Strategy Enterprise and Innovation

This report analyses the internal resources and capabilities of Samsung Company, identifies key drivers of change in the external environment, and evaluates the impact of competitive forces on entrepreneurial activities and profitability within the industry.

Strategy Enterprise and Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critically analyse the internal resources and capabilities that give the organisation a
competitive advantage.................................................................................................................1
Identify the key drivers of change in the external environment and evaluate their impact on the
entrepreneurial activities of the organisation. In your response, use an appropriate framework
and any relevant tools such as mind map to analyse the external environment..........................3
Using Porter’s Five Forces framework and/or any other relevant tools, evaluate the impact of
the main competitive forces that are influencing entrepreneurial activities and profitability
within the industry.......................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
It is important for an organisation to develop effective and efficient strategies that is helpful for
performing business practices accurate manner. Innovation can be describe as the crucial element
for a business as this will help in increasing performance and capabilities of organisation. It has
been analysed that strategies and innovation of business will assist in gaining competitive edge
over other rival companies (Borowski, 2021). This report is based on Samsung company. this is
one of the well known and established company that is providing different types of products and
services in order to meet with the needs of customers. Founder of this organisation is Lee Byung
chul and Samsung company was established in year 1938. This company is providing different
types of products and services in world wide market area. This report includes internal resources
and capabilities of organisation. Key drivers of change in the external environment has been
determined in this report. Porter’s Five Forces framework has been analysed in order to identify
competitive forces.
MAIN BODY
Critically analyse the internal resources and capabilities that give the organisation a competitive
advantage.
It is essential for an organisation to analyse and evaluate different factors and elements that
will lead to gaining competitive advantages over other rival companies. It has been analysed that
there are different aspects of business which will lead to increase and enhance business activities
as well as improving overall performance of business in respected market area. The VRIN/VRIO
analysis is a strategic tool that is utilized for the surveying and assessing the resources of a
company, and deciding its strategic benefit, and competitiveness. Through the support of VRIO
tool Samsung company will be able to increase business activities by determining internal
capabilities and strength that lead to accomplishment of desired goals and objectives. The
strategic tool works with the recognizable proof of a drawn out upper hand for the company
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through assessing the internal resources and abilities of the company (Idota, Taher and Tsuji,
2021). This strategic tool includes various elements such as valuable, rare, inimitable and
organisation. all of these elements of VRIO model is mention below in respect to Samsung
company.
 Valuable – This consist of those capabilities and strength of respective company which is
helpful for gaining different opportunities for business. Competencies that are valuable
assistance the Samsung Electronics in taking advantage of the chances accessible and in
killing the dangers from the internal and external environment. The valuable
competencies of Samsung company can be consider as significant for growth,
development and expanding business. The Samsung Electronics brand image is
exceptional and contains high brand integrity. The brand image has been created
throughout quite a while, and through nonstop exertion and quality product presenting by
the Samsung Electronics (Boileau-Falardeau and et.al., 2021). So it has been determined
that positive brand image of Samsung company is significantly influencing the
performance and capabilities of business for gaining competitive edge over other rival
companies.
 Rare - Competencies that are rare in nature are moved by created by just a modest bunch
of firms in the industry, and help in building upper hand for the Samsung Electronics.
This consist of those capabilities of business that is unique and other rival companies do
not have these potential. The global presence has permitted the Samsung Electronics to
assemble an extended consumer base and acquire income through different market area.
Samsung is a well established company that is offering its products and services from
many years. This has helped in improving the global presence of business. This has given
the company higher monetary strength as well as higher social openness and international
recognition
 Inimitable - These inimitable competencies help in enhancing the upper hand, and long
haul sustainability for an organization. This consist of different capabilities and potential
of the Samsung company which is hard for other rival companies to copy or imitate.
These resources and competencies are hard and exorbitant to impersonate by the
contending players (Ribeiro, Oliveira and Souza, 2021). High quality and valuable
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products and services of respective company can be consider as the crucial factor for
gaining advantage over other rival companies. The Samsung Electronics offers great
products to consumers that have been a wellspring of the brand request. The high and
reliable quality prompts rehash purchases, and builds utilization of Samsung Electronics'
products.
 Organization - These resources are particularly produced for the Samsung Electronics,
and can not be utilized by contending players in the industry. These capabilities of
respective company helps in exploiting different market opportunities as well as correctly
use resources for business growth and development. These resources have no substitutes,
and hence can't be utilized by organizations other than the Samsung Electronics. It has
been determined that innovative technology is significant tool which is helpful for
organisation to increase business practices. The technological advancements and
integration at the Samsung Electronics are likewise a significant asset for creating upper
hand.
Identify the key drivers of change in the external environment and evaluate their impact on the
entrepreneurial activities of the organisation. In your response, use an appropriate
framework and any relevant tools such as mind map to analyse the external environment.
There are different drivers of change in external environment and this will lead to have
major impact on overall performance and capabilities of business. it is essential for Samsung
company to analyse and evaluate the different factors which is affecting performance of business
in market area. The PEST Analysis ought to be utilized to give a setting to your business' part
according to external factors (Bradley Dexter and et.al., 2021). It covers Political, Economic,
Social, Technological factors. Mind Mapping is the ideal tool for the PEST Analysis strategy
since you can catch such a lot of data on one page without losing an unmistakable design. Mind
Mapping hugely lessens the time expected to prepare and structure work, and gives you an entire
picture view consistently. PEST analysis in context of Samsung company is mention below –
 Political Factors — This factor of external market area is majorly associated with the
government rules and policies that is influencing business practices. Samsung is an
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innovation partnership that needs to manage the current that pre existing regulatory
legislation. In case there is political turmoil, income might drop, and costs should
increment. In specific circumstances, unpredictability might prompt organizations
eliminating their products from foreign markets. So support of government and political
parties will lead to have positive influence on overall functioning of business.
 Economic Factors - Economic crisis can antagonistically influence consumer's flexible
cash flow, particularly in the created nations. There are different economical factors that
will affect business practices as well as influence decision making practices of
organisation. This powers a company like Samsung to grow beneficial activities in
arising nations. High instability in the financial exchanges and consistent fluctuations in
exchange rates can have genuine ramifications on the monetary strength of the business.
Despite the fact that Samsung endure the crisis that hit Korean economy. This will affect
sales and productivity of Samsung company.
 Social factor – This consist of values, beliefs, culture, perception and other social aspects
that affect decision making practices of business. Samsung has effectively fused its
system of worldwide reasoning and acting locally. Indeed, even subsequent to extending
across countless nations, Samsung has needed to customize its products as indicated by
the necessities of the local customers. Quickly changing consumers preferences can have
both positive and negative ramifications for the business where it can influence one
business positively and the other one negative effect on successful functioning of
respective firm..
 Technological - Samsung, being an technological company has had the option to drive
innovation to its competitive advantage. The visionary company has constantly
dispatched inventive products on the lookout. This company is consider innovative and
advance technology in performing business practices significantly (Chou and et.al.,
2021). The company likewise utilizes an assortment of digital innovation for showcasing
and building up exceptional client connections. In the United Kingdom there is
accessibility of well created networks goes about as an immediate help for utilization of
such cell phones. Such infrastructure is basic for guaranteeing a smooth client experience
where information and voice moves happen consistently with next to no postponements.
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Using Porter’s Five Forces framework and/or any other relevant tools, evaluate the impact of the
main competitive forces that are influencing entrepreneurial activities and profitability
within the industry
Porters five force model includes different forces such as threat from rival companies,
threat from bargaining power of customers, threat from bargaining power of buyers, threat from
substitute products and threat from new entrant. This tool is a convenient technique to survey
what every one of the market drivers mean for the organizations like Samsung and afterward
dependent on the investigation, appropriate business systems can be formulated. This can be
consider as the effective and efficient tools that assist organisation to take right and accurate
decision for conducting business practices. Porters five forces framework will assist Samsung
company to analyse and evaluate the different forces that will affect business activities as well as
influence productivity in market area (Knox, Crawford and Kelder, 2021). Through this model
respective organisation is able to identify the various forces of market area along with the
competitive positive in the industry to attain advantage over other rival companies.
 Threat of new entrant – Samsung company is providing its products and services from
large number of years and this company has developed strong brand image. This is
effective for gaining edge over other rival companies in existing market area. New
company will require more time to beat Samsung company so this force will have very
low impact on respective company.
 The Bargaining Power of Buyers -. The quantity of contenders present inside the mobile
gadget industry gives consumers a lot of choices. While innovation is a huge viewpoint
for some, consumers, cost additionally stays significant. It is somewhat simple for
consumers to change starting with one organization then onto the next dependent on
which offers better choices and lower costs.
 Substitute Products - Smart phones have been turning out to be progressively well known
as a gadget, offering consumers many capacities, including voice calling, applications
and the capacity to play music. The improvement of substitute products is impeding to
Samsung Electronics, as it diminishes the capacity of Samsung Electronics to control the
market, as consumers can change to another item without any problem (Oliveira and
et.al., 2021).
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 The Bargaining Power of Suppliers - In the mobile industry, there are numerous suppliers
of parts, and therefore, it is simple for organizations to change starting with one then onto
the next if the costs of the products from one provider become excessively high. This
brings down the bargaining power of suppliers, and permits Samsung Electronics not to
be driven by the demands of its suppliers.
 Threat from current rival companies - There is a lot of rivalry inside the current industry,
especially the huge and persuasive organizations, which incorporates both Apple and
Samsung. Competition between these two organizations is especially serious, in light of
the fact that the products that they create are like each other for all intents and purposes
and capacity.
CONCLUSION
From the above report it has been determined that organisation needs to consider different
factors and elements that is essential for performing organisational practices in effective and
efficient manner. By analysing business capabilities better and accurate decision could be taken
that will assist in meeting with the needs of customers. It has been analysed that innovation the
crucial element for a business as this will help in increasing performance and capabilities of
organisation.
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REFERENCES
Books and Journals
Borowski, P.F., 2021. Innovation strategy on the example of companies using bamboo. Journal
of innovation and entrepreneurship, 10(1), pp.1-17.
Idota, H., Taher, S.A. and Tsuji, M., 2021. The Impact of ICTs and Business Strategy on
Innovation Activities: Empirical Evidence From Japanese SMEs. In Competitive Drivers for
Improving Future Business Performance (pp. 154-177). IGI Global.
Boileau-Falardeau, M. and et.al., 2021. Revisiting the Innovation Strategy performance
measurement process: insights from practice. Canadian Journal of Public Health, 112(2),
pp.262-269.
Ribeiro, G.C., Oliveira, K.K.S. and Souza, R.A.C., 2021. DSI Strategy Canvas: Modelling the
Digital Social Innovation Strategy. Journal of Social Entrepreneurship, pp.1-29.
Bradley Dexter, S. and et.al., 2021. Readiness for scale-up: lessons learned from the Public
Health Agency of Canada’s Innovation Strategy. Canadian Journal of Public Health, 112(2),
pp.204-219.
Chou, S.F., and et.al., 2021. Innovation Strategy Development and Facilitation of an Integrative
Process with an MCDM Framework. Entrepreneurship Research Journal.
Knox, M.W., Crawford, J. and Kelder, J.A., 2021. Developing authentic leadership and fostering
social entrepreneurial innovation. In Reshaping Entrepreneurship Education With Strategy and
Innovation (pp. 262-292). IGI Global.
Oliveira, M., and et.al., 2021. Strategy and human resources management in non-profit
organizations: Its interaction with open innovation. Journal of Open Innovation: Technology,
Market, and Complexity, 7(1), p.75.
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