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Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Harvard Case Study Analysis

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Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Solution and Analysis


Intro

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help is a well-known international brand in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner deals in large number of product categories including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the business's core customers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Samsung items withtheir own brand name. Till early 1990s, the core competency of Samsung depend on its low rate offerings than its competitors by producing existing products at economies of scale. Its client circle includes Original Devices Manufacturers (OEMs), who utilized to sell Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis products with their own trademark name. Samsung was not simply understood outside Korea. There were also no or little interest in developing the trademark name internationally. Marketing spending plan was controlled by production department with a focal point on offering inexpensive products.During the 1997 Asian Financial Crisis the company almost got bankrupt, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most valuable business on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Samsung as a global brand name and educated his divisional managers to comprehend marketing and its significance. Now their objective is to arrive 10 by 2005.

Problem Declaration

Samsung's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional managers to include marketing successfully is still a major difficulty. Developing a constant brand identity throughout the whole world and utilizing marketing techniques that best fits the local culture is no simple task. The M-net program analysis have been really handy in figuring out the high and less potential development areas, but allocation of resources accordingly is not well received amongst the managers. There is no consensus amongst the hierarchy relating to the best fit future method.

Situational Analysis

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help efforts for constructing its trademark name across the world was begun after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to transform Samsung from an inexpensive OEM to a high value-added item supplier. To make the vision of Samsung a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can change from a low end to a luxury product company. He knew that improvement can only be done through placing Samsung as a business providing high-end products and this could just be done through high level of marketing.

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

Among the marketing challenges for Yun was the understandings of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the current marketing requirement was excessive high, the space was too larger and to fill this space with wrong perceptions about marketing was quite tough for Yun.

As stated above, marketing focus was very low in previous practices, for that reason there were no appropriate marketing spending plans for each of the item on the portfolio. There was no marketing preparation provided for the existing products. Together with it the item range of the business was increasing with the ripening of new item ideas by the R&D sector of Samsung. Yun had an obstacle to carry out marketing preparation and to develop marketing budget plans for existing in addition to for new products from the very beginning, and this would take a substantial time.

A big shift would be required in current marketing expenses to develop the Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis brand name. This would lead to increased marketing expenditures for Samsung and could disrupt the administration regarding increased expenses, as they hesitated to marketing expenses previously and an abrupt big shiftwould make them disrupt. This might lead to declining executive support for worldwide marketing. In this scenario, Yun faces a challenge for justifying increased marketing expenses by showing the long term worth of big marketing expenditures.

Internal Analysis
SWOT Analysis
Strengths


Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help strengths lie in its big item portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents approved in United States( USP).

Another strength of Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis is its capability to develop innovative items at a continuous rate. It significant proves for the development and item creating of Samsung is that the business has gotten a lot of awards for its innovation and item style.

Unlike Apple and other rivals, Samsung is focused on producing devices which can be easily incorporated with any type of open source Os (OS) and software. This offers Samsung an edge over Apple gadgets.

Samsung's ability to produce high end products at low cost of production is likewise one of the major strength of Samsung as it enables the company to catch more market by providing quality items with cost control.

Weaknesses

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis weaknesses are hidden in the business's reliance on outsourcing software application for its devices due to company's failure in developing software, unlike Sony. Samsung also has low profit margins as compare to Apple due to substantial distinction in the prices of Apple and Samsung with a much lower distinction in quality. The diverse focus of the company due to a great deal 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 likewise inefficient in managing its patents and frequently deals with the problem of patent offense.

Opportunities

Opportunities for Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help lie in the growing Smart device market and the business's performance in the market. Samsung presently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.

Hazards

The dynamic market environment of technology market present a severe threat on Samsung's survival and require the business to spend much of its profits share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a huge risk for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing

Item

Samsung provides quality products and has a rather abundant portfolio which caters to various segments. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is also not far behind in contrast of them.

• LCD/ TELEVISION
• Laptops.
• Cellphone.
• Air conditioning unit.
• Personal computers.
• Hard disks.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help utilizes both market competitive and market skimming pricing techniques for its wide variety of items. In competitive rates it changes the price according to the competition in order to gain advantage, whereas, it utilizes market skimming method where the product has an added value and by offering a few products it can reach break-even.

Place.

It has one of the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its products are timely provided to the selling location/ delivered to the consumers directly in case of online order.

Promo.

It wasn't a well-known business outside of Korea up until 1993. But the management initiative taken by their CEO has pressed them to market more effectively outside the borders and now it has gone into the league of top 25 companies in the world in simply 9 years. This is a remarkable accomplishment regardless of the continuous arguments among the supervisors about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid item ads, social promotion and digital ads are utilizes to develop awareness about Samsung products.

Worth Chain Analysis.

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

Incoming Logistics.

For its inbound logistics it owns various logistics firms as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even reduced their payment cycles to increase this relationship further which includes value to their chain network.

Operations.

Samsung's core proficiency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 different departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the primary reasons Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help is able to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target customer attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the product provides. Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Solution marketing budget is continuously increasing because they began their rearranging worldwide and will continue to do so as they are constantly looking to broaden and invest in high possible development markets. The spending plan is invested in occasions, print and media ads, public relations and so on.

Samsung Service. Samsung put their consumers at the top and constantly make every effort to deliver unmatchable client service standards. As after sales service is becoming exceptionally essential to keep clients happy and engaged, they even perform surveys through 3rd parties to find out their client's feedback and implement it in the favorable way to reduce or if possible completely remove their consumer concerns. By including a direct assistance line to call them 24 hr they have actually even more increased the added value of Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Solution service.

Division.

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis has diversified market segmentation, based upon its provision of wide variety of items to large number of consumers. Samsung target client segments can be divided into 3 categories i.e. Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget options.

Geographical.

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help geographic segmentation is based upon 2 requirements i.e. area and density. Samsung serves about 80 nations worldwide with its items supplied to Urban as well as Backwoods of the country. The Samsung is likewise growing its international existence and the business's flexibility in locating its plants encourages worldwide growth of Samsung.

Demographic.

The market segmentation of Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis is based upon gender, age, life-cycle phase and profession. Samsung produces products that can be utilized by both women and males. The target clients for Samsung IT and mobile interaction products have an age variety of 18-65 with bulk at a young or recently married life process stage. They are mostly professionals, students and employees. Apart from it, Samsung Consumer Electronics are targeted to a consumer sector with an age range of 25-65. They are mainly staff members and specialists. Samsung Device Solutions are targeted at trainees, employees and specialists with an age range of 25-65.

Psychographic.

The psychographic division of Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis s based upon the social class and the life style of the consumer. Samsung target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung sell products like cellular phone not much less expensive i.e. Motorola as well as not much pricey i.e. Apple. It offers quality items to middle level customers at a somewhat high rate than others targeting the exact same section.

Behavioural.

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis majority target clients have special behavioural characteristics. It has consumers with an ambitious, stylish and identified personality with moderate level of loyalty towards the brand name. Its consumers have some degree of shift towards other distinguished brand names i.e. Apple. The majority of Samsun customers desire quality along with cost control. Because of its moderate costs with a degree of quality, they are attracted towards Samsung.

Quantitative analysis.

Sales of Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the younger audience and develop an international brand picture of the business. Whereas, the core strength of the business is presently making but long gone are those days when great items were selling themselves. In the existing age marketing is very crucial and companies can not succeed without it. Kim has already started to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not much better.

VRIO.

Worth.

Samsung runs styles, makes and offer a huge portfolio of consumer electronics. It operates in a very competitive environment and has successfully placed itself as the maker of quality items. The answer is yes.

Rarity.

As, stated previously that Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help runs in a highly competitive environment, which indicates all the companies have comparable items. The response for rarity is no.

Imitability.

Due to the nature of the market, it is extremely simple for competitors to understand the performance of the products and easily make their own models. Yes, Samsung is only behind IBM in registering brand-new patents yearly, but the advantage is really short term in this market.

Organization.

Chairman Lee has completely turnaround Samsung, from going nearly bankrupt throughout the Asian financial crisis of 1997 to the leading 25 company worldwide. Absolutely yes there appertains company in the business and the results promote themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being an international brand name spread almost in every country worldwide, bulk 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 developed nations where law and order situation is not excellent. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis operations.

Economic

Buying power of consumers is essential for companies like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations etc. provide development opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer terribly. For this reason it is really important for the business to keep an eye on the continuous financial situation of the country before going into the marketplace.

Socio-Cultural

Multinational business have to face numerous social and cultural issues throughout its operations in a foreign country. Samsung has also dealt with lots of problems but have embraced to the regional environments of the majority of the nations incredibly well. It has actually tailored its products, practices, policies and so on appropriately in order to succeed.

Technological

With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with constant ingenious product launches, Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis is among the leading ingenious business of the world. With a clear objective to be ahead of the rest when it comes to technological improvements, Samsung has actually increased to the no 25 of the leading effective companies of the world.

Legal

Each country has their own laws and policies, being a multinational business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal effects. It has to study or hire a local law specialist before beginning its operations in a specific country.

Environmental

With the rising awareness among consumers about the environmental & ethical infractions of companies, Samsung needs to ensure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some nations the repercussions can be very extreme. On the other hand it needs to do some Corporate Social Obligation practices to reveal the locals that it cares about their environment and people.

Porter's Five Forces

Risk of Replacement

Hazard of substitution for Samsung's each item classification is quite substantial. Running in a very vibrant market lead the business to deal with a high hazard of replacement. Elements for high risk of alternative for Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help Smart device consist of the presence of high variety of providers and Market saturation in developed countries, that make the expense of changing for customers practically no. Replacement hazards for Samsung visual display screen lie in the changing lifestyle of clients. Consumers can switch to watching visuals at home towards outdoor activities. Together with it, Samsung printing options items are threatened by the increasing destination of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Samsung and its close competitors is intense. The significant reason behind this is the approach of market saturation in numerous number of item classifications, forcing Samsung to introduce more ingenious features in existing items and brand-new innovative items to keep its development. The significant rivals for Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Help has a huge supply chain including about 2700 providers 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 potential size and worth. These big orders make it possible for Samsung to work out costs with its suppliers. Due to incapability of Samsung to develop its own software application, it has to outsource its software application development to Google, which ends up being a potential provider of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out rates, however it supply substantial prices to its providers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in many of the product categories 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 higher price than much of its competitors, due to high end quality item and a fair brand name image.

Hazard of New Entrants:

Hazard of new entrants for Samsung is quite low. Among the major element for low danger of brand-new entrants is the high competition in the market. The requirement of huge amount of capital to go into in the marketplace is also among the possible barrier to entry. Together with it, requirement of big competence and research study and advancement expenditures for survival in the market likewise make brand-new entrants reluctant to go into in the marketplace. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of suppliers require the gamers in the industry to charge as low costs as possible and this can just be achieved by production efficiency. Brand-new companies, in majority cases, lack the production efficiency, hence increasing the dangers for entrance in the innovation market.

Competitive Analysis

Samsung's high product diversity supplies it distinction from its rivals. It is one of the 3 leading brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item classification with Sony concentrating on consumer electronic devices, Nokia on cellular phone and Intel on chips, Samsung had a big R&D costs on all of its item categories which make it possible for the business to make prospective earnings from sales of almost all of its items. (See Exhibit) However, due to the wide product variety the business deals with high variety of rivals.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of international market share, among 8 different product categories. Samsung was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its earnings from chips was growing faster than Intel and has grown near the profits levels of Intel, as given in the case Exhibit 2.

In addition to the chips Samsung mobile market was also thriving at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The significant reson behind Samsung's high development despite of higher rates than Nokia and Motorola was the business's high-end quality mobile phone.

Samsung was also profiting from increasing market share of high end LCDs as given up case Exhibition 3. The major reason, making the business enable to avail the opportunity is its mass production at low expense. Sony was the biggest competitor for Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis in LCD market, nevertheless, it had actually likewise started joint endeavor with Samsung in 2003 for LCD making, decreasing the competitors for Samsung.

Porter's Competitive Strategy

Low Expense Management strategy of porter is fully executed by Samsung the method they accomplish economies of scale by strengthening their core competencies of manufacturing. They always bring something ingenious and brand-new whether it's an item or a service.

Alternatives

Alternative Solution 1

The Chief Marketing Officer (CMO) of Baidu And Google In Chinas Internet Search Market Pathways To Globalisation And Localisation Award Winner Prize Winner Case Study Analysis would develop a new brand image by targeting the more youthful generation of the particular nation. As, particularly smart phones of Samsung are preferred among the younger demographic.

Pros

1. It is the best strategy to develop Consumer Life time Worth (CLV) by producing a long-term relationship with customers. Construct commitment through providing worth and reap the benefits for long-lasting, as research study has showed it is more affordable to maintain existing clients than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread quicker amongst younger individuals and which in turn will generate brand-new clients for my items.

Cons

1. Old clients who were associated with Samsung before might not like this brand-new image the business is trying to portray.
2 It will sustain further expenses to rearrange some items and it may not even bring success as the trends change really quickly amongst the younger market.

Alternative option 2.

Samsung has actually made making its core proficiency for the a lot of part of their service and due to which its managers are not scared to fully get out of their comfort zone. It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get benched. Marketing environment need to be developed internally initially as genuine marketing starts inside the corporation.

Pros

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

Cons

2. Its con can develop an extremely unhealthy environment in the workplace, as people typically withstand modification because they fear it.

Recognize the very best alternative

First option is the very best as it clearly has more pros due to the fact that as soon as a Customer Lifetime Value is built the business will benefit from it till that customer lives and has purchasing power also. Plus, our target clients are the younger generation which are bound to live longer than the current aging people. Samsung's main goal is to produce commitment amongst its customers and make them repurchase it from them and even purchase their various products.

Execution Strategy

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations achievable and realistic.
• A team including best marketing and sales experts ought to be put together, and both views need to be taken into consideration before protecting the resources needed to implement the plan.
• Thorough communication of the plan should be done as it is very crucial for everybody to be on the very same page to make it work.
• Jobs and timelines should be develop and interacted accordingly to each individual accountable.
• The supervisor should use a control panel which shows the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor need to monitor and keep a constant check on the general and individual efficiency.
Due to the fact that any brand-new trend or policy might come in due to which all the things already prepared have to be changed, • Everybody need to be ready to adjust midway. It's better to have contingency strategies currently prepared.
• At the end of the project the supervisor should communicate the results and if successful must commemorate with the team.

Budget

This change the budget allotment of various countries and many managers were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective merited a 35% allocation while they were receiving 45%. It actually helped to fairly distribute the resources and capture more consumers by investing more on ads on the high growth potential regions of the world.

Conclusion

Its constant investment in R&D and innovative practices have actually propelled them to new heights but for them its' just the start and they desire to be amongst the top 3 brands in the world. Their marketing efforts must be directed towards more youthful market amidst the internal arguments about marketing and should produce Customer Lifetime Worth as it will not just give them advantages now but will continue to reap it till the customer lifetime. As the expense of retaining the customer is much less expensive than bring in a brand-new one.