Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Solution & Analysis
Introduction
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis is a well-known global brand in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool deals in a great deal of product categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core clients consist of the Original Devices Manufacturers (OEMs), which utilized to sell Corporation items withtheir own brand. Till early 1990s, the core proficiency of Organization lie in its low price offerings than its rivals by manufacturing existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis items with their own trademark name. Company was not merely known outside Korea. There were also no or little interest in building the brand globally. Marketing budget plan was managed by production department with a prime focus on offering cheap products.During the 1997 Asian Financial Crisis the company almost got bankrupt, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the leading 25 most important business on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He repositioned Corporation as an international brand name and educated his divisional supervisors to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.
Problem Statement
Organization's shift from a product based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing successfully is still a major obstacle. Developing a constant brand name identity throughout the whole world and using marketing techniques that finest fits the regional culture is no easy job. The M-net program analysis have actually been really valuable in identifying the high and less prospective development areas, but allotment of resources appropriately is not well gotten amongst the managers. There is no consensus amongst the hierarchy relating to the very best suited future technique.
Situational Analysis
Yun had a rather clear image in his mind about how Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Solution can change from a low end to a high end product provider. He knew that change can just be done through positioning Org as a business offering high-end items and this could just be done through high level of marketing.
In spite of having a clear vision about how to construct Organization brand, with a potential assistance of its executives, Yun faced numerous marketing challenges in early years of its efforts.
One of the marketing difficulties for Yun was the understandings of executives about the value of marketing. They considered marketing and selling as very 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 service practices, and the current marketing requirement was too much high, the space was too broader and to fill this space with incorrect understandings about marketing was quite difficult for Yun.
Along with it the product range of the business was increasing with the ripening of new item ideas by the R&D sector of Org. Yun had an obstacle to carry out 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 substantial time.
A big shift would be needed in present marketing expenditures to build the Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help brand. This would result in increased marketing expenditures for Org and could disturb the administration concerning increased expenditures, as they hesitated to marketing expenditures previously and an abrupt big shiftwould make them interrupt. This might lead to decreasing executive support for worldwide marketing. In this scenario, Yun faces a challenge for justifying increased marketing costs by showing the long term worth of big marketing expenditures.
Internal Analysis
SWOT Analysis
Strengths
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help strengths lie in its substantial item portfolio. Corp has largest number of patents in the market with total number of 15499 patents granted in US( USP).
Another strength of Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help is its capability to develop innovative products at a continuous rate. It major proves for the innovation and item creating of Corporation is that the business has actually gotten so many awards for its innovation and product design.
Unlike Apple and other rivals, Corp is concentrated on producing devices which can be quickly integrated with any kind of open source Operating System (OS) and software. This provides Org an edge over Apple devices.
Enterprise's ability to produce high-end products at low cost of production is likewise one of the major strength of Corporation as it makes it possible for the business to capture more market by offering quality products with cost control.
Weaknesses
Corporation's weak points are hidden in the company's reliance on outsourcing software for its gadgets due to business's inability in developing software, unlike Sony. Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis likewise has low earnings margins as compare to Apple due to huge difference in the rates of Apple and Corporation with a much lesser distinction in quality.
Opportunities
Opportunities for Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Solution lie in the growing Mobile phone market and the company's effectiveness in the market. Organization presently runs in about 80 nations and the company has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.
Threats
The vibrant market environment of innovation industry position a serious threat on Org's survival and force the company to spend much of its earnings share on R&D in order to endure in the long run. The market saturation in developed nations i.e. saturation of mobile company is also a big danger for the company's development in the presence of strong rivals like Apple.
4 P's of Marketing
Product
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help provides quality items and has a rather rich portfolio which deals with different sectors. Most of the items are in the top three of their respective industries. LCD and cellphones are the greatest items of Corporation, whereas DRAM is also not far behind in contrast of them. Following is the product line of Organization:
• LCD/ TV
• Laptops.
• Mobile phones.
• Air conditioner.
• Desktop computer.
• Disk drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.
Cost.
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis utilizes both market competitive and market skimming prices techniques for its wide variety of items. In competitive prices it adjusts the cost according to the competition in order to get advantage, whereas, it utilizes market skimming method where the item has an added worth and by offering a few items it can reach break-even.
Location.
It has among the very best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon etc. All its items are timely supplied to the selling location/ provided to the consumers directly in case of online order.
Promotion.
It uses both offline & online channels of promotion to market their products. Paid product advertisements, social promotion and digital ads are uses to produce awareness about Org items.
Value Chain Analysis.
It's an analytical structure for determining business activities that add value or competitive benefit for the business.
Incoming Logistics.
For its incoming logistics it owns different logistics firms as it subsidiaries. It looks after its providers and creates an unified relationship with them and even lowered their payment cycles to boost this relationship further which adds worth to their chain network.
Operations.
Enterprise's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronics. It is maintaining operation hubs worldwide to even more add worth to its worth chain network.
Outbound Logistics.
Its outbound logistics system performance is one of the primary reasons Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help is able to compete with Apple. Corp'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 Organization.
Marketing and Sales.
Attracting target client attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the item offers. Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis advertising budget is continuously increasing given that they began their rearranging globally and will continue to do so as they are continuously looking to invest and expand in high potential growth markets. The budget plan is invested in occasions, print and media ads, public relations and so on.
Venture Service. Enterprise put their clients at the top and continuously make every effort to provide unmatchable client service requirements. As after sales service is ending up being exceptionally essential to keep clients happy and engaged, they even carry out surveys through 3rd parties to find out their customer's feedback and implement it in the favorable method to minimize or if possible totally eliminate their consumer issues. By adding a direct assistance line to contact them 24 hr they have actually even more increased the added value of Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help service.
Division.
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help has diversified market division, based upon its arrangement of wide range of items to a great deal of consumers. Org target customer segments can be divided into 3 categories i.e. Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help IT and Mobile Communications, Org Customer Electronics and Organization Device options.
Geographic.
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help geographic division is based upon two requirements i.e. region and density. Corporation serves about 80 countries worldwide with its items offered to Urban in addition to Backwoods of the nation. The Organization is also growing its worldwide existence and the business's flexibility in locating its plants encourages worldwide expansion of Corp.
Demographic.
Business produces products that can be utilized by both females and males. The target customers for Venture IT and mobile communication products have an age range of 18-65 with majority at a young or freshly wed life cycle stage. Apart from it, Company Customer Electronic devices are targeted to a client sector with an age range of 25-65.
Psychographic.
The psychographic division of Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help s based upon the social class and the lifestyle of the consumer. Corporation target consumers on the basis of social class are generally upper middle, middle and working class clients, as Corporation offer products like cell phones not much more affordable i.e. Motorola along with very little costly i.e. Apple. It provides quality products to middle level customers at a somewhat high price than others targeting the exact same sector.
Behavioural.
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis bulk target customers have distinct behavioural attributes. They are attracted towards Org because of its moderate rates with a degree of quality.
Quantitative analysis.
Sales of Venture has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has also reduced its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Business with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Incomes/ sales are increasing however net revenue is not increasing accordingly because of the high overhead cost. New growths and employing's were the primary reason of the increase in the overhead costs, with china currently not providing any revenue to Corporation, however there is so much capacity in the present 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 excellent items were offering themselves. Kim has currently begun to reinforce the marketing activities of Corp and very quickly it will end up being one of its core strength like producing if not much better.
VRIO.
Value.
Business runs styles, produces and sell a huge portfolio of customer electronics. It runs in a very competitive environment and has actually effectively positioned itself as the maker of quality products. The response is yes.
Rarity.
As, stated previously that Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Solution runs in an extremely competitive environment, which indicates all the business have comparable products. So, the answer for rarity is no.
Imitability.
Due to the nature of the market, it is really easy for rivals to comprehend the performance of the items and easily make their own designs. Yes, Corp is only behind IBM in registering brand-new patents yearly, however the advantage is extremely short-term in this market.
Company.
Chairman Lee has totally turn-around Org, from going almost insolvent during the Asian financial crisis of 1997 to the top 25 company in the world. Absolutely yes there appertains company in the company and the results promote themselves.
External Environmental Analysis
PESTLE Analysis
Political
Being a multinational brand name spread practically in every nation worldwide, bulk of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. It faces some political pressures in less developed countries where law and order situation is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis operations.
Economic
Purchasing power of clients is important for business like Company to grow and succeed. Emerging markets like India, middle-eastern countries etc. supply development chances, whereas, due to recession even the customers of developed countries suffer severely. Thus it is really important for the business to watch on the continuous economic circumstance of the nation prior to going into the marketplace.
Socio-Cultural
International business have to face numerous social and cultural problems during its operations in a foreign nation. Corporation has actually also dealt with lots of problems but have actually adopted to the local environments of most of the nations extremely well. It has actually tailored its products, practices, policies etc. appropriately in order to be successful.
Technological
With a yearly expense of 2.4 billion dollars in Research study & Development, and with constant ingenious item launches, Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it comes to technological improvements, Company has risen to the no 25 of the top successful business of the world.
Legal
Each nation has their own laws and policies, being an international company Corp have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal effects. So, it needs to study or work with a regional law expert before beginning its operations in a specific country.
Environmental
With the increasing awareness amongst customers about the environmental & ethical infractions of business, Venture has to ensure that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some countries the repercussions can be really serious. On the other hand it has to do some Corporate Social Obligation practices to show the residents that it cares about their environment and individuals.
Porter's 5 Forces
Hazard of Replacement
Hazard of alternative for Corporation's each product category is rather substantial. Running in an extremely dynamic industry lead the business to deal with a high threat of alternative. Factors for high risk of alternative for Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis Smartphone consist of the existence of high variety of providers and Market saturation in developed countries, that make the expense of changing for customers nearly zero. Alternative dangers for Venture visual screen depend on the altering lifestyle of customers. Consumers can change to seeing visuals at home towards outdoor activities. In addition to it, Corp printing options products are threatened by the increasing destination of consumers towards cloud storage.
Rivalry Amongst Existing Firms:
The rivaly amongst Company and its close competitors is extreme. The significant reason behind this is the method of market saturation in different number of item classifications, requiring Organization to present more ingenious functions in existing products and new innovative products to maintain its development. Other element for the intense rivalry amongst the competitors is the little item distinction amongst the products. The prominent players in the innovation industry are rather knowledgeable about the value of R&D costs for their survival and are encountering a race of marketing and R&D spending, to capture the market. The significant competitors for Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the fluctuating market shares which can be seen in Exhibit F.
Bargaining Power of Providers:
Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis has a large supply chain consisting of about 2700 suppliers across the world.( Organization Sustainability Report, 2016) Supplier's bargaining power for Business is low as Corporation runs economies of scale and its orders are of possible size and worth. These huge orders enable Corp to negotiate prices with its providers. Nevertheless, due to incapability of Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Solution to develop its own software, it needs to outsource its software advancement to Google, which becomes a potential supplier of software for Org, leading to high bargaining power of Google. Although, in the majority of cases Business has a power to negotiate prices, however it offer significant costs to its suppliers to build a strong supply chain and to have strong relationships with its providers.
Bargaining Power of Buyers:
Market saturation in many of the item categories also make the bargaining power of buyers more extreme in for Organization. In spite of igh bargaining power Enterprise is quite capable of selling its products at a greater price than much of its competitors, due to high end quality item and a fair brand name image.
Threat of New Entrants:
Hazard of new entrants for Organization is rather low. Among the major element for low hazard of brand-new entrants is the high competitors in the industry. The requirement of huge amount of capital to go into in the market is also one of the possible barrier to entry. Along with it, requirement of big know-how and research and advancement expenses for survival in the industry likewise make new entrants reluctant to enter in the marketplace. Market saturation is also one of the barrier of entry in technology industry. High bargaining power of suppliers require the players in the industry to charge as low rates as possible and this can just be attained by production efficiency. New firms, in bulk cases, do not have the production effectiveness, for this reason increasing the risks for entrance in the technology market.
Competitive Analysis
Company's high product diversification supplies it distinction from its competitors. It is one of the 3 leading brands by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item classification with Sony concentrating on customer electronics, Nokia on mobile phone and Intel on chips, Company had a big R&D costs on all of its product classifications which enable the company to make prospective profits from sales of practically all of its products. (See Exhibit) Nevertheless, due to the broad product range the business faces high number of competitors.
The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to international market share, among 8 different product categories. Corp was the international leader in making DRAM, SRAM and NAND flash chips. Business revenues from chips was less than Intel but its earnings from chips was growing faster than Intel and has actually grown close to the income levels of Intel, as offered in the case Exhibition 2.
Together with the chips Org mobile market was likewise flourishing at a high rate than its rivals i.e. Motorola and Nokia. Corporation's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales development. The significant reson behind Corp's high development despite of higher rates than Nokia and Motorola was the company's high-end quality mobile phone.
Company was also profiting from increasing market share of high-end LCDs as given in case Display 3. The major factor, making the company allow to avail the chance is its mass production at low cost. Sony was the biggest competitor for Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Analysis in LCD market, nevertheless, it had also begun joint endeavor with Venture in 2003 for LCD making, reducing the competition for Org.
Porter's Competitive Strategy
Low Cost Leadership technique of porter is fully implemented by Org the way they accomplish economies of scale by enhancing their core competencies of production. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, because they were unable to compete with them on low cost. Distinction is another strategy well executed by Company by continuous financial investment in the R&D and staying ahead of the competition. They constantly bring something ingenious and new whether it's an item or a service.
Alternatives
Alternative Service 1
The Chief Marketing Officer (CMO) of Blue Ocean Strategy Implementation Self Diagnostic Tipping Point Leadership And Fair Process In Action Development Tool Case Study Help would create a new brand image by targeting the more youthful generation of the specific country. As, especially mobile phones of Business are incredibly popular among the younger group.
Pros
1. It is the very best strategy to build Client Lifetime Worth (CLV) by producing a long-term relationship with consumers. Construct loyalty through delivering worth and profit for long-lasting, as research study has showed it is much cheaper to maintain current consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger individuals and which in turn will bring in new clients for my items.
Cons
1. Old customers who were associated with Company prior to may not like this new image the business is attempting to portray.
2 It will incur additional costs to rearrange some items and it might not even bring success as the patterns change extremely rapidly among the younger group.
Alternative solution 2.
It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be given. Marketing environment need to be produced internally first as real marketing starts inside the corporation.
Pros
1. Its pro will be that all the marketing approach supporters will come out and likewise the opposite ones.
Cons
2. Its con can create a really unhealthy environment in the work environment, as people frequently withstand modification due to the fact that they fear it.
Recognize the best option
Alternative is the finest as it plainly has more pros since as soon as a Consumer Lifetime Worth is developed the company will profit from it till that client is alive and has buying power. Plus, our target clients are the more youthful generation which are bound to live longer than the present aging people. However, Organization's main objective is to produce loyalty among its clients and make them redeemed it from them and even buy their different products too.
Implementation Strategy
• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations achievable and practical.
• A group including finest marketing and sales experts ought to be assemble, and both views ought to be taken into consideration before protecting the resources required to implement the plan.
• Thorough interaction of the strategy need to be done as it is extremely essential for everybody to be on the very same page to make it work.
• Tasks and timelines must be build and communicated appropriately to each person accountable.
• The manager need to utilize a dashboard which reveals the development of all the tasks which have actually 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 efficiency.
Since any brand-new trend or policy may come in due to which all the things already planned have to be changed, • Everyone should be ready to adapt midway. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the manager ought to interact the outcomes and if effective must celebrate with the team.
Budget plan
The M-net program revealed compelling analysis about the low and high development possible locations and how much marketing spending plan need to be designated appropriately. This modification the budget plan allocation of various countries and lots of managers were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like North America and Russia development possible merited a 35% allotment while they were getting 45%. Whereas, China and Europe should be receiving 42% however were rather given 31%. It really helped to fairly disperse the resources and catch more clients by spending more on ads on the high growth capacity areas of the world.
Conclusion
Its constant financial investment in R&D and ingenious practices have moved them to brand-new heights however for them its' only the start and they want to be among the leading 3 brands in the world. Their marketing efforts should be directed towards younger group amidst the internal arguments about marketing and need to create Client Life time Value as it will not only give them benefits now however will continue to gain it till the client life time. As the cost of maintaining the consumer is much cheaper than attracting a brand-new one.
