Business plan for samsung Essay Example
Table of Contents
Executive Summary 2
Market Feasibility 3
Technical Feasibility 5
Human Feasibility 7
Financial Feasibility 8
The report which looks to present the feasibility analysis for Samsung looking to launch a handset in India presents the fact that product venture looks feasible or not. The analysis is carried out in four parts which are market feasibility, technical feasibility, human feasibility and financial feasibility. It is seen that the market feasibility analysis presents the fact that the proposed venture is feasible as the demand for high end trendy handset is increasing and the market is attractive which would ensure better results. The technical feasibility shows that Samsung has the required technical knowhow and has the required technical knowledge to make changes in the product so that they become more acceptable among the people. In a similar manner the human feasibility shows that the already developed network, efficient work force and experienced managers will ensure that the overall work can be carried out in the most effective manner. Finally, the financial feasibility shows high rate of returns in the future as there is a demand for product and would thereby ensure high returns in the future. Thus, the overall report presents the fact that the proposed venture is a feasible one and would ensure better opportunities in the future.
This report looks to present the feasibility report for Samsung which is planning to launch a new handset in the Indian market. The report looks to provide the feasibility analysis with regard to market feasibility, technical feasibility, human feasibility and financial feasibility. This will help to understand whether the proposed venture is a profitable one and the manner in which the business will be able to meet the different needs and ensure increased customer satisfaction.
Samsung which is planning to launch a new handset in India considering the wide market and opportunities it presents is looking towards analyzing the market feasibility of launching the new product. The analysis will primarily focus towards three major areas i.e. industry attractiveness, market timeliness and identifying the niche market for the new handset which is to be launched by Samsung
Industry Attractiveness: The mobile industry in India looks like an attractive market given the manner in which the demand for latest and trendy handsets is growing. The huge population which is young has shaped the markets as people are willing to spend a large portion of their income on consumer durable products. This thereby creates an opportunity for Samsung to be able to penetrate the market deeper. The following data presents the manner in which the demand for handsets have grown
It is quite evident that the demand for high end value handsets is rising at a rapid pace which makes the market very attractive for Samsung as the newly launched handsets will look to attract people from this very segment. In addition to it the high growth rate which the economy is witnessing would result in higher disposable income. This creates an opportunity for the different players in the market to use those as it would transform into demand for costlier products. Further the manner in which India is developing and new markets are being created it multiplies the opportunity for Samsung as it would help them to penetrate deeper in the markets and create a niche segment for their products.
Market Timeliness: The juncture where Samsung is looking to come with a new product which will offer something extra to its customers is appropriate. Since, Samsung has not come with something new for some time so the brand is slowly diminishing. Being able to deal with it and come with a new product will ensure better market timeliness and would provide an opportunity through which different needs will be better catered (Mathews, 2003). Further, the market is searching for handsets which offers customers something new as customers are constantly on a search for it. Samsung through their new offering will be able to ensure that they will be able to offer the same to its customer thereby ensuring a proper timing to enter the market where the different needs of the customers can be properly met.
Identifying a niche market: Samsung through its offering is looking towards catering to the needs of the niche market. Samsung with their new handset is looking towards attracting the elite group of customers who are willing to spend extra for the different features being offered in the handsets. In addition to it the pricing has been done for high range customers that are increasing. Identifying the correct market and looking to position their product as a high range product will ensure better competitiveness and would provide an opportunity for Samsung to be able to identify the market through which its different needs will be better met.
Thus, the overall market feasibility highlights an opportunity for Samsung to be able to cater to the different needs and requirements of the customers. The overall situation presents an opportunity through which Samsung will be able to meet the market requirements and would thereby be able to ensure that customer satisfaction is enhanced.
This aspect looks at understanding the manner in which the business has the technical know how to deal with the changes that the environment presents. Having the technical strength will ensure that the business will be better positioned to carry out the venture and would meet the different needs of the customers. This will look at analyzing the manner in which Samsung has technical know how about the product, industry requirements and dealing with technical changes. The complete details are as
Technical knowhow: Samsung has already developed a prototype and have tested it. The result has been positive and presents an opportunity to ensure that customers look to purchase the product. Further, being in the industry for quite a long time now has helped them to garner the required knowledge and expertise which would help them to carry out the activities in a proper manner. Having the required technical knowledge have ensured that Samsung is better positioned to deal with the technical needs and having a tested prototype will ensure that acceptability of the product multiplies.
Industry requirements: The manner in which the Indian handset industry is evolving requires the player to undergo the required changes. Since, Samsung has looked to develop a product which is absolutely new and different from other players in the market it thereby ensures differentiation. This changes is as per the changes which the industry requires and thereby creates the opportunity which can be banked on. Samsung while looking to develop the new product has understood the industry needs and have ingrained the same changes in the working procedure (Mason and Gerard, 2007). This has helped them to meet the industry requirements and would entail towards working on the different parameters through which overall business performance will be performed. Samsung has thereby been able to meet the industry needs and have been able to make changes in the required product.
Dealing with technical changes: Samsung already has a research and development team which is looking towards making changes in the product if some technical problem arises. The team in place has the required skills to add and delete new features and make the technical changes so that the handset becomes more attractive and looks newer. In addition to it having an after sales service department which looks to solve the issues which the handsets might present will help to deal with the customer needs.
Thus, Samsung has the required skills and expertise in relation to the technical aspect which would thereby help them to carry out the proposed venture in the most effective manner. This will ensure that Samsung will be able to undergo with the process of carrying out the venture in the effective manner.
This aspect looks towards analyzing whether the business has the required management prowess, organizational competence and resources to deal with the different needs of the business. This aspect considers the human needs in different parts and looks at understanding the manner in which the long term success of the business can be ensured. Samsung has to look at matching its resources with the required different areas so that they are able to identify the fundamentals based on which the success will be determined. The complete description is as
Management Prowess: This aspect shows that the management has the required skills with regard to expertise, knowledge, skills and other human related aspect which will ensure that the business becomes successful. Samsung is already working in India and has their required network which will help the management to be able to formulate policies. The managers and other competent person at the management level understand the economy and are in a position where they can determine the long term strategies (Cohen, 2007). Since, there is no substitute for human element so having the required expertise and skills at the top most level will help to execute the plans in a better way.
Organizational Competence: Samsung on a whole is competent to be able to execute its policies as the company is in operations. The organization has performed fairly well which entails to the fact that the organization is competent to deal with the different challenges that the situation presents. This has helped Samsung to be able to work on its core strength and look towards having the required resources which would ensure better customer satisfaction (Gooderham & Nordhaug, 2003). The competence of the organization can also be gauged from the manner in which the organization has different people with different skills performing at different levels and being able to execute the plans as per the needs and requirements. This has helped to ensure that the overall competency has helped to create a niche market and ensure better customer service enhancement.
Resource Sufficiency: Samsung has the required resources which will facilitate them in carrying out the different activities. Samsung has the required finance, human resource, network and logistics in place which will help them to carry out the different activities in a proper way. In addition to it the resources look to undergo the required changes as per the changes in the environment so that they are able to carry out the different functions and activities in a manner which would help them to ensure better effectiveness. Samsung thereby has all the resources which would enable them to ensure that they can carry out the different functions in the determined manner.
Thus, Samsung has the required human resources and are in a position to carry out the different activities in the most effective manner. Further, the human element in Samsung undergoes the required training and is in a position through which they will be able to ensure that launching the new product becomes feasible. This will help them to ensure better use of resources and will be effective in all manners.
This section will look at examining the manner in which Samsung is feasible in meeting the different financial needs so that business can be carried out effectively. This section will look at examining whether Samsung has the required start up cash for the business, the performance of other players working in the same arena and the overall financial attractiveness of the venture. The details of the complete details are as
Total Start up Cash Needed: Samsung will need to invest heavily for carrying out the venture as they will have to create awareness among people. In addition to it strategies have to be formulated to ensure proper marketing and sales strategies. The overall process would require investing heavily and the business would need start up cash. Along with it the situation would also require credit to be given to certain business partners which would mean increase in investment (Peng & Luo, 2000). The present financial situation highlights that Samsung is in a position where they can invest in the required arenas. Samsung has the required backup due to the fact that they are already working in the same field. This will reduce the investment in consideration to other new players looking to enter the market. Further, Samsung has the required reserves which they can use for start up capital and would thereby ensure that the business will be better placed to carry out the business activities.
Financial Performance of Similar Business: The performance of other players working in the same business shows an opportunity of earning high profits in the future. Since, the Indian market is constantly growing so it increases the overall opportunity of earning more and more profits in the future. Other players which are dealing in similar business highlights the use of different features which the products offer so that more and more people can be attracted (Witt & Lewin, 2007). The only risk for Samsung is that the product is new and not tested. This would mean that Samsung has to look at examining the manner in which the new features attract people as it will determine the long term success of the product. On the whole it is seen that the performance of other players have been sound which creates the required opportunity through which Samsung can look towards using the same for ensuring better business prospect and financial performance in the future.
Overall financial attractiveness of the venture: The launching of new product i.e. handset looks attractive as the rate of return which the business can expect from it is high. Since, people are in search for highly savvy technical gadgets it multiplies the opportunity of having such products which would help them to attract people towards the product. This would mean that the overall return for the business would improve (Jeffrey, 2003). In addition to it since the product is aimed at the high profile customers and have been priced keeping in mind the high profile customers so it creates the opportunity to earn more. The overall business highlights the prospects of ensuring that the rate of return remains high so that the business is able to work on the different business dimensions and bring about the required changes through which productivity would tend to improve.
Thus, the overall financial attractiveness for the industry is high and it highlights the manner in which Samsung can look towards better return. Since, Samsung has the required resources and is in a position to carry out the different activities it helps to ensure that the business becomes viable. The financial feasibility highlights the opportunity which Samsung can use and go ahead with the venture as it would ensure that the business will be able to garner long term returns and improve their productivity.
This report presents the feasibility report for Samsung which is planning to launch a new handset in the Indian market. The report provides the feasibility analysis with regard to market feasibility, technical feasibility, human feasibility and financial feasibility. This helps to understand whether the proposed venture is a profitable one and the manner in which the business will be able to meet the different needs and ensure increased customer satisfaction.
Cohen, E. 2007. Leadership without borders: successful strategies from world-class leaders.John Wiley & Sons, Inc
Gooderham, P. & Nordhaug, O. 2003. International Management Cross-Boundary Challenges.Blackwell Publishing
Jeffrey S. 2003. Strategic Management of resources and relationships, John Wiley & Sons, Inc
Peng, M. Luo, Y. 2000. Managerial Ties & Firm Performance in a transition economy. The nature of micro-macro link. Academy of Management Journal, 43 (3), 486-501
Mathews, A. 2003. Competitive Dynamics & Economic Learning: New Players in the 21st Century. Asia Pacific Journal of Management, 12 (1), 115-145
Mason A. and Gerard S. 2007. Strategic Management-A Dynamic Perspective, Pearson
Witt, M. & Lewin, A. 2007. Outward Foreign Direct Investment as escape response to home country institutional constraints. Journal of International Business Studies, 38, 579-594
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