhania, 2006).

Corporate Venturing-Samsung Company 9
Samsung innovative Strategy
Every electronic customer knows about Samsung Company which is a leading electronics
company in the world market. “Inspire the World, Create the Future” is a slogan that has made
the company focus on the innovative business strategies that will ensure the company is gaining
a competitive advantage in the market (James , 2011). Many critics have arisen arguing that
Samsung Company is copying its designs from Apple Inc. which is the main competitor in the
market. The company innovation in screen technology, batteries, TVs, and chip designs is known
to be exceptional in the market as compared with other players in the market. The Samsung
Company innovative strategy is drawn from earlier 1990s and 2000 when they started to adopt a
comprehensive systemic approach to innovation, this earlier capitalization of innovative
approaches has contributed to the current business success (Karimi & Walter, 2016).
Samsung Company innovative strategy has natured a good relationship with Russian
Academy of Science, the two parties agreed on major approaches that may lead to competitive
advantage. Innovation at Samsung is promoted by the support that is given by Korea
Government, the government provided incentives to Korean business enterprises to develop
projects under the Academy research (Mitchell, 2010). Samsung Company is known to be part of
the agencies that help Academy research as it increases its patent count as well as exploiting its
interventions of ideas. The corporations of Russian Academy of Science with Korean
Government have obliged the Samsung Company to cooperatively venture their business
activities to other small business organization.

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Samsung Company totally different strategy from Apple
Innovation strategy at Samsung Company is described as a model that has made the
company to be the leading electronic producer in the industry, this business model has kept the
competitors at a bay. Apple Inc. is the largest market player in the technological market, it is one
of the market giants that compete with Samsung Company. In the last few years, Samsung
Company has been working extensively to catch up with the Smartphone market. The Samsung
Company has inaugurated new strategies of improving the existing product in the market.
In 2013, Samsung Company introduced new product, the Galaxy S4 smartphone (Max, 2013).
The Samsung Galaxy S4 smartphone flagship was the latest product in the market, it had a
massive screen and impressive features. The product also had friendly software that allows the
consumers to use the product effectively. The present business environment puts Samsung
Company in a sea of challenges and defeats, the aspects of globalization, as well as the
technological changes, accelerate the challenges and defeats affecting the Samsung Company.
Innovative strategy used by Samsung Company in the market is “embed” and “inside”
innovation strategies that truly contribute to the game-changing in the market.
RESEARCH APPROACH
Research Approach
The mobile manufacturers are currently operating in highly and large competitive
business environment. The technology companies are developing new technology product that is
considered too important to the 21st-century market environment. Innovation and release of new
product designs evolutes through many technological advancements. Every market player in the

Corporate Venturing-Samsung Company 11
technology industry is extensively working to maintain and improve their market positions (John
, 2012).
The research report contents are projected from the different departments of the
organizations, including marketing sector. The foundation of the research is based on the
geographical division of Samsung Company and their business activities. Samsung Company is a
South Korean corporation that operates in 65 countries with over 170, 000 employees working
for the company. The business strategy of Samsung Company is focus to present an interesting
case since it pursuing both product differentiation approaches and cost leadership in the market
(James , 2011).
DATA ANALYSIS AND DISCUSSION
Part A
Entrepreneurial Intensity
The entrepreneurial intensity is a business strategic management approach that defines
the levels of entrepreneurship within a given organization. An entrepreneurial intensity is
comprehended when its orientation to the business is associated with the performance of the
company. Entrepreneurship is a foundation aspect of EI as a business strategic management
approach, it is defined as the process of accumulating the available resources and intercepting the
ideas to exploit a business opportunity (Morris, Kuratko, & Covin, 2010).
Measuring innovation at Samsung Company
The core factor that has kept the Samsung Company on the move of being among the
leading technology companies in the market is the fact that it capitalizes on market research. This

Corporate Venturing-Samsung Company 12
implies that the company is primary defines its success by conducting technical research in the
market with regard to the needed products (Kuratko, 2016). Samsung Company spends more
time doing research as compared to other market players such as Apple Inc., Sony, and
Microsoft.
“Inspire the World, Create the Future”, is a business slogan that is used by Samsung
Company anticipate for its future performance in the market. The company has focus to adopt
the corporate venturing strategic management approach. The future investment adopted by the
company has allowed the company to be the leading producer in manufacturing of memory
chips, Phones, TVs, multimedia, and LCD. Samsung Company has been able to maintain its
entrepreneurial drives as it implements on the essential entrepreneurial aspects. Samsung
innovation is one of the business aspects that has kept the company to kept competitors at bay.
Over 170,000 employees who are spread in 18 research centers in the world succeed innovation
strategies for the company (Karimi & Walter, 2016).
New path to sustainable competitive advantage
Every business organization in the current business environment is exploiting on different
measures that will contribute to their success. Primarily business environment is constituted by
different aspect that may prevent the business organization to gain competitive advantage in the
market. Samsung Company is in the front line of adopting new measures that will provide
solutions to the business challenges.
Entrepreneurship Intensity is a business strategy that has allowed Samsung Company to
gain a sustainable competitive advantage in the market. The process of obtaining business
advantage in the market confirms the aspect of focusing on the entrepreneurial characteristics.

Corporate Venturing-Samsung Company 13
The expedition of competitive advantage in the market obliges company and the managers to
inaugurate on the entrepreneurial features. The managers of Samsung Company are known to
adapt existing and new market with entrepreneurial characteristics. Aggressiveness,
innovativeness, and adaptability are the entrepreneurial aspects installed by the Samsung
Company (Max, 2013).
Part B
Climate for Corporate Entrepreneurship
In the current business environment, the business organization is focused on the
entrepreneurial behaviors. Samsung Company management led by Lee Byung-Chul are working
appropriately to create entrepreneurial climate. Samsung Company has gained the reputation of
being a “fast follower” after Apple Inc, the Samsung Company is dispersedly adopting the
approach of creating a corporate entrepreneurial climate by innovative and developing new
products (Max, 2013). The corporate entrepreneurship climate of Samsung Company is
promoted by the support from the Korean government that provides free tax incentives as well as
offering investment capitals. Unlike other players in the market, Samsung has focused mainly on
the existing markets, the company has studied the markets and innovating inside them (Karimi &
Walter, 2016).
CONCLUSION
Samsung Company is an international company that is involved in production of
electronic products. Lee Byung-Chul founded the company in 1938 as a trading company.
Corporate venturing is a fundamental business approach that allows the business organization to

Corporate Venturing-Samsung Company 14
focus on the future investment. Entrepreneurship and innovation are the key aspects of corporate
venturing. “Inspire the World, Create the Future”, is a business slogan that is used by the
Samsung Company to focus on the future investment. The slogan is used by the Samsung
Company to improve the existing product as it also produces inspirable products.
Marketing is part of the management, it involves the process where the materials are
transformed from their original concept to the consumer concepts. Marketing involves the
coordination of 4 marketing mix, this strategies involves, product, price, promotion and place.
Marketing communication is an element of marketing that constitutes the process of coordinating
all the essential information to the consumers.
Innovation and entrepreneurship are the key features that contributes to the success of an
organization. Innovation strategies at Samsung Company contribute to sustainable business
advantage. Corporate entrepreneurship allows the business organization and mangers to create a
productive organizational behavior.

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References
Banerjee, S. (2009). Marketing communication through brand placement: A strategic roadmap.
Journal of Marketing & Communication, 5(2), 4-22.
Hayton, C. J. (2005). Promoting corporate entrepreneurship through human resource
management practices: A review of empirical research.
James , M. (2011, October ). Samsung’s Corporate Venturing Strategy. Retrieved October 10,
2011, from https://hbr.org/2011/10/corporate-venturing-rhymes-wit
John , D. (2012). Research-Methodology. Samsung Electronics. Retrieved May 3, 2012 , from
https://research-methodology.net/samsung-electronics/
Karimi , J., & Walter, Z. (2016). Corporate entrepreneurship, disruptive business model
innovation adoption, and its performance: The case of the newspaper industry. Long
Range Planning, 49(3), 342-360.
Kuratko, D. F. (2016). Corporate entrepreneurship. The Routledge Companion to the Makers of
Modern Entrepreneurship, 154.
Lee, D. (2006). Samsung Electronics: the global inc. LEE Dongyoup.
Madhavaram, S., Badrinarayanan, V., & McDonald, R. (2005). Integrated marketing
communication (IMC) and brand identity as critical components of brand equity strategy:
A conceptual framework and research propositions. Journal of Advertising, 34(4), 6.

Corporate Venturing-Samsung Company 16
Max, N. (2013, March 15). Samsung Has A Totally Different Strategy From Apple, And It's
Working Great. Retrieved March 15, 2013, from
http://www.businessinsider.com/samsung-corporate-strategy-2013-3?IR=T
Mitchell, T. (2010). Samsung Electronics: And the Struggle for Leadership of the Electronics
Industry,. Wiley Publications.
Morris, M. H., Kuratko, D. F., & Covin, J. G. (2010). Corporate entrepreneurship & innovation.
Cengage Learning.
Percy, L. (2014). Strategic integrated marketing communications. Routledge.
Pickton, D., & Broderick, A. (2001). Integrated marketing communications. Harlow:: Prentice
Hall.
Pitts, B. (2017). Sport Marketing. Understanding Sport Management: International
Perspectives.
Pride, W. M., & Ferrell, O. C. (2016). Foundations of marketing. Cengage Learning.
Samsung. (2017, January 24). Samsung Electronics Announces Fourth Quarter and FY 2016
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electronics-announces-fourth-quarter-and-fy-2016-results
Singhania, P. (2006). Branding and its Competitive Advantage in Consumer Electronics
Industry, Dissertation for M. A. Management Degree.
Urban, B., & Wood, E. (2017). The innovating firm as corporate entrepreneurship. European
Journal of Innovation Management.

Corporate Venturing-Samsung Company 17
Appendix A
Personnel Management System
Personnel Management System is a fundamental aspect of business organization. In the
current business environment, the business organization has adopted an open management
system that is based on the personal level. The primary purpose of implementing the Personnel
Management System is to respect and adopt the creativity of the employees in an organization.
The Human Resource department in business organization is advocated to create an internal
competitive environment within the organizations, this competition tends to allow the employees
to harmonize their ideas and provide solution to the existing problems. The Personnel
Management System allows the company to realize the importance of comprehensive decisional
making process.

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Appendix B
Management and Entrepreneurship
Management is explained as the process setting objectives and coordinating resources
including people to attain the same objectives. Basically, “Management” is the process of getting
things done through other people. Effective management process is constituted with
coordination, planning, controlling and organizing all the operations of the organization.

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