Developing a Business Idea: The Case of Samsung and The Wall

The report focuses on the development of a business idea for Samsung's The Wall. It analyzes the interrelationships between the elements of the business model canvas and identifies critical success factors and risks. Recommendations for improvement are also provided.

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

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Executive Summary
The report focuses on a developing a business idea that is about 3 years old in order to ensure
a proper growth of business in a competitive environment. In this report, the focus is on
Samsung and the idea of The Wall that had been developed by the company. The aim is to be
able to link the elements of the business model canvas with that of the business idea. The
report helps in conducting an analysis of a business model canvas and understands the
interrelationships that exist between the various blocks. At the same time, identification of
the critical success factors is done that can help Samsung to continue with its development of
the idea. Factors such as revenue stream, needs of the target customers and relationship
between them are identified for Samsung and its product. The report also provides the risks
involved with the business model and the changes needed so that proper recommendation can
be made for improvement.

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Table of Contents
Introduction................................................................................................................................3
Business idea of the company....................................................................................................3
1. Business model.......................................................................................................................3
Building blocks.......................................................................................................................4
Customer segments.................................................................................................................4
Key partners............................................................................................................................4
Value propositions..................................................................................................................5
Key activities..........................................................................................................................5
Channels.................................................................................................................................6
Revenue stream......................................................................................................................6
Cost structure..........................................................................................................................7
Key resources.........................................................................................................................7
Customer relationship.............................................................................................................7
2. Interrelationship.....................................................................................................................7
3. Critical success factors...........................................................................................................8
4. Risk........................................................................................................................................8
5. Changes in the business model..............................................................................................9
Conclusion..................................................................................................................................9
Recommendation........................................................................................................................9
Bibliography.............................................................................................................................10

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Introduction
The report focuses on the development of a business model canvas that is required to
ensure growth of a business organisation or for maintaining its impact. The focus is on
Samsung, one of the best electronic software in the country (Samsung.com, 2019). The report
conducts an analysis that describes the interrelationship between the elements of the business
canvas and the critical success factors that affects the development of the business. The risk
factors along with changes that are required to be undertaken in the business model are
analysed.
Business idea of the company
In the year 2018, Samsung had launched a new television model called as The Wall
(Samsung.com, 2019). It is the first consumer modular MicroLED 146-inch TV with a First
Look CES event (Samsung.com, 2019). More than 300 media attended the First Look event
across the international market. The goal is to provide customers with innovative technology
and ensure that the experience of viewing TV is completely different than they are aware
(Samsung.com, 2019).
1. Business model
Samsung maintains a traditional high/low selling strategy, which helps the company
to come up with new and innovative ideas so that the satisfaction of the customers can be,
attended (Samsung.com, 2019). The arrival of The Wall have been met with mixed reviews
owing to the prices as well as the fact that people living in large spaces can afford to purchase
the product..

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Building blocks
To understand the competency of The Wall as a business idea, the implementation of
the business model canvas proposed by Osterwalder and Pigneur (2010) can be made. The
analysis of the building blocks is done to understand the strength and the competency of the
business idea.
Customer segments
The customer segmentation of Samsung can be done by analysing a proper research
about the market. The target market is selected by identifying the type of people that are
interested in purchasing the product. The table helps in identifying the type of customers that
are preferred by Samsung so that it can promote its business idea in the world by meeting the
requirements of the customers.
Gender No specific gender discrimination
Income 15% greater than the average pay scale
Classification of customers Rich people with large space for the
development of business
Age Preferably able bodied people meeting the
salary requirement
Table 1: Customer segmentation of Samsung
(Source: Samsung.com, 2019)
Key partners
The key partners of Samsung are the media that are used for the promotion of the
company and its products so that sales can increase.

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New
customers
Existing
customers
Company website 10% 10%
Samsung stores 32% 12%
Retail suppliers 20% 15%
Media coverage 5% 10%
Table 2: Key partners
(Source: Samsung.com, 2019)
The table helps in categorising the new and existing customers of Samsung by
segregating it as per purchase made from the partners of the company. Along with this, the
support from the social media is obtained for selling the products to the interested buyers of
The Wall.
Value propositions
The value proposition analysis of Samsung helps in understanding the aim that the
company has in gaining success. The analysis shows that the aim of Samsung is to make
customers enjoy excellent television view so that new experiences can be gathered
(Samsung.com, 2019). Samsung also ensures that the customers understand the reason for the
pricing of the product being high (Samsung.com, 2019).
Key activities
The key activities associated with Samsung include the proper delivery of The Wall
after it has been purchased. Apart from this, Samsung also undertakes high percentage of
orders over the internet (Samsung.com, 2019). The company is also involved in social media
activities so that promotion of The Wall can be made.

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Channels
The channels adopted by Samsung to promote The Wall include the local markets and
the retail stores that exist in a country or in a society. For example, in Australia the company
seeks help from JB HiFi and the fair it organises in the Australian market. The table helps in
analysing the number of sales and stores that Samsung uses in Australia for product sales.
Western
Australia
Queenslan
d
Victori
a
Tasmania South
Australi
a
New South
Wales
Sales (AUD$) 5,000 2,000 0 1,000 0 0
Stores 1 2 0 1 1 2
Sales supported
per store
(AUD$)
5,000 4,000 0 1,000 0 0
Table 3: Channels
(Source: Samsung.com, 2019)
Revenue stream
The revenue of Samsung can be calculated on a yearly basis. The price ranges from
$300 to $350. The table analyses the revenue stream of Samsung.
2018
Sales 8,000
Cost of products $300
Total revenue
(AUD$)
2,400,000
Table 4: Revenue stream

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(Source: Samsung.com, 2019)
Cost structure
For Samsung to ensure success in the market of The Wall an analysis need to be made
about the costs of stock, sell price of costs and the manufacturing costs. It has been seen that
the stock cost of Samsung is about 10% of the revenue generated by the company
(Samsung.com, 2019). The selling price is at 50% while the manufacturing cost is about 30%
of the total revenue that is earned by Samsung (Samsung.com, 2019).
Key resources
The key resources that are used by Samsung include of the manufacturing and
innovative skills of the employees together with the strength of the distribution channel
(Samsung.com, 2019). At the same time, the website and the social media platform forms the
strength mainly because it provides an opportunity for promotion. Reputation can also play
an important part for growth of The Wall (Samsung.com, 2019).
Customer relationship
Samsung maintains proper communication with the customers by the use of website
and social media. This assists the company in gaining feedback and provides the customers
with the required catalogues related to The Wall (Samsung.com, 2019). Hence, Samsung
maintains effective relationship with the customers, which helps its development.
2. Interrelationship
After analysing the business canvas, it can be seen that interrelationship can be
formed between the different building blocks of the business canvas model. It is seen from
the analysis that the interrelationship is formed between the revenue stream and the cost
structure that is associated with Samsung. This is based on the channels that are associated

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with the promotion of The Wall. Determining the sales and the manufacturing of The Wall
can help in its development. Hence, the customer segmentation helps in establishing
relationship between the company and the customers. The value proposition of Samsung can
be linked with the partners so that a positive interrelationship can be maintained.
3. Critical success factors
To understand the critical success factors it is required that strategies be undertaken so
that Samsung can continue with the development of The Wall and increase its sales. The
analysis show that the investment of Samsung on the innovation and the manufacturing of the
product are mostly based on the demand and requirement of the customers (Samsung.com,
2019). Therefore, it can be said that the revenue generated Samsung can be used to promote
the customer satisfaction and ensure success of The Wall. The analysis of the statistics shows
that Samsung generated excess revenue in 2015, which led to the development of The Wall in
2018 (Samsung.com, 2019).
4. Risk
The risk associated with the business that encountered by Samsung includes the
business model that are associated with the company. Samsung fails to provide a particular
price that can help in determining the sale price of The Wall (Samsung.com, 2019). Hence, it
can be said that the analysis of the revenue stream of Samsung can be a major risk factor so
that accurate price of The Wall can be determined. Along with this, the segmentation of the
customers can be changed so that every customer in the society can be provided with an equal
opportunity to ensure growth of the company along with its product in the market
(Samsung.com, 2019).

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5. Changes in the business model
Changes in the revenue stream can help in the effective sell of The Wall. As stated by
Laudon and Traver (2016) the cost of goods and the revenue from the sales can result in
improper generation of capital of Samsung. Therefore, it is essential that Samsung manage to
maintain a budgetary policy so that development of the revenue stream of the company can
be maintained.
Conclusion
Hence, conclusion can be made that Samsung has been successful in the development
of innovative practises in the market. This is evidenced from an increase in the revenue rate
of the company and has been influential in the development of a highly innovative model like
The Wall. It is seen from the success of the company across the world that the relationship
maintained with the customers can be the major highlight of Samsung.
Recommendation
It can be recommended that Samsung need to ensure meeting the requirements of the
customers so that the business idea can be applied in a successful manner all across the
world. The growth of business in the world can be ensured by the development of resources
necessary for providing the loyal customers of Samsung with the best and innovative
entertainment unit.

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Bibliography
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Samsung.com. (2019). Retrieved from https://www.samsung.com/in/
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