Managing Innovation: Samsung's Business Performance Report 2018

This report provides an executive summary and detailed analysis of Samsung's innovation and business performance. It begins with an introduction highlighting the importance of innovation in business growth and then provides an overview of Samsung's history, organizational structure, and innovation strategies. The report examines Samsung's existing innovation performance and capabilities, showcasing key product launches such as Gear Fit2 Pro, Galaxy Note8, and Samsung Connect Home Pro, and their impact on the market. It further analyzes the electronic industry in the UK in 2018, including market trends, mergers and acquisitions, and the shift towards online retailing. The report concludes with an overview of the industry and Samsung's position in the market. The report also includes references to academic sources, providing a comprehensive understanding of the topic.

MANAGING INNOVATION IN
BUSINESS

EXECUTIVE SUMMARY
In the development and growth of the businesses, innovation plays a vital role. In the world of
competition, innovation is the key to achieve the heights of success in the market. Samsung is
multinational company operating business in electronic retail sector. Business entity offers
varieties of electronic products such as mobile phones, washing machines , Led TV etc. Business
entity has been ranked at sixth position in context of brand value worldwide. The core subject of
Samsung is always been to Innovation. In the world there is full of emerging technologies, few
stand out the way Samsung products do. All the products which are launched by Samsung are
very innovative and it is unbeatable innovation across the world. In 2018, the lots of mergers as
well as acquisition has taken place in electronic industry in United Kingdom. There has been ten
to twelve percent growth of the companies operating business in retail sector. Companies such
as Samsung is performing really good in Electronic sector in context of retail volume, value as
compared to previous years. Year 2018, is considered to be as positive year for electronic sector
in UK. There has been increase in market share of online retailing as compared to other
distribution channel. In addition to this, Dvd players, analogues cameras are less demanded by
customers in the market which has negative effect on the sales and profitability of comparably in
electronic sector.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
THE ORGANISATION & INDUSTRY OVERVIEW ..................................................................1
Organisation and Innovation history................................................................................................1
The existing innovation performance and capabilities of Samsung............................................2
Industry in 2018..........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
In the development and growth of the businesses, innovation plays a vital role. In the
world of competition, innovation is the key to achieve the heights of success in the market
(Jansen, 2017). It is very important for all types of organisations that they should go for
innovation. In this present report, Samsung company is being chosen for assessment. It is
operating in the industry of conglomerate. This company was founded in 1938 by Lee Byung
chul. For Samsung innovation has always been the core subject. This present report will cover
the past, present and future innovation of Samsung.
THE ORGANISATION & INDUSTRY OVERVIEW
Organisation and Innovation history.
Samsung is multinational company operating business in electronic retail sector. Business
entity offers varieties of electronic products such as mobile phones, washing machines , Led TV
etc. Business entity has been ranked at sixth position in context of brand value worldwide. An
organisation was established in 1983 and has launched new technologies such as Smart phones,
Virtual Reality headsets and smart television. Samsung in today's market is well known brand.
Innovation is the major factors which has drive firm towards achievement of success. The first
mobile phone with innovative feature was launched by Samsung in 1988. After few years,
Samsung successfully launched Television which has helped firm in fostering growth. In year
2000, Smart has launched first camera phone which has helped firm in attracting more number of
customers (Sun, 2018.). In addition to this, in same year, an organisation has also launched flip
phones, this mobile phone has innovative feature that display could be turned to a landscape
orientation. In year 2220, Samsung has launched Dvd which has been liked as well as many of
the people. Considering the latest trend in the market, Samsung has successfully launched Blu-
Ray Player which has gained popularity among the public.
Samsung has gained recognition in the market and has become most popular brand due to
its innovation strategy. There was launch of an app store for Television by Samsung in year
2010. In 20123, Samsung has launched the Samsung pay application for providing customer an
ease in making payment. Business entity has made huge investment on research and
development which has assisted an organisation in development of new ideas. Due to continuous
innovation, an organisation has able to maintain its leadership position in the market as well as in
industry. Presently, Samsung is planning to launch 3 D projectors. In addition to this, Samsung
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has adopted open innovation model for increasing their external innovation strength. In addition
to this, the Samsung has also launched SUHD TVs which innovative feature is unparalleled
picture quality with Quantum dot display. This television also have design curve which makes its
more attractive (Sun, 2018.). In year 2016, Business entity has successfully launched Smart TV.
The unique feature of Smart Tv is that it eliminates the requirement of remote controls. In
addition to this, Samsung has introduced family hub refrigerator with Iot technology this is the
features which makes its unique product. This family hub refrigerator also have built in stereo
speaker which attracts people. Business entity has also launched Gear S2 classic mobile phones
in two different and attractive colours. These mobile phones also provides secure mobile
payments feature. Now an organisation is planning to launch new mobile applications. The major
innovation has been facilitated by Samsung in mobile phone segments, an enterprise has
launched mobile phones or tablets with windows 10 operating system. In year 2016, Samsung
has launched a light as well thin notebook that was the new version of Gear S.
The existing innovation performance and capabilities of Samsung
The core subject of Samsung is always been to Innovation. In the world there is full of
emerging technologies, few stand out the way Samsung products do. All the products which are
launched by Samsung are very innovative and it is unbeatable innovation across the world. It is
also true that the innovation of Samsung are on regular basis (Frow and et.al., 2015). There are
many products of Samsung which are coming are very attractive to customers. The market base
of Samsung is also very large because of its outstanding performance in the market. In 2018,
Samsung has honoured for outstanding design as well as engineering with 36 CES Innovation
awards. The company is an international leader in the field of technology. Samsung has awarded
because of its outstanding and attractive design and engineering in cutting edge technology of
consumer electronics.
Here are some recent innovation of Samsung which are as follows-
Gear Fit2 Pro- This is one of the best innovation that Samsung has awarded for the best
innovation across the world. The new Gear Fit2 Pro features combines built in GPS tracking with
new regular monitoring of heart rate as well as an application which capture each run or ride
correctly. It is water prof with 5ATM resistance as man can even take bath in pool, rain and
shower. In terms of comfortability, Samsung has added a slim design as well as band of
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lightweight (Ferreira and et.al., 2015). It has featured of touch screen and have a high resolution
screen which makes very comfort and easy for the user to read the information while moving.
Galaxy Note8- This is another present innovation for which Samsung has awarded the
best innovation of the year. IT is a smart phone with attractive features and innovative design.
The size of scree is also very big which is of 6.3 inches of beautiful display. This big screen is
very much liked by the customers as with the help of this screen, one can read more and scroll
less. The another feature of this smart phone is that it has S Pen1 which allows users to unlock
new style of drawing, writing and interacting with people as well as communicate with others.
The camera of this smart phone is also highly revolutionised which has 12MP rear cameras. It is
the first smart phone that have optical image stabilization on both broad angle and lensed of
Telephoto (Bieraugel, 2015).
Samsung Connect Home Pro- This is the another innovation that is highly attracted
many people. It is an amazing innovation of Samsung. This is the innovation that makes better
connection of there devices as well as manage and control there home networks. It delivers the
crowning and well and good signals of Wi-Fi for the home while it also give the authority to
manage their devices all from a secure as well as single network.
49 inches CHG90 Gaming Monitor- It is also one of the biggest innovation that gives the
heights of success. It is monitor of with 49 inches and a super ultra wide screen. The aspected
ratio of this screen is 32:09. It gives the cinematic view of all types of content (Gallouj, 2017). It
also gives the experience of smoother fames with twice the graspable colour and brightness. It is
mainly designed for gamers who play multiple modes of games. The system of this monitor is
updatable on continuous basis. This monitor is highly attractive technology which is majorly
preferable by teenagers and gamers.
Samsung Chef Collection- This is the innovation of Samsung which has awarded with
four honoree aware. It is a new technology machines which is used for the cooking super heated
vapour in order to create dishes with the perfect balance of texture as well as taste (Saebi and
Foss, 2015). In this collection there is a smart refrigerator, ovens, cook-tops and dishwasher. The
smart refrigerator used to keep all the ingredient of the dishes fresh (Samsung Innovations,
2018). It is designed with the insights from chefs of world class. The original taste of the product
is maintained by this refrigerator. Secondly, oven which is professionally made for the quality of
cooking and it is used by the professional chefs. With the help of this oven super heated vapour,
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the taste as well as the texture of dishes are maintained. Third collection is Cook-tops which is
also a beautiful innovation of Samsung. It combines precise visual control with the art of
induction. It also intently shoe how hot the rings are so that the dish can be cook nicely (Wei,
Thurasamy and Popa, 2018). Lastly, the collection include the dishwashers. It is also used by
professional cooks and in home also to clean the utensils. This is also the most important part of
cooking.
Industry in 2018.
In 2018, the lots of mergers as well as acquisition has taken place in electronic industry in
United Kingdom. There has been ten to twelve percent growth of the companies operating
business in retail sector. Companies such as Samsung is performing really good in Electronic
sector in context of retail volume, value as compared to previous years. Year 2018, is considered
to be as positive year for electronic sector in UK. Drastic improvements have taken place in the
industry, there is launch of many new products with unique features by companies. The
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Illustration 1: Samsung Innovations
(Source: Samsung Innovations, 2018)

worldwide electronic constituent market is currently transforming from consumer products,
primarily mobile phones, but also PCs and home entertainment systems. In addition to this, many
companies such as Samsung with the support of big as well as strong infrastructure has able to
launch 4 G mobile networks (Kansal and Huth, 2018). Many companies including Samsung in
electronic industry is still facing the issues in supply chain management. The supply problems
and extended lead-times affecting larger case size multi-layer ceramic capacitors and chip
resistors.
There has been increase in market share of online retailing as compared to other
distribution channel. In addition to this, Dvd players, analogues cameras are less demanded by
customers in the market which has negative effect on the sales and profitability of comparably in
electronic sector. The present market value of electronic industry in United kingdom is approx
17823. In year 2018, revenue generated by electronic industry in United kingdom is
approximately US$12,564m (Yun, Jeon and Zhao, 2018.). There has been approx. 34.5 percent
new firm has penetrated into the electronic market. Many of the retail companies in electronic
sector has adopted the online platform for selling the goods. In addition to this, the various
challenges faced by the companies is decrease in the demand for product despite lower prices
and launch of new products. There has been decline in the demand for electronic products due to
low disposable income of people in the society. In addition to this, continuous fluctuation in
price has lead to the decrease in sales of the companies operating business in electronic sector
(Hartley, 2017). Decrease in the currency rate has lead to the rise in industrial exports. The three
important or major trends which has greatly effected the electronic industry in UK are voice
controlled smart home devices, powerful developer board and 3D printing. There has not much
increase or decrease in sales of mobile phones. Recently OLEd TV has been launched in
electronic industry. It is the unique feature of Television that it offers vivid colors and flexibility.
LCD has become the leader. On the other hand, OLED has gained popularity in mobile segment.
There has been great increase in the demand as well as sale of these two products. Companies
which are leading in electronic world are Samsung, google and Microsoft. Smartphone
projection system has been launched by many companies in electronic industry.
CONCLUSION
The above report concluded that innovation plays a vital role in the development as well
as growth of the product. This report also summarized the past, present and future innovation of
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Samsung in very strategic manner. With this report, it is understood that innovation is very
essential for company to sustain in the market of competition. In addition to this, the history of
Samsung innovation was also included in this report as well as the growth of electronic industry
in 2019 was also anticipated in this study. The overview of electronic industry was also written
in this assessment.
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REFERENCES
Books and Journals:
Bieraugel, M., 2015. Managing library innovation using the lean startup method. Library
Management, 36(4/5), pp.351-361.
Ferreira, J.J and et.al., 2015. Drivers of innovation strategies: testing the Tidd and Bessant
(2009) model. Journal of Business Research, 68(7), pp.1395-1403.
Frow, P and et.al., 2015. Managing co‐creation design: A strategic approach to
innovation. British Journal of Management, 26(3), pp.463-483.
Gallouj, F., 2017. Book review: Elie Ofek, Eitan Muller and Barak Libai (2016), Innovation
equity: assessing and managing the monetary value of new products and services, The
University of Chicago Press. Journal of Innovation Economics & Management, pp.212-
218.
Hartley, S., 2017. The case of the exploding Samsung phones. Busidate. 25(1). pp.9.
Jansen, W., 2017. New business models for the knowledge economy. Routledge.
Kansal, R. and Huth, J., 2018. Redefining Innovation: Embracing the 80-80 Rule to Ignite
Growth in the Biopharmaceutical Industry. Productivity Press.
Saebi, T. and Foss, N.J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal, 33(3), pp.201-213.
Sun, Z., 2018. Innovation and Entrepreneurship in the 4th Industrial Revolution.
Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision, 56(6), pp.1285-1305.
Yun, J., Jeon, J., Park, K. and Zhao, X., 2018. Benefits and Costs of Closed Innovation Strategy:
Analysis of Samsung’s Galaxy Note 7 Explosion and Withdrawal Scandal. Journal of
Open Innovation: Technology, Market, and Complexity.4(3). pp.20.
Online:
Samsung Innovation. 2018. [Online]. Accessed through:
<https://news.samsung.com/global/samsung-honored-for-outstanding-design-and-
engineering-with-36-ces-2018-innovation-awards>.
Consumer Electronics Trends to Watch, 2018. [Online]. Available through
<https://blog.linknovate.com/5-consumer-electronics-trends-to-watch-in-2018/>.
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