Entrepreneurship and Innovation Report

This report examines the commercial success of Samsung's smartwatch as a case study in entrepreneurship and innovation. It details the smartwatch's functionality, addressing problems like the need for convenient communication and fitness tracking while on the go. The report analyzes the competitive landscape, highlighting key players like Apple and the significant market share in China and Australia. Samsung's market entry strategy, utilizing licensing to expand its global reach, is discussed. The report also explores the financial model employed, focusing on the three-statement model (income statement, balance sheet, and cash flow statement) for forecasting and decision-making. Challenges faced, such as short battery life and high production costs, are addressed, along with the strategies implemented to overcome them. Finally, the report offers key takeaways for companies developing innovative products, emphasizing the importance of proactive obstacle identification and continuous product improvement in a competitive market.

ENTREPRENEURSHIP
AND INNOVATION

EXECUTIVE SUMMARY
The given study entails about the new innovation. Thus, for the given purpose Samsung
smartwatch is being taken into consideration. The given invention is very much effective because
it tends to resolve many problems of the individual. For example, Samsung smartwatch is used
for the purpose to track the health of an individual. On the other hand, with the help of the given
tool an individual can manage its emails and messages over watch. Besides this, it is also
examined that while launching the given watch there are different obstacles being faced by the
company. It is of low battery life and the high cost. However, these obstacles are effectively
managed by the Samsung smartwatch. In addition to this, Apple and various other companies are
giving tough competition to the firm. But, with the help of effective strategy firm can meet the
competition in an effectual manner.

Table of Contents
1. Selection an invention that has succeeded commercially........................................................1
2. Describing the invention and state what problem does it resolve?..........................................1
3. Analyze the market and key players........................................................................................2
4. Market entry strategy was chosen for the invention................................................................3
5. The financial model was chosen for the invention..................................................................3
6. Obstacles in invention..............................................................................................................4
7. Major takeaways from the conducted analysis........................................................................4
REFERENCE..................................................................................................................................6

1. Selection an invention that has succeeded commercially
The current invention that is being taken into consideration is a smartwatch. For the
respective study, the smartwatch of Samsung Company is chosen. Due to the development of
information and communication technologies, there were a number of inventions was made in
the last few years. Thus, one of a type of invention is a smartwatch. In this regard, on the basis of
the analysis, it is identified that smartwatch unit sales worldwide has increased from 2014 to
2018. For example, in 2014 only 5 million unit sales were recorded (Smartwatch unit sales
worldwide from 2014 to 2018 (in millions), 2016). On the other hand, in the year 2018, the unit
sales of the watch had increased to 141 million. Thus, the given thing will tend to give a clear
indication of the commercial success of the smartwatch. From 2014 to 2018 there were a number
of changes was being made in the smartwatch. Thus, now watch fulfills the different type of
purpose of customers and it is the reason why it is becoming very much popular invention.
2. Describing the invention and state what problem does it resolve?
Smartwatch is basically a wearable computer that can be worn in the wrist. On the other
hand, it also provides local touch screen interface for daily use. The respective invention tends to
perform a number of tasks such as calculations, game playing, translation, health monitor and
digital time playing etc. In this context, it is also identified that the smartwatch is basically
attached to the Smartphone of the user. Thus, if an individual will have a Smartphone then only
the given watch is useful. This is because; there are some features in a smartwatch that require
assistance from the Smartphone. However, it can be worn without Smartphone also but in this
case, the user will not be able to get a benefit of the many of the features of the smartwatch in an
effectual manner.
In accordance with the given context, it can be said that the smartwatch tends to resolve
different types of problems of an individual. While going on to the gym or to some fitness area
an individual does not want to carry the bulky phone with them. However, in today’s scenario,
an individual cannot keep his/her phone at home also. Thus, the respective watch tends to resolve
the given problem of an individual. Here, in the smartwatch, an individual can not only receive
calls but they can also make a call to another person. Thus, the smartwatch provides convenience
to individuals (Matthies and et.al., 2019). It has made the life of people quite easier in an
effective way. Further, in a smartwatch, an individual can see their personal emails as well as
messages.
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Furthermore, smartwatch also plays the role of personal fitness guide. This is because the
given watch tends to give information about the daily run as well as a daily calorie burnt by an
individual. Thus, the respective feature tends to resolve the problem of those people who are
fitness freak and want to know about their daily fitness progress. On the other hand, it also plays
the role of assistant. Here, it will remind an individual about each and every activity that they
will have to perform during the day. Thus, it is through this way the only person can eliminate
the chances of not performing any activity in an effectual manner.
3. Analyze the market and key players
The smartwatch market is being analyzed. Herein, it can be said that China is the major
market for the smartwatch user. This is happening because people of China are a technology
freak. As a result of this, they always like to try new technologies that are coming in the market.
Thus, China smartwatch market is flourishing very much. However, it is also examined that the
Australia market is also expected to grow at a faster pace. This is because in the Australian
market also there is a significant growth is being seen in relation to the information technology.
On the other hand, there are some major key players of the smartwatch examined. It
comprises of Samsung, Google, Apple, Sony, and Huawei etc. These firms are marking their
remarkable presence in a different market. However, among all Samsung smartwatch is taken
into consideration. The company has launched different models of smartwatch such as Samsung
Gear S2 and Samsung Gera S3 etc. Among these two, at present Samsung Gear S3 is gaining
popularity in the market because of the presence of a number of features in it. This watch
performs all type of works that can be performed in a Smartphone. For example, in the respective
watch, an individual can make video calls as well as voice calls to another. The given thing will
tend to provide convenience to the individual (Bumgarner and et.al., 2018). In addition to this, it
is also identified that smartwatch of Apple is very popular among customers in the place of
Samsung. This is due to the presence of a variety of features that makes the Apple smartwatch
very popular among customers in an effectual manner. Thus, Apple can be considered as one of
the toughest competitors for Samsung. Hence, with an aim to deal with the same it is required by
the company that it should introduce different types of features in its product.
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4. Market entry strategy was chosen for the invention
Market entry is being regarded as the practice with regard to getting an entry in the
specific market with the product. Samsung is a highly recognized name in the electronics and
communication market. Thus, it is because of the given reason only the firm will have a global
presence. Since Samsung is the global brand name so it has opened a number of retail stores in
various countries. Thus, with an aim to get an entry in all these markets the company had used
the tactics like licensing. In accordance with the given context, the firm will tend to give license
of selling its product to another individual. Thus, the respective retail firm will keep all the
products of Samsung brand. This same thing had been used for the smartwatch also.
The given form of market entry tactic is very much effective. This is due to the reason
that through this way the owner of the company will be full control over its product. On the other
hand, if the firm will found out that the licensee is diminishing its name or using its products in
another way then in the given situation the owner of the firm will have full right with regard to
canceling the license of using its product in an effectual way (Tison and et.al., 2018). In addition
to this, it is by complying with the given type of activity the company can establish its brand
name in the number of nations. This thing will provide benefit to the firm in the form of
increased profit and sale in an effectual way. The given approach will also have a positive
impact on the overall market share of the Samsung Company.
5. The financial model was chosen for the invention
Financial modeling is a summary of a firm’s overall performance. The given model helps
in forecasting the future performance of the corporation. In this regards, on the basis of the
analysis, it is identified that the firm Samsung had used three statement models for its
smartwatch. The given model consists of the income statement, balance sheet and cash flow
statement etc. The given model is very much effective. For example, with the help of the income
statement, the firm can get an idea about the expenses and income earned during the year. Here,
the given thing will give an idea that whether the smartwatch of Samsung is working well in the
specific market or not. Similarly, the cash flow statement gives information about the amount of
cash that is being generated by the firm.
On the other hand, the balance sheet tends to give information about the financial balance
of an organization. Here, it is with the help of given financial model only the firm can get the
idea that whether its smartwatch is earning money in the particular market or not. Thus, the
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various other decisions such as marketing and selling strategy of the product totally depend on
the given statement only (Shen, Ho & Srivastava, 2018). For example, if a firm’s financial
condition is not well then in this situation it will have to make changes in its marketing strategy.
This is done with an aim to improve the financial condition of Samsung smartwatch in an
effectual way.
6. Obstacles in invention
Yes, there were many obstacles were being faced by the manager of Samsung smartwatch
while making the decision with regard to introducing the given type of invention in the market.
The details about the same are depicted below:
 Battery life: The combinations of wireless pinging, LCD screen and limited real estate
for the batteries tend to make battery life one of the most unique challenges for the
company. Here, it is because of the limited battery life of the smartwatch it is being
required by the customers that they have to charge the given product each and every day.
Thus, due to this Samsung smartwatch company tend to have one of the biggest
questions in mind that is whether the customers of the firm will accept the given product
or not.
 High cost: The cost of making the given product is very much high. This is because; the
given product tends to possess a number of features which make it unique in comparison
to the other products in the market in an effectual way. In this regard, the firm will have
one of the biggest problem that is to influence the customers with regard to purchase the
respective invention of the firm. However, the given thing is effectively resolved by the
manager of the cited company. Thus, with an aim to do the same here firm has
introduced such features in a smartwatch that will help to resolve the problem that is
being faced by the individual. Thus, it can be said that these were the major obstacles
that were related to the Samsung smartwatch (Liaqat and et.al., 2018).
7. Major takeaways from the conducted analysis
Thus, from the conducted analysis there are different things which need to be considered
by the company while making an invention of some innovative product like Samsung
smartwatch. Here, for the firm, it is essential that it should make the proper list in relation to the
type of obstacles that it could face while making the invention of such type of product. Thus,
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through this method firm can get an idea about the solutions that it can use with an aim to deal
with the specific problem (Spooner and et.al., 2018). On the other hand, it is also required by the
firm that it should make constant upgrading in its innovative product. This thing will give the
opportunity to the firm with regard to marking an effective presence in a highly competitive
market in an effectual way.
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REFERENCE
Bumgarner, J. M., Lambert, C. T., Hussein, A. A., Cantillon, D. J., Baranowski, B., Wolski,
K., ... & Tarakji, K. G. (2018). Smartwatch algorithm for automated detection of atrial
fibrillation. Journal of the American College of Cardiology, 71(21), 2381-2388.
Liaqat, D., Wu, R., Gershon, A., Alshaer, H., Rudzicz, F., & de Lara, E. (2018, June). Speech in
Smartwatch based Audio. In Proceedings of the 16th Annual International Conference on
Mobile Systems, Applications, and Services (pp. 523-523). ACM.
Matthies, D. J., Haescher, M., Bieber, G., & Nanayakkara, S. (2019). Hand-Arm Vibration
Estimation Using A Commercial Smartwatch.
Shen, C., Ho, B. J., & Srivastava, M. (2018). Milift: Efficient smartwatch-based workout
tracking using automatic segmentation. IEEE Transactions on Mobile Computing, 17(7),
1609-1622.
Smartwatch unit sales worldwide from 2014 to 2018 (in millions). (2016). [Online]. Available
through: < https://www.statista.com/statistics/538237/global-smartwatch-unit-sales/ >.
[Accessed on 14 th March 2019].
Spooner, T., Wells, R., Dittmer, T., Price, T. R., & Agarwal, K. (2018). U.S. Patent Application
No. 15/917,065.
Tison, G. H., Sanchez, J. M., Ballinger, B., Singh, A., Olgin, J. E., Pletcher, M. J., ... & Mikell,
C. (2018). Passive detection of atrial fibrillation using a commercially available
smartwatch. JAMA cardiology, 3(5), 409-416.
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