Applied Chemicals In Asia A History Of Organisational Change Harvard Case Study Analysis

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Applied Chemicals In Asia A History Of Organisational Change Case Study Solution & Analysis


Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which utilized to offer Applied Chemicals In Asia A History Of Organisational Change Case Study Help items withtheir own brand name. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to sell Organization items with their own brand name. He repositioned Venture as a worldwide brand name and educated his divisional managers to comprehend marketing and its importance.

Problem Statement

Org's transition from a product based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing efficiently is still a significant challenge. Developing a consistent brand name identity across the entire world and employing marketing techniques that best fits the local culture is no easy task.
Executive Summary
Situational Analysis

Applied Chemicals In Asia A History Of Organisational Change Case Study Solution efforts for constructing its trademark name throughout the world was begun after introducing the "new management effort" by Chairman Lee in 1993. The goal was to transform Enterprise from a low-cost OEM to a high value-added item provider. To make the vision of Org a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Venture can transform from a low end to a luxury product provider. He understood that transformation can only be done through placing Corp as a business using high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to develop Company brand, with a possible support of its executives, Yun dealt with numerous marketing obstacles in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was excessive high, the gap was too wider and to fill this gap with wrong understandings about marketing was quite difficult for Yun.

As mentioned above, marketing focus was extremely low in previous practices, for that reason there were no proper marketing spending plans for each of the item on the portfolio. There was no marketing preparation done for the existing items. Together with it the product range of the company was increasing with the ripening of new product concepts by the R&D sector of Business. Yun had a difficulty to perform marketing preparation and to produce marketing budgets for existing along with for new products from the very beginning, and this would take a substantial time.

A big shift would be needed in existing marketing expenditures to construct the Applied Chemicals In Asia A History Of Organisational Change Case Study Help brand. This would lead to increased marketing expenditures for Enterprise and might interrupt the administration concerning increased expenditures, as they hesitated to marketing expenditures previously and an abrupt huge shiftwould make them interrupt. This might result in declining executive support for worldwide marketing. In this scenario, Yun faces a challenge for validating increased marketing expenses by showing the long term worth of big marketing expenses.

Internal Analysis
SWOT Analysis

Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis strengths lie in its substantial product portfolio. Venture has largest number of patents in the market with overall number of 15499 patents approved in US( USP).

Another strength of Applied Chemicals In Asia A History Of Organisational Change Case Study Help is its ability to develop ingenious products at a constant rate. It major proves for the development and item creating of Org is that the business has actually received a lot of awards for its development and item style.

Unlike Apple and other competitors, Company is focused on producing gadgets which can be easily incorporated with any kind of open source Operating System (OS) and software. This provides Company an edge over Apple gadgets.
Porter's 5 Forces Analysis
Venture's ability to produce high end products at low cost of production is likewise one of the major strength of Enterprise as it enables the business to capture more market by offering quality items with cost control.

Weak points

Company's weaknesses are hidden in the company's reliance on outsourcing software for its gadgets due to business's inability in establishing software application, unlike Sony. Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis likewise has low revenue margins as compare to Apple due to huge distinction in the rates of Apple and Corporation with a much lesser distinction in quality.


Opportunities for Applied Chemicals In Asia A History Of Organisational Change Case Study Solution lie in the growing Smart device market and the business's effectiveness in the market. Enterprise currently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic market environment of technology market present an extreme threat on Company's survival and force the business to spend much of its profits share on R&D in order to make it through in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is also a big risk for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Applied Chemicals In Asia A History Of Organisational Change Case Study Help offers quality items and has a quite abundant portfolio which accommodates various sections. The majority of the items remain in the top three of their respective markets. LCD and smart phones are the biggest items of Enterprise, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Business:

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Applied Chemicals In Asia A History Of Organisational Change Case Study Help uses both market competitive and market skimming prices techniques for its variety of items. In competitive rates it adjusts the cost according to the competitors in order to acquire benefit, whereas, it utilizes market skimming technique where the product has an included value and by selling a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a popular company beyond Korea till 1993. But the management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has actually entered the league of top 25 companies in the world in just 9 years. This is a remarkable accomplishment regardless of the ongoing arguments amongst the managers about embracing marketing practices. It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promo and digital advertisements are utilizes to create awareness about Organization products.

Value Chain Analysis.

It's an analytical framework for determining organisation activities that add value or competitive benefit for the company.

Incoming Logistics.

For its incoming logistics it owns different logistics companies as it subsidiaries. It looks after its suppliers and produces a harmonious relationship with them and even minimized their payment cycles to improve this relationship further which includes worth to their chain network.


Enterprise's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three different departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronics. It is maintaining operation hubs worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main factors Applied Chemicals In Asia A History Of Organisational Change Case Study Solution has the ability to take on Apple. Corporation's own Electronic Logitec system plays a major role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Corp.

Marketing and Sales.

Attracting target client attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product offers. Applied Chemicals In Asia A History Of Organisational Change Case Study Solution marketing spending plan is continuously increasing because they began their repositioning worldwide and will continue to do so as they are continuously wanting to invest and expand in high possible growth markets. The spending plan is invested in events, print and media ads, public relations etc.

Organization put their consumers at the top and constantly make every effort to deliver unmatchable customer service requirements. By including a direct assistance line to contact them 24 hours they have even more increased the included worth of Company service.


Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis has actually diversified market division, based upon its arrangement of vast array of items to large number of customers. Venture target client sections can be divided into 3 classifications i.e. Applied Chemicals In Asia A History Of Organisational Change Case Study Help IT and Mobile Communications, Venture Consumer Electronics and Org Gadget services.


Applied Chemicals In Asia A History Of Organisational Change Case Study Help geographical division is based upon 2 requirements i.e. region and density. Business serves about 80 countries worldwide with its items offered to Urban in addition to Backwoods of the nation. The Corporation is also growing its global presence and the business's versatility in locating its plants encourages international growth of Organization.


The demographic segmentation of Applied Chemicals In Asia A History Of Organisational Change Case Study Help is based upon gender, age, life-cycle stage and profession. Org produces products that can be utilized by both women and males. The target customers for Organization IT and mobile communication products have an age range of 18-65 with majority at a young or freshly wed life process stage. They are primarily experts, trainees and employees. Apart from it, Corp Customer Electronic devices are targeted to a client sector with an age variety of 25-65. They are mostly professionals and staff members. Company Gadget Solutions are targeted at students, employees and professionals with an age variety of 25-65.


The psychographic segmentation of Applied Chemicals In Asia A History Of Organisational Change Case Study Help s based upon the social class and the life style of the consumer. Business target customers on the basis of social class are generally upper middle, middle and working class clients, as Corporation offer products like mobile phone very little more affordable i.e. Motorola as well as very little expensive i.e. Apple. It supplies quality products to middle level customers at a somewhat high price than others targeting the very same section.


Applied Chemicals In Asia A History Of Organisational Change Case Study Help bulk target clients have distinct behavioural qualities. It has consumers with an enthusiastic, trendy and determined character with moderate level of commitment towards the brand name. Its clients have some degree of shift towards other distinguished brands i.e. Apple. The majority of Enterprise customers want quality in addition to expense control. Due to the fact that of its moderate rates with an extent of quality, they are drawn in towards Corporation.

Quantitative analysis.

Sales of Enterprise has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually also reduced its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Org with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Profits/ sales are increasing but net profit is not increasing accordingly due to the fact that of the high overhead cost. New expansions and working with's were the main factor of the boost in the overhead costs, with china presently not supplying any profit to Enterprise, however there is so much potential in the current market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is presently producing but long gone are those days when good products were offering themselves. Kim has currently begun to enhance the marketing activities of Org and really soon it will become one of its core strength like making if not better.



Business runs designs, manufactures and sell a vast portfolio of consumer electronic devices. It runs in an incredibly competitive environment and has successfully placed itself as the maker of quality products. The response is yes.


As, stated earlier that Applied Chemicals In Asia A History Of Organisational Change Case Study Solution runs in a highly competitive environment, which implies all the companies have comparable products. So, the response for rarity is no.


Due to the nature of the industry, it is very easy for rivals to comprehend the performance of the items and quickly make their own models. Yes, Corporation is just behind IBM in registering new patents every year, but the benefit is very short-term in this industry.


Chairman Lee has completely turn-around Organization, from going almost insolvent during the Asian monetary crisis of 1997 to the leading 25 business in the world. Certainly yes there is proper organization in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread nearly in every nation worldwide, majority of the environments like USA, Europe, China etc., are extremely conductive for its operations. It deals with some political pressures in less industrialized countries where law and order scenario is not excellent. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Applied Chemicals In Asia A History Of Organisational Change Case Study Help operations.


Buying power of consumers is vital for business like Venture to be successful and grow. Emerging markets like India, middle-eastern nations and so on supply growth chances, whereas, due to recession even the customers of industrialized countries suffer badly. For this reason it is really essential for the business to keep an eye on the continuous economic situation of the country prior to going into the marketplace.


International business need to face various social and cultural concerns during its operations in a foreign country. Enterprise has actually likewise dealt with lots of problems however have embraced to the regional environments of most of the nations exceptionally well. It has customized its items, practices, policies etc. accordingly in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with continuous ingenious item launches, Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis is one of the top ingenious companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Corporation has actually increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being a multinational company Corporation have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. It has to study or employ a regional law specialist prior to beginning its operations in a specific country.


With the increasing awareness amongst consumers about the ecological & ethical violations of business, Company needs to guarantee that it follows all the security standards. Environmental damages, ethical misconducts are not acceptable and in some countries the consequences can be really severe. On the other hand it needs to do some Corporate Social Duty practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Alternative

Risk of substitution for Venture's each product category is quite considerable. Running in an extremely vibrant market lead the company to face a high risk of replacement. Aspects for high risk of replacement for Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis Smart device consist of the presence of high number of suppliers and Market saturation in industrialized countries, that make the expense of switching for consumers practically zero. Replacement hazards for Venture visual display screen depend on the changing life style of consumers. Consumers can change to seeing visuals in your home towards outdoor activities. Together with it, Corporation printing options items are threatened by the increasing attraction of customers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly among Corp and its close competitors is intense. The significant reason behind this is the approach of market saturation in different number of product categories, forcing Organization to introduce more innovative functions in existing items and brand-new ingenious products to maintain its growth. The significant competitors for Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Corporation Sustainability Report, 2016) Provider's bargaining power for Enterprise is low as Corp runs economies of scale and its orders are of possible size and worth. Due to incapability of Applied Chemicals In Asia A History Of Organisational Change Case Study Solution to develop its own software application, it has to outsource its software development to Google, which ends up being a possible provider of software for Corp, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Bargaining power of buyers for various number of product categories of Company is extreme. One of the aspect leading to the extreme bargaining power is the schedule of large number of competitors in practically each product classification i.e. competitors of Business Smartphone, with an extremely little distinction. The high accessibility of suppliers of Mobile phones with minimum distinction, make the changing cost for purchasers nearly absolutely no, for this reason increasing the bargaining power of purchasers. Market saturation in the majority of the item classifications likewise make the bargaining power of purchasers more intense in for Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis. In spite of igh bargaining power Corporation is rather capable of selling its items at a greater price than much of its rivals, due to high end quality item and a fair brand image.

Risk of New Entrants:

Hazard of new entrants for Applied Chemicals In Asia A History Of Organisational Change Case Study Solution is rather low. Along with it, requirement of huge competence and research and advancement expenses for survival in the market also make brand-new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Corp's high product diversification provides it distinction from its rivals. It is one of the three leading brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronic devices, Nokia on mobile phone and Intel on chips, Venture had a huge R&D spending on all of its item classifications which make it possible for the business to make prospective income from sales of practically all of its products. (See Exhibition) Nevertheless, due to the broad product variety the business faces high variety of competitors.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to worldwide market share, among 8 various item classifications. Enterprise was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Although, Org profits from chips was less than Intel however its earnings from chips was growing quicker than Intel and has grown near the revenue levels of Intel, as given in the case Exhibit 2.

Along with the chips Venture mobile market was likewise flourishing at a high rate than its competitors i.e. Motorola and Nokia. Venture's mobile phone's sales development was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales growth. The significant reson behind Enterprise's high development despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Company was likewise profiting from increasing market share of high-end LCDs as given in case Exhibition 3. The major reason, making the company allow to avail the opportunity is its mass production at low expense. Sony was the biggest competitor for Applied Chemicals In Asia A History Of Organisational Change Case Study Solution in LCD market, however, it had likewise started joint venture with Enterprise in 2003 for LCD making, lessening the competitors for Corp.

Porter's Competitive Technique

Low Cost Management technique of porter is totally executed by Venture the way they accomplish economies of scale by reinforcing their core proficiencies of production. They constantly bring something new and ingenious whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Applied Chemicals In Asia A History Of Organisational Change Case Study Analysis would produce a new brand name image by targeting the younger generation of the particular country. As, especially smart phones of Company are popular amongst the younger market.


1. It is the very best strategy to construct Consumer Life time Value (CLV) by producing a long-term relationship with consumers. Develop commitment through delivering worth and reap the benefits for long-lasting, as research study has showed it is more affordable to retain present clients than to bring in new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst younger people and which in turn will bring in new consumers for my items.


1. Old customers who were connected with Venture prior to may not like this brand-new image the business is trying to represent.
2 It will sustain further expenditures to reposition some items and it may not even bring success as the trends alter extremely rapidly amongst the younger group.

Alternative option 2.

It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be provided. Marketing environment should be developed internally initially as real marketing starts inside the corporation.


1. Its pro will be that all the marketing method advocates will come out and likewise the opposite ones.


2. Its con can create a really unhealthy environment in the office, as people often resist modification since they fear it.

Recognize the best alternative

Option is the best as it plainly has more pros since once a Client Life time Worth is constructed the company will benefit from it till that customer is alive and has buying power. Plus, our target consumers are the younger generation which are bound to live longer than the existing aging people. Nevertheless, Org's main goal is to produce commitment among its clients and make them repurchase it from them and even purchase their different products too.

Application Plan

• Targeting more youthful generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations attainable and realistic.
• A group including finest marketing and sales specialists need to be assemble, and both views need to be taken into consideration before protecting the resources required to implement the strategy.
• Thorough interaction of the strategy need to be done as it is extremely essential for everybody to be on the exact same page to make it work.
• Jobs and timelines must be develop and interacted accordingly to each individual responsible.
• The manager need to utilize a dashboard which shows the development of all the tasks which have been done or about to be done and by whom.
• The manager must keep an eye on and keep a consistent look at the private and overall performance.
• Everyone ought to want to adjust midway because any brand-new trend or policy may can be found in due to which all the things currently planned need to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager should interact the outcomes and if effective must commemorate with the group.

Spending plan

This change the budget plan allocation of lots of managers and different countries were dissatisfied and argued but the analysis done by the program was accurate and showed figures like North America and Russia development prospective warranted a 35% allotment while they were getting 45%. It really assisted to fairly disperse the resources and record more consumers by spending more on ads on the high growth capacity regions of the world.

Applied Chemicals In Asia A History Of Organisational Change Case Study Solution is a top 25 business worldwide now and plans to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and innovative practices have moved them to brand-new heights but for them its' just the start and they wish to be amongst the top 3 brand names on the planet. They completely turn-around from nearly declaring bankruptcy throughout the Asian Financial Crisis to a world popular brand, understood for quality and innovation. Their worth chain and their core proficiency their manufacturing ability, along-with worldwide brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts should be directed towards more youthful demographic in the middle of the internal arguments about marketing and must create Client Lifetime Value as it will not just provide benefits now however will continue to reap it till the consumer lifetime. As the cost of keeping the customer is more affordable than attracting a new one.