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Smart Watch: a business model

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These slides use ideas from my (Jeff Funk) class to develop a business model for Samsung’s smart watch. Its smart watch works with Samsung’s mobile phone to enable users to more quickly and easily access information. In the future, its smart watch is expected to perform many of the functions that its mobile phones now do. These slides analyze athletes, the elderly, youth, and travelers as potential customers for Samsung’s smart watch. It describes several scenarios under which these users can obtain value from the watch now and in the future.

Published in: Business, Technology
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Smart Watch: a business model

  1. 1. Smart watch Inez Rihui Anam Waqas Dexin
  2. 2. Agenda • Introduction • Customer Selection • Value Proposition • Value Capture • Scope of Activities • Strategic Control • R&D suggestions
  3. 3. Evolution of Smartwatch
  4. 4. Smartwatch  Computerized wristwatch  Calls, camera , games, compass , GPS calculator, apps.  Upcoming wearable tech industry  Samsung, Sony, Pebble
  5. 5. Smartwatch: Building on Smartphone  Upcoming Wearable technology  Saturated Market  Declining Usage
  6. 6. Samsung Gear
  7. 7. Specs and Features • Display (41.4mm) • Camera 1.9 Megapixel • MP4HD(720p) • Playback & Recording • Bluetooth® • Accelerometer • Gyroscope • Memory 4GB + 512 MB (RAM) • Dimension 36.8 x 56.6 x 11.1 mm • 73.8g • Battery Li-ion 315mAh
  8. 8. Featured Apps
  9. 9. Customer Selection Sports / Athletes Education / Youth Medical / Elderly Travel / Adventure
  10. 10. Value Proposition (Elderly)  Wearable  Intelligent alert system  Heart attacks  Parkinson disease  Sudden falls  On-the-go care  Health monitor  (heart beat, hydration - > backlogs)  Medicine reminders  Dietary consumption warnings
  11. 11. Value Proposition (Sports)  Wearable (ergonomic)  Waterproof  Athlete performance feedback  Instant & real-time  Intelligent & integrate-able to gestures  Monitor & keep track  Dynamic training enhancer  Audio-based, On-the-fly coach suggestion
  12. 12. Value Proposition (Adventurers / Travelers)  Long Battery Life  Weather-Proof  Water Activities  Instant Information Retrieval  Comprehensive Traveller Tools  Handsfree
  13. 13. Value Proposition (Youth)  Instant Notifications  Social media  Instant Accessibility of Functions  Music  Camera  Weather-Proof  Always Attended
  14. 14. Existing Solutions All in one.
  15. 15. Value Capture Service Partner Institutions Data Specialized apps exposure Monthly subscription Commission / referral Medical Youth GEAR Watch commission Travelers App Developers Development platform & license Samsung $300 Sports
  16. 16. Scope of Activities
  17. 17. Collaboration with App developers Marketing: Partnerships, Ads, Endorsement & Sponsorship R&D In-house manufacturing @ Giheung, Korea Distribution: both Samsung & third party outlets
  18. 18. Strategic Control
  19. 19. Patents on flexible displays, design etc. Samsung App store Strategic Control Early market capitalization by targeting all major sectors. Create high switching costs. Partner with Hospitals to encourage patients to use device for health monitoring
  20. 20. R&D suggestions
  21. 21. • Flexible screen: wearable fashion accessory
  22. 22. • Smartwatch as an independent device
  23. 23. • Solar energy as a possible source of charging
  24. 24. • Graphene as a battery alternative
  25. 25. • Compatibility with all Android devices
  26. 26. R&D Institutions: 1) Sports Associations 2) Hospitals 3) Schools 4) Travel Agencies App Developers Telcos R&D Handsfree SDK Development User Friendly Technical Support Elderly GPS Navigation Patents Specialized Applications Manufacturing Marketing & Sales Lightweight Operates Applications Direct sales Athletes Youth Telcos Travelers Samsung & 3rd Party Distribution Subscription Fees Commissions / Referrals
  27. 27. Questions?

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