Value Chain Analysis

Company/Item Under Investigation: Samsung

Evaluator Name:

For each primary activity area of the value chain, identify at least two IT artifacts,
processes, systems, etc. that could be implemented to improve competitive advantage.
For each support activity area, identify at least one IT artifact, process, system, etc. that
could contribute to competitive advantage. Briefly explain what the potential impact.

Inbound Logistics
Activity IT to implement Impact on competitive advantage
Samsung has more than Develop an automated inventory Ensures organization has an
2500 supply chain system to effectively and accurate record of their logistics
partners. accurately facilitate the inbound thus cutting on losses incurred due
logistics. to logistical error.
Also an automated warehousing
system would come in handy for
the company to have proper
scrutiny on the in and out
movement of the products.

Its logistics affairs are Develop security features for
managed by integrated these integrated logistics
logistics subsidiaries. subsidiaries to prevent any
attack on the systems set to
facilitate the logistics.
Adds on to the security of their
services thus reduced chances of
incurring untraceable losses.

Operations
Activity IT to implement Impact on competitive advantage
The company has, Automated surveys to make their This will help them attend to most
since its formation, research effective. of their consumers’’ needs faster
managed to diversify Ensure regular updating of the compared to their competitors.
on the products it operation systems. Also, it ensure they are
supplies. manufacturing the latest designs
that are desirable in the market.

The company has Incorporate technology on their Being flexible makes it possible for
overtime gotten into manufacturing systems to ensure the company to always be prepared
different markets such they are as flexible as possible. to produce new products as
as production of required by the consumers’
house appliances. demand.

Outbound Logistics
Activity IT to implement Impact on competitive advantage
The company Automated warehousing system. They help in ensuring accuracy on
produces products in Automated inventory system the number of products that leave
its manufacturing sites the manufacturing sites reducing
 Value Chain Analysis

the risk of losses incurred due to

negligence.

The company has Ensure to update the security This prevents attacks from hackers
integrated subsidiary features of these systems who may alter the system and
systems controlling cause losses due to loss of
the outbound logistics. information or ability to keep track
of the outbound logistics.

Marketing & Sales

Activity IT to implement Impact on competitive advantage
Samsung is amongst Automatize its sales by It will help in increasing the
the leading companies expanding into online sales customer base as online platforms
in its industry platforms. bring in more consumers.
Digitize its sales and marketing
through use of the company’s
website and social media.

The company uses in Create remote terminals for This enhances convenience and
store promotions and salespersons flexibility thus allowing the company
other traditional forms to have more sales persons which
of marketing such as results to more sales.
the print media

Service
Activity IT to implement Impact on competitive advantage
The company has a Provide an automated customer Constant communication between
global network of feedback system. the producer and the consumer
distributors alongside Offer platforms for customers to ensures sharing of feedback which
resellers who not only communicate with the then results to improved quality of
offer sales and salespersons or representatives products as they are designed to
marketing but also from the company at ease. meet the customers’ needs.
provide after sale
services to the
customers.

The company has Remote servicing of equipment This helps in enhancing consumer
managed to establish as well as computerised routine satisfaction thus attracting more
several service centres for the servicing trucks. customers.
across its leading
markets.

Infrastructure/Organization
Activity IT to implement Impact on competitive advantage
 Value Chain Analysis

The company’s Automated inventory to keep To monitor the performance of each

business operations track of the activities of each of division and determine where
are categorized into the four divisions prioritization is required.
four divisions each
operating
independently.

Human Resource Management

Activity IT to implement Impact on competitive advantage
The company offers a Device an automated training Important in ensuring the
competitive salary and system to offer training to new employees recognize their career
critical resources to employees. growth thus enhance their job
employees to help satisfaction levels leading to better
facilitate their performance and services delivered.
seamless delivery of
services to the
company.

Technology
Activity IT to implement Impact on competitive advantage
The company uses the Invest more on technological Ensures it keeps up with the stiff
latest manufacturing research and development competition posed by other
device and the latest companies.
technological
information in its
production activities.

Procurement
Activity IT to implement Impact on competitive advantage
The company is in Update the systems at its Ensure good management of the
strong relations with international procurement supplier relationships by keeping
more than two centre records thus consistent supply which
thousand suppliers enables them to stay in the market
facilitating operations constantly.
in the 216 global cases
in 74 countries it
owns. They are
 Value Chain Analysis

managed by the
company’s
international
procurement centre.