Corporate venturing is the activity by which big company invest money in a smaller organization as an end-result of an offer of its benefits. This report creates a corporate entrepreneurship strategy for Samsung Company. The report explains the corporate venture plan of the company and involves a detailed plan for a specific venture, a strategy which engages general guidelines consistent with the objectives, mission, and goals of the company. The report also analyzes the external environment of the company and the entrepreneurial health of the company. The main objective of developing corporate entrepreneurship strategy is to create the key capacities of the parent affiliation and give a wellspring of cash related return for the parent organization.
According to Song & Lee (2014), Samsung is Korean based organization involved in the manufacture and distribution of electronic items. The headquarter of the company is located in Samsung Town, Seoul. The Company operates its business through three portions such as consumer segment, information, and technology mobile communication segment and device solution segment. Samsung has created to become one of the world's driving electronic associations, having some bent in cutting edge machines and media, semiconductors, memory, and structure mix. Samsung's inventive and best quality items and methodology are universes seen. The association scatters its things inside neighborhood advertise and to abroad markets. The income of Samsung is equivalent to 17% of South Korea's $1,082 billion GDP. It is also the largest seller of Smartphone in the world. The organization has hold double the market shares of the Smartphone to its closest competitor Apple. According to Ali, M., Muhammad & Park (2011), the market share of Samsung is also increasing for enhancing sales volume of TV, Refrigerator, speakers, smart home, home theater and smart appliance. Samsung has also held the top position in the global market at the Mobile World Congress (MWC) 2016, which is the biggest phone trade presentation in e world. Samsung has also become the 7th topmost brand in the world market, which has actually increased its brand value in the whole world.
Since the establishment of the Samsung Company in 1969, the organization has checked its prosperity based on numerous business segments and ideas that are basic to any business venture, particularly those that work in the extensive market. According to Amini et al. (2012), the Company has extended in numerous zones of business, the administrators of the organization have exploited key measures that are perceived to have a positive compelling way to deal with the business organization.
Samsung innovative methods: The innovative company tends to have characteristics of natural structures and dynamic systems. At in the first place, the diminishment of the definitive layer and scaling back are worried as cost control. The possible results for this are speedier responsiveness to publicize, higher intensity, more prominent flexibility, and diminishing strategies between divisions. This prompts compliment affiliation that is not quite recently the distinction in legitimate structure but also the distinction in the fundamental leadership process. The company innovation in screen innovation, batteries, TVs, and chip outlines is known to be uncommon in the market as contrasted and different players in the market.
Marketing Strategies: According to Baker (2014), marketing strategy refers to a procedure that can permit a company to focus its resources on the ideal opportunities with the objective of rising sales and achieving a sustainable competitive benefit. Samsung’s marketing strategies are described as follows:
Product Advancement: Samsung's item comprises sound and video things, data innovation things, PDAs and home apparatuses. According to Battistini et al. (2013), its product range enclosed all the classifications in the purchaser hardware and home machines. Specialists felt that the wide results of Company were one of the essential explanations for its accomplishment in the market.
Samsung's thing goes in India included CTVs, sound and video things, information advancement things, phones and home devices. Its products go covered each one of the courses of action in the purchaser gear and home machines. Experts felt that the wide thing degree of Samsung was one of the basic illuminations behind its achievement in the Indian market. Samsung masterminded itself on the advancement sort out. Samsung arranged on the improvement sort out and the assessing moreover wanted to have an accepted an essential part in Samsung's prosperity.
Distribution: The organization present of new things, Samsung likewise joined its diffusing structure. According to Chabowski et al. (2011), Samsung had 18 state-level circulation workplaces and a speedy shipper interface. The prompt merchant interface had any kind of effect the organization get a quicker reaction from merchants, and enabled it to launch items as per buyer taste and preference.
Advertising and sales promotion: Advertising is one of the huge devices of the promoting mix which is widely utilized by Samsung. According to Mittal and Sethi (2011), the most basic media publicizing endeavors consolidate live advertisements for Samsung Galaxy S 3 device on standard Jimmy Kimmy Live Show in June 2012. Samsung print advancing in well known daily papers, magazines, and journals have beforehand included direct effects on its significant rivals remarkably Apple. The print marketing contemplates genuine functionalities of iPhone5 and Galaxy S III and representing the prevalence of Samsung's items on a few fronts. Viral marketing is also to a great extent utilized by the organization as a standout amongst the most effective advancing method. On the opposite side, Company utilizes sales promotions as an advertising part more to a great extent contrasted with the majority of its contenders. It has been assessed that the organization had spent about USD 4.6 billion n deals advancements amid 2013 alone all around which included USD 888 million deals advancements anticipate its home market in South Korea (Cummins and Mullin, 2010).
According to Smith (2015), the researcher has followed descriptive research. Descriptive research is utilized as part of this project report with a specific end goal to recognize the brand value for Samsung in the world. This is the most famous kind of research method, which is normally used as a part of study explore and most valuable in depicting the attributes of customer conduct. The field was conducted to examine the market share and comprehend the brand goodwill of Samsung products. For example, the sample size was 100 in which 60 percent males and 40 percent females was the proportion of the respondents in this research. The age of the respondent in the following ratios:
Less than 18 years: 07.77%
18-22 Years: 37%
22-26 years: 28.39%
26-30 years: 15.49%
More than 30 years: 10%.
These numbers demonstrate that the majority of the respondents are youthful. The occupation of the respondents was also remembered while leading the overview to have a complete and comprehensive analysis. The occupation of the respondent was in the following ratio:
College students: 47%
Working population: 19%
Information used in this report is essentially primary data which is collected by survey in the field.
Methods of data collection
Primary data collection: According to Corsino & Gabriele (2010), the source of this data is the population sample from which information can be collected. The information was collected through the primary source.
Secondary data collection: Secondary data investigation saves time that would otherwise be spent gathering information and specifically in the case of quantitative data, gives bigger and huge-quality databases that would be unfeasible for any individual researcher to collect on their own
Data Analysis and Interpretation
Proprietorship Trends of Samsung Products:
From the given diagram, it can be said that the respondents use Samsung products such as cell phones (65%), tablets (4%), Television (7%), Home appliances (10%), Laptop (4%) and others (10%). These numbers present that Company mobile phones are the most commonly used device among customers.
The frequency of changing mobile phones:
From the given diagram, it can be said that the respondents are using mobiles phones less than 1 year, less than one year (60%), 1-2 year (20%), 2-4 years (10%) and above 4 years (10%).
Satisfaction level of Samsung product
From the given diagram, it is noted that the respondents are satisfied with company items in which 90% respondents are satisfied and 5% are not satisfied.
Findings and Conclusion
Customers are loyal and value the brand.
Samsung is appreciating favorable position against its customers and manage good relationship with the providers.
Samsung is financially strong and stable.
According to Epstein & Buhovac (2014), a situational analysis is a necessary part of any business or marketing plan and must be rechecked periodically in order to confirm that is kept current. The situational analysis also enables the business to identify its strength, weakness, opportunities, and threats to the company or business. There is the current situation which faces by Samsung such as high end competition from Apple, the increasing manufacturing cost in the best end of the market combined with the possibility of reducing averages offering costs would likely pressure the company's gross margin going ahead. The other circumstance is Samsung has a wide collection of item classes in which failure of one item will have an influence on the other item and will result in brand suspension and danger from Chinese products.
Samsung innovative strategy: Samsung is one of biggest producer of electronic products in the all over the world. The company development in screen innovation, batteries, television, and chi designs is known to be extraordinary in the market as contrasted and different players in the market. Company innovative strategy has natured a good connection with Russian Academy of Science, the two gatherings conceded to major methodologies that may prompt competitive benefit. Innovation at Samsung is advanced by the help that is given by Korea Government, the administration gave motivating forces to Korean business undertakings to create extends under the Academy research. Samsung Company is known to be a part of the offices that assistance Academy inquire about as it builds its patent consider well as misusing its intervention of ideas.
External environmental analysis
Technological Environment: Samsung viably uses the innovative progression of the developed nations for cultivating the business development. In addition, the technical innovation of the developed nations such as USA, UK, South Korea and others has driven the company towards consolidating innovative specialized characteristics in all their electronic items. The company gets a similarity of their innovative technology with the technological advancement of these innovatively advanced countries. The company is also focused on introducing 5G technology in the future having the help of such advanced technology.
Economic Environment: While considering the nation of origin of Samsung, it has been discovered that South Korea is an economically developed nation. Additionally, the economy of this country is based on the export of electronics and automobile items. Such developed economic state of the country has really raised the return on investment of the company. Moreover, the organization also uses the developed economic state of the countries like USA, UK, Australia, and others. The company has to extend retail space and extent of including more products in economic condition. Samsung faces less benefit profitability in the weak economic condition of some countries such as Myanmar, Malaysia, and others (Sife et al., 2010).
Competitive Environment: In South Korea, the company faces intense rivalry from the competitors such as HP, LG and so on. Such competitors are also giving sorts of electronic products to the customers (Morris et al. 2010). Moreover, high brand value and unique characteristics of Samsung electronic products have helped the organization to make special market position in its country of origin. Also, in South Korea, the company has encompasses 59.31 percent position in its overall industry. The quality and strategies of Apple are making extreme difficulties for Samsung in its home country as well as in the international market. Therefore, in the international market, Apple more market share than Samsung with their unique items characteristics.
Legal environment: According to Guerrero & Peña-Legazkue (2013), in the external environment, Samsung faces a wide assortment of legitimate and regulatory policies, which have a big impact in its hierarchical structure. Samsung needs to confront strict laws of the distinctive countries. Samsung has just got punishment for violating the patent laws and imitating Apple's the iPhone and iPad. Such allegation has hampered the corporate picture of the organization in the market. South Korea has facilitated trade agreement for upgrading exchanges and improved the benefit level from worldwide exchanges (Kelley, 2011).
By analyzing the external environment of Samsung Company, it has been concluded that there are some major opportunities and threats can be exist for company which are as follows:
Developed economy: Samsung has wide business opportunities in the developed economic condition of developed nations such as US, UK, Australia and others. In such developed economic condition, the organization has enormous chance to acquire expanding benefit.
Facilitated commerce understanding: The nation of origin of Company specifically South Korea has free trade agreement for running business. In such free trade agreement, the company can get adaptable business opportunities for doing both import and export identified with their business.
Competitive pressure: In the worldwide market, Samsung is confronting dangers from their rivals such as Apple, HP, Lenovo. Apple has held 27.80% part of the overall industry in the worldwide market, though Samsung has held 22% market share.
Changing consumer taste: The customer is expecting more technical innovative applications and characteristics in their all electronic devices. Therefore, it is becoming excessively difficult of the company to quickly altering their products characteristics as the changing client needs.
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