Analyzing Innovation and Commercialization Strategies at Samsung

This report provides a comprehensive analysis of Samsung's innovation and commercialization strategies. It begins with an introduction to the importance of innovation and invention, followed by an examination of Samsung's vision, culture, and teamwork practices. The report delves into the 'Four P's' of innovation (Product, Process, Position, and Paradigm) and explores Samsung's use of frugal innovation. It covers new product development, including the business plan and market analysis. Furthermore, it discusses the protection of services and products. The report highlights the significance of innovation in Samsung's success and the commercialization techniques the company employs. It also analyzes the sources of innovation, including unexpected occurrences and challenges in the business environment. The report concludes with an overview of the factors that contribute to Samsung's market position, providing a detailed look at its innovative approaches to product development and business strategy.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Importance of Innovating and Invention..........................................................................3
M1...........................................................................................................................................6
P 2 Significance of Innovation In Samsung...........................................................................6
LO 2.................................................................................................................................................8
P 3 Four P's of innovation of Samsung.................................................................................8
P 4 Frugal Innovation of Samsung.........................................................................................9
M2...........................................................................................................................................9
M3.........................................................................................................................................10
LO 3...............................................................................................................................................10
P 5 New Product Development for Commercialization of Innovation...............................10
P 6 Business Plan of Samsung..............................................................................................11
Executive summary..............................................................................................................11
Company Overview..............................................................................................................11
Product and Services............................................................................................................11
Market Analysis....................................................................................................................12
Marketing Strategy of Samsung...........................................................................................12
M4.........................................................................................................................................13
LO 4...............................................................................................................................................13
P 7 Protection of services and products................................................................................13
M5.........................................................................................................................................13
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is very essential aspect of any organization to increase its business, as
innovation is the process of improving the current idea with the new one which will increase the
effectiveness of the product of services. An individual need to be innovative as it helps in
creating a better thought process and also better vision in decision-making. Innovation the
generated with the need of changing or increasing the output of the person, product or services
and it is very important to understand what innovation is all about.
Commercialization is process of creating a new way of producing the product or services
in the market. Commercialization helps the innovation to become reality as it help in creating the
product or services by analyzing all the factors which are present in the market. That will also
increase the potential of a person and the business as well. It also converts the right efforts into
the effectiveness and provide a better strategies and also grow the organization in the market.
In this report there is a detailed brief about Samsung's innovation and commercialization
techniques and what barriers do the company face to establish all the factors and favor the
company in return. As Samsung is a South Korean multinational electronics giant which have
established its operations in all over the world and is manufacturing every electronic device
mainly from household and it has a annual revenue generation of around 210.9 billion Dollars.
LO 1
P 1 Importance of Innovating and Invention
IMPORTNACE INNOVATION INVENTION

Easy problem solving The innovation is the easiest
way to solve any problem as
innovation is finding new
creative ideas to the problem
with a better solution to get a
better output.
Invention are done to fulfill the
unsatisfied need as invention is
generated due to need.
Invention helped Samsung to
move forward with a new
technological advantage but it
took time for the company to
solve the current problem as
invention is a long term
process and takes time.
Invention also need much
capital investment.
Increase productivity The person who are innovative
are also very efficient in their
work as innovation increases
the knowledge of the
organization and also help
them to take the easiest
possible decision which will
help them to achieve their
objectives effectively.(Yu,
2018)
Invention increases the
efficiency after creation of the
product or the services.
Invention cannot be done
rapidly. And it will increase
the efficiency of the company
as the company will decrease
the cost efficiency by
discovering the alternative and
better quality materials to
produce the products.
Grow the business Innovation also provide better
marketing tools and techniques
to improve the marketing
strategies and attract the
consumers in the market, as
Samsung has innovated their
Invention increases the
opportunities of the
organization as the product
and services which are
invented is a better version of
the current products and

marking with the innovating
technology so that they can
also increase the market share
of their customer and help the
company to increase the sale.
services. Samsung have also
created many products and
services which helped the
company to expand its
business more rapidly as it has
expanded itself from a grocery
store to a multinational
electronic company which
operates in almost every
country in the world.
Competent As innovation help the
organization to increase its
productivity and marketing
strategy that means innovation
have successfully helped
Samsung to have a competent
advantage in the market as the
company is investing in
innovative technologies ans
methods to increase the
satisfaction of the customers
and have also innovated many
products' ans services.
Samsung have always invented
many electronics which have
revolutionized the electronic
market and have also given the
competitive advantage to it. As
the company have proven to be
the leader in inventing the
future of household electronics
with excellent quality and with
many price range. Samsung
also gained competitive
advantage as the company
have created many options for
the customers providing better
knowledge of the product with
different price ranges.
Scale Innovation can only be done
on the invention and it also
increases the efficiency of the
product and services.
Invention is much broader
aspect then innovating as
invention needs much more
knowledge. Invention also has

a disadvantage of getting
obsolete where the urgency of
innovation arises.
M1
There are various sources of innovation like for example the unexpected occurrences. The
various challenges that can be faced by organization in a changing environment.
P 2 Significance of Innovation In Samsung
Samsung have adopted the innovation strategies to increase the expected growth to the
company, as the products of the company are getting obsolete due the rapid technological
changes in the business environment. The company have also analyzed the importance of
adopting innovation in various aspects of the company.
Vision
The vision statement of Samsung is very clear in presenting about what the company
viewing for the future. As Samsung have stated that innovation will be the primary aspect of
growing the company further as innovating the products will also increase the profits of the
company and which help the company to invest in other aspects of the company which the
company have stated. Samsung also views to increase in innovation will make the people live
more comfortably and can connect to the company better. The vision of Samsung also included
to encourage the world to use the technology to make their lifestyle easier and efficient.
Culture
With the help of innovative employees the company is also successful to determine and
establish a healthy environment to increase the motivation and efficiency of the company and the
employees as well.
1. Power Culture- the company have implemented this style of culture to increase the
efficiency and decrease the workloads. In power culture employees are supposed to
participate in the task with new ideas and techniques to increase the efficiency of
completing the task. This culture was not successful in the company as the employees of
the company felt unauthorized and discouraged which increased the turnover ratio of the
company and decrease the productivity.(Wang, 2017)
2. Role Culture- Samsung also implemented this culture to examine the maximum outut of
the employees in this culture as in this type of culture the authority is divided and

delegated to the right employees. This culture created problems in command and
communicate with other employee and created lack of motive to improve the efficiency.
Samsung innovated their strategy to motivate their employees and also provide with
better communication channel to increase their efficiency and organization productivity.
3. Task Culture- the company have also innovated with some ideas of forming this type of
culture when there are some problems arising in the company and this work culture will
help the company to decrease the problem by improving the techniques and methods. The
efficient high performance workforce is also become active and form teams to create a
better conscience about the problem.
4. Person Culture- This organization culture was rejected by the Samsung as the company
focus on more interactive methods of the employees so that they can innovate the
methods and also suggest with new creative ideas to complete the task of the company.
Effectively.
Team Work
Samsung have also analyzed the importance of making the high performance work teams
as it makes the work more effective and it divides the employees' knowledge with every member
which helps in developing them and giving them better skills in performing the skills.(Tanev
Rasmussen and Zijdemans, 2015) The company have also adopted the Tuckman's team
development model to help the company innovate effectively.
1. Forming- in this stage the leaders are responsible to explain the employees the
importance of developing the teams and also what are the benefits which will improve the
individual growth to achieve the personal and organizational goals.
2. Storming- leaders in this stage will help the employees to steel in the team and also learn
their positions and roles by learning the other team members. (Song, 2016)This will
provide the better understanding about the employee skills and also improve them to
achieve the task goals. In this stage the employees also have many disputes about the
roles and beliefs and techniques which all the members are using.

3. Norming- In This stage the employees resolve all the conflicts and learn about the real
skills and talents of the members. They start to settle down and accept all the team
members and now focus on the team goals.
4. Performing- This is the last stage of Team development the employees are very much
effective and discover all the skills and talents of the members and make strategies
according to those skills which will increase the efficiency to achieve the team goals. In
this stage the company will also gain many innovative strategies and ideas to increase the
efficiency of the company to achieve the objectives of the company. (Rasmussen and
Eliason, 2017)
LO 2
P 3 Four P's of innovation of Samsung
Samsung have innovated and also have increase their efficiency of the employees by
promoting to increase the creative ideas which will also help the company to grow. The company
have analyzed the 4 P's of innovation which play a very important role in increasing the growth
of the company with an increasing rate.
Product
Samsung have invested much in innovating their products with evaluating the better
alternatives which are in low cost and also reduce the price of the overall product. As the
company have innovated their screen technology which is not matched till present in the world.
The company have analyzed its need to innovate the product by evaluating the competitors as
there is a huge competition of product technology in the technology industry.(Ke, 2016)
Process
Samsung formulated a new concept product development which supported the company
to innovate while the company is growing rapidly. (Kim and Park, 2018)The process helped the
company to analyze the problems and errors of their products and innovate the product to make
the product more customer friendly and increase the customer satisfaction.
Position
Samsung have also innovated in positioning their products in the market with making
new marketing strategies and also innovating the products. Samsung have adopted multi segment

positioning which help the company to acquire more than one market at the same time and also
increase the sales of the company. (Henttonen and Lehtimäki,, 2017)
Paradigm
Samsung have also innovated in making the policies and framework which have enabled
their employees to become high performance workforce. As the company have used several
models and methods to invest in the human resource of the company to increase the efficiency of
the company.
P 4 Frugal Innovation of Samsung
It is the steady process which help Samsung to decrease the cost of production and also
help in cost efficiency of the product price. In this type of innovation the company analyze the
problem and errors in the process and strategies and terminate them to create a better functioning
of the company. This innovation help to create a high quality of products terminating all the
flaws from the previous sold products. As frugal innovation is very helpful in the developing
markets of the company it gives the company to understand the need and quality of products to
be supplied to increase the sales and profit margins of the company.(Hameed, von Staden and
Kwon, 2019)
 This type of innovation help Samsung to improve the quality of product and services
which is produced by the company, this will increase the sales and profits of the
company.
 This help the company to find the best alternative options with the help of analysis of the
market which will also increase the efficiency of the company to compete with them.
 Frugal innovation also promote the best innovative employees to participate in the
organization and find the best option which can be found with their own experience.
 Frugal innovation helped Samsung to grow and which indirectly helped the economy of
the country where the company is operating as the company have provided many
employment opportunities and also increased the lifestyle of the country with educating
the population about the importance of technology in their lives.
 Samsung also learned many much innovative ideas from the low cost innovative
countries where the cost of making the products is less and which is more effective.(Ge,
2017)

M2
The Innovation Funnel is a mechanism that enables a constant stream of ideas that can be
screened for viability. This can help Samsung in implementing the innovative and creative ideas.
M3
Frugal Innovation is a concept that urges businesses to respond to limitations in resources;
whether financial, material or institutional, and turn these constraints into innovative ideas and
practical solutions.
LO 3
P 5 New Product Development for Commercialization of Innovation
Commercial funnel is the stream chosen for the customers of the company. The
commercial funnel is the process in which the company have to analyze the customer behavior
about product which is sold by the company and make a well executed strategy to attract the
customers to increase the sale of the company. There are some importance of commercial funnel
for Samsung which is explained below.
 It helps the company to understand the whole journey of the customer who used the
product and in which stage the customer experience problems. That reports help the company to improve the flaws which trigger a decrease in the sales.
New Product Development Process
1. New product strategies- The management is responsible for analyzing all the problem
which Samsung's product faced. And what are the strategies of the competitors in the
particular product.
2. Idea Generation- in this step the marketers also have to increase the knowledge by
analyzing the product market and also the potential of the company which will help the
company to create a better innovative idea to create new product.
3. Screening- in this stage the marketer is responsible to analyzes the possible opportunities
and threats which the new product can have in the future.
4. Concept testing- In this stage the idea of new product is being tested with the information
analyzed with the market research for the product.

5. Business analysis- the marketer and the financial controller are responsible in this stage
to create a business report about the cost and investment of the new product which will be
needed.
6. Product development- in this stage after all the above stages the product will be
developed with the cost efficiency to lower the price of the product.
7. Market Testing- after the product development, the product is being sample tested in the
big market to check that the product is feasible for the company to increase the market
share and also attract the customers with increase in sale sand profits.
8. Commercialization- this is the last stage in which when the company is sure about the
product they decide to market the product to their customers in the public with the
different marketing strategies.
P 6 Business Plan of Samsung
Executive summary
Samsung is the multinational company which deals in the electronic products for the
customers, the company has been known for its customer satisfaction techniques. The marketers
of Samsung were responsible for analyzing the external and internal factors of the business
environment which gave the company a better outlook to form strategies. The company has also
used venture capitalist and angel investment for funding their operations.
Company Overview
Samsung is a South Korean multinational company which is dealing in electronic
devices. As the company have focused on economies and scale of production of their products so
that they can provide low price products to their customers and also standardize the quality of the
products. The company was established as a grocery store and with a powerful vision the
company have turned their fate and had become the world's leading electronic company.
Samsung also deals in the industrial electronic products like wires, high polymer chemicals etc.
(Dutta and Folta, 2016)
Product and Services
Samsung is the leading company with the annual revenue of 250 million dollars. The
company have made its position in electronics segments and provide a huge range of variety of

every product and services which give their customer a better choice to opt from their products
according to their income level and preferences. The company also manufactures the electronic
components which are used in the industries, Samsung have covered the world market with its
huge range of mobile phones and made the world's largest mobile company. The company have
competed with Nokia, apple and BlackBerry and showed them the corner and gained the
popularity in the mobile phone segments as the company generates 60% of its revenue from the
mobile phones sales worldwide.
Market Analysis
Strengths-
 the company have a huge network of customers which help the company to increase or
decrease the strategies by analyzing the better options.
 The company also have innovative designs which attract the customers as the company
also innovates their products. (Datta, Mukherjee and Jessup, 2015)
 Due to high economies of scale of production the cost of product is very low.
Weakness-
 the company is facing major competition with other companies and to maintain the
leadership position company have to lower the profit margins,
 Negative feedback create negative goodwill of the company.
 The company also have the low quality of products then the competitors which
discourages the customers to buy the product of Samsung.
Opportunities-
 Samsung have invested in the Asian markets like India as the digital market is growing
rapidly.
 Samsung have also bought many small scale companies to increase the network and also
provide the employment to the public.
Threats-
 Due to large the number of competitors have also increased.
 Due to huge number of variety of products there is always the threat that one product can
effect the sales of another product of the company. (Chun, 2015.)
Marketing Strategy of Samsung
Promotion-