HS001: ENTREPRENEURSHIP DEVELOPMENT

Special Assignment
‘Business Model Analysis for SAMSUNG’

By:
Jagrat Jhamb (17BEC036)

Under the Guidance of:

Prof. P S Vellala
(Department of Mathematics and Humanities,

Institute of Technology, Nirma University)

 Introduction:
SAMSUNG is one of the leading companies of the world with the net worth being
$275 Billion as of March 2020.
This Korean giant was founded by Lee Byung-chul in 1938 as a trading company.
Over the next three decades, the group diversified into areas including food
processing, textiles, insurance, securities, and retail. Samsung entered the
electronics industry in the late 1960s and the construction and shipbuilding
industries in the mid-1970s; these areas would drive its subsequent growth.

 Business Model:
 Key Propositions:
Samsung being a leading tech giant focuses on futuristic designs. They believe in
innovation and devoting the talent and technology to create superior product and
services for the betterment of world. The other Key Proposition of Samsung is that it
has a product for every type of customer. Wide range of products, covering every
price range, is one of the USP of Samsung.

 Customer Segment:
Samsung sells its products all over the world. It has a good chunk of shares in the
global market.
Early Tech adopters are one of their interests. Multi industry companies also fall in
their customer segment.
As Samsung has products in all price ranges, it has its customer in all the financial
domains of the world.
For example: Samsung has its mobile phones in India ranging from as low as Rs 1500
to Rs 1.5 Lakh.

 Customer Relations:
Samsung believes in reaching to each of its customers and connect with them on the
personal level. They have various loyalty programs and maintain online as well as
offline relationship with their customers. They keep their customers in touch with
personal assistance, customer experience and after sales service.

 Channels:
Samsung reach their customers via various platforms. They have their customer
experience exclusive stores; they have their distributors and retailers. They sell their
products online via different E-commerce platforms. They have a strong social media
presence and also display their products via events.
 Key Activities:
Samsung has its major role in R&D sector, developing the leading technology. It’s
focus is on manufacturing products like smart phones, refrigerators, washing
machines, televisions, etc. Also, distribution and sales of goods is one of its key
activities. Apart from electronics, Samsung is also in ship building and construction
business. World’s tallest building, Burj Khalifa was also built by Samsung.
After sales services is something Samsung focuses on as one of their key activities.

 Key Partners:
Some of the key partners of Samsung are:
 Investors
 Joint Ventures (GE, Sony, etc.)
 Affiliated Companies
 Acquisitions
 Suppliers
 Telecom Companies
 Android (Google)
 Conglomerate Industries

 Key Resources:
One of the major key resources for Samsung is their Brand Value itself. Samsung has
a brand value over the world and is much respected for it. Also the people at
Samsung are one of their key resources. They are Samsung’s unsung heroes.
Intellectual property as well as know how are the other resources. For its
manufacturing process all the raw material as well as readymade material from its
partners are its resources.

 Cost Structure:
A major chunk of money goes in R&D and it is one of the prime focuses of Samsung. Another
chunk goes to manufacturing and machinery. Advertisement and marketing are the other
domains Samsung spends. Salaries, shipping cost, royalties are also other costs. Samsung
also acquire companies as well as they do invest in capital incurring cost.

 Revenue Stream:
Sales of goods is generates the major revenue for Samsung. Samsung also receive
royalties for its IPs. Samsung also charges for the after sales services and repair
costs. Licensing also gets Samsung money. Samsung also earns money from its other
non tech services.