Value Chain:

1. Firm Infrastructure:
 Samsung's firm infrastructure involves its corporate governance,
organizational structure, legal, finance, and accounting departments.
 It includes its headquarters, executive management, and decision-
making processes.
2. Human Resource Management (HRM):
 HRM at Samsung encompasses recruitment, training, performance
evaluation, and employee relations.
 It ensures that Samsung has the right talent to drive innovation,
productivity, and growth.
3. Technology Development:
 Samsung heavily invests in technology development, including research
and development (R&D), innovation, and intellectual property
management.
 This includes developing new products, improving existing ones, and
staying ahead in technological advancements.
4. Procurement:
 Samsung's procurement involves sourcing raw materials, components,
and other resources required for its products.
 It includes establishing relationships with suppliers, negotiating
contracts, and ensuring the quality and timely delivery of inputs.
5. Inbound Logistics:
 This involves the transportation, storage, and handling of raw materials
and components to Samsung's manufacturing facilities.
 Samsung ensures efficient inbound logistics to maintain a smooth
production process and minimize inventory costs.
6. Operations:
 Samsung's operations include manufacturing processes, assembly lines,
quality control, and production management.
 It focuses on efficiency, cost-effectiveness, and quality to meet
consumer demands.
7. Outbound Logistics:
 This involves the distribution and delivery of Samsung's products to
retailers, wholesalers, and customers.
 Samsung manages outbound logistics to ensure timely delivery,
customer satisfaction, and effective inventory management.
8. Marketing and Sales:
 Samsung's marketing and sales activities include advertising, branding,
promotion, pricing, and distribution channels.
 It aims to create brand awareness, generate demand, and drive sales of
its products globally.
 9. Services:
 Samsung offers various services to support its products, including
customer support, warranty services, maintenance, and repairs.
 It focuses on providing excellent after-sales services to enhance
customer satisfaction and loyalty.

Support Activities:

 Infrastructure: Includes corporate functions and management.

 HRM: Manages the workforce.
 Technology Development: Drives innovation.
 Procurement: Sources materials.
 Firm Infrastructure: Supports all primary and support activities.
 Inbound and Outbound Logistics: Manage material flow.
 Operations: Manufactures products.
 Marketing and Sales: Promotes and sells products.
 Services: Provides post-sale support.

VRIO Model:
The VRIO model is a strategic analysis framework used to determine the competitive potential of a
resource or capability within an organization. It stands for Value, Rarity, Imitability, and Organization.
Here's a brief overview of each component:

 Value: Resources or capabilities should provide value to the organization by helping it exploit
opportunities or mitigate threats. This value can be in the form of cost savings, revenue
generation, or competitive advantage.
 Rarity: Resources or capabilities should be rare or unique within the industry. If a resource is
common, it may not provide a competitive advantage because competitors can easily acquire
or replicate it.
 Imitability: Resources or capabilities should be difficult to imitate or replicate by competitors.
This could be due to factors such as patents, unique skills, or complex organizational
processes.
 Organization: The organization must be able to effectively exploit the resource or capability.
This includes having the right structure, systems, and processes in place to leverage the
resource for competitive advantage.
By analyzing resources or capabilities based on these criteria, organizations can identify their core
strengths and weaknesses, which can inform strategic decisions such as resource allocation,
competitive positioning, and capability development.

Ex: (Samsung)
  Value:
Samsung's technological innovations and product quality provide significant value to customers.
The company's strong brand image and global presence contribute to its competitive advantage.

 Rarity:
Samsung's investments in research and development (R&D) have resulted in unique technologies and
patents.
The company's diverse product portfolio and capabilities in various industries make its resources
relatively rare.

 Imitability:
Samsung's focus on continuous innovation and R&D investments make it difficult for competitors to
imitate its technological advancements.
The company's strong supply chain management and manufacturing capabilities add to the difficulty
of imitation.

 Organization:
Samsung's organizational structure and culture emphasize innovation and customer-centricity,
enabling it to effectively leverage its resources.
The company's strong leadership and strategic partnerships enhance its ability to exploit its resources
and capabilities.
Overall, Samsung's resources and capabilities, including its technological innovations, brand strength,
and organizational effectiveness, are valuable, rare, difficult to imitate, and well-organized,
contributing to its competitive advantage in the electronics industry.

Porters’ Model: (Used only on industry basis)

Five Forces Model, developed by Michael Porter, is a framework for analyzing the competitive forces
that shape an industry, helping to determine an industry's attractiveness and the potential for
profitability. The five forces are:

 Threat of new entrants: The degree to which new competitors can enter the market. Factors
such as barriers to entry, economies of scale, and brand loyalty can influence this force.
 Bargaining power of buyers: The ability of buyers to negotiate prices and terms. Factors such
as the number of buyers, their size, and the availability of substitutes can affect this force.

 Bargaining power of suppliers: The ability of suppliers to influence prices or terms. Factors
such as the concentration of suppliers, the uniqueness of their products, and the availability of
substitutes can impact this force.
 Threat of substitute products or services: The availability of alternative products or services
that can fulfill the same needs. Factors such as price-performance trade-offs and switching
costs can influence this force.
  Intensity of competitive rivalry: The degree of competition among existing firms in the
industry. Factors such as industry growth, differentiation, and exit barriers can affect this
force.
Ex:
Example with Samsung:

 Threat of new entrants:

High: The electronics industry has relatively low barriers to entry, with many new competitors
entering the market regularly. However, the high costs of R&D and establishing a brand presence act
as barriers.

 Bargaining power of buyers:

High: Buyers have a high bargaining power due to the availability of many alternatives and the
importance of price and product quality. Samsung needs to constantly innovate and offer competitive
prices to maintain its market share.

 Bargaining power of suppliers:

Moderate: Samsung has strong relationships with suppliers, but suppliers still have some power due
to the need for specialized components and materials. Samsung's size and purchasing power help
mitigate this force.

 Threat of substitute products or services:

Moderate: The electronics industry has many substitute products, but Samsung's brand loyalty and
product differentiation help reduce the threat. However, rapid technological advancements can lead to
quick obsolescence.

 Intensity of competitive rivalry:

High: The electronics industry is highly competitive, with many major players such as Apple,
Huawei, and Xiaomi. Samsung faces intense competition in terms of product innovation, pricing, and
marketing.

SWOT Analysis: (Internally: Company basis)

Strengths:
Brand Reputation: Samsung has built a strong brand image globally, known for its innovative
technology and high-quality products.
Diverse Product Portfolio: Samsung offers a wide range of products including smartphones,
tablets, televisions, home appliances, semiconductors, and more, diversifying its revenue
streams.
Technological Innovation: Samsung invests heavily in research and development,
consistently introducing innovative products and technologies, which keeps it ahead of
competitors.
Global Presence: Samsung has a strong international presence with operations in various
countries, enabling it to tap into diverse markets.
Vertical Integration: Samsung is vertically integrated, controlling its supply chain from
manufacturing components to assembling final products, which enhances efficiency and cost
control.
Weaknesses:
Product Dependence: Samsung heavily relies on its smartphone division for a significant
portion of its revenue, making it vulnerable to fluctuations in the highly competitive
smartphone market.
Patent Lawsuits: Samsung has faced several patent infringement lawsuits from competitors,
leading to legal battles and financial penalties, which can affect its reputation and financial
performance.
Perception of Overdependence on Android: Samsung's smartphones primarily run on the
Android operating system, which may limit its differentiation from other Android-based
competitors.
Brand Perception: Despite its strong brand image, Samsung has faced criticism regarding
product quality and reliability in some instances, affecting consumer trust.
Opportunities:
Emerging Markets: Samsung can further expand into emerging markets, such as India, Africa,
and Southeast Asia, where there is growing demand for consumer electronics.
Technological Advancements: Samsung can capitalize on emerging technologies such as 5G,
Internet of Things (IoT), artificial intelligence, and foldable displays to develop innovative
products and maintain a competitive edge.
Diversification: Samsung can explore diversification into new industries or services beyond
consumer electronics, such as healthcare technology or renewable energy, to mitigate risks
associated with its current product portfolio.
Partnerships and Collaborations: Samsung can form strategic partnerships or collaborations
with other companies to leverage complementary strengths and access new markets or
technologies.

Threats:
Intense Competition: Samsung faces fierce competition from rivals like Apple, Huawei,
Xiaomi, and other emerging Chinese brands in various product categories, which can impact
market share and profitability.
Rapid Technological Changes: The consumer electronics industry is characterized by rapid
technological advancements and short product life cycles, posing challenges for Samsung to
stay ahead of the curve and maintain market leadership.
Supply Chain Disruptions: Samsung's operations may be affected by disruptions in the global
supply chain, such as natural disasters, geopolitical tensions, or trade restrictions, impacting
production and distribution.
Regulatory Challenges: Samsung operates in multiple countries, each with its own regulatory
environment, which can pose compliance challenges and legal hurdles, affecting business
operations and profitability.