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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


Introduction

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis is a popular global brand in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Case Analysis Strategic Leadership At Coca Cola The Real Thing handle a great deal of product categories including Semiconductors, Telecommunications, 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 Samsung products withtheir own brand name. Till early 1990s, the core proficiency of Samsung depend on its low cost offerings than its competitors by producing existing items at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who utilized to sell Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis products with their own trademark name. Samsung was not simply understood outside Korea. There were likewise no or little interest in developing the trademark name worldwide. Marketing spending plan was managed by production department with a prime focus on offering cheap products.During the 1997 Asian Financial Crisis the company nearly got insolvent, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most important company worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Samsung as a global brand name and educated his divisional managers to understand marketing and its value. Now their goal is to reach the top 10 by 2005.

Problem Declaration

Samsung's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to include marketing effectively is still a major obstacle. Developing a constant brand identity throughout the entire world and employing marketing methods that best fits the local culture is no easy task. The M-net program analysis have been really valuable in determining the high and less possible growth locations, but allowance of resources appropriately is not well gotten among the supervisors. There is no agreement among the hierarchy concerning the very best fit future method.

Situational Analysis

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution efforts for building its brand name across the world was started after presenting the "new management initiative" by Chairman Lee in 1993. The objective was to transform Samsung from a cheap OEM to a high value-added product company. To make the vision of Samsung a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Samsung can transform from a low end to a high end product supplier. He understood that transformation can just be done through positioning Samsung as a business 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 build Samsung brand name, with a potential support of its executives, Yun dealt with several marketing obstacles in early years of its efforts.

One of the marketing challenges for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as exact same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the existing marketing requirement was excessive high, the space was too larger and to fill this gap with incorrect perceptions about marketing was quite challenging for Yun.

As mentioned above, marketing focus was really low in previous practices, for that reason there were no correct marketing budget plans for each of the item on the portfolio. There was no marketing preparation provided for the existing products. Along with it the item series of the company was increasing with the ripening of new item ideas by the R&D sector of Samsung. Yun had a challenge to carry out marketing preparation and to create marketing budget plans for existing along with for brand-new products from the very beginning, and this would take a big time.

A big shift would be required in existing marketing expenditures to build the Samsung brand name. This would result in increased marketing expenses for Samsung and could disturb the administration relating to increased expenditures, as they were unwilling to marketing expenditures formerly and an abrupt huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Samsung strengths depend on its big item portfolio. Samsung has largest variety of patents in the market with total variety of 15499 patents granted in United States( USP). Big quantity of R&D spending has actually made it possible for the company to grow its product portfolio at a greater rate than its competitors. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall incomes.

Another strength of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is its ability to establish innovative products at a constant rate. It major shows for the innovation and item creating of Samsung is that the company has actually received a lot of awards for its innovation and item style.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be easily incorporated with any type of open source Os (OS) and software application. This offers Samsung an edge over Apple devices.

Samsung's capability to produce luxury items at low cost of production is also one of the significant strength of Samsung as it enables the business to capture more market by supplying quality items with cost control.

Weak points

Samsung's weaknesses are concealed in the company's dependence on outsourcing software for its devices due to company's inability in establishing software, unlike Sony. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis likewise has low revenue margins as compare to Apple due to big distinction in the rates of Apple and Samsung with a much lower difference in quality.

Opportunities

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

Hazards

The vibrant industry environment of innovation industry position an extreme hazard on Samsung's survival and force the business to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is likewise a big hazard for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing

Item

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution provides quality products and has a rather rich portfolio which caters to different segments. The majority of the products remain in the top three of their particular markets. LCD and cellphones are the biggest products of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the product line of Samsung:

• LCD/ TELEVISION
• Laptops.
• Mobile phones.
• Air conditioner.
• Personal computers.
• Hard drives.
• Washer.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis uses both market competitive and market skimming prices techniques for its wide array of products. In competitive prices it changes the cost according to the competition in order to get advantage, whereas, it uses market skimming method where the product has actually an added worth and by offering a couple of products it can reach break-even.

Place.

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

Promotion.

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

Worth Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even decreased their payment cycles to improve this relationship even more which includes worth to their chain network.

Operations.

Samsung's core proficiency is its mass producing it produces 90% of its items internal. Divided into three different divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is preserving operation centers worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the main reasons Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis is able to compete with Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to interact with them the value and competitive benefit the product offers. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis marketing spending plan is constantly growing since they began their repositioning worldwide and will continue to do so as they are continuously aiming to invest and expand in high potential growth markets. The budget plan is invested in occasions, print and media ads, public relations etc.

Samsung put their customers at the top and continuously strive to deliver unmatchable client service requirements. By adding a direct assistance line to call them 24 hours they have even more increased the included value of Samsung service.

Segmentation.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help has actually diversified market division, based upon its arrangement of vast array of products to a great deal of consumers. Samsung target client sections can be divided into 3 classifications i.e. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget options.

Geographic.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis geographical segmentation is based upon 2 criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items provided to Urban as well as Backwoods of the country. The Samsung is likewise growing its global existence and the business's flexibility in finding its plants encourages international growth of Samsung.

Demographic.

The demographic division of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Samsung produces items that can be used by both women and males. The target clients for Samsung IT and mobile communication products have an age series of 18-65 with bulk at a young or newly wed life process stage. They are primarily students, staff members and experts. Apart from it, Samsung Consumer Electronic devices are targeted to a consumer section with an age series of 25-65. They are mainly professionals and staff members. Samsung Device Solutions are targeted at students, workers and professionals with an age variety of 25-65.

Psychographic.

The psychographic segmentation of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution s based upon the social class and the life style of the consumer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung sell products like cell phones very little more affordable i.e. Motorola along with very little costly i.e. Apple. It supplies quality items to middle level consumers at a slightly high rate than others targeting the exact same segment.

Behavioural.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution majority target consumers have special behavioural characteristics. They are drawn in towards Samsung since of its moderate rates with an extent of quality.

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 revenue of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the younger audience and create a worldwide brand image of the company. Whereas, the core strength of the company is presently making however long gone are those days when great products were offering themselves. In the existing age marketing is extremely important and business can not prosper without it. Kim has currently started to enhance the marketing activities of Samsung and very soon it will turn into one of its core strength like producing if not better.

VRIO.

Worth.

Samsung runs styles, makes and sell a huge portfolio of customer electronics. It runs in an incredibly competitive environment and has actually successfully positioned itself as the maker of quality products. So, the answer is yes.

Rarity.

As, said previously that Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help operates in an extremely competitive environment, which indicates all the business have comparable products. So, the answer for rarity is no.

Imitability.

Due to the nature of the market, it is really simple for competitors to understand the functionality of the items and quickly make their own designs. Yes, Samsung is just behind IBM in signing up brand-new patents each year, but the advantage is very short-term in this market.

Organization.

Chairman Lee has completely turn-around Samsung, from going nearly bankrupt throughout the Asian monetary crisis of 1997 to the top 25 company in the world. Certainly yes there appertains company in the business and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand name spread practically in every country worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. It faces some political pressures in less developed nations where law and order circumstance is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis operations.

Economic

Purchasing power of consumers is crucial for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries and so on supply growth chances, whereas, due to economic crisis even the customers of industrialized countries suffer severely. It is really important for the company to keep an eye on the continuous economic situation of the country before entering the market.

Socio-Cultural

Multinational companies need to face various social and cultural concerns throughout its operations in a foreign country. Samsung has also dealt with numerous concerns but have actually adopted to the regional environments of most of the countries exceptionally well. It has actually customized its items, practices, policies and so on accordingly in order to be successful.

Technological

With an annual expense of 2.4 billion dollars in Research study & Advancement, and with continuous ingenious product launches, Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis is one of the leading innovative business of the world. With a clear mission to be ahead of the rest when it pertains to technological improvements, Samsung has increased to the no 25 of the top effective companies of the world.

Legal

Each nation has their own laws and policies, being an international company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. It has to study or work with a local law specialist prior to starting its operations in a specific nation.

Environmental

With the increasing awareness amongst customers about the ethical & ecological infractions of business, Samsung has to make sure that it follows all the security guidelines. Environmental damages, ethical misconducts are not appropriate and in some nations the repercussions can be really serious. On the other hand it has to do some Business Social Responsibility practices to show the residents that it cares about their environment and individuals.

Porter's Five Forces

Threat of Alternative

Danger of alternative for Samsung's each item classification is rather significant. Factors for high danger of alternative for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help Smartphone include the presence of high number of suppliers and Market saturation in developed nations, which make the cost of changing for consumers nearly no. Along with it, Samsung printing services products are threatened by the increasing destination of clients towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Samsung and its close rivals is intense. The significant factor behind this is the approach of market saturation in various number of item classifications, requiring Samsung to introduce more innovative functions in existing products and brand-new innovative products to keep its development. The major competitors for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help has a huge supply chain including about 2700 suppliers throughout the world.( 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. These huge orders allow Samsung to negotiate prices with its providers. Nevertheless, due to incapability of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis to construct its own software application, it has to outsource its software development to Google, which ends up being a prospective provider of software application for Samsung, resulting in high bargaining power of Google. Although, in most of cases Samsung has a power to negotiate costs, however it provide substantial rates to its suppliers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Bargaining power of purchasers for different number of item classifications of Samsung is extreme. One of the element causing the extreme bargaining power is the accessibility of a great deal of rivals in almost each item category i.e. competitors of Samsung Smartphone, with a very little differentiation. The high availability of providers of Mobile phones with minimum differentiation, make the switching expense for purchasers almost no, for this reason increasing the bargaining power of buyers. Market saturation in most of the product classifications likewise make the bargaining power of buyers more intense in for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis. In spite of igh bargaining power Samsung is quite efficient in selling its products at a greater rate than much of its competitors, due to high-end quality item and a fair brand image.

Threat of New Entrants:

Hazard of new entrants for Samsung is quite low. Among the major aspect for low hazard of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to enter in the market is also one of the potential barrier to entry. In addition to it, requirement of huge know-how and research study and advancement expenses for survival in the market also make brand-new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in technology industry. High bargaining power of suppliers require the players in the industry to charge as low costs as possible and this can only be attained by production effectiveness. New companies, in bulk cases, do not have the production effectiveness, thus increasing the risks for entryway in the innovation industry.

Competitive Analysis

Samsung's high item diversification provides it differentiation from its rivals. It is among the 3 leading brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on consumer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a big R&D costs on all of its item classifications which enable the business to earn potential earnings from sales of practically all of its products. (See Display) However, due to the large item variety the business deals with high variety of competitors.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to global market share, amongst 8 various item categories. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung earnings from chips was less than Intel but its incomes from chips was growing quicker than Intel and has actually grown close to the profits levels of Intel, as offered in the case Exhibition 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 cellular phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales development. The major reson behind Samsung's high development despite of greater costs than Nokia and Motorola was the business's high-end quality mobile phone.

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given up case Display 3. The major factor, making the company make it possible for to get the opportunity is its mass production at low cost. Sony was the greatest competitor for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution in LCD market, nevertheless, it had actually also started joint venture with Samsung in 2003 for LCD making, lessening the competitors for Samsung.

Porter's Competitive Technique

Low Expense Leadership technique of porter is totally implemented by Samsung the way they achieve economies of scale by reinforcing their core proficiencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to make for them, since they were unable to take on them on low cost. Distinction is another technique well executed by Samsung by continuous investment in the R&D and remaining ahead of the competitors. They constantly bring something innovative and new whether it's a service or an item.

Alternatives

Alternative Option 1

The Chief Marketing Officer (CMO) of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution would develop a brand-new brand image by targeting the more youthful generation of the particular country. As, particularly mobile phones of Samsung are preferred amongst the younger market.

Pros

1. It is the very best strategy to build Client Lifetime Worth (CLV) by producing a long-lasting relationship with consumers. Construct loyalty through delivering worth and reap the benefits for long-term, as research has actually revealed it is much cheaper to maintain existing consumers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among more youthful people and which in turn will bring in new clients for my items.

Cons

1. Old clients who were connected with Samsung prior to might not like this new image the company is trying to depict.
2 It will sustain further expenditures to rearrange some items and it may not even bring success as the patterns alter really quickly amongst the younger demographic.

Alternative option 2.

It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be offered. Marketing environment should be produced internally initially as genuine marketing starts inside the corporation.

Pros

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

Cons

2. Its con can create a really unhealthy environment in the workplace, as people typically withstand modification since they fear it.

Recognize the best alternative

Option is the finest as it plainly has more pros because as soon as a Consumer Lifetime Worth is constructed the company will benefit from it till that client is alive and has buying power. Plus, our target consumers are the more youthful generation which are bound to live longer than the current aging individuals. Samsung's primary goal is to create loyalty among its customers and make them repurchase it from them and even purchase their different items.

Execution Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations possible and realistic.
• A team including finest marketing and sales specialists need to be assemble, and both views should be taken into consideration prior to securing the resources needed to implement the plan.
• Thorough interaction of the plan ought to be done as it is very important for everyone to be on the very same page to make it work.
• Tasks and timelines ought to be build and interacted accordingly to each person responsible.
• The supervisor must utilize a control panel which reveals the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a constant check on the specific and general performance.
Since any brand-new trend or policy might come in due to which all the things currently planned have to be changed, • Everyone should be willing to adapt midway. It's better to have contingency plans currently prepared.
• At the end of the project the manager must interact the results and if successful must celebrate with the group.

Budget plan

This modification the budget plan allotment of numerous managers and various countries were unhappy and argued however the analysis done by the program was precise and showed figures like North America and Russia growth prospective warranted a 35% allowance while they were getting 45%. It truly helped to relatively disperse the resources and record more customers by investing more on advertisements on the high development capacity regions of the world.

Conclusion

Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help is a leading 25 company on the planet now and prepares to get ahead of Sony who sits currently at no. 20. Its consistent financial investment in R&D and ingenious practices have actually propelled them to brand-new heights however for them its' only the start and they want to be among the top 3 brands on the planet. They totally turnaround from nearly declaring bankruptcy throughout the Asian Financial Crisis to a world popular brand name, understood for quality and innovation. Their value chain and their core competency their manufacturing capability, along-with global brand image building have actually 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 only increase even more in the future. Their marketing efforts should be directed towards more youthful group in the middle of the internal arguments about marketing and ought to develop Customer Lifetime Value as it will not only give them benefits now however will continue to gain it till the consumer life time. As the expense of maintaining the client is much cheaper than attracting a new one.