- Creating Value for Customers.
As the years go by, the value creation is based more on innovation than anything else (Hughes, 2013). The smartphone has made communication much easier and much faster. It is now possible to have access to the internet, personal emails, social media and other apps on your mobile phone. This has changed the way communication is viewed and contributed to the development of mobile technology. Technology companies such as Samsung realize that it is necessary to ensure that the smartphone is not only able to offer these services efficiently but that it meets the needs of the customer. This is one of the reasons why smartphone technology continues to evolve as technology companies develop new software and applications that improver user experience and address the needs of the consumer.
- Role of the Customer in the Company’s Strategic Plan.
Strategic planning refers to a continuous and systematic process in which the guiding members of an organization make decisions concerning the future as well as develop the necessary operations and procedure to meet this end as well as determine how success is to be measured (Federal Benchmarking Consortium, 1997). The customer is the voice that drives the operations of an organization and charts its course for the future. The customer determines the profit the company makes by choosing to buy their products. The customer also determines the reception of the market to a new product launched into the country. Samsung has one core philosophy: to devote its talent and technology to creation superior products and serves that contribute to a better global society (Samsung Electronics, 2015). It is a people oriented mission statement, which reflects the company’s objectives which focus on the customer. The company places high value on two elements: the customer and technology.
- SWOT analysis.
Strength- Very high research and development expenditure which has resulted in the company having one of the strongest patent portfolios among the technology companies (Jurevicius, 2015). In the technology industry, innovation is the pace setter. This translates to the company having the largest resources in research and development coming up with more innovative products. This sets Samsung apart from its competitors.
Weakness- Samsung mobile launched a number of models into the market in the recent past. This has resulted in cannibalization which creates a negative business environment to thrive in.
Opportunity – the company has global presence in only eighty countries which implies that there are many more markets it can explore
Threats – The company has a wide variety of products which means that the failure of one product line will have a ripple effect on other products. This can result in brand dilution which will negatively impact its market share.
- Competitive Analysis.
The table below is a competitive analysis based on a rating where 5 is the highest rating and one is the lowest. The rating is based on price, mobile applications and the user interface.
|Price||Applications||User Interface||Total Points|
Based on the above table, while Samsung ranks the highest in terms of price, applications and user interface, it is closely followed by its competitors. Apple is created with a specific target market in mind and it is noted to cost much more than the other two. Nokia is a common mobile brand that specifically focuses on mobile technology. While the company had the lowest score in the applications it offers, it is making an effort to partner with software companies such Microsoft to improve this. The result is the ability to respond to the needs of the customer.
Competition is tight in the smartphone mobile industry and unlike the other companies, Samsung also has a division for developing electronic appliances and device solutions. This implies that it runs the risk of exposing itself to brand dilution in the event that any of the products it offers is not well received in the market (Jurevicius, 2015).
Federal Benchmarking Consortium. (1997, February). Serving the American Public: Best Practices in Customer-Driven Strategic Planning. Retrieved from library.unt.edu: http://govinfo.library.unt.edu/npr/library/papers/benchmrk/customer.html
Hughes, J. (2013, May 17). What Value Creation Will Look Like in the Future. Retrieved from hbr.org: https://hbr.org/2013/05/what-value-creation-will-look-like-in-the-future
Jurevicius, O. (2015, June 18). Samsung SWOT analysis 2015. Retrieved from strategicmanagementinsight.com: http://www.strategicmanagementinsight.com/products/swot-analyses/samsung-swot-analysis.html
Samsung Electronics. (2015). Samsung’s philosophy and goals. Retrieved from samsung.com: http://www.samsung.com/uk/aboutsamsung/samsung/valuesphilosophy.html