ABD703 Report: Samsung's Innovation, Market Analysis, and Strategy

This report, prepared for a Diploma in Business and Enterprise Management course (ABD703), examines Samsung's market position, innovation strategies, and the feasibility of new venture creation. The report begins with an introduction to Samsung, its mission, and its competitive landscape, including rivals like Apple. It then analyzes market needs and opportunities within the smartphone industry, considering consumer preferences, market growth, and competitive dynamics. The core of the report focuses on generating and evaluating creative ideas, specifically allowing consumers to experience new product releases in showrooms and real-time fun settings. The report assesses the innovation type, life cycle stage, and market value creation potential, including an analysis of market feasibility, consumer value addition, and potential profit. Finally, the report evaluates the organizational feasibility, assessing strengths, weaknesses, opportunities, and threats, providing a comprehensive overview of Samsung's business environment and strategic recommendations.

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: 1ST ASSESSMENT
Due date: 19/FEB/2018
Student(s) to complete: Assignment/Report Plagiarism Declaration
For Individual Assignment / Report ONLY
I / we certify that this is my / our own work and I / we have read
and understood the Plagiarism and Dishonest Policy (7.7) of
Abacus Institute of Studies.
I/we understand that the submission of this form electronically
is the equivalent of me / us signing my / our name, in pen, on a
paper assignment cover sheet.
For Group assignments/reports ONLY:
Student name(s) & IDs:
1.
2.
3.

TABLE OF CONTENTS
1.0 Business introduction/background...............................................................................2
2.0 Market need/opportunity.............................................................................................. 2
3.0Generation of Idea........................................................................................................ 4
4.0 Evaluation and selection of idea..................................................................................5
5.0 Feasibility of the market............................................................................................... 7
6.0 Feasibility of the organization....................................................................................13
7.0 Monetary feasibility.................................................................................................... 15
8.0 Growth and sustainability potential............................................................................22
9.0 Conclusions/Implications............................................................................................25
References....................................................................................................................... 26
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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
development has brought a significant
shift in the smartphone industry. The
industry is the most significant industry
in business and has produced a
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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
increase in the market share too.
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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)
3.0Generation of Idea
 Provide more than two creative ideas that rae capable of handling the
need identified based on the analysis above.the creative ideas can
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take any of the form below.
 Service
 Productz
 Process
 Concept
 All of the above combined
 Any other appropriate.
(ER 1.1)
Creative idea#1: Allowing consumers to have an experience of the release of new
smartphones in the showroom
Creative idea#2: Allowing consumers to have an experience of the release of new
electronic appliances, in real time fun setting
4.0 Evaluation and selection of idea
4.1 Evaluate and analyze the creative ideas above for their potential to be developed
as value creation opportunity.
(ER 1.2)
Inventive
knowledge
Advantages Disadvantage
s
Expenditur
e
Vs. Profit
(Range
1- 10)
Executio
n ease
(Range
1-
10)
Reversibilit
y
(Range 1-
10)
Creative
Idea 1:
Enabling
customers
to
experience
the release
Superior
value addition
in terms of the
experience of
the customer
unmatched by
competitors
- So as to set
up an area
where many
people could
literally have
an
experience of
2 1 1
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of new
smartphone
s located in
the
showroom
(Yuksel,
2012)
- Foremost
mover
advantage
the new
products,
extensive
resource
input is
required.
-Possible
environmenta
l damage due
to waste as a
result of the
people’s
engagement
in the
process
-Involvement
of children in
the process
may cause
certain health
and safety
issues.
-Breakage of
the mobile
phones.
Creative
Idea 2:
Allowing
consumers
to have an
experience
of the
release of
-Allows the
addition of
superior
customer
value and
experience
that is
unmatched by
-The
electronic
appliance can
be broken
4 4 6
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the new
electronic
appliances,
in real time
fun setting.
those of
competitors.
- Potential that
scalable/replicabl
e
4.2 Based on the evaluation and analysis conducted in Q 4.1, justify and select the
idea that you can recommend for adoption in the potential venture scenario.
(ER 1.3)
From the above evaluation and analysis of potential ideas, it is clear that Samsung is
hunting the effective cost-benefit. The first idea involves a great potential in the
economic aspect, however, there are high risks involved when dealing with resource
inputs. Also, the second idea contains a risk of investment and reversibility while they
fill new electronic appliances in the booth.
5.0 Feasibility of the market.
5.1 under each section, analyze the selected ideas mentioned above for its
innovative type.
 Innovation incremental.
 Innovation disruptive,
 Innovation breakthrough
 Innovation sustaining
 Other
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Innovation type Fits with the innovation type
Incremental innovation No
Distruptive innovation No
Breakthrough innovation Yes
Sustaining innovation No
The selected idea, according to the innovation type’s exploration, evidently suits the
breakthrough innovation as this is a way of including new products and serving the
customer needs to experience new products. Breakthrough Innovations can
turnaround the market trend with unique product, which would assist achieve a
competitive edge in the market, and create maximum possible value.
5.2 Discuss the scope and degree of innovation term in the life cycle and innovation
based on the above.
(ER 2.1)
Life cycle stage Scope of Innovation
Introduction stage
For the company that is introducing a
new product in the market, this is
considered as the most expensive stage
for the company. The product has a
smaller market size, and the product
sale will increase.
However, the cost of expenses such as
development and research, consumer
testing and marketing, required for
product introduction can be competitive
(yuksel,2012)
(Innovators about 2.6%)
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Growth Customers: (Early
adopters 14.5%, Early Majority
34%)
Maturity Customers: (Late
majority about 35%)
Decline Customers:
(Laggards about 17%)
5.3 under each section, explore and evaluate the selected idea for its potential in the
market value creation viability and scope.
 potential in profits and attractiveness of the target market.
Impending threat Analysis Degree Favorable?
Bargaining power
of customers
Buyer’s cost
diverts to the
products of the
competitor
High NO
Bargaining power
of dealers
It is dissimilar
dependent on
dealers.
High NO
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There is a few
alterative to
Android platform
provided to
Samsung as the
bargaining power
is represented by
Google. (Lee, Kim,
& Park, 2015)
New entrants
threats
Limited number of
organization to
Apple,Huawei,LG
and Oppo.(Kim,
Park, & Kim,
2015).
High No
substitute products
or services threats
Compared to
Samsung the
Whawey
smartphone, a
brand of the
Chinese market, is
cheaper, thus it
can substitute
Samsung.
High No
conflict among
existing
companies
conflict among
companies that are
existing is
extremely
competitive
High NO
The presence of substitute products in the market has threatened the existence of
Samsung. For instance, the Whawey smartphone which is a cheaper Chinese
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smartphone can substitute Samsung for consumers who cannot afford to purchase
Samsung.
The home appliance industry is facing a stiff rivalry since the products are saturating
the market, and the products feature don not different from one manufacturer to the
other.
There a significant disparity in the aspect of bargaining power of the suppliers.
Suppliers who provide components are not considered of the bargaining power since
they are only affected by the quantity of the order of the Samsung and price
negotiation. Due to the few alternatives to the Android platform, Google has
represented a bargaining power that is marked.
In the home electronic appliances, for the new entrants, the big brands have been
limited, for instance, there is Samsung, Panasonic, and LG.However, in the
smartphone market, there is the limitation in the number of firms such as LG, Apple,
Huawei, Oppo and Lenovo(Lee..Kim& Park,2015).Samsung has seized this chance
and remained at it’s the leader in the market worldwide.
 point-of-difference and consumer value addition
Dimension Money
exchange
Competition1
Apple
Competition2
Whawei
Competition3
LG
Price 1 3 2
Design 1 3 2
Ease-of-use 2 3 1
Interoperabilit
y
3 1 2
Security 2 3 1
Price
comparison
3 1 2
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