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Boston Pine Street Case Study Solution and Analysis


Introduction

Boston Pine Street Case Study Solution is a widely known global brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Boston Pine Street deals in large number of product categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core consumers consist of the Original Equipment Manufacturers (OEMs), which used to sell Samsung items withtheir own trademark name. Till early 1990s, the core competency of Samsung depend on its low rate offerings than its competitors by manufacturing existing items at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Boston Pine Street Case Study Analysis products with their own brand. Samsung was not simply known outside Korea. There were also no or little interest in constructing the brand name globally. Marketing budget plan was managed by production department with a focal point on supplying inexpensive products.During the 1997 Asian Financial Crisis the company nearly 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 company on the planet. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Samsung as a worldwide brand and informed his divisional supervisors to comprehend marketing and its significance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Samsung's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to integrate marketing successfully is still a major obstacle. Creating a consistent brand name identity throughout the entire world and using marketing methods that best fits the regional culture is no easy job.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Boston Pine Street Case Study Help can change from a low end to a high end product service provider. He understood that improvement can only be done through positioning Samsung as a company using 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 Samsung brand, with a prospective assistance of its executives, Yun faced numerous marketing challenges in early years of its efforts.

Among the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as very 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 business practices, and the existing marketing requirement was excessive high, the gap was too broader and to fill this space with wrong understandings about marketing was quite tough for Yun.

Along with it the product variety of the business was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had a challenge to perform marketing planning and to produce marketing spending plans for existing as well as for new products from the very beginning, and this would take a big time.

A big shift would be needed in existing marketing expenses to develop the Boston Pine Street Case Study Solution brand. This would result in increased marketing expenditures for Samsung and might interrupt the administration relating to increased costs, as they were reluctant to marketing expenditures previously and an abrupt huge shiftwould make them disturb. This could lead to declining executive support for international marketing. In this scenario, Yun deals with an obstacle for justifying increased marketing expenditures by showing the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis
Strengths


Boston Pine Street Case Study Analysis strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents approved in US( USP).

Another strength of Boston Pine Street Case Study Solution is its ability to establish innovative items at a continuous rate. It major shows for the development and item developing of Samsung is that the company has actually gotten numerous awards for its development and product style.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be easily incorporated with any kind of open source Operating System (OS) and software. This offers Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury items at low cost of production is likewise one of the major strength of Samsung as it makes it possible for the business to record more market by offering quality products with cost control.

Weak points

Boston Pine Street Case Study Help weak points are hidden in the business's dependence on outsourcing software for its gadgets due to business's failure in developing software, unlike Sony. Samsung likewise has low revenue margins as compare to Apple due to huge difference in the costs of Apple and Samsung with a much lower difference in quality. The varied focus of the company due to large number of items in its portfolio, lead to the less efficient production and make the business not able to charge higher prices like Apple. The business is likewise ineffective in handling its patents and often faces the problem of patent violation.

Opportunities

Opportunities for Samsung lie in the growing Smart device market and the company's effectiveness in the market. It can increase its market share and profits from mobile phone as the company is rather effective in smart phone market. Samsung currently runs in about 80 nations and the company has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would allow the company to increase its product portfolio with an increase in its wealth.

Threats

The dynamic industry environment of technology industry present a serious hazard on Samsung's survival and force the company to spend much of its revenues share on R&D in order to endure in the long run. The market saturation in developed nations i.e. saturation of mobile business is likewise a big danger for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis
Item

Samsung offers quality items and has a rather abundant portfolio which caters to various segments. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is likewise not far behind in contrast of them.

• LCD/ TELEVISION
• Laptops.
• Smart phone.
• Air conditioning unit.
• Computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Rate.

Boston Pine Street Case Study Help uses both market competitive and market skimming prices strategies for its wide variety of items. In competitive rates it adjusts the cost according to the competition in order to gain advantage, whereas, it utilizes market skimming technique where the item has actually an added value and by selling a few items it can reach break-even.

Location.

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

Promotion.
Vrio Analysis
It utilizes both offline & online channels of promo to market their items. Paid product ads, social promotion and digital ads are utilizes to produce awareness about Samsung products.

Worth Chain Analysis.

It's an analytical structure for identifying service activities that add worth or competitive advantage for the business.

Inbound Logistics.

For its inbound logistics it owns various logistics companies as it subsidiaries. It looks after its suppliers and creates a harmonious relationship with them and even lowered their payment cycles to increase this relationship even more which adds value to their chain network.

Operations.

Samsung's core proficiency is its mass making it produces 90% of its items internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is preserving operation centers worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main reasons Boston Pine Street Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the item uses. Boston Pine Street Case Study Analysis advertising spending plan is continually increasing because they started their rearranging internationally and will continue to do so as they are continuously seeking to invest and expand in high possible development markets. The spending plan is spent on occasions, print and media advertisements, public relations etc.

Samsung Service. Samsung put their consumers on top and continually aim to provide unmatchable customer service requirements. As after sales service is becoming extremely crucial to keep consumers happy and engaged, they even perform surveys through 3rd parties to discover their client's feedback and execute it in the positive method to minimize or if possible completely eliminate their customer concerns. By including a direct support line to call them 24 hr they have actually further increased the included value of Boston Pine Street Case Study Analysis service.

Segmentation.

Boston Pine Street Case Study Analysis has actually diversified market segmentation, based upon its provision of wide range of items to a great deal of customers. Samsung target client sections can be divided into 3 classifications i.e. Boston Pine Street Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.

Geographic.

Boston Pine Street Case Study Solution geographical segmentation is based upon two criteria i.e. area and density. Samsung serves about 80 countries worldwide with its products provided to Urban along with Backwoods of the country. The Samsung is also growing its international presence and the business's versatility in finding its plants motivates global expansion of Samsung.

Demographic.

Samsung produces items that can be used by both females and males. The target customers for Samsung IT and mobile communication items have an age range of 18-65 with bulk at a young or recently wed life cycle phase. Apart from it, Samsung Consumer Electronics are targeted to a client sector with an age variety of 25-65.

Psychographic.

The psychographic division of Boston Pine Street Case Study Help s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are generally upper middle, middle and working class clients, as Samsung offer items like mobile phone not much less expensive i.e. Motorola along with very little costly i.e. Apple. It provides quality products to middle level customers at a somewhat high cost than others targeting the exact same section.

Behavioural.

Boston Pine Street Case Study Analysis bulk target consumers have unique behavioural attributes. They are drawn in towards Samsung since of its moderate costs with a level of quality.

Quantitative analysis.

Sales of Samsung has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has also minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead cost, profits/ sales are increasing but net profit is not increasing appropriately. New expansions and employing's were the main reason of the boost in the overhead costs, with china presently not offering any profit to Samsung, however there is so much capacity in the existing market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based upon the objective of Kim to target the more youthful audience and create a worldwide brand image of the business. Whereas, the core strength of the business is presently producing but long gone are those days when good products were offering themselves. In the existing age marketing is extremely crucial and business can not prosper without it. Kim has actually already started to strengthen the marketing activities of Samsung and soon it will turn into one of its core strength like producing if not better.

VRIO.

Value.

Samsung operates designs, makes and offer a vast portfolio of customer electronic devices. It operates in an extremely competitive environment and has effectively positioned itself as the maker of quality products. So, the response is yes.

Rarity.

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

Imitability.

Due to the nature of the industry, it is really simple for competitors to understand the performance of the items and quickly make their own models. Yes, Samsung is only behind IBM in registering brand-new patents yearly, however the benefit is very short-term in this industry.

Organization.

Chairman Lee has totally turnaround Samsung, from going nearly insolvent during the Asian financial crisis of 1997 to the top 25 business in the world. Absolutely yes there is proper company in the business and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being a multinational brand spread almost in every country worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It deals with some political pressures in less developed nations where law and order scenario is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Boston Pine Street Case Study Analysis operations.

Economic

Buying power of consumers is important for companies like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations and so on supply development chances, whereas, due to recession even the consumers of industrialized countries suffer badly. Hence it is very essential for the business to watch on the continuous financial scenario of the nation prior to entering the marketplace.

Socio-Cultural

Multinational companies have to face numerous social and cultural issues throughout its operations in a foreign country. Samsung has actually likewise faced lots of concerns but have actually adopted to the local environments of the majority of the nations exceptionally well. It has tailored its items, practices, policies etc. appropriately in order to achieve success.

Technological

With a yearly expenditure of 2.4 billion dollars in Research & Development, and with continuous ingenious item launches, Boston Pine Street Case Study Solution is among the leading innovative companies of the world. With a clear objective to be ahead of the rest when it pertains to technological developments, Samsung has increased to the no 25 of the top successful business of the world.

Legal

Each nation 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 result in severe legal consequences. So, it has to study or employ a local law specialist before starting its operations in a particular nation.

Environmental

With the increasing awareness amongst customers about the ecological & ethical infractions of companies, Samsung has to make sure that it follows all the safety standards. Ecological damages, ethical misconducts are not appropriate and in some nations the repercussions can be very serious. On the other hand it needs to do some Corporate Social Obligation practices to reveal the locals that it cares about their environment and individuals.

Porter's Five Forces

Danger of Replacement

Risk of replacement for Samsung's each product classification is rather substantial. Running in a very dynamic industry lead the business to deal with a high danger of substitution. Aspects for high hazard of alternative for Boston Pine Street Case Study Analysis Smart device consist of the existence of high variety of suppliers and Market saturation in developed nations, which make the cost of switching for consumers nearly absolutely no. Replacement risks for Samsung visual screen depend on the altering life style of clients. Customers can change to enjoying visuals at home towards outside activities. In addition to it, Samsung printing solutions products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Samsung and its close competitors is extreme. The significant factor behind this is the method of market saturation in different variety of product classifications, requiring Samsung to present more innovative functions in existing items and new innovative items to maintain its growth. Other factor for the extreme rivalry among the rivals is the little product distinction amongst the products. The prominent gamers in the technology industry are rather aware of the importance of R&D spending for their survival and are running into a race of marketing and R&D costs, to catch the marketplace. The major rivals for Boston Pine Street Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the fluctuating market shares which can be seen in Display F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung 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 development to Google, which ends up being a possible provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Bargaining power of purchasers for different number of product classifications of Samsung is intense. One of the element leading to the intense bargaining power is the schedule of a great deal of competitors in almost each product classification i.e. competitors of Samsung Mobile phone, with a really little distinction. The high schedule of suppliers of Smartphones with minimum differentiation, make the changing expense for buyers practically absolutely no, thus increasing the bargaining power of buyers. Market saturation in the majority of the product categories likewise make the bargaining power of purchasers more intense in for Boston Pine Street Case Study Analysis. In spite of igh bargaining power Samsung is rather capable of selling its products at a greater price than much of its competitors, due to high-end quality item and a reasonable brand image.

Risk of New Entrants:

Danger of new entrants for Samsung is quite low. One of the major factor for low risk of new entrants is the high competitors in the market. The requirement of substantial amount of capital to go into in the marketplace is likewise among the possible barrier to entry. In addition to it, requirement of big knowledge and research study and advancement expenditures for survival in the market also make new entrants unwilling to enter in the market. Market saturation is likewise among the barrier of entry in innovation market. High bargaining power of providers require the players in the industry to charge as low rates as possible and this can only be attained by production performance. Brand-new firms, in majority cases, do not have the production effectiveness, thus increasing the dangers for entryway in the innovation market.

Competitive Analysis

Samsung's high item diversification supplies it differentiation from its competitors. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Boston Pine Street Case Study Help had a big R&D spending on all of its product categories which enable the company to make possible income from sales of almost all of its products.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of global market share, amongst 8 various product classifications. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Samsung earnings from chips was less than Intel however its profits from chips was growing quicker than Intel and has actually grown close to the earnings levels of Intel, as given in the case Display 2.

Along with the chips Samsung mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The significant reson behind Samsung's high growth despite of greater costs than Nokia and Motorola was the business's high-end quality cell phones.

Samsung was likewise profiting from increasing market share of luxury LCDs as given in case Exhibit 3. The significant reason, making the business make it possible for to obtain the opportunity is its mass production at low expense. Sony was the biggest rival for Boston Pine Street Case Study Help in LCD market, however, it had actually also started joint endeavor with Samsung in 2003 for LCD producing, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Leadership strategy of porter is fully executed by Samsung the method they achieve economies of scale by strengthening their core proficiencies of production. They always bring something ingenious and new whether it's an item or a service.

Alternatives

Alternative Option 1

The Chief Marketing Officer (CMO) of Boston Pine Street Case Study Solution would develop a new brand image by targeting the younger generation of the particular country. As, especially smart phones of Samsung are very popular amongst the younger market.

Pros

1. It is the very best technique to develop Client Lifetime Worth (CLV) by creating a long-lasting relationship with consumers. Construct loyalty through delivering value and profit for long-term, as research has showed it is much cheaper to retain current clients than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst more youthful individuals and which in turn will generate brand-new clients for my products.

Cons

1. Old customers who were related to Samsung before might not like this new image the company is trying to depict.
2 It will incur more costs to rearrange some items and it may not even bring success as the trends change very rapidly amongst the younger market.

Alternative service 2.

It would be done by setting up training workshops during which value of marketing will be taught and numbers will be given. Marketing environment need to be created internally first as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can develop an extremely unhealthy environment in the work environment, as individuals often resist modification due to the fact that they fear it.

Determine the best option

Alternative is the best as it clearly has more pros since as soon as a Customer Lifetime Worth is developed the business will profit from it till that consumer is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging individuals. Samsung's primary goal is to develop loyalty amongst its clients and make them bought it from them and even purchase their various products.

Implementation Strategy

• Targeting more youthful generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations possible and realistic.
• A team consisting of finest marketing and sales specialists must be put together, and both views must be taken into account before protecting the resources needed to implement the strategy.
• Thorough interaction of the strategy must be done as it is extremely important for everyone to be on the exact same page to make it work.
• Jobs and timelines ought to be construct and communicated accordingly to each individual responsible.
• The manager must utilize a dashboard which shows the progress of all the tasks which have actually been done or about to be done and by whom.
• The manager should keep track of and keep a constant examine the specific and general performance.
• Everybody ought to be willing to adjust midway since any brand-new trend or policy may can be found in due to which all the important things currently prepared need to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the project the manager should communicate the results and if effective need to celebrate with the group.

Spending plan

The M-net program exposed engaging analysis about the low and high growth potential areas and just how much marketing spending plan ought to be allocated appropriately. This change the spending plan allowance of numerous supervisors and various countries were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth possible merited a 35% allowance while they were receiving 45%. Whereas, China and Europe must be getting 42% but were instead provided 31%. It really helped to relatively disperse the resources and capture more consumers by investing more on advertisements on the high development capacity areas of the world.
Recommendations
Conclusion

Its consistent investment in R&D and ingenious practices have actually moved them to new heights however for them its' just the start and they want to be among the leading 3 brands in the world. Their marketing efforts should be directed towards younger market amid the internal arguments about marketing and should produce Client Lifetime Worth as it will not only offer them advantages now however will continue to reap it till the customer lifetime. As the expense of keeping the customer is much less expensive than drawing in a brand-new one.