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Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Harvard Case Study Analysis

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Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution and Analysis


Introduction

Historically, the business's core customers consist of the Original Equipment Manufacturers (OEMs), which used to sell Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution products withtheir own brand name. Its customer circle includes Original Equipment Manufacturers (OEMs), who used to sell Samsung items with their own brand name. He rearranged Samsung as a worldwide brand and informed his divisional supervisors to understand marketing and its significance.

Problem Declaration

Samsung's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to include marketing efficiently is still a significant difficulty. Producing a constant brand name identity across the entire world and utilizing marketing techniques that best fits the local culture is no easy task.

Situational Analysis

Yun had a rather clear photo in his mind about how Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis can transform from a low end to a high end item provider. He understood that improvement can only be done through positioning Samsung as a business offering high-end products and this could only be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand, with a potential assistance of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous service practices, and the current marketing requirement was excessive high, the gap was too larger and to fill this space with incorrect perceptions about marketing was quite difficult for Yun.

Along with it the item range of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to produce marketing budgets for existing as well as for brand-new products from the very start, and this would take a big time.

A huge shift would be required in current marketing expenditures to develop the Samsung brand. This would result in increased marketing expenditures for Samsung and could disrupt the administration regarding increased expenses, as they were reluctant to marketing expenses formerly and a sudden big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution strengths lie in its big product portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents given in US( USP).

Another strength of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis is its ability to develop ingenious items at a continuous rate. It significant proves for the innovation and item designing of Samsung is that the company has received many awards for its development and item style.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be quickly integrated with any kind of open source Os (OS) and software. This provides Samsung an edge over Apple gadgets.

Samsung's capability to produce high end products at low cost of production is also among the major strength of Samsung as it allows the company to record more market by providing quality products with expense control.

Weaknesses

Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis weaknesses are concealed in the company's dependence on outsourcing software for its gadgets due to company's failure in establishing software application, unlike Sony. Samsung also has low earnings margins as compare to Apple due to huge distinction in the costs of Apple and Samsung with a much lesser difference in quality. The varied focus of the business due to large number of products in its portfolio, lead to the less effective production and make the company unable to charge greater costs like Apple. The company is also ineffective in handling its patents and frequently faces the issue of patent offense.

Opportunities

Opportunities for Samsung depend on the growing Mobile phone market and the company's effectiveness in the market. It can increase its market share and revenues from mobile phone as the company is quite effective in smart phone market. Samsung currently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would make it possible for the business to increase its item portfolio with an increase in its wealth.

Risks

The vibrant industry environment of innovation market posture an extreme hazard on Samsung's survival and force the company to invest much of its incomes share on R&D in order to survive in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is likewise a huge threat for the company's growth in the existence of strong rivals like Apple.

4 P's of Marketing

Product

Samsung provides quality products and has a rather rich portfolio which caters to various sectors. LCD and mobile phones are the most significant items of Samsung, whereas DRAM is also not far behind in comparison of them.

• LCD/ TELEVISION
• Laptops.
• Smart phone.
• Air conditioning system.
• Computer.
• Disk drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.

Rate.

Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis uses both market competitive and market skimming rates techniques for its wide variety of items. In competitive rates it adjusts the rate according to the competitors in order to acquire benefit, whereas, it uses market skimming technique where the item has actually an added worth and by selling a couple of products it can reach break-even.

Location.

It has one of the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its items are timely supplied to the selling place/ delivered to the customers straight in case of online order.

Promotion.

It wasn't a popular business outside of Korea until 1993. But the management effort taken by their CEO has pushed them to market more effectively outside the borders and now it has gotten in the league of leading 25 companies worldwide in just 9 years. This is an exceptional achievement in spite of the ongoing arguments amongst the supervisors about embracing marketing practices. It uses both offline & online channels of promo to market their products. Paid item advertisements, social promotion and digital advertisements are utilizes to create awareness about Samsung items.

Value Chain Analysis.

It's an analytical framework for identifying company activities that include worth or competitive benefit for the business.

Inbound Logistics.

For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and creates a harmonious relationship with them and even reduced their payment cycles to increase this relationship even more which includes worth to their chain network.

Operations.

Samsung's core competency is its mass making it produces 90% of its items internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is preserving operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the primary factors Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to interact with them the value and competitive benefit the item offers. Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help advertising budget is continuously increasing because they started their repositioning internationally and will continue to do so as they are continually seeking to broaden and invest in high possible growth markets. The spending plan is spent on occasions, print and media ads, public relations etc.

Samsung Service. Samsung put their customers on top and constantly strive to provide unmatchable customer care standards. As after sales service is ending up being very crucial to keep customers happy and engaged, they even perform studies through third parties to discover their client's feedback and implement it in the favorable way to decrease or if possible completely remove their customer problems. By adding a direct support line to contact them 24 hr they have actually further increased the added value of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis service.

Division.

Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis has diversified market segmentation, based upon its provision of wide range of items to large number of consumers. Samsung target client sections can be divided into 3 categories i.e. Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget options.

Geographic.

Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help geographical segmentation is based upon 2 requirements i.e. area and density. Samsung serves about 80 countries worldwide with its products provided to Urban as well as Backwoods of the nation. The Samsung is also growing its worldwide presence and the business's flexibility in locating its plants encourages global growth of Samsung.

Demographic.

The demographic segmentation of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both women and males. The target consumers for Samsung IT and mobile interaction products have an age series of 18-65 with bulk at a young or freshly wed life process stage. They are mainly students, staff members and professionals. Apart from it, Samsung Customer Electronic devices are targeted to a consumer sector with an age series of 25-65. They are primarily staff members and professionals. Samsung Gadget Solutions are targeted at students, workers and specialists with an age variety of 25-65.

Psychographic.

The psychographic segmentation of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung sell products like cellular phone not much more affordable i.e. Motorola in addition to very little costly i.e. Apple. It offers quality items to middle level consumers at a slightly high rate than others targeting the very same section.

Behavioural.

Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution bulk target clients have special behavioural characteristics. They are brought in towards Samsung since of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is currently manufacturing however long gone are those days when great products were selling themselves. Kim has already begun to enhance the marketing activities of Samsung and very quickly it will become one of its core strength like producing if not better.

VRIO.

Worth.

Samsung runs designs, produces and sell a huge portfolio of consumer electronic devices. It operates in an incredibly competitive environment and has successfully positioned itself as the maker of quality products. The answer is yes.

Rarity.

As, stated earlier that Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help runs in a highly competitive environment, which implies all the companies have comparable products. So, the answer for rarity is no.

Imitability.

Due to the nature of the market, it is very easy for rivals to understand the functionality of the items and easily make their own models. Yes, Samsung is only behind IBM in registering brand-new patents every year, however the advantage is very short-term in this industry.

Organization.

Chairman Lee has entirely turnaround Samsung, from going almost insolvent throughout the Asian financial crisis of 1997 to the leading 25 business worldwide. Definitely yes there appertains organization in the company and the results promote themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized countries where law and order circumstance is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help operations.

Economic

Purchasing power of clients is important for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern countries etc. supply growth chances, whereas, due to economic crisis even the customers of developed nations suffer badly. For this reason it is really essential for the company to keep an eye on the continuous financial scenario of the country prior to going into the marketplace.

Socio-Cultural

Multinational companies have to face numerous social and cultural concerns throughout its operations in a foreign country. Samsung has also dealt with numerous issues however have adopted to the local environments of the majority of the nations exceptionally well. It has tailored its products, practices, policies and so on appropriately in order to achieve success.

Technological

With a yearly expenditure of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution is among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it concerns technological developments, Samsung has risen to the no 25 of the top successful companies of the world.

Legal

Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal consequences. It has to study or work with a local law expert before beginning its operations in a specific country.

Environmental

With the increasing awareness amongst customers about the ethical & environmental offenses of business, Samsung has to ensure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some countries the consequences can be very severe. On the other hand it has to do some Business Social Obligation practices to reveal the locals that it appreciates their environment and people.

Porter's Five Forces

Risk of Substitution

Hazard of replacement for Samsung's each product category is rather substantial. Elements for high threat of replacement for Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help Mobile phone include the presence of high number of suppliers and Market saturation in industrialized nations, which make the expense of changing for consumers nearly zero. Along with it, Samsung printing options products are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Samsung and its close rivals is intense. The major factor behind this is the method of market saturation in different number of product classifications, requiring Samsung to introduce more innovative features in existing items and brand-new innovative products to preserve its development. The major competitors for Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Solution has a vast supply chain consisting of about 2700 suppliers throughout the world.( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These huge orders make it possible for Samsung to work out prices with its providers. Nevertheless, due to incapability of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis to build its own software, it needs to outsource its software development to Google, which ends up being a prospective provider of software for Samsung, leading to high bargaining power of Google. Although, in most of cases Samsung has a power to negotiate prices, but it provide significant costs to its suppliers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in many of the product classifications also make the bargaining power of buyers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its items at a greater rate than much of its competitors, due to high end quality item and a fair brand name image.

Threat of New Entrants:

Danger of brand-new entrants for Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Analysis is quite low. Along with it, requirement of big expertise and research and development expenditures for survival in the market likewise make new entrants reluctant to enter in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high item diversification provides it distinction from its competitors. It is one of the three top brand names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single item category with Sony concentrating on consumer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a huge R&D costs on all of its item classifications which enable the company to make possible income from sales of nearly all of its products. (See Exhibit) Nevertheless, due to the broad product variety the business faces high number of rivals.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of international market share, amongst 8 different product categories. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel however its earnings from chips was growing faster than Intel and has grown close to the income levels of Intel, as given in the case Exhibition 2.

Along with the chips Samsung mobile market was also growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Samsung's high growth despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of high end LCDs as given in case Display 3. The significant reason, making the business allow to avail the opportunity is its mass production at low cost. Sony was the biggest rival for Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help in LCD market, however, it had actually likewise started joint venture with Samsung in 2003 for LCD manufacturing, lessening the competitors for Samsung.

Porter's Competitive Method

Low Expense Management technique of porter is totally implemented by Samsung the method they achieve economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something innovative and new whether it's a service or a product.

Alternatives

Alternative Option 1

The Chief Marketing Officer (CMO) of Alza And Ciba Geigy Renewing The Collaboration B1 Dr Karl Heusler Head Of Global Research Ciba Geigy Case Study Help would develop a new brand name image by targeting the more youthful generation of the specific nation. As, especially mobile phones of Samsung are incredibly popular amongst the younger group.

Pros

1. It is the best strategy to build Customer Lifetime Value (CLV) by creating a long-lasting relationship with consumers. Construct loyalty through providing worth and reap the benefits for long-lasting, as research study has actually showed it is much cheaper to keep current clients than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among younger individuals and which in turn will bring in brand-new customers for my products.

Cons

1. Old clients who were associated with Samsung prior to might not like this brand-new image the business is trying to portray.
2 It will incur additional expenditures to reposition some items and it might not even bring success as the trends change extremely quickly amongst the younger market.

Alternative solution 2.

It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment need to be produced internally initially as real marketing begins inside the corporation.

Pros

1. Its pro will be that all the marketing approach supporters will come out and also the opposite ones.

Cons

2. Its con can produce a very unhealthy environment in the workplace, as individuals often withstand modification because they fear it.

Recognize the very best alternative

Very first alternative is the best as it plainly has more pros due to the fact that when a Client Life time Worth is developed the company will profit from it till that customer lives and has buying power as well. Plus, our target clients are the more youthful generation which are bound to live longer than the present old age individuals. Nonetheless, Samsung's primary objective is to develop commitment amongst its consumers and make them redeemed it from them and even buy their different items as well.

Execution Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations possible and reasonable.
• A group consisting of finest marketing and sales specialists need to be assemble, and both views should be considered before protecting the resources needed to execute the strategy.
• Thorough interaction of the strategy must be done as it is very crucial for everybody to be on the very same page to make it work.
• Tasks and timelines must be develop and interacted appropriately to each individual accountable.
• The supervisor need to use a dashboard which reveals the progress of all the jobs which have actually been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a consistent look at the general and private efficiency.
Since any brand-new trend or policy might come in due to which all the things already prepared have actually to be changed, • Everybody ought to be willing to adapt midway. It's better to have contingency plans currently prepared.
• At the end of the project the manager ought to interact the outcomes and if effective ought to commemorate with the group.

Budget

This modification the budget allocation of different countries and numerous supervisors were unhappy and argued but the analysis done by the program was accurate and revealed figures like North America and Russia development potential warranted a 35% allotment while they were receiving 45%. It actually helped to fairly disperse the resources and record more customers by spending more on ads on the high development potential areas of the world.

Conclusion

Its continuous investment in R&D and ingenious practices have moved them to brand-new heights but for them its' just the start and they desire to be among the top 3 brands in the world. Their marketing efforts need to be directed towards more youthful market amidst the internal arguments about marketing and must create Consumer Lifetime Worth as it will not just offer them advantages now but will continue to reap it till the customer life time. As the cost of maintaining the consumer is much more affordable than attracting a brand-new one.