Samsung Innovation Report: Analysis of Samsung's Innovation Journey

This report provides an in-depth analysis of Samsung's innovation strategies within the context of business development. It begins with an executive summary and introduction outlining the importance of innovation for organizational success. The report then delves into Samsung's history, highlighting its evolution from home appliances to its significant advancements in smartphone technology. A SWOT analysis is performed to evaluate the company's strengths, weaknesses, opportunities, and threats, providing a comprehensive understanding of its internal and external environment. Furthermore, the report utilizes Porter's Five Forces model to assess the competitive landscape, including the bargaining power of suppliers and consumers, the threat of new entrants and substitutes, and the intensity of rivalry. The report concludes with a summary of key findings and insights into Samsung's ability to sustain and thrive in the competitive market. The report is a valuable resource for students studying business development and innovation management, demonstrating how Samsung has successfully navigated the challenges and opportunities in a dynamic industry.

Managing Innovation in
Business

EXECUTIVE SUMMARY
The organisation chosen for project work is Samsung which has gone through various
innovation in order to sustain and survive in competitive market. The innovation in smartphone
started in 2000 before that it deals in home appliances, conductors and so on. For better
understanding of strengths, weaknesses, opportunities and threats, SWOT analysis has performed
and to improve it in more effective and efficient manner. The Porter's five analysis has
performed for knowing about industry their competitors, threats and bargaining powers for
making effective decisions for growth and success of business in effectual manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
ORGANISATION & INDUSTRY OVERVIEW............................................................................4
Organisation and its innovation history......................................................................................4
Organisation existing innovation performance and capabilities.................................................5
Industry in 2019..........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is defined as new ideas, imaginations and creative thoughts in form of method
(Bartlett, Doz and Hedlund, 2013). This is the considered as application of providing better
solutions which meet new requirements, existing market and unarticulated needs. It is very
important for organisation to manage innovation in their business for better achievement of goal
and objectives. The organisation given for assignment is Samsung which was founded in 1938 at
South Korea. It deals in different products such as chemical, telecommunications equipments,
apparel, home appliances. The main purpose of report is to identify innovation done by
respective company in market for fulfilment of consumer's requirements and following product
type divisional organisation structure.
ORGANISATION & INDUSTRY OVERVIEW
Organisation and its innovation history
The chosen organisation for given assignment is Samsung which was established in 1938
at South Korea. This is multinational company having headquartered at Samsung Town Seoul
(Ngo and O'cass, 2013). The founder of organisation is Lee Byung Chul as trading company.
The products of Samsung are automotive, consumer electronic, semiconductors,
telecommunications equipments, apparel, chemicals, home appliances and so on. Similarly, it
provides services of financial services, communications technology, retail, shipbuilding, medical
& health care, hospitality information and many more. There are more than 320,000 employees
working in different parts of world. It has entered into electronic sectors in late 1960s and
shipbuilding & construction in mid 1970s (Samsung, 2019). After the death of Lee's in 1987, it
has divided into four groups such as Shinsegae Group, Hansol Group, Samsung Group and CJ
Group. In 1990, it has increased activities in electronics such as mobile phones and
semiconductors which is considered as significant source of income. In 2017, it is considered as
6th highest global brand value.
Samsung has started innovation in mobile industry from 2000 and is still continuing in
doing innovation for their consumers. In 2000, Samsung 's first camera phone was launched
having in built camera that help people to take up to 20 photos (Samsung gets historical with its
phone camera innovation (infographic), 2019). These clicked pictures are accessed through
computer. In 2002, respective organisation has innovated flip phone having rotating camera

which allow people for taking both front and back pictures which was impossible too. It was
considered as iconic invention which has introduced first selfie mobile phone to the world.
Similarly, in 2003, Samsung has released flip phones having swing style screen which allows for
taking pictures from various angles for creative photographs. In 2005, it has designed
shutterbugs where there is wide angle and telephoto lens to SCH-V770 which provides various
options for taking photographs with phones. In 2010, it has launched new mobile which has tag
line of smarter phone for smarter camera. It was first smartphone having features of camera in
terms of stop motion, cartoon slot, panorama along with touch screen and changed way of people
to interact with camera phone. In year 2012, Samsung Galaxy S3 has bursts life of all new burst
shot mode that can take up to 20 continuous shots and allows people for capturing action
sequence and finding right photos. In 2013, it has released ultimate camera phone with modern
style of Galaxy S4 that has 10 times powerful optical zoom camera lens and revolutionary model
assisting people to select best setting in order to capture precious moments. In 2014, it has come
up with high definition which brings to life to share pictures instantly on social media. In year
2016, it has released dual pixel autofocus system which take sharp and brighter images at low
light. In 2017, it has launched 12MP rear camera with optical image stabilization having both
telephone and angle lenses. It helps in taking photos in portraits mode. In 2018, it has launched
different S9, S9+ models with various features for their users. Therefore, the innovation is still
continue for their users and increase growth and profits.
Organisation existing innovation performance and capabilities
Samsung is world's second largest technology organisation which manufactures
electronic devices and products (Björkdahl and Holmén, 2013). Currently, it is operating in 79
countries and providing variety of products and services to their consumers. The existing
innovation performance and capabilities of Samsung are described with help of SWOT analysis.
It is defined as tools that helps in identification of internal and external analysis of organisation
or individuals in terms of strengths, weaknesses, opportunities and threats. They are described
below:
Strengths Weaknesses
Research and Development- The respective
organisation always focus on innovation
Dependent on American Markets-
Samsung and Apple sells 70.8% of mobile

research and development. This helps in getting
wide range of products within competitors
which includes mobile phone, memory cards, PC
and others. Samsung have 34 R&D centres
which is operating worldwide and spent US$ of
14.857 billion for launching new products
(Schiuma, 2012).
Ecologically Friendly Innovations- The
respective organisation has increased brand
reputation with helps of producing environment
friendly innovations. This has ranked 9th position
in Top 30 Tech and Telecom companies
provided by Green Power Partner of EPA's
2016. Along with, it has received excellence
award from Environmental Protection Agency
(EPA). As other companies has not received
such award which assist respective organisation
to across business lines globally.
Award Winning Brand- This has position for
pioneer for innovation with credibility. It has
won various awards for offering provided by it.
It has awarded CES for products and design for
14 consecutive year, received 36 CES awards in
2018 and 400 more awards (Samsung SWOT
Analysis 2019 | SWOT Analysis of Samsung,
2019). It won 7th IDEA awards for their
excellence design.
Stronghold In Market- It has stronghold place
in China and India market. The respective
organisation take advantage of such market and
grab opportunities to provide products.
phones in USA. The respective organisation
has diversified their resources and expanded
business in Asia, which is dependent on
American Market. As economy of America is
unpredictable which cannot be determined
and affect resources of Samsung. Therefore,
Samsung has to enter themselves into Europe
and Asian market for avoiding failure over
economy collapse.
Decline in Smartphone Sales- From 2017,
there is decline in sale of Samsung
smartphone. This happens because of price
sensitivity of Chinese market. There are
many smartphones manufactured by China
and sold those at lower cost in Indian market
which harm sales of respective organisation.

Opportunities Threats
HR Management- Samsung has an opportunity
to invest in HR management which makes
impressive transformational accomplishment.
This increases sales as well as competitive
leverage over competitors rivalry. Therefore,
Samsung has opportunity to use its brand image
and value and hire capable, skilled, qualifies
staffs for improving productivity and
performance of employees.
Triple Protection Proposition- Samsung is
planning to invent their new air conditioning
which is called triple protection proposition
which incorporate cutting advantage in
technology and construction. It will target
customer base that assist in retention of
maximum consumers.
Diversification and Acquisition- Samsung
avoids error of being restricted to one
marketplace. It is facing risk from economic
perspective and unwanted negative media
publicity and political polarization. Due to which
Asia and Europe market contain business
vacuum for Samsung to survive and sustain. It
has to expand their customer base and diversify
and acquire other business for survival and
sustainable. It has opportunity to generate huge
revenue from market place because of financial
standing.
Legal and Regulatory Threats- There is
rise in legal and regulatory of government
which is creating threat for business. As there
is rise in digital and global oriented due to
which government is issuing guidelines for
increasing regulatory and legal threats for
companies around global market. There is
vary in laws and regulations from one place
to another which can cause hindrance in
operations. Failure to apply such cause loss
to respective organisation for running their
business successfully.
Controversies- Samsung has involved itself
in different controversies which is creating
threats for business to run their activities and
operations at marketplace. Apple has filed
suit against Samsung for patent infringement
which has to fight battle for sever years in
order to reach settlement. As it has to pay
$1.049 billions to Apple for copying their
products. This has damaged reputation of
organisation and decline its sales at market
which hamper its goodwill and brand value.
Increased Competition- There is large
competition in electronics and smartphone
products which has reached high record. The
competitors of Samsung are Apple, Xiaomi,
Huawei and so on. This increases pressure on
Samsung in finances and competition terms.
Also Apple has entered into consumer

products like cameras, home appliances and
so on which is competing directly with
Samsung market.
Industry in 2019
It is very important for Samsung to analyse their industry with help of Porter's five force
model (Bogers and West, 2012). This is the framework that helps in analysing competition of
business environment for running organisation and their activities and operations in an effective
and efficient manner. The Porter's five force model of Samsung are described below:
Threats of New Entrants- The threat of new entrants is low for respective organisation's
success and growth. As it is based upon facts that multinational organisations are operating their
business such as Apple, HTC and so to get benefits from economies of scale. This helps in
gaining cost advantage which is not available for new entrants. In order to enter into industry of
electronics, mobile needs huge capital investment. This indicate major barrier in new entrants.
Therefore, this helps in reducing low threat of new entrants to market.
Threats of Substitute- The threats of substitute is high due to large using of tablets,
laptops, gadgets for watching different programs by users (Porter 5 Forces Analysis of Samsung,
2019). Here, Samsung has categorised products into gadgets which allows users for accessing
internet, play games, watch TV programs and so on. This has also manufactured interactive TV
which offers seamless integration through external devices and web application. Therefore,
threats of substitute for Samsung is high as different industry products in innovative way.
Bargaining Power of Suppliers- The bargaining power of supplier is medium as they
manufactured particular brand parts and components and provide it to respective organisation.
They does not get maximum profits and gains from selling of such elements to business. For
example, if there is one supplier for Android platforms then they have high bargaining power and
organisation has to pay for it. Also they charge high money for small components and parts.
Bargaining Power of Consumers- The bargaining power of users is high as there are
various other organisation dealing in same products and services at low cost (Dodgson, Gann and
Phillips, 2013). The switching cost is zero for consumers so they have opportunity to get into
products of other organisation. The other industry of smartphones are HTC, Blackberry, Apple,
Nokia, MI and so on.

Competition Among Rivalry- The respective organisation faces competition from
various competitors such as LG, Nokia, Apple, HTC and so on. It is focusing more on
innovation, research and development in order to attract global clients. The rivalry industry
spend huge amount of money for market analysis and accordingly manufacture products and
services. Therefore, Samsung has high competition rivalry in order to survive and sustain at
marketplace for achievement of goal and objectives.
This model assist respective organisation to know about external factors that impact
marketing strategy of business. The organisation has to ensure about current practices should be
in lines with demand and realities of users electronic market across global.
CONCLUSION
From the above report, it has been concluded that innovation is very important for
business in order to achieve goal and objectives in effective and efficient manner. In order to
survive and grow in competitive market, it is essential to do innovation on regular basis for
maximization of profits. The respective organisation has focused on managing innovation for
their business in order to sustain and survive at marketplace. It is also necessary to do market
research on regular basis to know about need and requirements of consumers and manufacture
accordingly.

REFERENCES
Books and Journals
Bartlett, C. A., Doz, Y. and Hedlund, G., 2013. Managing the Global Firm (RLE International
Business). Routledge.
Björkdahl, J. and Holmén, M., 2013. Business model innovation–the challenges
ahead. International Journal of Product Development. 18(3/4). pp.213-225.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Dodgson, M., Gann, D. M. and Phillips, N. eds., 2013. The Oxford handbook of innovation
management. OUP Oxford.
Ngo, L. V. and O'cass, A., 2013. Innovation and business success: The mediating role of
customer participation. Journal of Business Research. 66(8). pp.1134-1142.
Schiuma, G., 2012. Managing knowledge for business performance improvement. Journal of
knowledge management. 16(4). pp.515-522.
Schneider, S. and Spieth, P., 2013. Business model innovation: Towards an integrated future
research agenda. International Journal of Innovation Management. 17(01). p.1340001.
Seebode, D., Jeanrenaud, S. and Bessant, J., 2012. Managing innovation for sustainability. R&D
Management. 42(3). pp.195-206.
Tidd, J. and Bessant, J., 2014. Strategic innovation management. John Wiley & Sons.
Zeyen, A., Beckmann, M. and Akhavan, R., 2014. Social entrepreneurship business models:
Managing innovation for social and economic value creation.
In Managementperspektiven für die Zivilgesellschaft des 21. Jahrhunderts (pp. 107-
132). Springer Gabler, Wiesbaden.
Online
Porter 5 Forces Analysis of Samsung. 2019. [Online]. Available through:
<https://www.bestessayservices.com/blog/porter-5-forces-analysis-of-samsung/>.
Samsung SWOT Analysis 2019 | SWOT Analysis of Samsung. 2019. [Online]. Available through:
<https://bstrategyhub.com/swot-analysis-of-samsung-2019-samsung-swot-analysis/>.
Samsung. 2019. [Online]. Available through: <https://www.britannica.com/biography/Lee-Kun-
Hee>.
Samsung gets historical with its phone camera innovation (infographic). 2019. [Online].
Available through: <https://www.phonearena.com/news/Samsungs-phone-camera-
innovation-gets-historical_id103076>.