Samsung Value Chain Assignment
Question # 00524096
Posted By:
Updated on: 05/08/2017 04:40 AM Due on: 05/08/2017
Samsung Value Chain Assignment
Samsung is a great example of a firm that derives value from various components of its value
chain, both primary and support activities. The purpose of this exercise is to have you identify
those specific activities and describe how, specifically Samsung is able to differentiate itself from
its competitors.
INSTRUCTIONS
Using Michael Porter’s classic value chain model: Select two sets of business functions (procurement, operations, service, etc.) you will
analyze for Samsung. Select one set of business functions from the list of Primary
Activities and the other from the list of Support Activities. Identify whether those activities are linked into each other. Using enhanced value chain
analysis determine whether those activities are downstream or upstream. For each business function:
1. Identify at least three specific activities that Samsung engages in.
2. Describe the unique way that Samsung engages in each activity, and
3. Identify whether this is a cost reduction or value increasing activity in the value-chain
4. Quantify and/or Explain why/how Samsung’s approach to each activity is superior to
its competition. (Benchmark either against competitor or to industry avg!)
Primary Activities Inbound Logistics Operations Outbound Logistics Marketing and Sales Service
Support Activities Firm Infrastructure Human Resource Management Technology Procurement
Example:
Samsung is a great example of a firm that derives value from various components of its value
chain, both primary and support activities. The purpose of this exercise is to have you identify
those specific activities and describe how, specifically Samsung is able to differentiate itself from
its competitors.
INSTRUCTIONS
Using Michael Porter’s classic value chain model: Select two sets of business functions (procurement, operations, service, etc.) you will
analyze for Samsung. Select one set of business functions from the list of Primary
Activities and the other from the list of Support Activities. Identify whether those activities are linked into each other. Using enhanced value chain
analysis determine whether those activities are downstream or upstream. For each business function:
1. Identify at least three specific activities that Samsung engages in.
2. Describe the unique way that Samsung engages in each activity, and
3. Identify whether this is a cost reduction or value increasing activity in the value-chain
4. Quantify and/or Explain why/how Samsung’s approach to each activity is superior to
its competition. (Benchmark either against competitor or to industry avg!)
Primary Activities Inbound Logistics Operations Outbound Logistics Marketing and Sales Service
Support Activities Firm Infrastructure Human Resource Management Technology Procurement
Example:
Business Function: Human Resource Management
Activity 1: Piecework-based compensation
Explanation: Samsung pays employees for each part they produce that passes quality control.
Employees are penalized for those parts that fail quality control. There is no cap on employee
compensation. Competitive Advantage: cost reduction
Explanation & Support: Samsung produces 28% more chips per employee than the industry
average and has a parts defect rate of 0.01%, compared to the industry average of 0.20% (I
Business
Function
want specific
pg.#s,1:Exhibit #s.)
Activity 1: Explanation: Competitive Advantage: Activity 2: Explanation: Competitive Advantage: Activity 3: Explanation: Competitive Advantage: Business Function 2:
Activity 1: Explanation: Competitive Advantage: Activity 2: Explanation: Competitive Advantage: Activity 3: Explanation: Competitive Advantage:
Activity 1: Piecework-based compensation
Explanation: Samsung pays employees for each part they produce that passes quality control.
Employees are penalized for those parts that fail quality control. There is no cap on employee
compensation. Competitive Advantage: cost reduction
Explanation & Support: Samsung produces 28% more chips per employee than the industry
average and has a parts defect rate of 0.01%, compared to the industry average of 0.20% (I
Business
Function
want specific
pg.#s,1:Exhibit #s.)
Activity 1: Explanation: Competitive Advantage: Activity 2: Explanation: Competitive Advantage: Activity 3: Explanation: Competitive Advantage: Business Function 2:
Activity 1: Explanation: Competitive Advantage: Activity 2: Explanation: Competitive Advantage: Activity 3: Explanation: Competitive Advantage:
-
Rating:
/5
Solution: Samsung Value Chain Assignment