Marketing essay: Innovation strategies of Samsung

1. Executive SummaryThe report takes into consideration the various innovation strategies which have been used by Samsung. The report starts with a brief introduction regarding the organization. The report also takes into consideration why innovation is important for the organization. The second part of report also talks about the evaluation of innovation & how innovations have changed the business. This portion covers the necessity of innovation, aspect which the organization supports & the crucial factors which support innovation.

2. Introduction – Brief History

The Samsung Group is a multinational blended corporation situated in Samsung Town, Seoul, South Korea. It is one of the largest corporations in South Korea & the world’s largest private assortment by revenue with annual revenue of US $172.5 billion till 2009.

From its inception, Samsung has emerged out to be one of the leading electronic enterprises. It specializes in media & digital appliances, memory, system integration & semi conductors. Samsung is known for its innovativeness, top quality equipments. As time grew, Samsung expanded its product line.

The Samsung Group comprises of numerous international associated businesses. The organization has an influence on the country’s culture, economic development, media & politics. Many business houses today use Samsung’s success as a role model.

2.1 Vision & Mission:

The vision of Samsung in the new decade refers to “Inspire the World & Create a new Future”. This vision states that, Samsung’s commitment is to inspire all the communities to focus upon three main elements such as new products, innovation as well as create solutions. These three elements would help in order to promote the values within its industry, employees & customers. With continuous efforts, Samsung strives to attain high levels of success in the years to come. This would help in order to have a better world with rich experience.

2.2 Current Business Situation:

Innovation has been referred to as one of the crucial success factors for any of the industries. This helps the organization in order to maintain its position in the market. Innovation would help in order to improve its existing products which are manufactured by Samsung in order to attain sustainable competitive advantage over its competitors.

The following current levels of innovation have been used at Samsung. They are discussed as under:Þ    The first current level innovation which has been used at Samsung refers to the different types of strategic weapons which would be quite helpful to launch various services, innovations amongst the services offered, etc (Shapiro, 2007).

Þ    The innovation strategies currently used at Samsung are quite new & focus upon the new market by making minute changes in the already present services (Shapiro, 2007).

Þ    The innovations used at Samsung are intangible in nature. Therefore, fair measurement or monitoring of the innovative strategies could not be done. The major success factor involved in these strategies help to provide key success as the new services provided entirely depends upon the perception of the consumers.

Þ    The different current level innovation strategies used at Samsung would help in order to interact as well as shape the effectiveness of the organization (Stefan, 2010).

Þ    In order to achieve success in the years to come, the innovative strategies are limited to certain extent. The managers of Samsung entirely relies upon speculation, emotions, etc & are quite limited which would help in experiencing success in the entire innovation process.

2.3 Current technology:The current technologies which have been used at Samsung have been discussed in this portion of the report. They are as follows:

Þ    Improvements in the innovation system would be required at Samsung as a whole. Proper training of the staff members along with agents, booking operators should be provided. This would help in order to restructure the overall organization.

Þ    The incentive system at Samsung should be improved. This would help the employees as well as the people or the intermediaries involved to get motivated & work for the same. Constructive conditions should be formulated at Samsung which would help in order to encourage the output or the outcomes of the entire electronic industry (Shapiro, 2007).

Þ    Proper innovation should be encouraged at Samsung which would help in order to mobilize the population at large

3. Innovation in new product:

Innovation has played one of the most crucial aspects in case of any organization. This would help in order to have a sustainable competitive advantage as compared to the other enterprises in the same industry.

“Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service”. Innovation refers to one of the most essential tools which would help the organizations in order to attain sustainable competitive advantage. There are various innovative tools which have been used by the organizations in order to be at the top & satisfy the needs as well as the requirements of its customers (Macroni, 2003).

The innovation made by Samsung has been designed & would be fitted in the electronic products such as Air conditioners, Television, Mobile Phones, PC’s, etc. which would help in minimizing the power consumption of the same (Macroni, 2003).

There is various success factors which could be identified in reference to the innovation made by the organizations can be enumerated as under:

Þ    Seek differentiated, superior products

One of the major reasons which would lead to a success while innovating a product at Samsung would be to seek superior products i.e. supreme quality & a differentiated product which would be of some help & benefits its customer at large (Archibugi & Lundvall, 2001). The innovated product would also have high success rate at Samsung as compared to the normal products, captures high share in the electronics market & would also lead to an increase in the profitability of the organization.  Such type of products would also meet the needs & specific requirements of the customers.

Þ    Demand sharp, stable and early product definition

With the help of the innovation of the product, the target market, its positioning, features as well as the benefits could be seen at Samsung in a most specified manner as compared to the other (ordinary) product. By innovating a product, the product would be able to create & define its market where the product would be sold. This would serve as one of the critical success factors for Samsung while innovating the product (Archibugi & Lundvall, 2001).

Þ    Build an international orientation into your new product process

By making innovation in the existing product in case of Samsung, the product becomes new & serves the requirements of its client. While conducting the innovation process, an international orientation has been established in case of Samsung. This means that the innovations made in the product should also serve the requirement of international clients & not only focus upon the domestic ones (Evangelista, Sandven, Sirilli & Smith, 1998).

Samsung practices the “Eco Innovation Story” in order to make its product eco-friendly as well as enjoy a cutting edge position by being mutually exclusive in this industry. The CEO of Samsung Mr. Son Wook states “Samsung is about Eco-innovation & that’s not a fairytale” (Graham, 2006).

If we take into consideration the products manufactured by Samsung such as the refrigerators, air-conditioners, televisions, etc the energy star efficiency has been attached with world class features. The TV’s offered to its customers are teamed up with Energy Star which provides one of the best visibilities as compared to any other electronics brand (Graham, 2006).

Each & every product which is manufactured by Samsung is considered in relation to the environment it belongs to. Sustainability at Samsung is given one of the highest importances. The designers at Samsung keep in mind that, how the product which has been manufactured would affect the planet Earth. Some of the innovative measures which have been undertaken by Samsung to make its product exclusive are discussed as follows:

Þ    The LED TV’s manufactured by Samsung do not use mercury during the production process. It also does not include any paint or spray during the manufacturing process.

Þ    The Samsung LED TV’s have been ranked as one of the most outstanding set which provides high levels of picture quality & consumes approximately 60% less energy as compared to the normal TV Sets (Evangelista, Sandven, Sirilli & Smith, 1998).

Þ    The mobile phones manufactured by Samsung are made up of 40% recycled material. The entire packing is made out of 40% recycled material (Kay, 2010).

Þ    Samsung has been rendered to as “green” thinking innovation. The DDR3 Memory has been seen as one of the fastest chip which consumes less energy (Evangelista, Sandven, Sirilli & Smith, 1998).

4. Evaluation of Innovation:Innovation has been referred to as one of the crucial success factors for any of the industries. This helps the organization in order to maintain its position in the market. Innovation would help in order to improve its existing products which would help Samsung to attain sustainable competitive advantage over its competitors (Paul, 2011).

One of the key innovation issues which would lead to a success at Samsung would be through product innovation. Various innovations in the product would help the organization i.e. Samsung to provide their customers with high quality of products (Archibugi & Lundvall, 2001).

Hence, innovation has a potential scope & would also impact the success of Samsung. There has been a rapid innovation in the field of computers as well as telecommunication. The rapid improvement in the same has led to a success of the organization i.e. Samsung. With the help of the innovated technology an organization would be able to achieve sustainable competitive advantage over the other firms pertaining in the market (Evangelista, Sandven, Sirilli & Smith, 1998). The impact of innovations could also be seen at Samsung in regards to the increased level of competitiveness which is either based up on the cost or it is also based upon the up gradation of the technology. This would help Samsung to match up the forecasted demands which might create a pull effect & would lead to the growth in the quantity demanded. This would help Samsung to sustain in the highly competitive market & attain certain levels of advantage (Archibugi & Lundvall, 2001).

Logistics & warehousing: Logistics & Warehousing which have been used at Samsung adds the level of innovation. With the help of proper logistics & warehousing, the goods or products would reach the potential customers on time. This aspect takes into consideration the flow of goods from the point of origin till it reaches the point of delivery.

Marketing Design: The marketing design refers to the next best aspect to evaluate the innovation being practiced at Samsung. The designs of the various products which have been manufactured by Samsung are in accordance to the requirements of the customers. The unique designs practiced by Samsung helps them to be a step ahead of its competitors.

5. Detailed analysis of the market:

The detailed analysis of the market has been done with the help of focusing upon the various products which are offered by Samsung. The market analysis for Samsung would mainly take into consideration the long term growth aspects of the same. The market analysis would mainly take into consideration the Political, Socio Cultural, Legal, Technological & the Economic trends at Samsung (Badu, 2005).

The political trend takes into consideration the intervention of the government at Samsung. The economic trend majorly focuses upon the growth as well as the decline at Samsung. The social trends refer to the purchasing capacity & the buying power of the consumer. For example, if the consumer is willing to pay more to have a minimum standard of living, then Samsung as a company would grow in the years to come (Oxford University Press, 2011).

Changes in the technology would also have a positive as well as a negative effect on the growth of Samsung as a whole. Up gradation of technology by launch of the website would help the hotels in order to have an edge as compared to its competitors. Legal trend refers to the legislations which might affect the hotel industry. Different types of laws such as employment laws, etc might have a positive or a negative impact on the industry (Graham, 2006).

The factors mentioned above have been discussed in detail in the report. The report takes into consideration the 5 major elements i.e.:

Þ    Political Trends: The political trends refer to the intervention of the government at Samsung. Samsung as a whole has been referred t as backbone of the electronics industry (Graham, 2006). Hence, it could be regarded that any minute changes in the charges levied by the government officials would affect the entire electronics industry keeping in mind Samsung at large.

Þ    Economic Trends: While conducting the macro environment analysis the economic trend shall also be taken into consideration. This includes rise in the GDP, rise in the operating costs, increase in the purchasing power, etc. The economic factors such as change in the interest rates, growth of the society, exchange rates, etc might have a major impact at Samsung (Graham, 2006).

Þ    Socio-Cultural Trends: The socio cultural analysis takes into consideration the demographic as well as the cultural aspect of the entire society. The socio cultural trend would majorly consist of the three aspects i.e. rise in the standard of living, stability in the society & rise in the paying capacity of the people (Oxford University Press, 2011). Socio cultural trend would also have a positive or a negative impact on the electronics sector (Samsung). The change in the lifestyle & values of the society would have a drastic impact on the electronics industry. An increased standard of living would have a positive impact on the same. If the people would be willing to pay more, it would definitely lead to an increase in the revenue generated from the same (Badu, 2005).

Þ    Technological Trends: Recent technological change would also affect the electronics industry in both positive as well as and negative aspect. Up gradation in the technology would lead to a reduction the people employed. This might act as a bane as it might lead to unemployment (Badu, 2005).

On the other hand technological changes might act as an opportunity for the electronics industry to grow in the years to come. With the installation of the up graded technology, the electronics industry would have an added advantage as compared to its competitors (Oxford University Press, 2011).

Þ    Legal Trends: The legal trends refer to the legal environment in which the electronics industry operates. There are various legal factors or laws which might affect the growth of the electronics sector at large (Badu, 2005).

Some of the reason as to why innovation shall be practiced at Samsung could be done by keeping in mind the following aspects. They are as under:

Þ    Avenues for learning

Various learning could be done with the help of adopting the innovation strategies at Samsung.  The avenues learnt by innovating the product produced by Samsung would be to attract more number of staff & people as compared to its competitors, retain high range of people form varied backgrounds (Stefan, 2010), Kindle the members of the staff by providing them with the most challenging work, and encourage the people working in the organization to accept the work load, to practice high levels of stability within the organization as well as maintain healthy relations with the alliance or partners.

Þ    Continuous innovate & change

Continuous innovation & change should be practiced within the organization as it would help Samsung to compete with its competitors available in the tourism industry. As mentioned above that, Samsung refers to one of the most dynamic industry therefore; innovation would play one of the most important roles at Samsung (Paul, 2011).

6. How innovations have changed the businessInnovation has been referred to as one of the crucial success factors for any of the industries. This helps the organization in order to maintain its position in the market. Innovation would help in order to improve its existing products which would help Samsung to attain sustainable competitive advantage over its competitors (Stefan, 2010).

The impact of innovation within Samsung could also be seen with help of the technology which is being used by the organization. Use of high – tech technology used at Samsung would help in order to innovate the products offered by the firms. This would also help in order to expand its operations as well as increase its market share (Evangelista, Sandven, Sirilli & Smith, 1998). Use of better technology has helped Samsung to reduce of the costs, enhance the production line in the upcoming markets & decrease the number of competitors by manufacturing high quality of products in order to meet the demand of their clients.

Þ    The first reason as to why innovation should be practiced at Samsung is to maintain a competitive position in the tourism industry (Kay, 2010).

Þ    To sustain in the most effective as well as competitive environment.

Þ    To possess sustainable competitive advantage amongst its competitors.

Þ    Up lift the entire market share

Þ    Uplift the position in the marketExternal Forces

Þ    To subsidize the level of competition

Þ    To rely upon the various rules & regulations stated by the legislation (Paul, 2011).

Þ    Influence the competitors by taking into consideration the various marketing strategies by the company i.e. Samsung.

People

Þ    To attract more number of staff & people as compared to its competitors.

Þ    Retain high range of people form varied backgrounds (Mayle, 2006)

Þ    Kindle the members of the staff by providing them with the most challenging g work (Helen, 2009).

Þ    Encourage the people working in the organization to accept the work load

Þ    To practice high levels of stability within the organizationFinancials

Þ    To increase the levels of the shareholder’s returns

Þ    Increase productivity (Stefan, 2010).

Þ    Increase the levels of margins

Þ    To pursue high levels of funding

The five most important innovation lessons shall be learnt at Samsung which would be clubbed with new ventures & opportunities. The lessons have been discussed in the following portion of the report. They are as under:

Þ    Lesson 1: Cast the net wide to source opportunities

By innovating a particular product, the first lesson which has been learnt by Samsung is to widen its approach, scope & opportunities by looking in to the various other markets, firms, etc. Samsung should always work upon their mission, vision, values as well as the culture in which the company resides (Cooper, 1999). This would help Samsung in order to maintain their position in the minds of the customers.

Fair research & development shall be practiced at Samsung which would help the company in order to engage itself & be a part of the distributed knowledge. It must be noted that, all the investments which is being made by the organization in order to carry out the innovation process should be realized quickly (Archibugi & Lundvall, 2001).

Þ    Lesson 2: Metrics drive success

The second lesson which has been learnt by Samsung is to drive success with the help of innovation. When a company decides to innovate its product, it seems to be like a target for the company which is to be achieved & due response to be demanded form its clients.  It must be taken into consideration that, Samsung should focus up on dividing rather than multiplying if it wants its business to grow in the near future (Cooper, 1999).

Þ    Lesson 3: Deploy the right dedicated resources

The third lesson refers to deployment of the right kind of resources which would help Samsung to innovate the product in the most effective & efficient manner. It must be noted that, the businesses today should generate new ideas as well as manage the finance in the most appropriate manner. A focused as well as an innovative team would be required so that new, novel ideas could be generated which would help the organization in order to have an edge over the others (Archibugi & Pianta, 1996).

Þ    Lesson 4: Spinning straw into gold takes time

Innovation refers to one of the toughest jobs which create an opportunity for the company to raise & capture a chunk of the target market. It must be noted that, Samsung should know the right time i.e. when to conduct the innovation process. The companies should act sensibly & create competencies while innovating the product (Cooper, 1999).

Þ    Lesson 5: Properly configured governance de-risks the innovation process

The last lesson to be learnt while innovating the product would refer to the risk factor which would be involved in the entire innovation process. The lesson which is learnt by Samsung in this context would be to refer the appropriate authority, portfolio management & accountability of the various risks which would be involved in the entire innovation process (Archibugi & Pianta, 1996).

7. Conclusion:

Hence, it could be concluded that Innovation has been referred to as one of the crucial success factors for any of the industries. This helps the organization in order to maintain its position in the market. Innovation would help in order to improve its existing products which are manufactured by Samsung in order to attain sustainable competitive advantage over its competitors.Innovation has a potential scope & would also impact the success of the organization. There has been a rapid innovation in the field of computers as well as telecommunication.  The rapid improvement in the same has led to a success of the organization i.e. Samsung. With the help of the innovated technology an organization would be able to achieve sustainable competitive advantage over the other firms pertaining in the market (Evangelista, Sandven, Sirilli & Smith, 1998). The impact of innovations could also be seen by the increased the competitiveness which might be based either on cost or the up gradation of the technology. This would help in matching up with the forecasted demands which would create a pull effect & would lead to the growth in the quantity demanded. This would help the organization in order to sustain in the highly competitive market & attain certain levels of advantage (Archibugi & Lundvall, 2001).

  If you want Marketing management Assignment Help study samples to help you write professional custom essay’s and essay writing help.

Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.

To get more information, please contact us or visit www.myassignmenthelp.Com