Table of Contents
Overview of Samsung companies’ innovation. 3
Samsung’s organisation and innovation history. 3
Samsung's current innovation capabilities and performance. 4
Study of the Market Situation and Samsung's Innovation Drivers. 5
Macro and competitive environment factors. 6
Competitive factors affecting Samsung in current market scenario. 7
Introduction
The following report will help to understand the concept of managing innovation in industry. The report will focus on past, present and future innovation of the industry. Samsung is a South Korean multinational business that has become one of the top technological businesses in the world. Since its founding in 1938, Samsung has developed from a modest trade business to a major player in the world of advanced technologies, with operations in a wide range of sectors (Hong et al., 2012). It also including telecommunications, semiconductors, consumer electronics, and air conditioners (Samsung.com, 2023). This audit will focus on Samsung's history of innovation, its present innovation skills and activities, as well as the motivations behind and characteristics of the markets it serves. The report will also help to understand the macro and competitive environment factors affecting the business along with both type of supply chain present in the scenario.
Overview of Samsung companies’ innovation
The industries in which Samsung competes are extremely competitive and dynamic, and businesses are always coming up with new ideas to keep up with shifting customer tastes and technological breakthroughs. For instance, the consumer electronics sector is known for its quick product innovation and condensed product lifecycles. On the other hand, the semiconductor business is characterized by fierce rivalry and the necessity for ongoing technical breakthroughs. Samsung is anticipated to continue making significant investments in R&D in 2023, especially in fields like 5G connectivity, AI, and the Internet of Things (IoT) (Park, 2023). The business has already started rolling out a number of cutting-edge goods and services in these sectors, including the Galaxy S21 smartphone and the SmartThings platform for smart homes. In addition to innovation, Samsung is also emphasizing sustainability and environmental responsibility. The corporation has pledged to attain net-zero greenhouse gas emissions by 2050 and is funding this aim with investments in technologies like eco-friendly building materials and renewable energy (Borowski, 2022).
Samsung’s organisation and innovation history
Beginning with its early attempts into textiles, food manufacturing, and commerce, Samsung has a long history of invention. Samsung started investing in electronics in the 1960s, and in 1970 it unveiled its first television (Kim, 1997). Since then, the business has led the way in several technical developments, including the creation of the first 64-megabit DRAM chip, OLED display, and foldable smartphone. Samsung is among the top patent filers in the world because to its proactive approach to patenting its innovations (Samsung.com, 2023). With more than 250,000 patents awarded globally, Samsung has made a substantial contribution to the development of technology. Samsung has introduced a number of novel goods and technologies that have significantly changed the market. The business introduced the Galaxy S6 and S6 Edge in 2015, which had an innovative design with curved glass and metal frames as well as cutting-edge camera technology (Samsung.com, 2023). Samsung unveiled the Gear S3 smartwatch in 2016, which blended a classic watch style with cutting-edge technologies like GPS tracking and an integrated speaker. Samsung has continued to develop in other fields in addition to its smartphone products. The business unveiled the FlexWash and FlexDry laundry systems in 2017, enabling consumers to wash and dry numerous loads at once. Samsung has also kept up its achievements in semiconductor technology, creating 5G processors and other cutting-edge parts (Samsung.com, 2023).
Samsung's current innovation capabilities and performance
Samsung continues to lead the way in innovation by making significant investments in R&D. The business, one of the top five R&D spenders globally in 2020 with an estimated $18.9 billion in R&D expenditures, spent this amount (Klingler-Vidra and Wade, 2020). The Internet of Things, artificial intelligence, semiconductors, 5G, and other topics are the main areas of concentration for Samsung's R&D. Samsung's vast product range, which includes everything from smartphones and household appliances to semiconductors and display technologies, further demonstrates the company's innovative skills. Each generation of Samsung's Galaxy smartphone line includes new features and technical breakthroughs, serving as a shining illustration of the company's capacity for innovation. The new AI-powered house robot, Bot Handy from Samsung, was one of the most intriguing developments. The robot can identify and pick up things of varied colours, sizes, and weights and is intended to assist with home duties. Moreover, it can set the table, pour beverages, load the dishwasher, and more. The Bot Handy is the ideal illustration of how Samsung is enhancing our daily lives with AI and robotics. A new series of smart Televisions from Samsung that use Micro LED technology was also presented. With deeper blacks, brighter whites, and more vibrant colours, the Televisions' increased image quality creates an immersive watching experience unlike any other. The Samsung Health Smart Trainer was another new invention that Samsung unveiled at CES 2021. An AI-powered fitness system called The Smart Trainer offers individualised coaching and training (King, 2022). In addition to innovation, Samsung is also emphasising sustainability and environmental responsibility. The corporation has pledged to attain net-zero greenhouse gas emissions by 2050 and is funding this aim with investments in technologies like eco-friendly building materials and renewable energy. Another significant area of innovation for Samsung in 2023 is anticipated to be healthcare technologies. The Samsung Health platform and the Galaxy Watch Active 2 are just two of the unique healthcare products the business has previously introduced. It is anticipated that it will continue to make investments in this market to meet the rising demand for linked health and wellness goods.
Study of the Market Situation and Samsung's Innovation Drivers
Samsung has created its Sustainable Procurement Policy, which outlines standards for purchasing products and suppliers in an ethical and responsible manner (Mazharul Islam, 2020). This policy contains a promise to guarantee ethical labour methods, appropriate mineral sourcing, and environmental management. Rapid change and fierce rivalry are hallmarks of the technology sector. These characteristics are caused by a variety of causes, including shifting customer tastes, developing technological capabilities, and shifting geopolitical dynamics. Companies in this climate must constantly innovate to stay competitive and satisfy client needs (Kim, 2019).
The continuous worldwide scarcity of semiconductors is a major element affecting Samsung's market position. The availability and price of crucial components used in Samsung devices, including smartphones and laptops, have been impacted by this shortage. Samsung has addressed to this issue by investing in its own semiconductor production skills and expanding its supply chain to lessen its dependency on a single source or area. Samsung's main focus when it comes to innovation drivers is on creating new technologies that can enhance the user experience and set its goods apart from rivals. 5G connection is one important area of study since it is thought to be a vital engine for future innovation in sectors including healthcare, transportation, and entertainment (Khanh et al., 2022).
Samsung is spending a lot of money on machine learning and artificial intelligence (AI) technologies, which may be used to automate processes and enhance the functionality of its products. For example, Samsung has created an AI-powered camera system that can automatically modify camera settings based on the situation, enhancing the quality of photographs and videos recorded by users (Toma and Catan?, 2021).
Macro and competitive environment factors
An extensive range of macroeconomic and competitive variables have an influence on the industry in which Samsung works. The capacity of Samsung to innovate, create new technologies, and manage its upstream and downstream supply chain partners successfully are all significantly impacted by these issues. In current situation global economic conditions are one of the main macro elements that affect Samsung's technical development and innovation. Economic downturns in different countries such UK, USA can affect Samsung's capacity to spend in R&D by reducing demand for the company's goods and services (Wu et al., 2022). Strong economic conditions, on the other hand, may present Samsung with opportunity to add new products and services to its portfolio. The laws and policies of the government are another important macro component (Murinde et al., 2022). The highly regulated sector in which Samsung works may have an influence on the company's capacity for innovation and the creation of new technology. Changes in trade rules, for instance, may affect the cost and availability of essential materials and components, which may affect Samsung's capacity to create and market new products. Also, Samsung competes in a highly competitive sector that is influenced by a variety of market dynamics. One of the most critical competitive variables is the rapidity of technological development. Samsung competes with other firms that are spending extensively in research and development, and the rate of technological change can damage Samsung's capacity to remain competitive.
Supply chain
Samsung is a part of intricate supply chains with many upstream and downstream players. For instance, Samsung collaborates extensively with equipment producers and raw material suppliers in the semiconductor business. Samsung collaborates with software and content suppliers in the consumer electronics sector to provide its clients a full ecosystem (Kim and Cho, 2023).
Upstream- The raw material, component, and equipment providers are all part of Samsung's upstream supply chain. To make sure that its suppliers follow the company's sustainability criteria, Samsung works closely with them. The business has established a Supplier Code of Conduct that spells out the moral and responsible requirements that its suppliers must adhere to. The code addresses a number of topics, such as ethical mineral sourcing, environmental management, and labour policies. Samsung regularly evaluates and audits its suppliers to verify compliance with its environmental criteria (Sutoova and Koca, 2022). Moreover, the business offers assistance and support to its suppliers so they can fulfil its sustainability standards. Also, Samsung frequently interacts with its suppliers to learn about their needs and together create innovative solutions.
Downstream- Retailers, distributors, and other partners involved in the distribution and sale of Samsung products make up the downstream supply chain for Samsung. In order to guarantee that its goods are supplied to clients successfully and efficiently, Samsung works closely with its downstream partners. Samsung has put into place a number of measures to simplify its downstream supply chain in order to achieve this. The business has built a worldwide distribution network that enables it to swiftly reach clients (Suleman et al., 2021). Samsung also collaborates closely with its retail partners to create cutting-edge marketing and merchandising plans that increase sales. sustainability is a key component of Samsung's downstream supply chain management. The business has established a recycling programme that enables consumers to ethically recycle their Samsung goods.
Competitive factors affecting Samsung in current market scenario
There are several different competing forces that will impact Samsung's innovation in 2022 and beyond. The growing competitiveness in the global smartphone industry is one important cause. Other smartphone makers, like Apple, Xiaomi, and Huawei, who are also making significant investments in cutting-edge technology like 5G connection and AI, pose a serious threat to Samsung (Bojic et al., 2022). The growth of novel and emerging technologies, such virtual and augmented reality, has an influence on Samsung's innovation. The traditional smartphone and consumer electronics businesses might be significantly disrupted by these technologies, hence Samsung is making significant investments in the creation of new goods and technology that can benefit from these tendencies. Also, Chinese producers are becoming a bigger threat to Samsung in the global electronics industry (Jolly, 2022). Firms like Xiaomi and Huawei have been substantially spending in R&D, and they are expanding their market share in important product categories like smartphones and wearables (Jolly, 2022). The growing significance of sustainability and environmental issues is another important competitive aspect influencing Samsung's innovation. Customers are becoming more and more concerned about how technology affects the environment, therefore businesses who are recognised as industry leaders in sustainability and eco-friendliness.
Conclusion
Samsung's dedication to innovation is evidenced by its history of invention, present innovation initiatives and capabilities, and the dynamics and character of the markets it serves. The business competes in markets that are very competitive and need ongoing innovation. The enormous R&D investments made by Samsung and its wide range of products speak volumes about the company's capacity for innovation. The company's alliances and relationships with players in the upstream and downstream supply chains further reflect its dedication to innovation and quality. Focusing on sustainability and ethical sourcing is in line with the company's larger commitment to corporate social responsibility.
References
Chan Kim, S., 2019. Innovation through Inter-organizational Cooperation: How to Manage Organizational Challenges in Cooperation with Partner Companies in Open innovation? A Case Study of Samsung Electronics.
Samsung, 2023. Samsung [online] Available on: <Products https://news.samsung.com/global/samsung-introduces-latest-innovations-for-a-better-normal-at-ces-2021> [Accessed on: 31 March 2023].
Samsung.com, 2023. Samsung [online] Our Business Available on: < https://www.samsung.com/us/ > [Accessed on: 31 March 2023].
Suleman, D., Zuniarti, I., Marwansyah, S., Kuspriyono, T., Riftiasari, D., Rusiyati, S., Suharyadi, D. and Ariawan, J., 2021. The Effect of Product Innovation on Samsung Smartphone Product Purchase Decisions Through Brand Equity as Intervening Variables in the Tokopedia Marketplace. Journal of Industrial Engineering & Management Research, 2(5), pp.188-203.
Toma, S.G. and Catan?, ?.A., 2021. Innovative entrepreneurship in the business of electronics: The case of Samsung company. Network Intelligence Studies, (18), pp.131-135.
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