Case Analysis Strategic Leadership At Coca Cola The Real Thing Harvard Case Study Solution

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Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution and Analysis


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help is a popular international brand name in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. Case Analysis Strategic Leadership At Coca Cola The Real Thing handle large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core customers consist of the Original Equipment Manufacturers (OEMs), which used to sell Corp products withtheir own trademark name. Till early 1990s, the core competency of Corp depend on its low price offerings than its rivals by producing existing products at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution products with their own brand. Organization was not simply understood outside Korea. There were likewise no or little interest in building the brand name internationally. Marketing budget plan was managed by production department with a focal point on supplying inexpensive products.During the 1997 Asian Financial Crisis the company almost got insolvent, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most valuable business worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Organization as an international brand name and informed his divisional supervisors to understand marketing and its value. Now their objective is to reach the top 10 by 2005.

Issue Statement

Business's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to incorporate marketing efficiently is still a significant challenge. Creating a consistent brand name identity throughout the whole world and employing marketing strategies that best fits the local culture is no simple job. The M-net program analysis have been truly helpful in figuring out the high and less possible development locations, but allotment of resources appropriately is not well received amongst the supervisors. There is no consensus amongst the hierarchy concerning the very best matched future method.
Executive Summary
Situational Analysis

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help efforts for developing its brand across the world was begun after introducing the "new management initiative" by Chairman Lee in 1993. The goal was to change Business from an inexpensive OEM to a high value-added product company. To make the vision of Venture a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Business can transform from a low end to a high-end item provider. He knew that improvement can only be done through positioning Org as a company offering high-end products and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Organization brand name, with a prospective support of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the value of marketing. They considered marketing and selling as very same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was excessive high, the gap was too wider 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 brand-new item ideas by the R&D sector of Organization. Yun had a difficulty to perform marketing preparation and to produce marketing spending plans for existing as well as for new items from the very start, and this would take a substantial time.

A big shift would be needed in current marketing expenditures to construct the Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help brand name. This would result in increased marketing expenses for Venture and might disrupt the administration regarding increased expenditures, as they were reluctant to marketing expenses formerly and an abrupt big shiftwould make them interrupt. This might result in declining executive support for international marketing. In this circumstance, Yun faces a challenge for justifying increased marketing expenses by demonstrating the long term worth of huge marketing expenses.

Internal Analysis
SWOT Analysis

Corporation strengths depend on its huge item portfolio. Venture has largest variety of patents in the market with total number of 15499 patents granted in US( USP). Big amount of R&D spending has enabled the company to grow its product portfolio at a higher rate than its rivals. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total profits.

Another strength of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is its ability to develop innovative items at a continuous rate. It major proves for the innovation and product developing of Organization is that the business has gotten so many awards for its innovation and product design.

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


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution weak points are hidden in the company's dependence on outsourcing software for its gadgets due to company's failure in establishing software, unlike Sony. Corporation also has low profit margins as compare to Apple due to huge distinction in the rates of Apple and Company with a much lower difference in quality. The varied focus of the business due to large number of products in its portfolio, result in the less efficient production and make the company not able to charge higher costs like Apple. The business is likewise inefficient in managing its patents and regularly deals with the problem of patent infraction.


Opportunities for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution lie in the growing Smart device market and the business's performance in the market. Corp presently runs in about 80 nations and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The vibrant industry environment of technology market position a serious threat on Corp's survival and force the business to invest much of its revenues share on R&D in order to survive in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is likewise a big threat for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help provides quality products and has a quite abundant portfolio which accommodates various sectors. The majority of the products remain in the leading 3 of their respective industries. LCD and smart phones are the biggest products of Venture, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Company:

• Laptops.
• Smart phone.
• Ac system.
• Personal computers.
• Hard disk drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution uses both market competitive and market skimming rates strategies for its wide array of products. In competitive pricing it adjusts the cost according to the competitors in order to gain advantage, whereas, it uses market skimming method where the product has actually an added value and by offering a few products it can reach break-even.


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

Vrio Analysis
It utilizes both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital ads are uses to develop awareness about Corp products.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most efficient and effective supply chain network and has more than 2700 suppliers across various industries around the world. Nearly 80% of which is based in Asia and the staying all over the world. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and develops an unified relationship with them and even lowered their payment cycles to increase this relationship even more which includes worth to their chain network.


Enterprise's core proficiency is its mass producing it produces 90% of its products internal. Divided into 3 different divisions its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronics. It is preserving operation centers worldwide to even more add worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution has the ability to take on Apple. Business's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Corporation.

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to communicate with them the worth and competitive benefit the item provides. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help advertising spending plan is continually on the rise considering that they began their repositioning worldwide and will continue to do so as they are continuously wanting to expand and invest in high potential development markets. The spending plan is invested in occasions, print and media ads, public relations and so on.

Company put their customers at the leading and continually strive to deliver unmatchable client service requirements. By including a direct support line to call them 24 hours they have further increased the added worth of Corp service.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help has actually diversified market division, based upon its provision of vast array of products to large number of consumers. Corp target customer sectors can be divided into 3 categories i.e. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution IT and Mobile Communications, Enterprise Consumer Electronic Devices and Organization Device options.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution geographic segmentation is based upon two criteria i.e. area and density. Org serves about 80 nations worldwide with its products supplied to Urban as well as Rural areas of the country. The Org is also growing its global existence and the company's versatility in locating its plants motivates global expansion of Organization.


The group division of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is based upon gender, age, life-cycle phase and profession. Corp produces products that can be used by both males and women. The target consumers for Corporation IT and mobile communication items have an age range of 18-65 with majority at a young or freshly married life process stage. They are mainly staff members, experts and students. Apart from it, Org Consumer Electronic devices are targeted to a customer sector with an age series of 25-65. They are mainly experts and employees. However Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis Device Solutions are targeted at trainees, workers and professionals with an age series of 25-65.


The psychographic division of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution s based upon the social class and the lifestyle of the customer. Corporation target consumers on the basis of social class are primarily upper middle, middle and working class clients, as Business sell items like cell phones very little cheaper i.e. Motorola in addition to not much pricey i.e. Apple. It offers quality items to middle level consumers at a slightly high price than others targeting the very same segment.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution majority target customers have distinct behavioural attributes. They are attracted towards Corp because of its moderate costs with a level of quality.

Quantitative analysis.

Sales of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 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.

Qualitative analysis.

Whereas, the core strength of the company is presently manufacturing however long gone are those days when excellent products were offering themselves. Kim has currently begun to enhance the marketing activities of Organization and very soon it will end up being one of its core strength like manufacturing if not much better.



Business runs styles, manufactures and offer a huge portfolio of customer electronics. It operates in an exceptionally competitive environment and has successfully placed itself as the maker of quality products. So, the answer is yes.


As, said earlier that Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis operates in a highly competitive environment, which indicates all the business have similar items. The answer for rarity is no.


Due to the nature of the industry, it is really simple for competitors to understand the performance of the products and quickly make their own models. Yes, Venture is just behind IBM in signing up brand-new patents every year, but the advantage is very short term in this industry.


Chairman Lee has entirely turn-around Enterprise, from going nearly insolvent during the Asian financial crisis of 1997 to the leading 25 company in the world. Definitely yes there is proper organization in the business and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread nearly in every nation worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. It faces some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution operations.


Buying power of consumers is vital for business like Corp to be successful and grow. Emerging markets like India, middle-eastern nations and so on provide growth chances, whereas, due to recession even the customers of industrialized nations suffer terribly. Hence it is very important for the company to keep an eye on the continuous financial situation of the country prior to getting in the market.


Multinational business need to face different social and cultural issues during its operations in a foreign nation. Org has likewise faced lots of problems but have actually embraced to the regional environments of the majority of the countries exceptionally well. It has tailored its items, practices, policies etc. accordingly in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with consistent innovative product launches, Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is one of the leading ingenious business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Business has actually risen to the no 25 of the top successful business of the world.


Each nation has their own laws and policies, being a multinational business Company have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. It has to study or employ a local law specialist before beginning its operations in a specific country.


With the increasing awareness among customers about the ethical & environmental violations of companies, Company needs to guarantee that it follows all the security guidelines. Environmental damages, ethical misconducts are not appropriate and in some nations the effects can be very serious. On the other hand it needs to do some Corporate Social Duty practices to show the locals that it appreciates their environment and people.

Porter's Five Forces

Danger of Substitution

Risk of replacement for Organization's each product classification is quite substantial. Elements for high danger of replacement for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis Smartphone consist of the presence of high number of suppliers and Market saturation in industrialized countries, which make the expense of changing for consumers nearly zero. Along with it, Enterprise printing services items are threatened by the increasing attraction of consumers towards cloud storage.

Competition Among Existing Firms:

The rivaly among Organization and its close rivals is intense. The significant factor behind this is the method of market saturation in various variety of item classifications, forcing Enterprise to introduce more innovative features in existing products and brand-new ingenious products to preserve its development. Other factor for the extreme competition amongst the competitors is the little item distinction among the products. The popular gamers in the technology industry are quite familiar with the value of R&D costs for their survival and are running into a race of marketing and R&D costs, to capture the market. The significant competitors for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry results in the fluctuating market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

( Enterprise Sustainability Report, 2016) Supplier's bargaining power for Business is low as Org runs economies of scale and its orders are of possible size and worth. Due to incapability of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis to build its own software, it has to outsource its software application advancement to Google, which becomes a potential supplier of software application for Company, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Negotiating power of buyers for numerous number of product categories of Enterprise is extreme. One of the aspect leading to the intense bargaining power is the availability of large number of rivals in practically each item category i.e. competitors of Enterprise Smartphone, with an extremely little distinction. The high accessibility of suppliers of Smartphones with minimum differentiation, make the switching expense for buyers almost zero, hence increasing the bargaining power of purchasers. Market saturation in the majority of the item classifications also make the bargaining power of purchasers more extreme in for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution. In spite of igh bargaining power Organization is rather efficient in selling its products at a greater rate than much of its competitors, due to luxury quality product and a fair brand image.

Threat of New Entrants:

Danger of new entrants for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is quite low. Along with it, requirement of substantial knowledge and research study and development expenditures for survival in the industry likewise make new entrants unwilling to enter in the market. Market saturation is also one of the barrier of entry in innovation market.

Competitive Analysis

Business's high product diversity provides it distinction from its rivals. It is among the 3 top brand names by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single item classification with Sony concentrating on customer electronic devices, Nokia on cellular phone and Intel on chips, Corp had a substantial R&D costs on all of its product categories which enable the company to earn prospective income from sales of almost all of its items. (See Exhibit) Nevertheless, due to the wide item variety the business deals with high number of rivals.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of international market share, among 8 different item classifications. Venture was the international leader in producing DRAM, SRAM and NAND flash chips. Venture revenues from chips was less than Intel however its revenues from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given in the case Exhibition 2.

Together with the chips Org mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Corp's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with no sales growth. The significant reson behind Venture's high growth despite of greater costs than Nokia and Motorola was the company's high-end quality cell phones.

Business was likewise reaping the benefits from increasing market share of high-end LCDs as given in case Exhibit 3. The major reason, making the company allow to get the opportunity is its mass production at low expense. Sony was the greatest rival for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis in LCD market, nevertheless, it had also started joint endeavor with Org in 2003 for LCD making, minimizing the competition for Org.

Porter's Competitive Technique

Low Expense Management technique of porter is completely executed by Business the way they accomplish economies of scale by enhancing their core competencies of production. Even to the point that their competitor SONY decided to form an alliance with them to make for them, due to the fact that they were not able to take on them on low cost. Differentiation is another technique well carried out by Corporation by continuous investment in the R&D and staying ahead of the competition. They always bring something new and innovative whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution would produce a brand-new brand name image by targeting the younger generation of the specific nation. As, especially cellphones of Company are popular among the younger market.


1. It is the very best method to build Customer Life time Worth (CLV) by creating a long-term relationship with customers. Construct commitment through delivering value and reap the benefits for long-term, as research has actually revealed it is more affordable to keep current consumers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among more youthful individuals and which in turn will bring in brand-new consumers for my products.


1. Old consumers who were related to Organization prior to may not like this new image the business is attempting to portray.
2 It will incur further expenses to rearrange some items and it may not even bring success as the trends change really quickly among the younger market.

Alternative option 2.

It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be given. Marketing environment must be produced internally initially as genuine marketing begins inside the corporation.


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


2. Its con can create a very unhealthy environment in the work environment, as individuals frequently withstand change since they fear it.

Recognize the very best alternative

First option is the best as it plainly has more pros since when a Consumer Life time Value is developed the business will benefit from it till that consumer lives and has acquiring power also. Plus, our target clients are the more youthful generation which are bound to live longer than the existing aging individuals. However, Corporation's main goal is to develop loyalty among its consumers and make them repurchase it from them and even buy their various items as well.

Implementation Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations achievable and practical.
• A team consisting of finest marketing and sales professionals must be assemble, and both views need to be taken into account before protecting the resources needed to carry out the strategy.
• Thorough interaction of the strategy ought to be done as it is extremely crucial for everybody to be on the same page to make it work.
• Tasks and timelines ought to be build and communicated appropriately to each person responsible.
• The supervisor ought to use a dashboard which shows the progress of all the tasks which have been done or about to be done and by whom.
• The supervisor need to monitor and keep a continuous examine the specific and overall performance.
• Everybody should be willing to adjust midway since any new trend or policy may can be found in due to which all the things currently prepared have to be changed. It's much better to have contingency strategies already prepared.
• At the end of the campaign the manager must communicate the outcomes and if successful ought to celebrate with the team.

Budget plan

This modification the spending plan allotment of various countries and many supervisors were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia development possible merited a 35% allocation while they were receiving 45%. It really assisted to relatively distribute the resources and capture more clients by spending more on advertisements on the high development potential areas of the world.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis is a top 25 company on the planet now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous financial 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 amongst the leading 3 brands on the planet. They completely turnaround from nearly going bankrupt throughout the Asian Financial Crisis to a world distinguished brand, known for quality and development. Their worth chain and their core competency their manufacturing capability, along-with international 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 just increase even more in the future. Their marketing efforts should be directed towards younger market amidst the internal arguments about marketing and must create Customer Life time Value as it will not just give them benefits now however will continue to reap it till the consumer lifetime. As the cost of retaining the customer is more affordable than attracting a brand-new one.