Boston Pine Street Harvard Case Study Analysis

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Boston Pine Street Case Study Solution & Analysis


Boston Pine Street Case Study Analysis is a popular international brand in technology market, established in 1938 by Lee Byung Chul, in South Korea. Boston Pine Street handle large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the company's core clients include the Original Equipment Manufacturers (OEMs), which utilized to sell Business products withtheir own brand name. Till early 1990s, the core proficiency of Corporation lie in its low price offerings than its rivals by making existing products at economies of scale. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to offer Boston Pine Street Case Study Solution products with their own trademark name. Business was not simply known outside Korea. There were likewise no or little interest in building the brand name worldwide. Marketing budget was controlled by production department with a focal point on providing low-cost products.During the 1997 Asian Financial Crisis the business practically got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most important company in the world. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Business as an international brand name and educated his divisional supervisors to understand marketing and its value. Now their objective is to arrive 10 by 2005.

Problem Declaration

Company's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to integrate marketing efficiently is still a major obstacle. Producing a constant brand identity across the entire world and utilizing marketing techniques that best fits the local culture is no simple job.
Executive Summary
Situational Analysis

Yun had a quite clear image in his mind about how Boston Pine Street Case Study Analysis can change from a low end to a high end item supplier. He knew that change can just be done through positioning Corp as a company offering 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 Enterprise brand, with a possible support of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the current marketing requirement was too much high, the space was too broader and to fill this space with incorrect perceptions about marketing was rather difficult for Yun.

As mentioned above, marketing focus was very low in previous practices, for that reason there were no correct marketing budget plans for each of the item on the portfolio. There was no marketing planning provided for the existing items. In addition to it the product series of the business was increasing with the ripening of brand-new item concepts by the R&D sector of Org. Yun had a challenge to carry out marketing preparation and to produce marketing budget plans for existing as well as for brand-new products from the very beginning, and this would take a big time.

A substantial shift would be needed in present marketing expenses to develop the Boston Pine Street Case Study Solution brand. This would lead to increased marketing expenses for Org and could disrupt the administration regarding increased costs, as they were reluctant to marketing expenses formerly and a sudden big shiftwould make them interrupt. This might lead to declining executive support for global marketing. In this circumstance, Yun faces an obstacle for justifying increased marketing expenditures by demonstrating the long term worth of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Boston Pine Street Case Study Help strengths lie in its substantial product portfolio. Org has biggest number of patents in the market with total number of 15499 patents granted in US( USP).

Another strength of Boston Pine Street Case Study Help is its ability to develop innovative items at a constant rate. It major shows for the innovation and item creating of Organization is that the business has actually gotten many awards for its innovation and product style.

Unlike Apple and other rivals, Business is focused on producing devices which can be quickly incorporated with any type of open source Os (OS) and software. This offers Enterprise an edge over Apple devices.
Porter's 5 Forces Analysis
Venture's ability to produce high-end items at low cost of production is also among the significant strength of Organization as it allows the company to catch more market by providing quality products with expense control.

Weak points

Enterprise's weak points are concealed in the business's dependence on outsourcing software application for its gadgets due to company's inability in developing software, unlike Sony. Boston Pine Street Case Study Solution also has low revenue margins as compare to Apple due to substantial difference in the costs of Apple and Corp with a much lower distinction in quality.


Opportunities for Enterprise lie in the growing Smartphone market and the business's effectiveness in the market. It can increase its market share and revenues from mobile phone as the company is rather efficient in mobile phone market. Venture currently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Enterprise can move towards acquisitions to acquire patents. It would enable the business to increase its item portfolio with an increase in its wealth.


The vibrant market environment of technology industry posture a serious threat on Enterprise's survival and force the company to invest much of its profits share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile company is likewise a big danger for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Org offers quality products and has a rather abundant portfolio which caters to different sections. LCD and mobile phones are the greatest items of Company, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Smart phone.
• Air conditioning system.
• Computer.
• Hard drives.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Boston Pine Street Case Study Analysis uses both market competitive and market skimming prices methods for its variety of products. In competitive prices it adjusts the price according to the competitors in order to gain advantage, whereas, it uses market skimming method where the product has an included value and by offering a couple of products it can reach break-even.


It has among the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its items are timely provided to the selling location/ provided to the consumers directly in case of online order.

Vrio Analysis
It uses both offline & online channels of promo to market their products. Paid product ads, social promo and digital ads are uses to produce awareness about Enterprise products.

Worth Chain Analysis.

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

Incoming Logistics.

It has among the most effective and efficient supply chain network and has over 2700 providers throughout different industries around the globe. Practically 80% of which is based in Asia and the remaining around the globe. For its inbound logistics it owns different logistics companies as it subsidiaries. It cares for its providers and produces a harmonious relationship with them and even decreased their payment cycles to boost this relationship further which includes value to their chain network.


Org's core proficiency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 various departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronics. It is maintaining operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is among the primary reasons Boston Pine Street Case Study Analysis has the ability to compete with Apple. Organization'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 Org.

Marketing and Sales.

Bring in target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the item offers. Boston Pine Street Case Study Analysis advertising budget plan is continuously growing because they began their rearranging worldwide and will continue to do so as they are continually looking to broaden and invest in high possible growth markets. The budget plan is spent on events, print and media ads, public relations etc.

Organization put their consumers at the leading and continuously make every effort to provide unmatchable consumer service standards. By adding a direct support line to contact them 24 hours they have actually even more increased the added worth of Corp service.


Boston Pine Street Case Study Help has diversified market segmentation, based upon its provision of large range of products to large number of consumers. Corporation target client sectors can be divided into 3 categories i.e. Boston Pine Street Case Study Analysis IT and Mobile Communications, Venture Consumer Electronics and Business Gadget options.


Boston Pine Street Case Study Analysis geographic division is based upon two criteria i.e. area and density. Organization serves about 80 nations worldwide with its products supplied to Urban in addition to Rural areas of the country. The Business is also growing its international presence and the company's versatility in locating its plants encourages worldwide growth of Organization.


The demographic division of Boston Pine Street Case Study Analysis is based upon gender, age, life-cycle phase and profession. Corporation produces products that can be utilized by both females and males. The target consumers for Org IT and mobile communication items have an age variety of 18-65 with bulk at a young or freshly married life process stage. They are primarily trainees, staff members and experts. Apart from it, Corp Customer Electronics are targeted to a customer section with an age range of 25-65. They are mostly specialists and employees. However Boston Pine Street Case Study Analysis Gadget Solutions are targeted at trainees, workers and specialists with an age range of 25-65.


The psychographic segmentation of Boston Pine Street Case Study Help s based upon the social class and the lifestyle of the customer. Org target consumers on the basis of social class are mainly upper middle, middle and working class consumers, as Venture offer items like cell phones not much cheaper i.e. Motorola along with not much costly i.e. Apple. It supplies quality items to middle level customers at a slightly high price than others targeting the same segment.


Boston Pine Street Case Study Help majority target consumers have unique behavioural attributes. They are attracted towards Org due to the fact that of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Boston Pine Street Case Study Analysis has increased astonishingly 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 biggest selling classification of Corporation with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the more youthful audience and create a global brand name picture of the business. Whereas, the core strength of the company is presently making but long gone are those days when excellent products were selling themselves. In the current age marketing is very important and companies can not prosper without it. Kim has already begun to strengthen the marketing activities of Corp and very soon it will turn into one of its core strength like producing if not much better.



Corp operates styles, produces and sell a vast portfolio of customer electronic devices. It operates in an exceptionally competitive environment and has effectively placed itself as the maker of quality products. So, the answer is yes.


As, stated previously that Boston Pine Street Case Study Solution operates in a highly competitive environment, which means all the business have comparable products. So, the answer for rarity is no.


Due to the nature of the market, it is extremely easy for rivals to understand the performance of the products and quickly make their own designs. Yes, Enterprise is just behind IBM in registering brand-new patents every year, however the benefit is really short-term in this market.


Chairman Lee has entirely turn-around Venture, from going practically bankrupt during the Asian monetary crisis of 1997 to the leading 25 company on the planet. Definitely yes there is proper organization in the company and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are really conductive for its operations. It faces some political pressures in less developed countries where law and order scenario is not great. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Boston Pine Street Case Study Help operations.


Buying power of consumers is vital for companies like Company to be successful and grow. Emerging markets like India, middle-eastern countries and so on offer growth chances, whereas, due to recession even the consumers of industrialized nations suffer severely. Thus it is very crucial for the company to keep an eye on the ongoing economic situation of the country before getting in the marketplace.


Multinational companies have to deal with different social and cultural concerns during its operations in a foreign nation. Corp has actually likewise dealt with numerous issues but have embraced to the local environments of most of the countries extremely well. It has actually customized its products, practices, policies etc. appropriately in order to be successful.


With a yearly expense of 2.4 billion dollars in Research study & Development, and with constant ingenious product launches, Boston Pine Street Case Study Analysis is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Business has risen to the no 25 of the leading successful business of the world.


Each country has their own laws and policies, being an international company Org have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal effects. It has to study or work with a regional law expert prior to starting its operations in a particular nation.


With the rising awareness amongst consumers about the ecological & ethical offenses of business, Business has to ensure that it follows all the safety guidelines. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be very serious. On the other hand it needs to do some Corporate Social Obligation practices to reveal the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Hazard of alternative for Organization's each item classification is rather significant. Running in an extremely dynamic industry lead the business to deal with a high danger of alternative. Factors for high risk of replacement for Boston Pine Street Case Study Analysis Mobile phone consist of the existence of high number of providers and Market saturation in developed nations, which make the cost of changing for consumers almost zero. Alternative hazards for Business visual display screen depend on the changing lifestyle of customers. Consumers can switch to seeing visuals in the house towards outside activities. Together with it, Venture printing services products are threatened by the increasing tourist attraction of consumers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly among Corp and its close competitors is intense. The significant reason behind this is the technique of market saturation in different variety of product classifications, requiring Org to present more innovative features in existing items and new innovative items to keep its development. Other aspect for the extreme competition among the competitors is the little product distinction amongst the products. The prominent players in the technology market are rather familiar with the importance of R&D costs for their survival and are facing a race of marketing and R&D costs, to capture the marketplace. The major rivals for Boston Pine Street Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry results in the changing market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

( Corporation Sustainability Report, 2016) Supplier's bargaining power for Corp is low as Org runs economies of scale and its orders are of potential size and worth. Due to incapability of Boston Pine Street Case Study Help to develop its own software application, it has to outsource its software application advancement to Google, which becomes a prospective supplier of software for Company, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Bargaining power of purchasers for various number of product classifications of Corporation is extreme. One of the aspect causing the intense bargaining power is the schedule of large number of rivals in nearly each product category i.e. rivals of Org Mobile phone, with a very little distinction. The high accessibility of suppliers of Mobile phones with minimum differentiation, make the changing expense for purchasers nearly no, for this reason increasing the bargaining power of purchasers. Market saturation in the majority of the product classifications also make the bargaining power of purchasers more extreme in for Boston Pine Street Case Study Analysis. In spite of igh bargaining power Org is quite capable of offering its items at a greater rate than much of its rivals, due to high-end quality item and a fair brand name image.

Threat of New Entrants:

Risk of new entrants for Boston Pine Street Case Study Analysis is rather low. Along with it, requirement of huge know-how and research study and development 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 technology market.

Competitive Analysis

Corporation's high product diversity offers it distinction from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Boston Pine Street Case Study Solution had a huge R&D spending on all of its item categories which make it possible for the business to make potential revenue from sales of practically all of its products.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of worldwide market share, among 8 different item categories. Corporation was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Organization earnings from chips was less than Intel but its incomes from chips was growing much faster than Intel and has actually grown close to the earnings levels of Intel, as provided in the case Exhibit 2.

Together with the chips Business mobile market was also flourishing at a high rate than its rivals i.e. Motorola and Nokia. Venture's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The significant reson behind Venture's high development despite of higher prices than Nokia and Motorola was the company's high-end quality mobile phone.

Enterprise was likewise reaping the benefits from increasing market share of high-end LCDs as given in case Exhibition 3. The significant factor, making the company make it possible for to get the chance is its mass production at low cost. Sony was the greatest rival for Boston Pine Street Case Study Solution in LCD market, however, it had also started joint endeavor with Business in 2003 for LCD producing, reducing the competition for Organization.

Porter's Competitive Technique

Low Expense Management technique of porter is fully executed by Corp the method they accomplish economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to make for them, since they were not able to take on them on low cost. Differentiation is another method well carried out by Business by continuous financial investment in the R&D and remaining ahead of the competitors. They constantly bring something brand-new and ingenious whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Boston Pine Street Case Study Solution would create a brand-new brand image by targeting the more youthful generation of the specific nation. As, especially smart phones of Company are preferred amongst the younger market.


1. It is the best method to construct Customer Lifetime Worth (CLV) by creating a long-term relationship with customers. Build loyalty through delivering value and reap the benefits for long-lasting, as research study has actually revealed it is more affordable to retain present customers than to draw in new ones.
2. Another pro of this option is that word of mouth spread faster among younger individuals and which in turn will generate new clients for my items.


1. Old clients who were related to Company before may not like this brand-new image the business is attempting to represent.
2 It will sustain additional costs to rearrange some products and it may not even bring success as the trends alter extremely rapidly amongst the younger group.

Alternative option 2.

Corp has actually made producing its core proficiency for the a lot of part of their organisation and due to which its managers are not scared to fully get out of their comfort zone. It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment must be produced internally first as real marketing starts inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the office, as people often resist change since they fear it.

Identify the very best option

Option is the finest as it plainly has more pros because once a Client Life time Value is developed the company will benefit from it till that client is alive and has buying power. Plus, our target customers are the younger generation which are bound to live longer than the existing aging people. Organization's primary objective is to develop commitment among its clients and make them redeemed it from them and even buy their different items.

Implementation Strategy

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi make with music. And set the expectations realistic and achievable.
• A group consisting of finest marketing and sales experts need to be assemble, and both views must be taken into account before securing the resources needed to execute the plan.
• Thorough communication of the strategy must be done as it is extremely crucial for everybody to be on the exact same page to make it work.
• Jobs and timelines ought to be build and interacted accordingly to each individual accountable.
• The supervisor should utilize a dashboard which shows the progress of all the tasks which have been done or about to be done and by whom.
• The manager should keep track of and keep a constant examine the total and specific performance.
• Everyone must want to adjust midway because any brand-new pattern or policy may can be found in due to which all the important things currently prepared have to be adjusted. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager need to interact the results and if successful ought to celebrate with the team.

Spending plan

The M-net program revealed engaging analysis about the high and low development possible locations and how much marketing budget need to be assigned appropriately. This change the spending plan allocation of various countries and lots of supervisors were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia growth prospective warranted a 35% allotment while they were receiving 45%. Whereas, China and Europe must be getting 42% however were instead provided 31%. It truly helped to relatively distribute the resources and capture more consumers by investing more on ads on the high growth potential areas of the world.

Boston Pine Street Case Study Solution is a leading 25 company worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its constant financial investment in R&D and ingenious practices have propelled them to new heights but for them its' only the start and they want to be amongst the top 3 brands in the world. They entirely turnaround from practically going bankrupt throughout the Asian Financial Crisis to a world distinguished brand, known for quality and innovation. Their value chain and their core competency their production ability, along-with global brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts must be directed towards younger demographic amid the internal arguments about marketing and should develop Client Lifetime Worth as it will not only provide benefits now however will continue to reap it till the customer life time. As the expense of maintaining the customer is much cheaper than bring in a new one.