Feasibility of Investment in Samsung: Market Analysis and Evaluation

Assessment Cover Page
Course qualification DIPLOMA IN BUSINESS AND ENTERPRISE
MANAGEMENT
US/Prescription title: CREATIVITY, INNOVATION AND NEW VENTURE
CREATION
Course/Paper number: ABD703
Student name: JINHO SONG
Student ID: 174482A
Teacher: ZIA, AMRINDER AND TIM
Assessment type: 2nd ASSESSMENT
Due date: 21/MAR/2018
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Table of Contents
1.0 Business introduction/background.......................................................................................2
2.0 Market need/opportunity......................................................................................................2
3.0 Generation of Idea................................................................................................................4
4.0 Evaluation and selection of idea..........................................................................................5
5.0 Feasibility of the market.......................................................................................................7
6.0 Feasibility of the organization............................................................................................12
7.0 Monetary feasibility...........................................................................................................14
8.0 Growth and sustainability potential...................................................................................19
9.0 Conclusions/Implications...................................................................................................21
References:...............................................................................................................................22
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1.0 Business introduction/background
Write a brief introduction for the existing business/or the business idea/ or concept you
have chosen to investigate in your report.
Samsung is the world well-known company for its products which are
technologically based such as laptops, computers, mobile phones and home electronic
appliances. The organization mission is to have a full dedication of its technology and talent
to develop products and services that are based on innovation (Samsung 2017). The firm
faces stiff competition from its rivals in business such as apple. Apple Company is in battle
with Samsung firm due to the patent infringement. Samsung has a marketing strategy that
focuses on the promotion of the brand image and sales increment with the aim of achieving
its strategic and financial goals. The customer rang can be expanded and the sales revenue
increased if the company adopt and effective marketing strategies. This report focuses on
providing the financial feasibility and the organizational and market of the suggested
investment (Samsung, 2017).
2.0 Market need/opportunity
Identify a market need or opportunity by analysing the current market situation based
on the following dimensions:
 Consumer taste along with preference
 The potential for profitability and growth in the market
 Competition from competitors
 Other needs
Dimension Analysis/Discussion
customer wants, needs and preferences The recent growth in the technological
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development has brought a significant shift
in the smartphone industry. The industry is
the most significant industry in business and
has produced a dynamic environment.
The consumer has over the years preferred a
phone that has improved life battery would
prefer a battery life that can go past a day
without being charged. The smartphone
comes with various features such as WI-FI,
Bluetooth, EDGE, GSM and a different
color display all depending on the battery
life of the phone. With all these features,
consumers are more addicted to their phones
and would prefer a phone that has longer
battery life.
Competition The Chinese brand market has continually
increased while Apple and Samsung market
share decline over the years based on the
most recent Gartner data below.
There was a marginal yearly growth n the
iPhone sales. However, there was a 9%
market growth during the same period
which resulted in market share decrease.
The global share of apple decreased from
14.8% to 13.7%. However, the Samsung
having the more significant market share
saw a decline from 23.3% to 20.7% (Kim,
Park,&Kim,2015).
On the contrary, oppo saw the most
significant growth in the market share of
4.6% to 8.1%.Huawei and vivo saw an
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increase in the market share too.
market growth and profitability potential The smartphone market is expanding at a
rapid speed globally, justifying for the 14%
of the cell phones in the world. The rapid
growth in the technological development
has backed up the high increase. Some of
the technological development comprises of
the professional data management, fast
internet browsing, advanced personal data
management and the 4g and 3 G network
evolution technologies. Smartphone hotspot
has been linked to the Asian region mainly
in China and India. The region has seen a
continuous development in the cellular
market and an increment in the 3G
expenditure and penetration on customer
electronics across the region. In the markets
that there is saturation, the growth of
smartphone in the region has been fueled by
the subsidies of the operator and the carrier
wars. In the year 2014 the smartphone
market is been estimated to reach $150.3
billion compared to the year 2009 where it
attained $55.4 billion (Lee, Kim,&Park
2015)
other relevant (if any)
3.0 Generation of Idea
 Provide more than two creative ideas that the capable of handling the need
identified based on the analysis above.the creative ideas can take any of the
form below.
 Service
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