Corporate Venturing, Innovation, and Entrepreneurship at Samsung

This report provides a comprehensive analysis of Samsung's corporate venturing strategies, focusing on its approach to innovation, entrepreneurship, and marketing within the highly competitive electronics industry. The report begins with an executive summary and introduction to Samsung, highlighting its global presence and key competitors such as Apple. It then delves into the theoretical concepts underpinning Samsung's success, including marketing strategies, marketing communication, advertising, sales promotion, and internet marketing. The analysis further examines Samsung's innovative strategies, contrasting its approach with that of Apple. The research methodology is outlined, followed by a detailed data analysis and discussion. Part A explores entrepreneurial intensity and how Samsung measures innovation, identifying its path to sustainable competitive advantage. Part B focuses on the climate for corporate entrepreneurship within Samsung. The report concludes with a summary of findings and includes references and appendices detailing personnel management and management strategies. This report offers valuable insights into how Samsung leverages corporate venturing to maintain its market leadership and competitive edge.

Running Head: CORPORATE VENTURING-SAMSUNG COMPANY 1
Corporate Venturing-Samsung Company
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Corporate Venturing-Samsung Company 2
EXECUTIVE SUMMARY
Corporate venturing is described as the investment of the business fund directly to the
external companies. It also outlines as the practice where a business entity takes equity stakes in
innovative firms, where the corporate strategy allows the business form to gain the competitive
advantage in the market. While innovation is, explain the process of translating an intervention
of ideas into goods and services needed in the market. On the other hand, entrepreneurship is the
process of conducting business activities in front of all business risk. The primary purpose of this
paper is to explain the general concepts of corporate venturing in relating to entrepreneurship and
innovation. The paper will discuss the main concepts, as it will analyst relevant information
relating to the selected corporation.

Corporate Venturing-Samsung Company 3
Table Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Samsung Company..........................................................................................................................4
Samsung Logo.................................................................................................................................4
THEORETICAL CONCEPTS........................................................................................................5
Marketing Strategies........................................................................................................................5
Marketing communication...............................................................................................................6
Advertisement..................................................................................................................................6
Sales promotion...............................................................................................................................7
Internet marketing............................................................................................................................7
Samsung innovative Strategy..........................................................................................................7
Samsung Company totally different strategy from Apple...............................................................8
RESEARCH APPROACH..............................................................................................................9
Research Approach..........................................................................................................................9
DATA ANALYSIS AND DISCUSSION.......................................................................................9
Part A...............................................................................................................................................9
Entrepreneurial Intensity.................................................................................................................9
Measuring innovation at Samsung Company................................................................................10
New path to sustainable competitive advantage............................................................................10
Part B.............................................................................................................................................11
Climate for Corporate Entrepreneurship.......................................................................................11
CONCLUSION..............................................................................................................................12

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References......................................................................................................................................13
Appendix A....................................................................................................................................14
Personnel Management System.....................................................................................................14
Appendix B....................................................................................................................................15
Management and Entrepreneurship...............................................................................................15

Corporate Venturing-Samsung Company 5
INTRODUCTION
Samsung Company
Samsung Company is an international corporation that is involved in producing
electronic products such as radios, televisions, and phones. Lee Byung-Chul founded the
Samsung Company in 1938 as a traditional company. The name Samsung literally means
“Korean hanja”, this means “Tri-Star” implying something big and powerful. Samsung Company
has been in the international electronics industry for the last decades because of its prevailing
technological intervention and innovation, the company main competitors in the market include
Sony, Apple Inc., and Motorola (Lee, 2006).
Despite operating in a competitive market, Samsung Company has posted a KRW 53.33
trillion in consolidated revenue, the company has also reported over KRW 9.22 trillion operating
profit for the quarter. In 2016, the company reported KRW 201.87 trillion and operating of KRW
29.24 trillion. The fourth quarter earnings in 2016 were driven by the essential business
strategies inaugurated by the company top management (Mitchell, 2010). The company success
is ordained by the corporate venturing on different business components mainly on the Memory
and Display Panel segment, their manufactures are OLED and LCD screens. The excellent sales
value is contributed by the high performance of the memory products, large shipment of large-
size UHD panels and OLED. These business strategies led to increase in company operating
profits (Hayton, 2005).
Samsung Logo
A business logo has been defined as a source of every business success. Samsung
Company Logo has played a fundamental role in ensuring that the corporation name is known in

Corporate Venturing-Samsung Company 6
the work technological industry, it is one of the models of marketing that is used by the company
to gain more success. According to the study, the first enlargement of the company image was
started in 1993. Samsung Company has driven its business strategies that will enhance corporate
identity of its products in the market (Madhavaram, Badrinarayanan, & McDonald, 2005).
Currently, the company is using a blue background that was designed to show the indefinite
shape that elaborates on the impression of modernization as well as advanced business corporate
strategies. The consumers in the market recognize the company products by viewing at the logo
(Percy, 2014).
Samsung Company has released different types of products that are considered to meet
the demands and needs of the consumers in the market. The company informed it’s all new
products by using a business slogan, “Inspire the World, Create the Future”, this slogan as used
by the Samsung Company implies the essence of chasing the future with new inspirable products
(Hayton, 2005). The slogan is used by the company to inform its consumers that they are moving
forward towards improving its products and brands in the market.
THEORETICAL CONCEPTS
Since the foundation of the Samsung Company in 1969, the company has counted its
success based on many business components and concepts that are critical to any business
enterprise, especially those that operate in the large market. The company has expanded in many
areas of business, the executives of the company have capitalized on strategic measures that are
recognized to have positive influential approach to the business organization (Banerjee, 2009).

Corporate Venturing-Samsung Company 7
Marketing Strategies
Management is explained as the process that entails coordinating the fundamental
activities of the business organization with an aim of accomplishing the strategic goals and
objectives of the company (Pride & Ferrell, 2016). Management comprises the vital approaches
of marketing, marketing is outlined as a strategic management approach that involves the process
of transforming goods from their original concept to the consumer. Marketing strategies
comprise the implementation of marketing mix approach, where 4ps are considered as the
essential components (Pitts, 2017).
Marketing communication
Marketing is a fundamental part of management that comprises the process through
which goods and services are transformed from their original concepts to the consumers, it
entails the process of coordinating the four components of marketing, the four elements are the
product, price, place, and promotion (Madhavaram, Badrinarayanan, & McDonald, 2005).
Marketing communication is part of marketing that ensures that all the important
information reasonably linked together with the purpose of accomplishing the company goals
and objectives (Lee, 2006). The marketing communication is described as the marketing
component that enhances that all the marketing promotional tools are harmonized collectively.
Marketing communication is the important part of organization management strategies, it defines
the communication channels, media that are used to convey important information to the
consumers (Percy, 2014). Samsung Company has confirmed the importance of implementing
marketing and communication policies, the company has coordinated all marketing approaches
that are recognized to positively influence the company business activities.

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Advertisement
The advertisement is the main element of marketing communication. It entails the
process of using TV, radio, and posters to promote products and services. The Samsung
Company certifies the importance of advertisement marketing approach The Company has made
TV advertisement to promote brand awareness in the market. Samsung Company and Chile
Worldwide Agency have recently focus to implement the advertising campaigns about its new
products in the market (Banerjee, 2009).
Sales promotion
Sales promotion in marketing acts as the pivot of the company success. Marketing
communication in an organization advocates the process of implementing sales promotion as a
fundamental constituent of marketing. The Samsung Company has offered bonus to the
consumers who purchase new products and trading-off their products with previous one. By
implementing on sales promotion, the consumers are allowed to receive the value of their
products (Madhavaram, Badrinarayanan, & McDonald, 2005).
Internet marketing
The Internet is considered as an essential element of marketing communication in a
business organization. Samsung Company has capitalized on internet marketing where social
media is considered as a primary element of internet market. YouTube and Facebook are the
largest social media that are used by Samsung Company to attained its marketing objectives
(Singhania, 2006).

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Samsung innovative Strategy
Every electronic customer knows about Samsung Company which is a leading electronics
company in the world market. “Inspire the World, Create the Future” is a slogan that has made
the company focus on the innovative business strategies that will ensure the company is gaining
a competitive advantage in the market (James , 2011). Many critics have arisen arguing that
Samsung Company is copying its designs from Apple Inc. which is the main competitor in the
market. The company innovation in screen technology, batteries, TVs, and chip designs is known
to be exceptional in the market as compared with other players in the market. The Samsung
Company innovative strategy is drawn from earlier 1990s and 2000 when they started to adopt a
comprehensive systemic approach to innovation, this earlier capitalization of innovative
approaches has contributed to the current business success (Karimi & Walter, 2016).
Samsung Company innovative strategy has natured a good relationship with Russian
Academy of Science, the two parties agreed on major approaches that may lead to competitive
advantage. Innovation at Samsung is promoted by the support that is given by Korea
Government, the government provided incentives to Korean business enterprises to develop
projects under the Academy research (Mitchell, 2010). Samsung Company is known to be part of
the agencies that help Academy research as it increases its patent count as well as exploiting its
interventions of ideas. The corporations of Russian Academy of Science with Korean
Government have obliged the Samsung Company to cooperatively venture their business
activities to other small business organization.

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Samsung Company totally different strategy from Apple
Innovation strategy at Samsung Company is described as a model that has made the
company to be the leading electronic producer in the industry, this business model has kept the
competitors at a bay. Apple Inc. is the largest market player in the technological market, it is one
of the market giants that compete with Samsung Company. In the last few years, Samsung
Company has been working extensively to catch up with the Smartphone market. The Samsung
Company has inaugurated new strategies of improving the existing product in the market.
In 2013, Samsung Company introduced new product, the Galaxy S4 smartphone (Max, 2013).
The Samsung Galaxy S4 smartphone flagship was the latest product in the market, it had a
massive screen and impressive features. The product also had friendly software that allows the
consumers to use the product effectively. The present business environment puts Samsung
Company in a sea of challenges and defeats, the aspects of globalization, as well as the
technological changes, accelerate the challenges and defeats affecting the Samsung Company.
Innovative strategy used by Samsung Company in the market is “embed” and “inside”
innovation strategies that truly contribute to the game-changing in the market.
RESEARCH APPROACH
Research Approach
The mobile manufacturers are currently operating in highly and large competitive
business environment. The technology companies are developing new technology product that is
considered too important to the 21st-century market environment. Innovation and release of new
product designs evolutes through many technological advancements. Every market player in the

Corporate Venturing-Samsung Company 11
technology industry is extensively working to maintain and improve their market positions (John
, 2012).
The research report contents are projected from the different departments of the
organizations, including marketing sector. The foundation of the research is based on the
geographical division of Samsung Company and their business activities. Samsung Company is a
South Korean corporation that operates in 65 countries with over 170, 000 employees working
for the company. The business strategy of Samsung Company is focus to present an interesting
case since it pursuing both product differentiation approaches and cost leadership in the market
(James , 2011).
DATA ANALYSIS AND DISCUSSION
Part A
Entrepreneurial Intensity
The entrepreneurial intensity is a business strategic management approach that defines
the levels of entrepreneurship within a given organization. An entrepreneurial intensity is
comprehended when its orientation to the business is associated with the performance of the
company. Entrepreneurship is a foundation aspect of EI as a business strategic management
approach, it is defined as the process of accumulating the available resources and intercepting the
ideas to exploit a business opportunity (Morris, Kuratko, & Covin, 2010).
Measuring innovation at Samsung Company
The core factor that has kept the Samsung Company on the move of being among the
leading technology companies in the market is the fact that it capitalizes on market research. This

Corporate Venturing-Samsung Company 12
implies that the company is primary defines its success by conducting technical research in the
market with regard to the needed products (Kuratko, 2016). Samsung Company spends more
time doing research as compared to other market players such as Apple Inc., Sony, and
Microsoft.
“Inspire the World, Create the Future”, is a business slogan that is used by Samsung
Company anticipate for its future performance in the market. The company has focus to adopt
the corporate venturing strategic management approach. The future investment adopted by the
company has allowed the company to be the leading producer in manufacturing of memory
chips, Phones, TVs, multimedia, and LCD. Samsung Company has been able to maintain its
entrepreneurial drives as it implements on the essential entrepreneurial aspects. Samsung
innovation is one of the business aspects that has kept the company to kept competitors at bay.
Over 170,000 employees who are spread in 18 research centers in the world succeed innovation
strategies for the company (Karimi & Walter, 2016).
New path to sustainable competitive advantage
Every business organization in the current business environment is exploiting on different
measures that will contribute to their success. Primarily business environment is constituted by
different aspect that may prevent the business organization to gain competitive advantage in the
market. Samsung Company is in the front line of adopting new measures that will provide
solutions to the business challenges.
Entrepreneurship Intensity is a business strategy that has allowed Samsung Company to
gain a sustainable competitive advantage in the market. The process of obtaining business
advantage in the market confirms the aspect of focusing on the entrepreneurial characteristics.