Business Model Canvas Analysis of Samsung: A Detailed Report

This report provides a detailed analysis of Samsung's business model, focusing on the application of the Business Model Canvas (BMC) framework developed by Osterwalder and Pigneur. The report examines various aspects of Samsung's operations, including customer segments, key partners, value propositions (with a focus on 'The Wall' television model), key activities, channels, revenue streams, cost structure, key resources, and customer relationships. It also explores the interrelationships between these building blocks, critical success factors, and potential risks associated with the BMC application. Furthermore, the report suggests recommendations for enhancing the business model and ensuring the company's continued success in the market. The analysis is based on publicly available information and aims to provide a comprehensive overview of Samsung's strategic approach.

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

1
MANAGEMENT
Executive Summary
This report is on the development of an idea for a business that can enhance the reputation of
an existing or new organisation. The idea is to analyse the benefit that can be deducted from
applying the idea into the concept. This paper focuses on Samsung, a hugely popular
organisation that specialises in technical equipment and machines. The business idea that is in
focus is The Wall, which the company aims to develop for attaining customer satisfaction.
The aim of the report is to make a connection between the nine elements of building block
using the business model canvas. The application of Osterwalder and Pigneur business model
canvas is used for development of the business idea. This paper conducts an analysis of the
business model canvas along with helping with the development of interrelationships lying in
between various building blocks associated with the canvas. In addition to the business
model, factors for critical success have been analysed and are taken into consideration in the
report. The report points out the risks that can be gained from the BMC application along
with the required amendments for its effectiveness. Based on the analysis, recommendations
on the same have also been outlined.

2
MANAGEMENT
Table of Contents
Introduction................................................................................................................................4
Business idea of the company....................................................................................................4
1. Business model.......................................................................................................................4
Building blocks.......................................................................................................................5
Customer segments.................................................................................................................5
Key partners............................................................................................................................5
Value propositions..................................................................................................................6
Key activities..........................................................................................................................6
Channels.................................................................................................................................7
Revenue stream......................................................................................................................7
Cost structure..........................................................................................................................8
Key resources.........................................................................................................................8
Customer relationship.............................................................................................................8
2. Interrelationship.....................................................................................................................8
3. Critical success factors...........................................................................................................9
4. Risk........................................................................................................................................9
5. Changes in the business model..............................................................................................9
Conclusion..................................................................................................................................9
Recommendation......................................................................................................................10
Bibliography.............................................................................................................................11

3
MANAGEMENT
Appendices...............................................................................................................................13
Appendix 1...........................................................................................................................13
Appendix 2...........................................................................................................................14

4
MANAGEMENT
Introduction
The report focuses on the development of a business idea and the BMC application,
which can be used effectively for the purpose of ensuring growth of an organisation. It can
help in the creation of an impact in a business. The paper aims at providing an analysis of the
BMC proposed by Osterwalder and Pigneur. The BMC of Samsung is analysed for
understanding the challenges that are to be faced. Samsung is one of the most reputed
technological companies in the world with latest technical designs and equipments
(Samsung.com, 2019).
This report helps in conducting an analysis, which can help in providing a description
of the interrelationship between the various elements associated with the BMC. The factors of
critical success of Samsung are also taken into account for the analysis of the business.
Business idea
The aim of Samsung is to launch a fresh model of television. The model has been
named as The Wall (Samsung.com, 2019). The new television model was launched to change
the manner in which TV experience of the customers can be changed (Samsung.com, 2019).
1. Business model
The strategy of sales adopted by Samsung can be considered at a great level, which
can assist in developing fresh and innovative technologies. It can help in retaining customer
satisfaction associated with Samsung (Samsung.com, 2019). It is for this reason that efforts
are made before the launch of The Wall so that Samsung can maintain its effectiveness in the
business.

5
MANAGEMENT
Building blocks
(Refer to Appendix 1)
Customer segments
The target for the customer segmentation capable for making purchase of The Wall
can be undertaken by the analysis of the economic as well as the financial condition of the
country and the target people. Samsung selects its target market by identifying the various
and effective ranges of the financial capability that every customer possesses. The analysis of
the table can help in depicting any characteristics that can be associated with target customer
segments capable of purchasing The Wall.
Table 1: Customer segmentation of Samsung
(Source: Samsung.com, 2019)
Key partners
From the evidence received from the success attained by Samsung in an
international level, one may say that key partners of the company include the various media
networks. The media channels can be used effectively for the promotion of The Wall. The
table provides a categorisation of the potential customers that can be associated with

6
MANAGEMENT
Samsung by creating segmentation between old and new customers. The calculation is made
based on the sales provided to the customers.
Table 2: Key partners
(Source: Samsung.com, 2019)
Value propositions
The value proposition of Samsung can help in understanding the objective, which the
company need to attain so that success can be gained. The value proposition strategy of
Samsung aims for the development of an entertainment set that can enhance the television
viewing experience of the customers and provide modern television with defining new
success such as 3D experience or ability to view television in a large wall (Samsung.com,
2019).
Key activities
The key activities, which could be associated with the success of Samsung, can be the
manner in which the introduction of The Wall can help in the proper after sales services
provided. The development of the key activities of the company are renowned for accepting
bulk orders from online ordering by the application of the official website of the company

7
MANAGEMENT
(Samsung.com, 2019). The product promotion needs to be done by using social media so that
every customer can be made aware of the product.
Channels
For the sales of The Wall, Samsung can seek the assistance of the retail channels,
which include the supplying of the product using stores from the local markets. In Australia
Samsung, can the sale The Wall via retail outlets like JB HiFi. The table depicts the possible
number of sales per store that The Wall is predicted to achieve all over Australia.
Table 3: Channels
(Source: Samsung.com, 2019)
Stream of revenue
The calculation of the revenue that can be generated from the sales of The Wall can
be based on the cost price of the product. The table provides an overview of Samsung’s total
projected revenue.

8
MANAGEMENT
Table 4: Revenue stream
(Source: Samsung.com, 2019)
Cost structure
In order to succeed an analysis of the various costs of the product need to be made. It
can be predicted that for The Wall stock cost could be predicted to be around 20% of the total
revenue (Samsung.com, 2019). Along with this, product’s selling price can be predicted at
50% while the cost for manufacturing could be predicted at around 15% of the total revenue
that can be generated from sale of The Wall (Samsung.com, 2019).
Key resources
The company’s key resources that are required for promotional purposes as well as
the manufacturing of The Wall can include the creative as well as the innovative skills of its
employees (Samsung.com, 2019)
Customer relationship
The advantage of Samsung is the fact that it has the ability to retain customer relations
strongly with its customers so that communication can be maintained with the customers via
the official website and social media. Samsung can preserve unremitting apprise near the
types of customers that exists (Samsung.com, 2019). Thus, the product’s success can help in
building one proper organization-customer interrelationship.
2. Interrelationship
The evidence from the BMC analysis, display a robust interrelationship between the 9
building blocks associated with the canvas. The analysis has been made between the different
interrelationships, which can help in the formation of steady stream of revenue along with the
cost structure of the company. The presence of various media and social media channels can

9
MANAGEMENT
help in the promotion of The Wall. Sales and product manufacturing could assist in the
business idea development. Hence, market segmentation can help in preserving customer
relationship, which exists between the company and its target customers. Along with this, a
strong link of the value proposition of The Wall can be made by estimating the partners
associated with the company.
3. Critical success factors
The critical success factor strategies can help Samsung to move forward and promote
The Wall in the market. The business canvas has provided evidence that the major investment
of Samsung is focused on its innovation (Samsung.com, 2019). Along with this, Samsung
maintains a steady and continuous communication with the customers, which help in gaining
success.
4. Risk
The analysis of the business canvas provides evidence that Samsung cannot remained
focus on a steady and consistent price of its product (Samsung.com, 2019). Therefore, for
The Wall the fluctuation in the revenue stream of Samsung may be considered as one of the
major risk factors so that determination of a steady price may be made. Along with this
segmenting, the customers may be risky due to the discrimination that exists with the
parameter being the income level of the customers. The collapse of the economic condition of
the society may be considered as a risk factor for Samsung (Samsung.com, 2019).
5. Changes in the business model
(Refer to Appendix 2)

10
MANAGEMENT
Conclusion
Therefore, based on the analysis conducted it could be said that the company can be
efficacious at the improvement of new and innovative products that is aimed solely for the
development of customer satisfaction. Evidence can be provided from the innovative idea of
developing The Wall that can provide entertainment for the customers. The relationship that
can be maintained between the customers and the company is the major advantage that drives
the success story of Samsung.
Recommendation
Hence, from the analysis made about Samsung recommendations can be made so that
Samsung can mitigate the challenges of the business canvas. It is necessary that Samsung
reduce the cost of the product to provide opportunities for all of the customers within the
marketplace to be able to buy the product. This can be done in an initial basis and thus, can
help in the development of a proper cost revenue analysis. The analysis also shows that The
Wall may not be available in every store across Australia due to its size. In this regard, the
company may consider reducing the size of the product

11
MANAGEMENT
Bibliography
Clauss, T. (2017). Measuring business model innovation: conceptualization, scale
development, and proof of performance. R&D Management, 47(3), 385-403.
Damelio, R. (2016). The basics of process mapping. Productivity Press.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-
678.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting. Asian Social
Science, 11(7), 290-296.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Miles, L. D. (2015). Techniques of value analysis. Miles Value Foundation.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, New Jersey:
John Wiley & Sons Inc.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value Proposition. Hoboken,
New Jersey: John Wiley & Sons Inc.
Ovans, A. (2015). What is a business model. Retrieved July, 5, 2016.
Plenter, F., Fielt, E., Hoffen, M., Chasin, F., & Rosemann, M. (2017). Repainting the
business model canvas for peer-to-peer sharing and collaborative consumption.