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

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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 widely known worldwide 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 deals in large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core consumers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Venture items withtheir own brand name. Till early 1990s, the core proficiency of Corporation lie in its low rate offerings than its rivals by producing existing products at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis products with their own brand. Enterprise was not merely known outside Korea. There were likewise no or little interest in building the brand name globally. Marketing budget was managed by production department with a prime focus on offering cheap products.During the 1997 Asian Financial Crisis the business nearly got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most valuable business in the world. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Enterprise as a worldwide brand name and educated his divisional managers to comprehend marketing and its value. Now their objective is to arrive 10 by 2005.

Issue Statement

Corp's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing efficiently is still a significant difficulty. Developing a constant brand identity across the entire world and employing marketing methods that best fits the local culture is no easy job.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution can transform from a low end to a high end item provider. He understood that transformation can only be done through positioning Corp as a business 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 develop Org 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 perceptions of executives about the worth of marketing. They thought about marketing and selling as very 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 company practices, and the current marketing requirement was excessive high, the space was too larger and to fill this space with incorrect perceptions about marketing was quite tough for Yun.

Along with it the product variety of the company was increasing with the ripening of new product ideas by the R&D sector of Company. Yun had a difficulty to carry out marketing preparation and to produce marketing budgets for existing as well as for new products from the very start, and this would take a huge time.

A huge shift would be needed in existing marketing expenses to construct the Corporation brand. This would result in increased marketing expenses for Corp and could disrupt the administration relating to increased costs, as they were unwilling to marketing expenditures formerly and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis strengths lie in its huge item portfolio. Enterprise has largest number of patents in the market with total number of 15499 patents approved in US( USP).

Another strength of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help is its capability to develop innovative products at a constant rate. It major shows for the innovation and item creating of Corp is that the business has actually gotten so many awards for its development and item style.

Unlike Apple and other competitors, Business is concentrated on producing devices which can be easily integrated with any kind of open source Os (OS) and software. This offers Organization an edge over Apple gadgets.
Porter's 5 Forces Analysis
Company's capability to produce luxury products at low cost of production is likewise one of the major strength of Business as it makes it possible for the business to capture more market by providing quality items with cost control.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution weak points are concealed in the business's dependence on outsourcing software for its devices due to business's inability in establishing software application, unlike Sony. Venture also has low profit margins as compare to Apple due to substantial difference in the costs of Apple and Corporation with a much lower difference in quality. The varied focus of the business due to large number of products in its portfolio, lead to the less efficient production and make the business unable to charge greater rates like Apple. The business is likewise inefficient in handling its patents and frequently deals with the issue of patent offense.


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


The vibrant industry environment of innovation industry present a severe threat on Organization'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 marketplace saturation in industrialized countries i.e. saturation of mobile business is also a big risk for the company's development 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 Solution offers quality items and has a rather abundant portfolio which caters to various segments. Most of the products are in the top 3 of their respective industries. LCD and cellphones are the biggest products of Org, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Venture:

• Laptops.
• Mobile phones.
• A/c.
• Desktop computer.
• Hard disks.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution utilizes both market competitive and market skimming pricing techniques for its wide range of items. In competitive rates it adjusts the rate according to the competition in order to gain advantage, whereas, it utilizes market skimming technique where the product has actually an added value and by offering a couple of products it can reach break-even.


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

Vrio Analysis
It utilizes both offline & online channels of promo to market their products. Paid item advertisements, social promotion and digital advertisements are uses to produce awareness about Enterprise items.

Worth Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even reduced their payment cycles to increase this relationship further which adds worth to their chain network.


Corporation's core competency is its mass making it produces 90% of its products in-house. Divided into three various divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is maintaining operation hubs worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary reasons Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is able to take on Apple. Org's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Venture.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to communicate with them the worth and competitive benefit the product offers. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis marketing spending plan is continually rising considering that they started their repositioning worldwide and will continue to do so as they are continuously seeking to expand and invest in high prospective growth markets. The budget is invested in occasions, print and media ads, public relations and so on.

Corp put their consumers at the leading and continually make every effort to deliver unmatchable client service requirements. By adding 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 Solution has diversified market segmentation, based upon its arrangement of vast array of products to a great deal of customers. Corporation target consumer segments can be divided into 3 classifications i.e. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis IT and Mobile Communications, Company Customer Electronics and Organization Gadget services.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help geographic segmentation is based upon two criteria i.e. region and density. Organization serves about 80 nations worldwide with its products supplied to Urban along with Rural areas of the country. The Corp is also growing its international presence and the company's versatility in finding its plants motivates international growth of Business.


The demographic segmentation of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is based upon gender, age, life-cycle phase and occupation. Venture produces items that can be utilized by both males and females. The target consumers for Organization IT and mobile interaction products have an age range of 18-65 with bulk at a young or recently married life process phase. They are mainly trainees, professionals and staff members. Apart from it, Corporation Customer Electronics are targeted to a customer section with an age range of 25-65. They are mostly employees and experts. Nevertheless Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution Gadget Solutions are targeted at trainees, staff members and specialists with an age variety of 25-65.


The psychographic division of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help s based upon the social class and the lifestyle of the customer. Corp target consumers on the basis of social class are generally upper middle, middle and working class customers, as Corp sell items like cellular phone very little less expensive i.e. Motorola along with very little expensive i.e. Apple. It provides quality items to middle level customers at a slightly high cost than others targeting the same segment.


Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis bulk target clients have distinct behavioural attributes. It has customers with an ambitious, stylish and determined personality with moderate level of loyalty towards the brand name. Its customers have some degree of shift towards other popular brands i.e. Apple. Most of Venture clients want quality along with cost control. Because of its moderate prices with an extent of quality, they are attracted towards Corporation.

Quantitative analysis.

Sales of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling category of Enterprise 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 objective of Kim to target the more youthful audience and produce an international brand picture of the business. Whereas, the core strength of the company is currently manufacturing but long gone are those days when great products were offering themselves. In the existing age marketing is really crucial and companies can not be successful without it. Kim has actually already started to reinforce the marketing activities of Company and very soon it will become one of its core strength like manufacturing if not much better.



Venture runs styles, manufactures and sell a large portfolio of consumer electronic devices. It operates in a very competitive environment and has effectively placed itself as the maker of quality items. So, the response is yes.


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


Due to the nature of the industry, it is very easy for rivals to comprehend the functionality of the items and easily make their own designs. Yes, Venture is only behind IBM in registering brand-new patents yearly, however the benefit is extremely short term in this market.


Chairman Lee has completely turn-around Corp, from going practically bankrupt throughout the Asian financial crisis of 1997 to the leading 25 business in the world. Definitely yes there is proper company in the company and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, bulk of the environments like U.S.A., Europe, China etc., are very conductive for its operations. Nevertheless, it faces some political pressures in less developed nations where order situation is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help operations.


Buying power of consumers is important for business like Corp to grow and succeed. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to recession even the customers of industrialized nations suffer terribly. Thus it is extremely crucial for the business to watch on the continuous economic circumstance of the nation prior to going into the market.


Multinational companies have to deal with various social and cultural concerns throughout its operations in a foreign country. Venture has likewise faced many problems however have actually embraced to the regional environments of most of the countries extremely well. It has tailored its items, practices, policies and so on accordingly in order to succeed.


With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with constant ingenious item launches, Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis is one of the top innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Corporation has increased to the no 25 of the leading successful companies of the world.


Each nation has their own laws and policies, being an international business Corp have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. So, it has to study or work with a regional law professional prior to starting its operations in a specific country.


With the rising awareness among consumers about the ethical & environmental violations of companies, Company needs to ensure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some countries the consequences can be very serious. On the other hand it has to do some Corporate Social Duty practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Replacement

Risk of alternative for Organization's each item classification is quite considerable. Running in a very dynamic industry lead the business to deal with a high threat of alternative. Elements for high danger of replacement for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help Mobile phone consist of the existence of high variety of providers and Market saturation in industrialized countries, that make the cost of changing for consumers nearly no. Substitution risks for Corporation visual display screen depend on the changing life style of consumers. Customers can change to watching visuals at home towards outside activities. Together with it, Org printing services items are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly among Corporation and its close rivals is extreme. The major factor behind this is the approach of market saturation in various number of item categories, requiring Corporation to present more ingenious features in existing products and new ingenious items to keep its development. The major rivals for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

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

Bargaining Power of Purchasers:

Bargaining power of purchasers for various variety of item categories of Corp is intense. One of the factor leading to the intense bargaining power is the schedule of large number of rivals in nearly each product category i.e. rivals of Venture Smart device, with an extremely little distinction. The high accessibility of suppliers of Mobile phones with minimum distinction, make the changing cost for purchasers nearly zero, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product classifications likewise make the bargaining power of buyers more extreme in for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution. In spite of igh bargaining power Corporation is quite efficient in offering its items at a higher rate than much of its competitors, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Hazard of new entrants for Org is quite low. One of the major element for low threat of new entrants is the high competition in the market. The requirement of big amount of capital to go into in the marketplace is likewise one of the possible barrier to entry. Along with it, requirement of substantial knowledge and research study and development expenses for survival in the industry likewise make brand-new entrants unwilling to go into in the market. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of providers force the players in the industry to charge as low costs as possible and this can only be attained by production effectiveness. New firms, in bulk cases, lack the production efficiency, for this reason increasing the risks for entrance in the innovation market.

Competitive Analysis

Business's high item diversification supplies it distinction from its competitors. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution had a big R&D spending on all of its item categories which enable the business to make potential earnings from sales of practically all of its items.

The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of global market share, amongst 8 various product classifications. Business was the global leader in making DRAM, SRAM and NAND flash chips. Corp revenues from chips was less than Intel but its revenues from chips was growing much faster than Intel and has actually grown close to the earnings levels of Intel, as provided in the case Display 2.

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

Enterprise was likewise profiting from increasing market share of luxury LCDs as given in case Exhibit 3. The significant reason, making the company enable to get the chance is its mass production at low cost. Sony was the biggest competitor for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis in LCD market, however, it had likewise started joint venture with Organization in 2003 for LCD producing, decreasing the competition for Venture.

Porter's Competitive Method

Low Cost Management technique of porter is totally implemented by Organization the way they accomplish economies of scale by reinforcing their core competencies of manufacturing. Even to the point that their rival SONY chose 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 executed by Corp by continuous financial investment in the R&D and staying ahead of the competition. They always bring something innovative and new 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 Analysis would develop a brand-new brand image by targeting the more youthful generation of the specific nation. As, particularly smart phones of Business are incredibly popular among the more youthful group.


1. It is the very best method to develop Client Lifetime Worth (CLV) by creating a long-term relationship with clients. Build commitment through delivering value and reap the benefits for long-lasting, as research study has actually revealed it is much cheaper to keep present customers than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread faster amongst younger people and which in turn will generate brand-new customers for my items.


1. Old consumers who were connected with Venture prior to may not like this brand-new image the business is trying to portray.
2 It will sustain additional expenses to rearrange some items and it might not even bring success as the trends alter very quickly amongst the more youthful demographic.

Alternative service 2.

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


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


2. Its con can create a very unhealthy environment in the work environment, as individuals typically resist modification because they fear it.

Determine the very best alternative

Alternative is the finest as it clearly has more pros because once a Consumer Life time Value is developed the business will benefit from it till that consumer is alive and has purchasing power. Plus, our target clients are the younger generation which are bound to live longer than the present aging individuals. Nevertheless, Venture's main objective is to create loyalty among its clients and make them repurchase it from them and even purchase their different products as well.

Execution Strategy

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations practical and achievable.
• A group consisting of finest marketing and sales specialists should be assemble, and both views must be considered prior to securing the resources required to carry out the strategy.
• Thorough communication of the plan must be done as it is very important for everybody to be on the exact same page to make it work.
• Tasks and timelines must be construct and communicated appropriately to each individual accountable.
• The manager ought to utilize a control panel which reveals the development of all the jobs which have been done or about to be done and by whom.
• The manager ought to monitor and keep a constant check on the total and specific efficiency.
Due to the fact that any new trend or policy might come in due to which all the things currently planned have actually to be changed, • Everyone ought 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 communicate the results and if successful need to commemorate with the team.


This modification the budget plan allocation of many supervisors and different countries were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia development possible warranted a 35% allowance while they were getting 45%. It actually assisted to relatively disperse the resources and capture more clients by spending more on advertisements on the high growth potential areas of the world.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help is a leading 25 company worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its continuous financial investment in R&D and innovative practices have actually moved them to new heights but for them its' only the start and they wish to be among the leading 3 brands on the planet. They completely turnaround from almost going bankrupt throughout the Asian Financial Crisis to a world renowned brand, understood for quality and development. Their value chain and their core proficiency their production capability, along-with global brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts must be directed towards more youthful group in the middle of the internal arguments about marketing and must create Customer Lifetime Value as it will not only give them benefits now but will continue to gain it till the client life time. As the cost of maintaining the client is more affordable than drawing in a brand-new one.