Strategy+2+Implementation


 * Value chain framework for biometrics/network. **

To look further into the implementation strategies of the biometric security scanner, we found it appropriate to focus on analyzing the value chain in order to determine how to minimize costs and consider other issues that might surface in the new manufacturing practices. The addition of AuthenTec’s employees and their outsourced partners after the acquisition would introduce new people and activities to the otherwise polished processes.


 * Inbound Logistics: **

Knowing that Samsung already has its own operations and activities in the manufacturing processes of their smart phones, most activities involved in inbound logistics are heavily refined. The key in the implementations to our strategy will be to synchronize Samsung’s current scheduling and inventory controls with AuthenTec’s in order to continuously create more value without slowing down the manufacturing process.


 * Operations: **

Operations will be one of the biggest keys to change with respect to the value chain framework, second only to marketing and sales. The acquisition of AuthenTec would sprout a major issue in the manufacturing process. Because Samsung’s manufacturing operation has mostly been localized to Seoul, South Korea, the North American company’s China-based manufacturing of biometric scanners could put a delay in its production process. Logistics play a big role in ensuring that scheduling and inventory control are matched with Samsung’s pace; but because of overseas shipping and unpredictable delays that come with it, this operation potentially becomes less streamlined and thus can decrease value. A possible solution to this challenge would be to relocate AuthenTec’s operations closer to Samsung’s facilities for more immediate control over hardware production. There would be considerable costs involved with such a move, including the increased labour costs in Korea compared to China. Samsung would need to determine if the payback period for value they gain in their operations offsets the costs quickly enough to be worth making the move, or if it would be better to keep production as it is and risk the potential drawbacks of the distanced production of the scanners.


 * Outbound Logistics: **

Current outbound logistics are very solid on Samsung’s end. Because it has most of its operations localized within Samsung Town in Seoul, all activities related to the gathering, storing or distribution of their finished smart phones (and all other products) are done effectively, with little delay and with a streamlined logistics methodology. The acquisition of AuthenTec will not have any effect on these logistics procedures, as the final state of the products is the same as in their older smart phone models.


 * Marketing and sales: **

Because our new game strategy is a position-building one, the marketing and sales is the most important point after operations to be considered in the value chain framework. The marketing and sales should be pitched to include both the biometric scanners as well as the secure email/messaging network together as a security package deal. The target demographic is a new market that Samsung hasn’t fully catered to until now, so new market research will have to be conducted on how to pitch the products in a way that will attract the business men and women who deal with sensitive data regularly and count on the security of their cellular and data networks for exchanging information. By using the correct marketing strategies, Samsung can maximize the value perceived by the public. The biggest challenge with this stage of the framework is in convincing current blackberry users that Samsung’s network and security features on their mobile phones are superior to that of RIM’s.


 * Service: **

The value that services add or help to maintain should be considered in both AuthenTec and Synchronica’s acquisitions. Minimal training will be required for employees in either category because they already have their expertise since before the acquisition. There may be some standards that Samsung will prefer them to adjust to (in terms of safety standards or in the slight adjustments required to adapt their technology to Samsung’s technology). The installation of the proposed security network will have many incurred costs due to its breadth (worldwide), which Samsung must be ready to cover in order to proceed with the promise of enhanced and superior security.


 * Support Activities: **

With respect to support activities which enhance the value created through the value chain analysis, Samsung already has many of said activities in place. The new operations regarding the upgraded technology would require small tweaks in the technology development support activity, mostly with updating materials and adjusting the building process.  Firm infrastructure will be modified to account for new employees gained through acquisition, which will include adjustments in the accounts related to said employees and their companies, the management of these employees, the quality of the newest items produced, and in the information systems required to communicate live data across national borders. Closely related to the employee infrastructure are the adjustments in compensation via HRM for the employees already with Samsung and those joining Samsung through acquisitions.


 * <span style="font-family: 'Times New Roman',serif; font-size: 12pt;">Critical Evaluation of the Value Chain Framework: **

<span style="font-family: 'Times New Roman',serif; font-size: 12pt;">The Analysis Value Chain Framework analysis has its shortcomings in not being able to represent value-adding activities that Samsung might be performing outside of the value chain. A lot of the value created by Samsung, even strictly in the mobile market, comes from things like branding and human resources which are not accounted for in such an analysis. It’s because of this that we have selected separate analytics techniques throughout the report to understand Samsung and its operations from various perspectives. Determining inbound and outbound logistics and the changes that would result in them from the acquisition of AuthenTec and Synchronica and the new activities added was the most difficult and perhaps vague sections of the Value Chain Analysis because that’s not information readily available to the public. Determining how things would change outside of the obvious expectations related to data coming in and out of the new branches and what the new employees have to offer is a difficult task with the limited information available.