Business Model, Value Proposition, and Operations of Samsung

This report discusses the business model, value proposition, and operations of Samsung. It explains how Samsung has maintained its competitive advantage and strategic fit in the market. The report also covers supply chain development, financial value capture, and selection of innovation tools and techniques. The focus is on Samsung's smart phone business and its connectivity with 5G mobile network.

INDIVIDUAL REPORT

EXECUTIVE SUMMARY
Business is a broad term where the companies are able to sell their products and offerings to
the customers and in return generates profitability. In other words, it is place here proper buying
and selling takes place. In this report, the business model has been explained that helps in
developing certain mission, vision and aim for the business which are the primary purpose that is
to be accomplished for the growth and success of the company. The value proposition model has
been explained that determines the importance of the product for the customer and describes the
reason for which they have to purchase the product. The supply chain development has been
taken into account that helps in making the product available at the right place and at the right
time. Selection and innovation tools has been selected which provides base for the overall
business operations and explains the effectiveness of using them.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
BUSINESS MODEL DESCRIPTION...................................................................................4
VALUE PROPOSITION DEVELOPMENT.........................................................................5
BUSINESS OPERATIONS DEVELOPMENT.....................................................................6
SUPPLY CHAIN DEVELOPMENT.....................................................................................7
FINANCIAL VALUE CAPTURE.........................................................................................7
COMPETETIVE ADVANTAGE..........................................................................................7
STRATEGIC FIT...................................................................................................................8
IDENTIFICATION AND ASSESSMENT OF ASSUMPTIONS AND UNCERTAINITIES
................................................................................................................................................8
PHASED DEVELOPMENT PLAN.......................................................................................9
SELECTION OF INNOVATION TOOL AND TECHNIQUE...........................................10
CANDID AND CERTICIAL SELF ANALYSES...............................................................11
CONCLUSION AND RECOMMENDATIONS..........................................................................12
REFERENCE.................................................................................................................................13
APPENDIX....................................................................................................................................14

INTRODUCTION
The business world is highly dynamic in nature and this places emphasis on the
organisations to stay competitive by bringing new and innovative technologies in their products
and services. This helps in attracting the customer base and the overall objective of profitability
of the business increases (Papadopoulos and Heslop, 2014). The organisation which is to be
considered for this report is Samsung which has initiated its business operation from the year
1938 in South Korea. It mainly deals in electronics, gadgets, automotive, chemical, etc. In this
report, the focus will be given on smart phone and its connectivity with 5G mobile network. The
report will explain the business model of the company and value proposition development. It will
further concentrate on business operation development and supply chain development. The
financial aspect of the company will be taken into account with determining its competitive
advantage and strategic fit. Furthermore, the emphasis will be given of identifying and assessing
certain assumptions and development plan will be made. It will make use of tools and techniques
by critically analysing.
BUSINESS MODEL DESCRIPTION
Business model is a method or process which helps the organisation in not only attaining
the objectives but also to earn the greater amount of profitability and success by establishing
long term goals. This helps in proper and effective identification of the target market and
customers.
The business model plan for Samsung is a very superior plan where it requires greater
amount of planning and efficiency in work to operate at market place. The company is operating
in different segments namely, electronics which accounts for 37.22%, digital appliances namely,
refrigerator, microwave, etc. It further sells 16% of its products in the printing tools like printers,
scanners, fax machines, etc. It further produces information technology and communication tools
like mobile phones, tablets, etc. and this business of Samsung accounts for 30.4% selling out of
the total sales of the company (Griffith and et. al., 2014). This is one of the important aspect
because, people are more becoming tech in nature. The company has links with mobile network
companies which enhances them to brought superior network in their smart phones and this
accounts for 9.36% of the total business of the company. There are many more products to which
the company is extended like LED businesses, digital cameras, system LSI businesses, etc.

All the above have become possible because of the highly innovative and expertise team of the
company. Through innovation, the company is able to deal with various issues and problems, the
dynamism, fluctuations in the needs and requirements of the customers, etc. Furthermore, the
company is highly involved in developing and maintaining customer relations, through which
they are able to gain the trust of the public (Yadav and Pavlou, 2014). All this has ultimately
helped the company, in development of the brand and growth in the long run. Apart from this,
the company has successfully developed the business canvas model which has made them
achieve the greater extent of brand awareness and goodwill in the market. The components of
those canvas model has clearly explained in the above portion.
VALUE PROPOSITION DEVELOPMENT
A value proposition is the manner in which the business is able to deliver the product or
service which provides solution to each and every problem of the customers. The value
proposition is of two types namely, customer value proposition and employee value proposition.
Customers are the main part of every business specially in Samsung where each and every
product which has been produced is for the customers. The key value proposition for the

company is being innovative and developing trust. With this, the employees are required to be
encouraged and motivated on regular basis in order keep bringing new and innovative products
for the company which will ultimately satisfy the customer needs and requirements. This will be
possible by building and developing trust in customers and recruiting the highly innovative and
flexible workforce (Najafi-Tavani, Sharifi and Najafi-Tavani, 2016). When employees will be
flexible in nature and have the ability to deal with the changes that are prevailing in the market
then this helps in overall communication and coordination. With this, they understand the value
of accepting changes in order to achieve the set business goals and objectives. Furthermore,
employees will be encouraged on regular basis in order to work for the betterment of the
company and in return the company identifies their requirements and satisfies the needs of
employees as well. So, employees will work effectively and with full potential in order to know
the growing demand and needs of the customers which will help Samsung in bringing new and
innovative products and services in the market. Therefore, the value proposition for the company
lies in innovation and building trust and honestly among the people.
BUSINESS OPERATIONS DEVELOPMENT
Business operation is the process which is required at all the levels of the business in order
to run it smoothly and properly. It is the combination of different resources and capabilities
which are necessary for proper operations of the business. Samsung will need various resources
which will lead their mobile phones company at the greater heights and success. The key
resources needed are highly professional and expertise workforce who will have the critical
mindset and are able to develop innovative and new products and services. Apart from this, the
company will need higher level of funds and investment through which they can lead the
business operations (Haider and et. al., 2019). The workforce must have team spirit skills and
problem solving as well so that they are able to establish proper communication and coordination
where each individual will understand another’s point of view and works in team to meet
business objectives. In order to improve the business operations, the company is focussing on
building effective team in research and development department and improving the employees
by motivating them and fulfilling their demands by financial and non financial incentives on
regular basis. Apart from this, the company aims to provide very safe and secure working
atmosphere to them which automatically inspires them to work hard and with full concentration
as well.

SUPPLY CHAIN DEVELOPMENT
Supply chain management is the network through which the company is able to transfer the
product from the place of production to the final place where it can be sold or where customer
can buy the product (Chang and Taylor, 2016). In other words, this refers to managing the stock
from the place of input to the place of consumption. Samsung has a strong supply chain network
which combines different distributors, suppliers, retailers, etc. The company has able to maintain
not only the business to customer channel but also business to business channel for selling its
products. It effectively sells its products on e commerce websites and applications. It has strong
network which effectively meets the demand and supply when and where it is needed. The
supply chain management team of the company is such that there is proper coordination among
the team members which easily recognises the demand of the product in a respective location
and works collectively in order to fulfil at the right time and at the right place as well.
FINANCIAL VALUE CAPTURE
The value capturing is one of the most crucial practice which is being done by majority of
the companies all over the world. This is the tools that helps in knowing the different ways and
methods through which the business organisation can make and earn huge amount of profits. In
this context, the value capture will provide a broad perspective through which, the understanding
of business performance, nesting on competitive market pressure, identifying internal problems,
etc. can be done and proper solutions can be developed (Shaw, 2016). So in this, Samsung will
adopt the technique of retaining some portion or percentage from the total value which has been
created in every transaction. For instance, Samsung will concentrate on their financing team and
develop investment portfolio. The decisions will be taken by the financial advisory people so that
the company can make profits and generates additional finances for the betterment.
COMPETETIVE ADVANTAGE
The competitive advantage is the term which relates to identifying the unique characteristic
or feature of the organisations or its products which makes them different and exclusive as
compared to other competitors at the market place. Samsung has the uniqueness of serving the
smart phone of each and every range with best features, designs, styles, class, performance, etc.
It has proper service quality where the customers complaints are handled properly. The another
competitive advantage which the company has is most suitable and highly effective commitment
with the research and development department which are able to bring new and innovative smart

phones with best features. The another advantage is that Samsung is able to combine the
Japanese and American working strategies which provides best results for the company. It is one
of the most leading company in the world market in field of smart phones. The financial position
is highly strong and effective in order to compete at the marketplace (Homburg, Schwemmle,
and Kuehnl, 2015).
STRATEGIC FIT
The company has proposed the idea to make the new smart phones with 5G connectivity so
that customers can experience faster speed of internet at comparatively lower prices. This
proposal is highly effective for Samsung because the world is growing into the technology and
each and every aspect of life is now relates with the internet connection. Not only big businesses
but also small vendors cannot imagine their life without internet. So this proposal is strategically
fir and appropriate for the betterment of the business goals and objectives.
IDENTIFICATION AND ASSESSMENT OF ASSUMPTIONS AND UNCERTAINITIES
Every new business plan has some positive aspects and negative aspects as well. It
becomes essentially important for the management of the Samsung to take into consideration the
uncertain and favourable and unfavourable possibilities of the new business. The technical
department of the company is highly effective and expertise workforce who are very well clear
with the goals and objectives. They are organised in their work and actions that helps to attain
the business objectives and goals. The customer desirability is related to the price as they are
very price conscious in nature (Baxter, 2018). So the company focuses towards providing them
the superior quality and services at best possible prices which are easily affordable. Furthermore,
the company has strong financial resources in terms of funds and investments. But there are
certain assumptions which needs to be taken into account by the company like the product will
be produced as per the plans and customers will respond to it positively. The uncertainties relates
to the different factors of environment like poor climatic conditions at some place can strong
affect the 5G network which will not be able to provide the expected speed of internet and so
Samsung will fail to stay on their promise and this can leads to poor customer satisfaction. Apart
from this, the political environment is dynamic and if government raises the taxation rate then
the company may not be able to provide the 5G network services at lower rates because this can
lead the company to the loses. Such uncertain events are essentially to be kept in mind the

management team of the company so that proper alternative solution can be developed for the
same.
PHASED DEVELOPMENT PLAN
Development plan is the one where the combination of different elements are considered
and strategies are suggested for improving the same. In this, the Samsung will take into
consideration, the different strategies for improving technical feasibility, financial viability and
customer desirability (Xu, Frankwick and Ramirez, 2016).
How this has been deal in
present?
How in future this can be
improved?
Customer desirability Customers are the most crucial
element of the business
organisation and Samsung has
identified that they want cheap
and superior products with
better design and style. The
company has successfully met
this criteria and customers are
highly satisfied from the
organisation.
In future, Samsung can further
improve the design, style and
pricing of the products by
visual presentation. This will
help the customer in looking
at the features and other
necessary specifications
visually through promotional
tools and this will induce them
to purchase the product.
Financial viability Samsung has successfully able
to generate the sufficient
amount of money with this
new product of 5G in new
smart phones. This product
has gain lot of attention in the
market and company has
strong financial resources
which has helped them in
attaining this.
In future, the company can
maintain the level of
profitability by adopting such
techniques and methods from
which the operating cost can
be minimised. Such that the
company can use
biodegradable practices in
supplying the products which
helps in reducing the waste
and minimises overall cost as

well.
Technical feasibility The technical feasibility in
Samsung is highly effective
and efficient which helped in
meeting the set business goals
and objectives. It has strong
supply chain network which
has made it possible for the
new product to make
availability easy. Furthermore,
the company is tied with
various retail shops that makes
sale and profitability for the
new product possible.
In future, the company can put
concentration in improving the
supply chain network by
adopting system software
tools like SAS through which
proper coordination and
communication can be
established and work will
takes place more smoothly as
compared to the normal
working. Furthermore, this
will let the company know
that where the demand is high
and ensure that they are able
to meet them.
SELECTION OF INNOVATION TOOL AND TECHNIQUE
Each and every business enterprise makes use of certain techniques and innovative tools
that helps them in meeting the business goals and objectives. For bringing the new product of
Samsung Smart phone with 5G connectivity, the company will adopt different innovative tools
and techniques that will help them to maintain the uniqueness of the products and satisfied the
customer to the greater extent. The different innovative tools that company will adopt is doing
STP analyses that will help them in knowing the target market segment for whom the products
are produced. Then the company can use PESTLE analyses which will help them in knowing
the impact of political, economic, social, technological, legal and environmental factors.
Furthermore, the company applies Porter five forces model that helps them in knowing that
which force is strong and weak (Midgley, 2014). To analyse the internal business environment of
the company, Samsung will also use VRIO model that helps in learning the internal capabilities
and potential of the resources. Business model will be developed that makes organisational goals
and objectives clear and workforce will know that which factors are required to be adopted and

ensures that it goes as per the designed goals and objectives. The other models which needs to
taken into consideration for bringing new and innovative product are innovation readiness
analyses, is a five step model in which innovation strategy is developed then organisation culture
and roles are defined, innovation lifecycle processes is taken into consideration, then it allows
different factors that are essential for implementing innovation strategy and then the result of
innovation is examined. The story telling canvas helps in developing a story which generates
interest among the people to listen. In an organisation, this can be done by preparing power point
presentation which attracts the employees interest. This is now a days, considered to be the
building block for the marketing and innovation as well. It ensures overview of the things that
are required before implementing any strategy or plan. The key points which are needed under
this are value proposition, customer relationships, customer segments and different channels
which are used for communication. Value proposition canvas is the another model, that helps in
determining the importance or uniqueness of the products which influences customers to
purchase the products. This provides a confirmation regarding the product that it is positioned in
such a manner which describes the needs and requirements of the customers. This model is very
useful when the organisation is planning to refine an already existing product or develops a new
product or services from the scratch.
CANDID AND CERTICIAL SELF ANALYSES
It was great experience to conduct the market analyses of the new product which is being
brought by the Samsung. This has helped me identifying certain strength and weakness of mine
that could help me in future. I have realised that if I work with full concentration then I have
strong critical analyses skills that helped me in proper evaluation and analyses of different
alternatives by considering the different negative and positive aspects of the proposals.
Furthermore, I have strong communication skills through which I am able to place my view point
regarding the innovative product with proper justifications. On contrary, there are certain
weakness of mine which I have realised and major one is that if I will have to take decision then
I am quiet hesitated and scared because neither I have risk taking ability nor decision taking.
This has affected my personal innovation skills because though I am right in my work and action
but I fail to implement the same due to ineffectiveness.

CONCLUSION AND RECOMMENDATIONS
From the above report, it has been concluded that bringing new product to the market is
highly risky and profitable for the business. If the product is successfully launched and market
and adopted by the customers, then it quickly generates the returns for the company. But if
customer do not accept the product then this can create problems and leads to greater amount of
loss. For this purpose, it becomes essentially important for the organisations to know the internal
environment capabilities and competencies.
Furthermore, there are some recommendation for Samsung new product on which the
company should focus. Firstly, the company must recognise that in which places the 5G network
is available as it is not confined to the rural areas so the product must on target the rural people.
Secondly, before bringing new product to the market, the company should make people
understand the differentiation between the 4G phones and 5G phones so that they will be clear
with the mind set.

REFERENCE
Books and Journals
Midgley, D. F. (2014). Innovation and New Product Marketing (RLE Marketing). Routledge.
Xu, Z., Frankwick, G. L., and Ramirez, E. (2016). Effects of big data analytics and traditional
marketing analytics on new product success: A knowledge fusion perspective. Journal
of Business Research. 69(5). 1562-1566.
Baxter, M. (2018). Product design. CRC Press.
Homburg, C., Schwemmle, M., and Kuehnl, C. (2015). New product design: Concept,
measurement, and consequences. Journal of Marketing. 79(3). 41-56.
Shaw, S. (2016). Airline marketing and management. Routledge.
Chang, W., and Taylor, S. A. (2016). The effectiveness of customer participation in new product
development: A meta-analysis. Journal of Marketing. 80(1). 47-64.
Haider, A. A., Zafar, A., Khalid, A., Majid, A., Abdullah, M. A., and Sarwar, M. B. (2019).
Marketing Management.
Najafi-Tavani, S., Sharifi, H., and Najafi-Tavani, Z. (2016). Market orientation, marketing
capability, and new product performance: The moderating role of absorptive
capacity. Journal of Business Research. 69(11). 5059-5064.
Yadav, M. S., and Pavlou, P. A. (2014). Marketing in computer-mediated environments:
Research synthesis and new directions. Journal of Marketing. 78(1). 20-40.
A. Griffith, D., S. Lee, H., Seob Yeo, C., and Calantone, R. (2014). Marketing process
adaptation: Antecedent factors and new product performance implications in export
markets. International Marketing Review. 31(3). 308-334.
Papadopoulos, N., and Heslop, L. A. (2014). Product-country images: Impact and role in
international marketing. Routledge.

APPENDIX
Innovation tools
 Disciplined entrepreneurship canvas (Aulet, 2017).
 Value proposition canvas (Osterwalder et al., 2014).
 Business model canvas (Osterwalder & Pigneur, 2010).
 Business environment map (Osterwalder & Pigneur, 2010).
 Innovation readiness analysis (Strategyzer, 2014).
 Storytelling canvas (Van der Pijl et al., 2016).
 Your vision of the future canvas (Van der Pijl et al., 2016).
 Rationale: why, what and how (Andersson, 2019).
 Hero's journey canvas (Van der Pijl et al., 2016).
 Brainstorm ideas(Liedtka & Ogilvie, 2014).
 Customer journey canvas (Liedtka & Ogilvie, 2014).
 Rationale: why, what and how (Andersson, 2018).
 Porter's five forces (Porter & Heppelmann, 2014).
 Core capabilities (Zook & Allen, 2011).
 Value chain analysis (Liedtka & Ogilvie, 2014).
 Bring-build-buy map (Liedtka & Ogilvie, 2014).
 Strengths, weaknesses, opportunities and threats (MacIntosh & Maclean, 2015)
 Step 0: How do I get started? Should I? (Aulet, 2017).
 Step 1: Market segmentation (Aulet, 2017).
 Step 2: Select a beachhead market (Aulet, 2017).
 Step 3: Build and end user profile for the beached market (Aulet, 2017).
 Step 4: Estimate the Total Addressable Market (TAM) (Aulet, 2017).
 Step 5: Profile the persona for the beachhead market (Aulet, 2017).
 Step 6: Full life cycle use case (Aulet, 2017).
 Step 7: High level product specification (Aulet, 2017).
 Step 8: Quantify the value proposition (Aulet, 2017).
 Step 9: Identify your next 10 customers (Aulet, 2017).
 Step 10: Define your core (Aulet, 2017).
 Step 11: Chart your competitive position (Aulet, 2017).
 Step 12: Determine the customer’s Decision-Making Unit (DMU) (Aulet, 2017).
 Step 13: Map the process to acquire a paying customer (Aulet, 2017).
 Step 14: Estimate the Total Addressable Market (TAM) size for follow-on
markets (Aulet, 2017).
 Step 15: Design a business model (Aulet, 2017).
 Step 16: Set your pricing framework (Aulet, 2017).
 Step 17: Estimate the lifetime value (LTV) of an acquired customer (Aulet, 2017).
 Step 18: Map the sales process to acquire a customer (Aulet, 2017).
 Step 19: Estimate the cost of customer acquisition (COCA) (Aulet, 2017).
 Step 20: Identify key assumptions (Aulet, 2017).
 Step 21: Test key assumptions (Aulet, 2017).
 Step 22: Define the Minimum Viable Business Product (MVBP) (Aulet, 2017).
 Step 23: Show that “the dog will eat the dog food” (Aulet, 2017).
 Step 24: Develop a product plan (Aulet, 2017).