Braddock Industries Inc 4 Harvard Case Study Analysis

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Braddock Industries Inc 4 Case Study Solution & Analysis


Braddock Industries Inc 4 Case Study Analysis is a popular global brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Braddock Industries Inc 4 handle a great deal of item categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the company's core consumers consist of the Original Devices Manufacturers (OEMs), which used to sell Org items withtheir own brand name. Till early 1990s, the core competency of Venture depend on its low rate offerings than its competitors by making existing products at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who used to sell Braddock Industries Inc 4 Case Study Analysis products with their own brand name. Venture was not simply understood outside Korea. There were likewise no or little interest in constructing the brand name worldwide. Marketing budget was controlled by production department with a prime focus on offering cheap products.During the 1997 Asian Financial Crisis the business nearly got bankrupt, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable company in the world. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Corporation as a worldwide brand and educated his divisional supervisors to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.

Issue Declaration

Org's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to include marketing efficiently is still a major difficulty. Developing a constant brand name identity throughout the entire world and utilizing marketing strategies that best fits the regional culture is no simple task.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Braddock Industries Inc 4 Case Study Analysis can change from a low end to a high end item provider. He understood that improvement can just be done through positioning Corporation as a business offering high-end items and this might just be done through high level of marketing.

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

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and thought that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the present marketing requirement was too much high, the gap was too broader and to fill this gap with incorrect understandings about marketing was quite challenging for Yun.

As stated above, marketing focus was very low in previous practices, for that reason there were no correct marketing budgets for each of the item on the portfolio. There was no marketing planning done for the existing items. Together with it the product variety of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Organization. Yun had a challenge to carry out marketing preparation and to produce marketing spending plans for existing in addition to for brand-new products from the very start, and this would take a huge time.

A substantial shift would be needed in existing marketing expenses to build the Organization brand name. This would result in increased marketing expenses for Business and might disturb the administration relating to increased costs, as they were reluctant to marketing expenditures formerly and an abrupt huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Corp strengths lie in its substantial product portfolio. Org has biggest variety of patents in the industry with total variety of 15499 patents approved in US( USP). Big amount of R&D spending has allowed the company to grow its item portfolio at a greater rate than its rivals. Braddock Industries Inc 4 Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total earnings.

Another strength of Braddock Industries Inc 4 Case Study Solution is its ability to establish ingenious products at a continuous rate. It major proves for the innovation and product developing of Enterprise is that the business has actually received many awards for its development and product design.

Unlike Apple and other competitors, Org is focused on producing devices which can be easily incorporated with any kind of open source Operating System (OS) and software. This provides Enterprise an edge over Apple gadgets.
Porter's 5 Forces Analysis
Corp's capability to produce high end products at low expense of production is likewise among the major strength of Business as it makes it possible for the company to record more market by offering quality items with expense control.

Weak points

Braddock Industries Inc 4 Case Study Help weak points are hidden in the company's reliance on outsourcing software application for its gadgets due to company's failure in establishing software, unlike Sony. Business likewise has low revenue margins as compare to Apple due to huge distinction in the prices of Apple and Venture with a much lesser distinction in quality. The diverse focus of the company due to large number of products in its portfolio, lead to the less effective production and make the business unable to charge higher rates like Apple. The business is likewise inefficient in handling its patents and often deals with the problem of patent offense.


Opportunities for Company depend on the growing Smart device market and the business's performance in the market. It can increase its market share and profits from cell phone as the company is rather efficient in mobile phone market. Corporation currently runs in about 80 nations and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Org can move towards acquisitions to acquire patents. It would allow the business to increase its item portfolio with a boost in its wealth.


The dynamic industry environment of innovation market posture a serious hazard on Organization's survival and require the business to invest much of its earnings share on R&D in order to endure in the long run. The market saturation in industrialized nations i.e. saturation of mobile company is likewise a huge hazard for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Corporation offers quality items and has a rather abundant portfolio which caters to different segments. LCD and mobile phones are the greatest items of Enterprise, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Smart phone.
• Ac system.
• Personal computers.
• Hard disks.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Braddock Industries Inc 4 Case Study Solution uses both market competitive and market skimming rates techniques for its wide array of items. In competitive pricing it changes the price according to the competitors in order to acquire benefit, whereas, it utilizes market skimming technique where the item has actually an included value and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a popular business beyond Korea until 1993. However the management initiative taken by their CEO has pushed them to market more efficiently outside the borders and now it has actually gone into the league of top 25 companies on the planet in simply 9 years. This is a remarkable accomplishment in spite of the continuous arguments amongst the supervisors about embracing marketing practices. It utilizes both offline & online channels of promotion to market their products. Paid item ads, social promotion and digital ads are uses to produce awareness about Org items.

Value Chain Analysis.

It's an analytical structure for determining service activities that include value or competitive benefit for the company.

Inbound Logistics.

It has among the most reliable and effective supply chain network and has over 2700 providers throughout numerous industries around the globe. Practically 80% of which is based in Asia and the remaining worldwide. For its incoming logistics it owns various logistics companies as it subsidiaries. It looks after its providers and creates a harmonious relationship with them and even minimized their payment cycles to enhance this relationship even more which includes worth to their chain network.


Corporation's core proficiency is its mass making it produces 90% of its items internal. Divided into 3 various divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is keeping operation hubs worldwide to further include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Braddock Industries Inc 4 Case Study Solution has the ability to take on Apple. Venture's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Venture.

Marketing and Sales.

Bring in target consumer attention towards the item is done through marketing and sales to interact with them the value and competitive benefit the item uses. Braddock Industries Inc 4 Case Study Help advertising budget plan is constantly on the rise given that they began their repositioning globally and will continue to do so as they are continually seeking to invest and expand in high possible growth markets. The budget is spent on events, print and media advertisements, public relations and so on.

Org Service. Business put their clients at the top and continuously strive to deliver unmatchable customer care requirements. As after sales service is ending up being incredibly important to keep clients delighted and engaged, they even carry out surveys through third parties to learn their client's feedback and implement it in the favorable method to reduce or if possible totally remove their client problems. By including a direct assistance line to contact them 24 hours they have actually even more increased the included value of Braddock Industries Inc 4 Case Study Solution service.


Braddock Industries Inc 4 Case Study Analysis has diversified market division, based upon its provision of wide variety of items to a great deal of customers. Organization target client sectors can be divided into 3 classifications i.e. Braddock Industries Inc 4 Case Study Help IT and Mobile Communications, Organization Customer Electronics and Company Gadget solutions.


Braddock Industries Inc 4 Case Study Analysis geographic division is based upon two criteria i.e. area and density. Business serves about 80 nations worldwide with its products supplied to Urban in addition to Backwoods of the country. The Enterprise is also growing its worldwide presence and the company's versatility in finding its plants motivates global growth of Enterprise.


The demographic segmentation of Braddock Industries Inc 4 Case Study Solution is based upon gender, age, life-cycle stage and profession. Venture produces items that can be utilized by both males and women. The target customers for Organization IT and mobile communication products have an age range of 18-65 with bulk at a young or newly wed life cycle stage. They are primarily professionals, staff members and trainees. Apart from it, Org Customer Electronic devices are targeted to a client section with an age series of 25-65. They are mostly professionals and workers. However Braddock Industries Inc 4 Case Study Help Device Solutions are targeted at students, workers and specialists with an age series of 25-65.


The psychographic division of Braddock Industries Inc 4 Case Study Solution s based upon the social class and the lifestyle of the consumer. Business target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Corp offer items like cellular phone very little cheaper i.e. Motorola as well as very little pricey i.e. Apple. It provides quality items to middle level consumers at a slightly high cost than others targeting the exact same sector.


Braddock Industries Inc 4 Case Study Help majority target customers have unique behavioural attributes. It has clients with an ambitious, stylish and identified character with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other renowned brand names i.e. Apple. Most of Venture clients desire quality in addition to cost control. Since of its moderate rates with a level of quality, they are attracted towards Corp.

Quantitative analysis.

Sales of Business 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 likewise lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Since of the high overhead cost, revenues/ sales are increasing however net revenue is not increasing appropriately. New growths and employing's were the primary reason of the increase in the overhead expenses, with china currently not offering any earnings to Enterprise, however there is a lot potential in the present market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the younger audience and develop an international brand picture of the company. Whereas, the core strength of the business is presently making but long gone are those days when good items were offering themselves. In the existing age marketing is really important and companies can not be successful without it. Kim has currently started to enhance the marketing activities of Organization and very soon it will turn into one of its core strength like producing if not much better.



Business runs designs, produces and sell a large portfolio of consumer electronic devices. It operates in a very competitive environment and has successfully positioned itself as the maker of quality items. The answer is yes.


As, stated previously that Braddock Industries Inc 4 Case Study Solution operates in a highly competitive environment, which implies all the business have comparable products. The answer for rarity is no.


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


Chairman Lee has entirely turnaround Corp, from going practically bankrupt during the Asian monetary crisis of 1997 to the leading 25 company worldwide. Absolutely yes there is proper organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every nation worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. However, it deals with some political pressures in less industrialized nations where law and order circumstance is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Braddock Industries Inc 4 Case Study Solution operations.


Purchasing power of clients is important for business like Company to grow and succeed. Emerging markets like India, middle-eastern countries and so on offer growth opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer terribly. It is really essential for the company to keep an eye on the continuous economic scenario of the nation before going into the market.


International companies need to face various social and cultural problems throughout its operations in a foreign country. Organization has actually likewise dealt with lots of issues but have embraced to the regional environments of the majority of the countries exceptionally well. It has customized its items, practices, policies etc. appropriately in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with continuous innovative item launches, Braddock Industries Inc 4 Case Study Solution is one of the top ingenious business of the world. With a clear objective to be ahead of the rest when it concerns technological advancements, Corporation has increased to the no 25 of the top effective companies of the world.


Each country has their own laws and policies, being an international business Corporation need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. So, it has to study or employ a local law expert prior to beginning its operations in a particular nation.


With the increasing awareness among customers about the environmental & ethical offenses of companies, Venture has to ensure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some nations the consequences can be extremely serious. On the other hand it has to do some Business Social Duty practices to show the locals that it cares about their environment and individuals.

Porter's Five Forces

Threat of Alternative

Threat of substitution for Enterprise's each item category is rather significant. Elements for high threat of substitution for Braddock Industries Inc 4 Case Study Solution Mobile phone consist of the existence of high number of providers and Market saturation in developed nations, which make the expense of switching for customers almost absolutely no. Along with it, Business printing solutions items are threatened by the increasing attraction of customers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Venture and its close rivals is extreme. The major reason behind this is the approach of market saturation in various variety of product categories, forcing Corporation to introduce more innovative functions in existing items and brand-new innovative products to maintain its development. Other factor for the intense rivalry among the competitors is the little product differentiation amongst the products. The popular players in the technology market are rather knowledgeable about the significance of R&D spending for their survival and are facing a race of marketing and R&D costs, to catch the marketplace. The major rivals for Braddock Industries Inc 4 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

( Org Sustainability Report, 2016) Supplier's bargaining power for Business is low as Business runs economies of scale and its orders are of prospective size and worth. Due to incapability of Braddock Industries Inc 4 Case Study Analysis to build its own software, it has to outsource its software application advancement to Google, which ends up being a potential provider of software application for Company, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Negotiating power of buyers for numerous variety of item classifications of Corporation is intense. One of the aspect resulting in the intense bargaining power is the availability of a great deal of rivals in almost each product classification i.e. competitors of Organization Mobile phone, with a very little differentiation. The high schedule of providers of Mobile phones with minimum distinction, make the changing expense for buyers nearly absolutely no, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product classifications likewise make the bargaining power of purchasers more intense in for Braddock Industries Inc 4 Case Study Analysis. In spite of igh bargaining power Organization is rather capable of offering its items at a higher cost than much of its competitors, due to luxury quality item and a fair brand image.

Risk of New Entrants:

Threat of new entrants for Organization is quite low. Among the significant element for low hazard of brand-new entrants is the high competitors in the market. The requirement of huge quantity of capital to enter in the marketplace is also one of the prospective barrier to entry. In addition to it, requirement of big knowledge and research study and development expenditures for survival in the market also make new entrants hesitant to go into in the marketplace. Market saturation is also one of the barrier of entry in technology industry. High bargaining power of providers force 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, lack the production effectiveness, thus increasing the dangers for entryway in the innovation market.

Competitive Analysis

Venture's high product diversity offers it distinction from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Braddock Industries Inc 4 Case Study Solution had a huge R&D costs on all of its item categories which make it possible for the company to earn prospective revenue from sales of nearly all of its items.

The company ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to international market share, amongst 8 different item categories. Corp was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Enterprise revenues from chips was less than Intel however its incomes from chips was growing much faster than Intel and has actually grown close to the income levels of Intel, as given in the case Exhibition 2.

Along with the chips Enterprise mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Venture's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales growth. The major reson behind Venture's high development despite of greater rates than Nokia and Motorola was the business's high-end quality mobile phone.

Corp was also profiting from increasing market share of luxury LCDs as given in case Exhibit 3. The significant reason, making the company enable to obtain the chance is its mass production at low expense. Sony was the greatest rival for Braddock Industries Inc 4 Case Study Help in LCD market, nevertheless, it had also begun joint endeavor with Org in 2003 for LCD making, lessening the competition for Enterprise.

Porter's Competitive Method

Low Expense Management strategy of porter is completely implemented by Organization the method they accomplish economies of scale by strengthening their core proficiencies of manufacturing. They constantly bring something new and ingenious whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Braddock Industries Inc 4 Case Study Help would create a brand-new brand name image by targeting the more youthful generation of the specific country. As, specifically smart phones of Organization are very popular amongst the more youthful demographic.


1. It is the very best technique to develop Customer Lifetime Worth (CLV) by creating a long-term relationship with consumers. Build commitment through providing value and profit for long-term, as research study has actually revealed it is more affordable to retain present consumers than to draw in new ones.
2. Another pro of this option is that word of mouth spread more quickly among more youthful people and which in turn will bring in new clients for my items.


1. Old customers who were connected with Venture before may not like this new image the business is attempting to represent.
2 It will incur more expenses to reposition some products and it may not even bring success as the patterns alter very rapidly amongst the younger demographic.

Alternative service 2.

Corporation has made producing its core proficiency for the a lot of part of their organisation and due to which its supervisors are not afraid to completely step out of their convenience zone. It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get demoted. Marketing environment ought to be developed internally first as real marketing begins inside the corporation.


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


2. Its con can produce an extremely unhealthy environment in the work environment, as people typically resist modification because they fear it.

Identify the best option

Alternative is the finest as it clearly has more pros since as soon as a Consumer Life time Worth is developed the company 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 existing old age individuals. Nonetheless, Business's primary goal is to develop commitment among its customers and make them repurchase it from them and even buy their various items also.

Implementation Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations sensible and possible.
• A team including best marketing and sales specialists ought to be assemble, and both views must be taken into consideration prior to securing the resources required to carry out the plan.
• Thorough communication of the plan should be done as it is extremely important for everybody to be on the very same page to make it work.
• Tasks and timelines ought to be develop and interacted accordingly to each person responsible.
• The supervisor need to use a control panel which shows the progress of all the tasks which have been done or about to be done and by whom.
• The supervisor should keep track of and keep a constant check on the individual and overall efficiency.
Since any brand-new trend or policy might come in due to which all the things already prepared have actually to be adjusted, • Everyone need to be ready to adapt midway. It's much better to have contingency strategies already prepared.
• At the end of the project the manager need to interact the results and if successful must commemorate with the group.


This change the budget allowance of numerous supervisors and different nations were unhappy and argued but the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective merited a 35% allowance while they were getting 45%. It really helped to relatively distribute the resources and catch more clients by spending more on ads on the high development capacity areas of the world.

Braddock Industries Inc 4 Case Study Solution is a top 25 business worldwide now and prepares to get ahead of Sony who sits currently at no. 20. Its consistent investment in R&D and ingenious practices have moved them to brand-new heights however for them its' just the start and they want to be among the top 3 brand names in the world. They totally turn-around from almost going bankrupt during the Asian Financial Crisis to a world distinguished brand, known for quality and development. Their value chain and their core proficiency their production ability, along-with global brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts ought to be directed towards younger demographic amidst the internal arguments about marketing and must create Consumer Life time Worth as it will not only give them advantages now however will continue to enjoy it till the consumer lifetime. As the expense of keeping the client is more affordable than bring in a brand-new one.