Strategic Development and SWOT Analysis at Samsung - Case Study Example

Individual Strategy Assignment A value proposition is a ment that exemplifies a business’s strategy(Kowalkowski, 2011). The statement is about the way the firm proposes to employ its resources in order to deliver superior value to the customers. Value propositions provide anchor points to the market. From this point, all the marketing actions and business design are aligned. Definition and use of a value proposition helps in ensuring that the efforts of the firm are at par with the needs and wants of the market. The proposition should be relevant by explaining how the firm’s product solves the problems of the customer as well as improving their situation (Kowalkowski, 2011). It should also be quantified valued through delivering specific benefits. Unique differentiation is the other feature of a good value proposition by telling the ideal customer the reason they should buy from the firm and not from the competition. Examples of value proposition include the newness, performance, customization, usability and design, price, reducing costs, convenience and accessibility, as well as status or brand. Samsung Group is a multinational conglomerate company based in South Korea with its headquarters in Samsung Town, Seoul. The group is comprised of several subsidiaries as well as affiliated businesses, which are united under the Samsung brand making it South Korea’s largest business conglomerate. It was established in 1938 by Lee Byung-chul as a trading company. In the three decades that followed its inception, the group diversified into such areas like retail, securities, insurance, textiles, as well as food processing. Samsung got into the electronics industry in the late 1960s as well as shipbuilding and construction industries in the mid 1970s, areas that drove its subsequent growth. These are two of its most notable subsidiaries. Samsung’s value proposition for the Federal government would be: Samsung document workflows will enhance the government’s productivity, reduce its costs and unlike the existing solutions, allow governments to deliver better and new services to citizens (Kowalkowski, 2011). This value proposition was developed in line with several considerations the first being establishing the target customer as the Federal government. The next step was to establish the needs of the target customer by looking at the key challenges and trends involved with Federal governments. This was done through establishing the response of the government to the economic crisis on a global scale. The Federal government has shown ability and willingness to apply considerable economic power in a bid to temper financial turmoil effects and support long-term economic growth. In addition to enforcing economic regulations, Federal governments are offering business and legal advice, as well as financial support services. The need established in formulating a value proposition for the Federal government comes in the wake of the extra attention they are paying to streamline and standardize their administrative systems in order to improve on efficiency in service delivery (Kowalkowski, 2011). This value proposition also took into account the trend of federal governments to borrow business tools like surveys and scorecards in employing performance management as part of strategic planning. With the globalization era, there is a need for governments to deliver their services efficiently, as well as build collaborative operations that enhance the sharing of information across multiple jurisdictions and stakeholders. The firm has a significant industry footprint and has gained extensive insight and understanding of how to manage documents in every area of service offered by the government. In developing the value proposition, Samsung has made note of the technological gap where governments could be aided in improving several IT and business processes with the aim of reducing costs and improving service. Notably so, the area of document management provides an opportunity for the firm to increase the value for the Federal government. This is driven by the fact that governments provide many services of importance, which are driven by efficient sharing of information and document processing (Kowalkowski, 2011). The value proposition also takes into account the benefits that the customer will derive from products offered by the firm. These include integration and digitization of documents to support collaboration through easy sharing of materials by permitting permissions-based searching across all business and government levels. The other benefits would be support for multiple channels of communication, securing of information, and contributing to the government’s bid to go green through reducing energy draws and long-term costs by providing green printing supplies, packaging, and products. This differentiates the company’s products from its competition and what the Federal government is currently using in managing its documents. The first organizational task statement is; we understand the importance of effective communication to performance and management and have designed a solution in the form of cutting-edge laser technology that will streamline information sharing and storage. This supports the value proposition in terms of improving responsiveness and collaboration within and among government entities. The proposed technology will enable the government to transform critical processes of administration from paper-based, labor-intensive, and traditional documents to an efficient document management system that is electronic (Kowalkowski, 2011). Secondly, our solution and service offerings will eliminate manual document handling and tedious filling resulting in higher satisfaction among employees of the government. In line with the value proposition, this responsive service will aid in improving quality assurance and operational activities. Samsung’s document management solutions allow for customization of forms by officials, fulfilling specific printing requirements and needs through capability for rapid customization. Thirdly, we intend to help government entities by optimizing their printing environment in best cost-effective ways enabling them to reduce their printing costs. This supports the value proposition by providing cost-competitive supplies and hardware, which are tailored to the organization’s needs (Kowalkowski, 2011). The efficient machine layout and system architecture at Samsung serves every need and helps the organization to get maximum benefits in terms of document-solution expenditures. Fourth, we are committed to providing low-draw devices, as well as sophisticated toner-cartridge recycling program that will help the government to reduce its energy footprint. The company has a commitment towards raising environmental awareness through employing production methods, materials, and operating principles, which are environmentally friendly. A strategic job within the organization that will directly implement the value proposition at Samsung is that of Product Manager, Printer. The value proposition entails providing the Federal government with a solution to document management problems and the devices involved in respect to this are printers and copier devices. This strategic job entails development and management of MPF products, as well as A4 printers. The Product Manager Job involves formulating marketing strategies, carrying out market research, establishing product requirements, and defining the marketing mix. The Product Manager will also establish pricing forecast of sales while working closely with Samsung’s channel and sales marketing units. I consider this job strategic because the need established in developing the value proposition has everything to do with the development of suitable products to satisfy it. The Product Manager will be able to interact with government procurement agencies at a professional level and initiate dealings that will lead to business engagements with the Federal government. The responsibilities and duties that come with the position are important in considering this job as strategic to the value proposition. The Product Manager works closely with research and development in ensuring management of a successful product lifecycle, travels with the sales force to pay visits to key customers, identifies and values business opportunities, as well as supporting regions technical information or product-specific application. Demand supply forecasting for this job by Samsung might be usefully and practically carried out through a multidimensional approach that is both judgmental and statistical. The first step will entail completing an Employee Allocation Status Report by measuring the performance at various managerial positions in terms of departmental productivity. The next step will be to brainstorm with a panel of experts and the management board to establish the marketplace demands and the percentage of the market, which will be served by the firm’s services and products. Finally, a trend analysis should be conducted to determine the number of product managers that the firm will need in the event of introducing a new product. Supply of labor will be forecast in terms of the movement or exodus of middle and senior management talent in the nation. The trend of managerial talent steaming in and out of the industry will determine the availability of necessary labor to fill this job position. Samsung is in the electronic industry whose five forces analysis would be as outlined next. Threats of new entry are low. The electronic industry requires heavy/huge capital outlays that would act as a barrier to new entrants. This is strengthened by the constant innovation, as well as high scale economy coupled with government policy. All these act as barriers for new companies. The bargaining power of buyers is high in the electronic industry. This fact is supported by the almost non-existent cost of shifting/moving from one brand to the other. Information technology has contributed to this by providing customers with a wide range of alternatives. The bargaining power of suppliers is low. The industry boasts of a global band of suppliers giving none an upper hand. The company negotiates directly with its suppliers to obtain high quality products at low prices. The companies in the industry are larger than most suppliers giving them weak bargaining power. The threat occasioned by substitute products is high because their varied range of products is replicated throughout the industry under various brands. The company must build a good reputation to moderate this threat and retain a sizeable market share. Finally, the intensity of rivalry in the electronics industry is high. This is occasioned by the high exist cost and relatively intense competition. The case for highly intense rivalry is furthered by fixed storage costs and a short product life cycle as well as high R&D. Growth in the industry is slow intensifying competition. The SWOT analysis is a tool in strategic management that presents the company’s strengths, weaknesses, opportunities, and threats (Dyson, 2004). Samsung has a couple of strong points that include excellence in production and engineering of consumer electronics and hardware parts, design and innovation, focus on the environment, as well as ability to market their brand. It also has the advantage in low costs of production and its hardware integration with many open source software and OS. The company’s weaknesses include an extremely low profit margin, patent infringement, excessive product differentiation, as well as having main competitors as largest buyers. The opportunities and threats that Samsung faces are external to the company (Dyson, 2004). Samsung’s opportunities include the growing demand for application processors of high quality, growth of the tablet market, obtaining patents through acquisition, as well as the global digitization era demanding hi-tech electronics. Some of the threats facing Samsung include price wars in the industry, saturated electronics markets especially in developed countries, breached patents, and declining margins on hardware production. References Dyson, R. G. (2004). Strategic development and SWOT analysis at Samsung. European Journal of Operational Research, 152 (3), 631-640. Kowalkowski, C. (2011). Dynamics of value propositions: insights from service-dominant logic. European Journal of Marketing, 45 (1/2), 277-294. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86 (1), 25-40. Read More