Title: The impact of incremental innovation on brand
management of global electronic industry: A case study on Samsung Electronics
CONTENTS
RESEARCH RATIONALE OF THE STUDY
RESEARCH METHODOLOGY
CHAPTER: ONE
INTRODUCTION
The current business world is highly competitive.
This high competition is the main barrier for the organizations to be survive
and successful in the market. The reason behind it is that the market is highly
customer oriented and the customers demand is highly changing which is tough to
meet or cope with changing nature of the demand by the organizations (Kotler
& Keller, 2012). The
organization which is capable to cope with the changing demand can be
successful in the market and which is not, becomes extinct from the market as
the organization losses the brand image (Gatignon, Michael, Wendy & Anderson, 2002). So, to be sustained and successful in the
customer oriented market, an organization should meet the customer demand to
have satisfaction of them to manage a superior brand management. The
electronics industry within technological market is one of the most volatile
industries where the demand of the customers is rapidly changing. To manage the
brand within this industry an organization should practice incremental
innovation process to make small improvement of their product to meet the
changing customer demand to achieve their satisfaction (Kotler
& Keller, 2012). This
satisfaction will help an electronics organization to manage its brand within
this industry. In this proposed research, I will detail significantly how incremental
innovation will help organizations to manage their superior brand image which
will helps to sustain in the competitive market. The research will be conducted on one of the
major leading electronic organization Samsun Electronic Limited as the fertile
ground of the research.
ORGANIZATIONAL
BACKGROUND: SAMSUNG ELECTRONICS LIMITED
Among all the global electronic industry, Samsung
has its strong position which has been established in South Korea. The South
Korean multination company is headquartered in Suwon in South Korea and the
organization has been the largest global technological company in 2009 for
having the largest figure of revenues in the industry. It is a flagship
subsidiary for Samsung Group and started its journey in 1969 (Freeze and Chung,
2008). The
organization has its business within the 88 countries all over the world and it
has a workforce of 370000. The organizational CEO is Kwon Oh-Hyun and the
organization produces lithium, semi-conductor, chip, flash memory and hard
drives and supplies to the Apple, Sony and Nokia (Albanesius, 2012). Now the
company has become one of the largest Smartphone producers and the maiden
addition in their product lines are notepads, tablet computers and tabs. The
organization has made ₩
201.103 trillion revenue, ₩
29.049 trillion operating income and the profit of ₩23.945
trillion (Nussbaum,
2009).
RESEARCH AIM AND OBJECTIVES
Aim
The aim of the research is for evaluating the
impact of incremental innovation for managing the brand of Samsung Electronics
Limited.
Objectives
The specific objectives of the research are like
following-
ð
To
investigate the current brand position of Samsung Electronics Limited in the
world electronic industry
ð
To
investigate impact of incremental innovation to manage their brand efficiently
ð
To recommend
the way the incremental innovation best be use to strengthen the brand of
Samsung.
RESEARCH QUESTION
To conduct
the research, the following questions will be followed-
ð
What is the
current brand position of Samsung Electronics Limited in the world electronic
industry?
ð
What is the
impact of incremental innovation to manage their brand efficiently?
ð
In which way
incremental innovation best is to strengthen the brand of Samsung?
RATIONALE OF THE STUDY
The
incremental innovation is the small innovation or change in a product regularly
is called as the incremental innovation (Bloomberg
Business Week, 2005). The
highlighted research is the way in which the incremental innovation can help an
organization within electronic industry to sustain in the competition by
upholding their brand image. This is a
burning strategic marketing issue for the technological industries like
electronic industry. It is believed that the global technology changes within
every 36 months. According to the change of the technology, the demand of the
customer changes within the electronic industry (Bloomberg
Business Week, 2005). To cope
with the changes of demand an organization will make the small changes in their
product features to meet the customer demand. If the change is continuously
made according to the customer demand, a customer gets satisfaction regularly
and the continuous satisfaction (Kerin, (2012). The continuous satisfaction makes customers loyal
to the brand which leads the superior and successful brand management and
ensures the superior growth and productivity within the highly competitive
market (Tripsas,
2008). Like, if
Samsung makes continuous innovation within their Smartphone, it will be able to
meet the changing demand of the customers and customers will be loyal to
Samsung for getting continuous satisfaction from the product of the
organization (Gatignon,
Michael, Wendy & Anderson, 2002). It will help the organization to manage their brand in the electronic
market to sustain in the competition. The proposed research will shed light on
the incremental innovation to manage brand image in electronic market which
help the organization to understand incremental innovation, to apply it for
their brand management to sustain in highly competitive electronic market (Tripsas, 2008). The research will basically focus on the
relationship between incremental innovation and brand management within
electronic industry (Kotler & Keller,
2012).
Additionally it will explore different crucial marketing issues like customer
satisfaction, nature of the industry, way to sustain in the industry and making
growth in the industry. Most importantly, it will disclose the incremental
innovation as an effective weapon to sustain and to be successful in the
completion within electronic industry.
CHAPTER: TWO
LITERATURE
REVIEW
Brand and brand image
Brand is one of the most important parts of the
existence of an organization as it conveys the identity of the organization and
its image. Normally the brand can be a form of symbol, design, sign, words,
names and combination to present an organization and it helps to decide the
customers to make the decisions to buy a product and services from an
organization. The degree of positive or negative impression of the customers
regarding a brand is called as the brand image (Craig
and Victor, 2003). The organization has the higher positive brand image; the customers
are more attracted to the organizational products and services. The
organization which has poor brand image the customers try to avoid the products
from the organization. The reason behind it is that the brand and its image
determine the degree of feeling of customers regarding the quality,
credibility, trust and satisfaction of the customers (Albanesius, 2012).
Innovation
Innovation is the process f creating new ideas,
products and management operation which is highly important for all the
organizations in the current highly competitive business world as it helps to
create the new product and service ideas for satisfying the changing demand of
the customers to satisfy them. The
organization which is highly innovative is highly successful as it can achieve
the customer satisfaction which is the basic factor to be successful in the
global customer oriented market (Schmidt
and Ludlow, 2002). In contrast the organization which is inefficient to make proper
innovation it falls back to meet the changing demand of the customers and
become extinct from the market gradually. Innovation is the way to sustain and
successful in the market as t helps the organization to build and maintain the
proper branding. There are two types of Innovation process which are
incremental innovation and the radical or disruptive innovation (Berry
and Parasuraman, 1991).
The incremental innovation is the process to
generate small scale innovations within the organizational product lines and
their features. When an organization will make small and frequent development
and changes within their product features to satisfy the highly changing demand
of the customers will be called as the incremental innovation (Joby, 2003).
The radical innovation is the process by which the
revolutionary changes are taken place in the business process and product lines
within an organization. When the organization will innovate, such think or ideas
which will replace the current business process and existing product line in a
disruptive manner will be called as the radical innovation (Berry
and Parasuraman, 1991).
There are significant controversies regarding the
effectiveness of the two type of innovation process within the organizations. A
group of scholars has strongly supported that the incremental innovation is
highly effective for the organizations within the current highly changing
business world to meet the customer demand (Johnson, 2012). They have explained that the demands of the
customers are changing very first and they desire new products or developed
products especially in the technological market. In this situation, the
disruptive innovation is not possible for the firms to follow to satisfy the
customers as it has two major weaknesses which are- the process is highly time
consuming and costly (Schmidt
and Ludlow, 2002). This is why the process has not the ability to satisfy the
continuously changing customer demand. In contrast, in satisfying the
continuously changing demand of the customers, the incremental innovation is
highly perfect as it is less time consuming and less costing but highly
effective to meet changing nature of the customer demand. It helps the
organization to develop the existing products according to the changing need of
the customers with the ideology of responding quickly (Albanesius, 2012).
When the customers see that they are getting the
products they desire in time the customer become loyal to the brand and the
continuous practice of incremental innovation offers superior brand management
and brand image to the customers that leads the sustainable customer base for
the organization and its success. But a large pool of scholars has criticized
the incremental innovation as they believe that the incremental innovation is
the temporary medication for brand management but in long run it is ineffective
as it makes the horses healthier but not make any car (Craig
and Victor, 2003). In such situation like innovation of computer this is not appropriate
where radical innovation is must. This why; the majority of the scholars has
urged that an organization should follow the incremental innovation manage the
brand image regarding the current product lines but accordingly the radical
innovation will be used to secure the future position of the organization when
it require to develop a revolutionary product to be sustain in the market (Joby, 2003).
Model for incremental innovation
Figure: Incremental innovation
model
Source: en.wikipedia.org
Conceptual
Framework
In the customer oriented market it is
one of the most important issue for the organizations that the organizations
must achieve the maximum customer satisfaction to be successful in the market (Shamoon and Saiqa,
2011). To achieve the
customer satisfaction the demand of the customers will be properly met. But the
nature of the customer demand is highly changing and to meet the organizations
must ensure the continuously changing developing of the product features
according to the needs of them which is possible through incremental
innovation. This lead the maximised customer satisfaction continuously and help
to develop and maintain a strong brand image (Joby,
2003).
An organization can efficiently
maintain brand image of the organization through the incremental innovation as
this enables the organizations to make the continuous innovation frequently
with the limited cost (Shamoon
and Saiqa, 2011). To meet the
changing demand radical innovation is not effective as it is requires huge time
and money which is not possible to manage by the organization (Sorensen, 2012). So, the organizations follows
incremental innovation can easily maintain the changing demand of the customers
as it is less costing, less time consuming and possible to undertake frequently
(Craig
and Victor, 2003).
Incremental innovation is the
strongest weapon for the brand management as it helps the organizations for
making the quick and efficient response to the silly changes of the customer
demand. Additionally it is the most effective tool for the organization to keep
the customers satisfied by providing developed products (Johnson, 2012). This helps the organization to
create a fallings among the customers that they are valuable to the
organization and make them loyal to the organization. Incremental innovation
helps the organization to meet the changing customer demand perfectly as it
initiates continuous and careful observation of the customer needs and their
changes (Berry
and Parasuraman, 1991).
It is believed that the technological
market is changed within 36 months. To cope with the change it is the best
weapon for the organization. It helps the organization to define the hidden
demand of the customers and produces products (Sorensen, 2012). By the incremental innovation the
organizations are helped to manage the superior brand image as it provides the
organizations capacity to produce small innovation which is easily adaptable to
the customers to give them new test within the existing product. Incremental
innovation ensure customer satisfaction manage the brand image through enabling
the organizations to produce high quality products for the customers (Schmidt
and Ludlow, 2002).
CHAPTER: THREE
METHODOLOGY
Research philosophy
To conduct a research the research philosophy is
one of the most important which means the systematic knowledge, reasons,
values, mind, language and existence t conduct a research (Murname & Willett, 2011). There are three research philosophies- positivism, realism and
Interpretivism. For the proposed research positivism research philosophy will
be followed as it will help to generate credible and valid research result by
suggesting the approaches to collect reliable, useful and usable data (Creswell, 2012).
Research approach
Different step by step actions taken to complete a
research successfully will be called as the research approach. There are two
different research approaches to conduct research- inductive and deductive
research approaches (Murname & Willett, 2011). For the current research the deductive research
approach will be used as it will help to produce the research results within a
controlled manner based by designing a theoretical boundary of the research Creswell, 2012).
Research purpose
The major purpose of the research is to develop the
clear idea regarding the impact of incremental innovation to manage the brand
image of the organizations like Samsung electronics within electronic industry.
Additionally, it will suggest Samsung and other organizations within the
industry to strengthen their brand management process through incremental
innovation. The personal purpose for the research is that to understand
research method and to link the theoretical knowledge with the practical
ground.
Research strategy
There are three specific research strategies which
are qualitative, quantitative and the mixed structured research strategies (Patton, 2002). The mixed
structured research strategy will be used in this research as it will help to
avoid the significant weaknesses of qualitative (tough measurability of data)
and quantitative (inability to generate in-depth data) research strategy to
ensure the best and accurate research results (Creswell, 2012).
Research design
In the proposed research both the primary and
secondary research data will be used. For the collection of primary data 50
respondents will be generated based on random sampling method from the
organizational different level and they will investigated by a mixed structured
survey questionnaire with open-ended and close-ended questions (Merriam, 1998). For the collection secondary different secondary data sources like
books, journals, websites, newspapers and library material will be used. For
the analysis of data different statistical tools will be used like charts,
software-excel, SPSS etc (Merriam, 1998).
Research limitation
The major limitation of the research is that there
is very limited time given by the institution to complete the research which is
really insufficient to conduct the research (Patton,
2002). The other
limitation is that the sample size is small but there is no way to manage much
higher sample size within the limited time (Creswell, 2009).
TIME SCHEDULE
Chapter
|
Description
|
Duration
|
One
|
Introduction of the research
|
05/05/2014-15/05/2014
|
Two
|
Literature review of the research
|
15/05/2014-25/05/2014
|
Three
|
Methodology of the research
|
25/05/2014-05/06/2014
|
Four
|
Data analysis
|
05/06/2014-10/06/2014
|
Five
|
Discussion
|
10/06/2014-15/06/2014
|
Six
|
Conclusion and recommendation
|
15/06/2014-20/06/2014
|
Documentation and submission
|
20/06/2014-25/06/2014
|
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