Samsung Value Chain Analysis - Research-Methodology (2024)

FAQs

What is the methodology for value chain analysis? ›

Value chain analysis is a process that requires four interconnected steps: data collection and research, value chain mapping, analysis of opportunities and constraints, and vetting of findings with stakeholders and recommendations for future actions.

Samsung's integration of Six Sigma expanded to utilize the Six Sigma DMAIC process in manufacturing and the design stage of developing new products. This process is a cornerstone of the Six Sigma method and involves five phases. These phases are: Define, Measure, Analyze, Improve, and Control.

The value chain framework is made up of five primary activities -- inbound operations, operations, outbound logistics, marketing and sales, service -- and four secondary activities -- procurement and purchasing, human resource management, technological development and company infrastructure.

Value chain analysis is a strategic tool for evaluating a company's activities that allow it to transform inputs into outputs. Businesses use the tool to determine the best ways to create a competitive advantage by identifying which activities are the most valuable to the company and which ones they can improve.

A thorough value chain analysis can illuminate the business system to facilitate outsourcing decisions. To decide which activities to outsource, managers must understand the firm's strengths and weaknesses in each activity, both in terms of cost and ability to differentiate.

A value chain is used to describe all the business activities it takes to create a product from start to finish (e.g., design, production, distribution, and so on). A value chain analysis gives businesses a visual model of these activities, allowing them to determine where they can reduce costs.

The promising Samsung marketing strategy focuses on leveraging the power of exceptional marketing campaigns to promote its products and appeal to the audience. Social media ads, sponsorships, and online advertising strengthened the brand.

Samsung marketing strategy is to identify developments in the market trends, adapt to dynamic changes, and produce products that the target market demands. Samsung is a customer-centric brand with a diverse product offering in the consumer electronics industry.

JS: Samsung's management style is a hybrid of the best from the Japanese and American approaches to management (Korean style of management in the early 1990s was very similar to Japanese style of management).

Components of a Value Chain

According to Porter's definition, all of the activities that make up a firm's value chain can be split into two categories that contribute to its margin: primary activities and support activities.

What are the three key elements of value chain analysis? ›

Three main steps can be distinguished in value chain analysis: (1) Identify the main functions and types of firms in the value chain; (2) Analyze structural connections; and (3) Analyze dynamics.

The primary activities of the value chain include inbound logistics, operation outbound logistics, marketing and sales, and service. Secondary activities or the support activities include firm infrastructure, human resources management, and procurement.

A value chain refers to the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes.”

A chief disadvantage of this type of analysis is that a company's overall vision and strategy may get lost or muddied when operations are broken down into fine segments.

The five key (primary) activities that generate higher profits include inbound logistics, operations, outbound logistics, marketing and sales, and services.

Advantages of Value Chain Analysis

With value chain analysis, you can easily identify those activities where you can quickly reduce cost, optimize effort, eliminate waste, and increase profitability. Analyzing activities also gives insights into elements that bring greater value to the end user.

A prime example of a business creating value for its customers and following the value chain framework is Starbucks. Through its operations, the company creates connections worldwide, guarantees high-quality flavors and works to build a sustainable future.

Value analysis example

This analysis includes the manufacturing process cost and proposes ways to increase value or function at the existing cost or remove cost while preserving function and quality. Optimizing a plastic bottle closure design is an is an example of VA.

The best value chain example is the car manufacturing industry, where companies use both approaches of value chain analysis to create value for the customer depending on their target market.

Which tool is used for value chain analysis? ›

The FAO VCA-Tool software allows you to create an accounting framework for value chain analysis and to compare different scenarios. It also helps you to build and handle your own database.

About the Porter's Value Chain Model (aka Value Chain Analysis template) Commonly known as the Value Chain Analysis, Porter's Value Chain Model is a much-used method to evaluate a business's competitive edge and improve processes to have fewer bottlenecks and add more value to your customers.

Samsung is more innovative and flexible and its wide product portfolio has several great products. Strategy is also a key factor that enabled higher success for Samsung. Its global business strategy and product strategies are far better than most competitors.

Samsung will focus more on 5G smartphones in 2023, increasing the share of revenues from 5G smartphones from 61% in 2022 to 75%, as it looks to consolidate its market leadership in revenue terms this year, a company executive told ET.

The Korean tech giant will adopt a new strategy that essentially aims to boost the competitiveness of its smartphones - even at the expense of profitability. In fact, Samsung will ostensibly be dropping its cost-reduction mindset altogether.

Three key strategic pillars that are now part of our culture, business operation and management describe the governing initiatives to this end: 'Creativity ', 'Partnership' and 'Great People'. We pride ourselves on delivering the world's best products through operational excellence and innovation prowess.

Based on its vision statement, Samsung's strategic objectives include the development of products that inspire. This inspirational aspect requires the company to consider local and regional market conditions to ensure that its technological products inspire people despite differences in their societal situations.

Samsung follows a simple business philosophy: to devote its talent and technology to creating superior products and services that contribute to a better global society. To achieve this, Samsung sets a high value on its people and technologies.

Other generic competitive strategies, such as cost leadership, differentiation focus, and cost focus, are also applied in Samsung's operations, but to a limited extent. Cost focus leads to the company's being a best cost provider in some segments of the semiconductors and electronics components markets.

What are the leadership approaches in Samsung company? ›

We have noted that Mr. Lee Kun Hee has learnt the art of applying all the three leadership styles: autocratic, participatory and delegative to enhance the management and the success of Samsung Company.

The purpose of a value-chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost.

Value analysis is based on the application of a systematic workplan that may be divided into six steps: orientation/preparation, information, analysis, innovation/creativity, evaluation and implementation and monitoring.

In the field of value investigation, value refers to economic value, which itself can be sub-divided into four types as cost value, exchange value, use value and esteem value.

In a manufacturing company, the process of manufacturing and after sales service itself will be a primary activity. Thus, we can see that primary activities are the most important to a value chain.

Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.

Porter identified four supporting factors in a value chain: Infrastructure, human resources, technology development and procurement.

Value chain analysis is the process of examining each of those activities in terms of what they cost, the value they deliver, and how they might be optimized in keeping with the company's competitive strategy. It also looks at how the various activities interrelate.

What are the two approaches for a value chain analysis? ›

There are two approaches to the value chain analysis: cost and differentiation advantage, according to Strategic Management Insight.

Three main steps can be distinguished in value chain analysis: (1) Identify the main functions and types of firms in the value chain; (2) Analyze structural connections; and (3) Analyze dynamics.

Value Chain consists of two major categories of activities—primary and supporting. The latter includes activities that improve the efficiency of the former. Types of Value Chain are firm-level, industry-level, and global value chains.

What is an example of a successful value chain? A prime example of a business creating value for its customers and following the value chain framework is Starbucks. Through its operations, the company creates connections worldwide, guarantees high-quality flavors and works to build a sustainable future.

Value chain analysis is based on the principle that organisations exist to create value for their customers. In the analysis, the organisation's activities are divided into separate sets of activities that add value.

Value analysis is based on the application of a systematic workplan that may be divided into six steps: orientation/preparation, information, analysis, innovation/creativity, evaluation and implementation and monitoring.

More Reasons Why SmartDraw is the Best Choice for Value Chain Analysis and Other Types of Strategic Planning Diagrams. You and your team can work on the same value chain analysis by saving it to a shared SmartDraw folder or by using your favorite file sharing apps like Dropbox^®, Google Drive^® , Box^® or OneDrive^®.

SWOT is a simple and widely used tool for identifying a company's strengths, weaknesses, opportunities, and threats. Value Chain analysis helps to understand the different activities that go into creating a product or service and how they relate to one another.

Value chain analysis and SWOT analysis are two popular tools for strategic management and planning. They help you identify and evaluate your internal strengths and weaknesses, as well as the external opportunities and threats that affect your business performance.

What are the three major elements of the value chain? ›

A business's value chain describes the activities, resources and business functions involved in the creation and delivery of your company's offering, usually grouping them into three major categories: People, Assets and Processes.

The value chain is a business model used to examine all company activities involved in taking a product or service from idea to sellable item. Ideally, companies can use the value chain model to strengthen their point of view and widen their profit margin—more efficiency and fewer costs.