Developing a Business Idea for Samsung: The Wall

This report focuses on developing a business idea for Samsung's The Wall, analyzing the business model canvas and identifying critical success factors and risks. Recommendations for improvement are provided.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note

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Executive Summary
The report is focused on the developing a business idea so that reputed as well as new
organisations can benefit from the application of the idea. The focus of the report is on a
developed organisation like Samsung with special emphasis on the idea of The Wall, which
the company had developed for the customers. The report aims to link the 9 building block
elements of the business model canvas suggested by Osterwalder and Pigneur with the
business idea. The report provides an analysis of the business model canvas and helps to
develop interrelationships between the different building blocks of the canvas. Additionally,
critical success factors that can help Samsung with the development of the idea have been
identified. The report identifies the risks involved with the application of the business model
so that the changes required can be properly stated. Thus, recommendations of the factors are
also provided.

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Table of Contents
Introduction................................................................................................................................2
Business idea of the company....................................................................................................3
1. Business model.......................................................................................................................3
Building blocks.......................................................................................................................3
Customer segments.................................................................................................................3
Key partners............................................................................................................................4
Value propositions..................................................................................................................5
Key activities..........................................................................................................................5
Channels.................................................................................................................................5
Revenue stream......................................................................................................................6
Cost structure..........................................................................................................................6
Key resources.........................................................................................................................6
Customer relationship.............................................................................................................7
2. Interrelationship.....................................................................................................................7
3. Critical success factors...........................................................................................................7
4. Risk........................................................................................................................................8
5. Changes in the business model..............................................................................................8
Conclusion..................................................................................................................................8
Recommendation........................................................................................................................8
Bibliography.............................................................................................................................10

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Appendix..................................................................................................................................12
Introduction
The report is based on developing a business model canvas that can help in ensuring
the growth required in a business organisation and for creating an impact in the business. The
report analysis the business canvas model on Samsung, which is considered as one of the best
electronic software in the country (Samsung.com, 2019). The report provides an analysis that
helps in describing the interrelationship that exists between the different elements within the
business canvas along with an analysis of the critical success factors that can affect the
development of a business. Along with it, the risk factors that may occur are identified and
changes necessary in the business model are pointed out.
Business idea of the company
In 2018, Samsung managed to launch a new television model known as The Wall
(Samsung.com, 2019). The aim of Samsung was to provide customers with a creative
technology so that the experience of TV viewing can be changed (Samsung.com, 2019). The
Wall is the first consumer modular MicroLED 146-inch TV that was featured in the First
Look CES event organised in Japan (Samsung.com, 2019).
1. Business model
The selling strategy of Samsung is at a high/low level, which assists the company in
the development of new and creative technologies for maintaining the satisfaction of the
customers (Samsung.com, 2019). However, the launch of The Wall in this case has been met

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with mixed reviews mainly due to the price of the product along with the fact that people
residing in large areas can be beneficial from purchasing the product.
Building blocks
In order to understand the viability of the business idea related to The Wall, it is
necessary to implement a business model canvas. The business canvas developed by
Osterwalder and Pigneur (2010) can be used to identify the building blocks of the idea. The
analysis of the building blocks can help in understanding the capabilities and the potential
success of the idea.
Customer segments
The customer segmentation that can purchase The Wall need to be done by analysing
the economic and financial condition of the people. The selection of the target market is done
by identifying the effective range of financial capability of the customers. The table depicts
the characteristics of the customers associated with the purchase of The Wall.
Gender No gender discrimination
Income 25% greater than the average pay scale
Classification of customers Well to do people preferably with a large wall
space
Age Rich people willing to spend
Table 1: Customer segmentation of Samsung
(Source: Samsung.com, 2019)
Key partners
From the success of the company, it can be said that the key partners
associated with Samsung are usually the media channels used by the company for the
promotion of The Wall. Hence, it helps in the increase of sales of the company and its

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products. The table categorises customers of Samsung by segregating them as old and new
customers along with the purchase that has been made based on the sale of the products. It is
seen that the support from the social media is obtained in a major manner selling The Wall to
its interested buyers in the market.
New
customers
Existing
customers
Company website 20% 12%
Samsung stores 12% 15%
Retail suppliers 20% 25%
Media coverage 25% 30%
Table 2: Key partners
(Source: Samsung.com, 2019)
Value propositions
The analysis of the value proposition associated with Samsung can help to understand
the objective of the company in trying to gain success. It can be seen from the analysis
Samsung aims to develop an entertainment set for the customers that is associated with
modern television viewing and gain new experiences (Samsung.com, 2019).
Key activities
The key activities that can be seen from the development of The Wall are that of its
proper delivery after the purchase has been made. Along with this, Samsung is known to
receive large orders from the internet by using the official website (Samsung.com, 2019). The
promotion of The Wall is done via social media so that it reaches the customers.

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Channels
Samsung adopts the retail channels for the promotion of The Wall, which includes
supplying the product via local markets along with the retail stores within a society. As for
example, in a country like Australia Samsung uses the retail outlet of JB HiFi so that The
Wall can be promoted in various areas of the country. The table depicts the number of sales
per store that The Wall has achieved so far.
Western
Australia
Queenslan
d
Victori
a
Tasmania South
Australi
a
New South
Wales
Sales (AUD$) 5,000 0 4,000 1,000 3,000 0
Stores 1 2 2 1 1 0
Sales supported
per store
(AUD$)
5,000 0 8,0000 1,000 3,000 0
Table 3: Channels
(Source: Samsung.com, 2019)
Revenue stream
The revenue of is calculated on an annual basis with the price ranging from $3000 to
$3500. The revenue stream is provided in the table
2018
Sales 8,000
Cost of products $3000
Total revenue $24,000,000
Table 4: Revenue stream

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(Source: Samsung.com, 2019)
Cost structure
For the success of The Wall, analysis of the different costs required can be made. For
example, costs of stock, sell price of costs and the manufacturing costs are required to be
identified. For the success of The Wall cost of stock can be about 20% of the revenue
(Samsung.com, 2019). The selling price can be at 50% and the manufacturing cost can be
about 15% of the total revenue from The Wall (Samsung.com, 2019).
Key resources
The key resources of Samsung for the promotion and manufacturing of The Wall
includes the creative and innovative skills of the employees along with the support received
from the distribution channels (Samsung.com, 2019)
Customer relationship
The asset of Samsung is that it maintains a strong relationship with the customers by
maintaining communication via the use of its official website and social media. This provides
the company to maintain continuous update about the tastes of the customers (Samsung.com,
2019). Hence, the success of The Wall can be attributed to the strong interrelationship
between Samsung and its customers.
2. Interrelationship
The analysis of the business canvas, show that there is a strong interrelationship
between each of the building blocks associated with the canvas and the business idea. It can
be seen that the analysis is made between the interrelationships that is formed among the
revenue stream with the cost structure of Samsung. This basis of this is on the channels,
which are present for the promotion of The Wall. The determination of the sales along with

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the manufacturing of The Wall can help in the development of the business idea. Therefore,
customer segmentation can be established in maintaining the relationship that exists between
the company and its target customers. Along with this, the link of the value proposition of
The Wall can be made with the partners of the company.
3. Critical success factors
In order to analyse the critical success factor strategies need to be developed so that
Samsung can move forward with the concept of The Wall. The analysis of the business
canvas show that investment of Samsung on its innovation is considered as an asset so long
as profitability is maintained (Samsung.com, 2019). At the same time, the relationship that
the company has with the customers is another example of the success factor that helps in its
development.
4. Risk
From the analysis, it can be said that the risk of the business idea is that Samsung does
not focus on a particular price scale so that the final cost of The Wall can be stated
(Samsung.com, 2019). Therefore, for Samsung and The Wall it can be said that the revenue
stream of the company can be considered as major risk factors for determining the price. At
the same time, the customer segmentation of the company may cause risk factor owing to
discrimination between the income level of the customers and the disregard for economic
condition of the society (Samsung.com, 2019).
5. Changes in the business model
From the analysis, it can be said that the changes to be made in the business model
may be in form of the revenue stream so that effective selling of The Wall can be made. The
cost of goods along with the revenue from the sales may cause loss of profit for Samsung.

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Hence, for the development of its revenue Samsung need to manage the prices of its product
and improve its rate of sales.
Conclusion
Therefore, from the analysis, conclusion can be drawn about the fact that Samsung is
quite successful for developing new and innovative products for customer satisfaction. This
can be evidenced from the development of The Wall for entertainment purposes. The
relationship maintained with the customers is considered as the major asset for the success of
Samsung.
Recommendation
Therefore, from the analysis, recommendation can be provided to Samsung about
lowering the cost of the product so that every customer in the market can be eligible to
purchase the product. It has been seen that The Wall is not available in every store across
Australia and thus it is necessary that the company limit the size of the product.

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Bibliography
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Damelio, R. (2016). The basics of process mapping. Productivity Press.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-
678.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
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Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, New Jersey:
John Wiley & Sons Inc.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value Proposition. Hoboken,
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Rabetino, R., Kohtamäki, M., & Gebauer, H. (2017). Strategy map of
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Samsung.com. (2019). Retrieved from https://www.samsung.com/in/

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Appendix
Business model canvas
Key Partners
Company
website
Samsung stores
Retail suppliers
Media coverage
Key Activities
Proper after
sales service
Receive large
orders by the
website
Promote the
company by
social media
Value
Proposition
Provide
customers with
a new and
modern way of
TV viewing
experience
Customer
Relationships
Official website
Social media
Customer
feedback
Customer
Segments
No
discrimination
25% increase of
salary then the
average people
Well to do
people with vast
residence
Rich people
willing to spend
Key Resources
Recruiting
skilful and
talented
employees
Support from
the distribution
channels
Channels
Local retail
stores
Cost Structure
Stock cost of 20%
50% cost of sales
15% manufacturing cost
Revenue Streams
$3000- $3500 per products sold by the
company