Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution & Analysis
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is a widely known international brand name in innovation market, 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 classifications consisting of 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 Samsung products withtheir own brand. Till early 1990s, the core proficiency of Samsung lie in its low cost offerings than its rivals by producing existing products at economies of scale. Its client circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution products with their own trademark name. Samsung was not merely known outside Korea. There were also no or little interest in developing the brand name internationally. Marketing budget plan was controlled by production department with a focal point on offering low-cost products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the leading 25 most valuable business on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He repositioned Samsung as an international brand and informed his divisional supervisors to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.
Samsung's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to incorporate marketing effectively is still a significant difficulty. Producing a consistent brand name identity throughout the entire world and employing marketing techniques that finest fits the local culture is no easy job. The M-net program analysis have been really practical in figuring out the high and less potential growth areas, however allotment of resources appropriately is not well received amongst the supervisors. There is no agreement amongst the hierarchy relating to the very best suited future technique.
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help efforts for constructing its brand across the world was started after introducing 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 service provider. 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 change from a low end to a luxury product provider. He knew that transformation can just be done through positioning Samsung as a company providing high-end items and this might only be done through high level of marketing.
In spite of having a clear vision about how to construct Samsung brand, with a possible assistance of its executives, Yun dealt with numerous marketing difficulties in early years of its efforts.
One of the marketing challenges for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as very same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the existing marketing requirement was too much high, the gap was too broader and to fill this gap with incorrect understandings about marketing was quite tough for Yun.
As stated above, marketing focus was really low in previous practices, therefore there were no correct marketing spending plans for each of the item on the portfolio. There was no marketing preparation done for the existing items. In addition to it the item range of the business was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to create marketing budget plans for existing in addition to for new products from the very beginning, and this would take a substantial time.
A substantial shift would be needed in current marketing expenses to develop the Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution brand. This would result in increased marketing expenditures for Samsung and might disturb the administration relating to increased costs, as they hesitated to marketing expenses previously and an abrupt huge shiftwould make them interrupt. This could lead to decreasing executive support for worldwide marketing. In this scenario, Yun deals with an obstacle for justifying increased marketing costs by demonstrating the long term value of big marketing expenses.
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis strengths lie in its big product portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents approved in United States( USP).
Another strength of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help is its capability to establish ingenious products at a constant rate. It significant shows for the innovation and item developing of Samsung is that the company has actually gotten a lot of awards for its development and item design.
Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be quickly integrated with any kind of open source Os (OS) and software. This provides Samsung an edge over Apple gadgets.
Samsung's ability to produce high end products at low cost of production is likewise one of the major strength of Samsung as it enables the company to catch more market by providing quality products with expense control.
Samsung's weaknesses are hidden in the company's dependence on outsourcing software application for its gadgets due to company's inability in developing software application, unlike Sony. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help also has low earnings margins as compare to Apple due to huge distinction in the prices of Apple and Samsung with a much lower difference in quality.
Opportunities for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis lie in the growing Smartphone market and the company's effectiveness in the market. Samsung currently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.
The vibrant industry environment of technology market present a serious danger on Samsung's survival and force the business to spend much of its profits share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile company is likewise a huge hazard for the company's growth in the presence of strong rivals like Apple.
4 P's of Marketing
Samsung uses quality items and has a rather abundant portfolio which caters to different sectors. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is also not far behind in comparison of them.
• LCD/ TV
• Smart phone.
• Air conditioning unit.
• Personal computers.
• Disk drives.
• Washing machines.
• Flash memory.
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution uses both market competitive and market skimming pricing techniques for its wide variety of products. In competitive rates it adjusts the rate according to the competition in order to get benefit, whereas, it utilizes market skimming technique where the item has actually an added worth and by selling 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 and so on. All its items are timely supplied to the selling location/ delivered to the clients straight in case of online order.
It utilizes both offline & online channels of promo to market their items. Paid product ads, social promotion and digital ads are uses to create awareness about Samsung items.
Value Chain Analysis.
It's an analytical framework for identifying business activities that include value or competitive benefit for the company.
It has among the most efficient and efficient supply chain network and has over 2700 providers across different industries worldwide. Practically 80% of which is based in Asia and the staying worldwide. For its incoming logistics it owns different logistics firms as it subsidiaries. It takes care of its providers and produces an unified relationship with them and even reduced their payment cycles to enhance this relationship further which adds value to their chain network.
Samsung's core competency is its mass producing it produces 90% of its products in-house. Divided into three different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is keeping operation hubs worldwide to even more add value to its value chain network.
Its outgoing logistics system performance is one of the main factors Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is able to compete with Apple. Samsung's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.
Marketing and Sales.
Attracting target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item uses. Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis advertising budget is continually growing considering that they began their rearranging globally and will continue to do so as they are continuously seeking to invest and broaden in high prospective development markets. The spending plan is invested in occasions, print and media ads, public relations etc.
Samsung Service. Samsung put their consumers on top and continuously strive to provide unmatchable client service standards. As after sales service is becoming very important to keep consumers happy and engaged, they even carry out studies through 3rd parties to discover their client's feedback and implement it in the favorable way to decrease or if possible entirely eliminate their consumer issues. By adding a direct assistance line to contact them 24 hours they have further increased the included value of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution service.
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help has diversified market division, based upon its arrangement of vast array of items to a great deal of consumers. Samsung target client 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, Samsung Consumer Electronics and Samsung Gadget solutions.
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help geographic division is based upon two requirements i.e. area and density. Samsung serves about 80 nations worldwide with its products offered to Urban as well as Backwoods of the country. The Samsung is also growing its global existence and the business's flexibility in locating its plants motivates international expansion of Samsung.
Samsung produces items that can be used by both males and women. The target consumers for Samsung IT and mobile interaction items have an age range of 18-65 with majority at a young or recently wed life cycle phase. Apart from it, Samsung Consumer Electronics are targeted to a customer segment with an age range of 25-65.
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 customer. Samsung target clients on the basis of social class are mainly upper middle, middle and working class clients, as Samsung sell products like mobile phone not much less expensive i.e. Motorola in addition to not much expensive i.e. Apple. It provides quality items to middle level consumers at a somewhat high cost than others targeting the exact same sector.
Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis majority target consumers have distinct behavioural characteristics. It has consumers with an enthusiastic, fashionable and figured out personality with moderate level of commitment towards the brand name. Its customers have some degree of shift towards other renowned brand names i.e. Apple. Most of Samsun customers want quality as well as cost control. Because of its moderate rates with a degree of quality, they are drawn in towards Samsung.
Sales of Samsung has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually also reduced its debt from 15 billion $ to 4.6 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. Due to the fact that of the high overhead expense, incomes/ sales are increasing but net profit is not increasing appropriately. New expansions and working with's were the primary factor of the boost in the overhead expenses, with china presently not supplying any earnings to Samsung, however there is a lot potential in the present market with 75 % yet to be explored.
Whereas, the core strength of the business is presently manufacturing however long gone are those days when great products were selling themselves. Kim has actually currently begun to enhance the marketing activities of Samsung and very quickly it will end up being one of its core strength like producing if not better.
Samsung operates designs, makes and sell a huge portfolio of customer electronic devices. It operates in an extremely competitive environment and has actually successfully placed itself as the maker of quality items. So, the answer is yes.
As, said earlier that Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help operates in an extremely competitive environment, which means all the companies have similar items. The response for rarity is no.
Due to the nature of the industry, it is very easy for rivals to understand the functionality of the products and quickly make their own designs. Yes, Samsung is just behind IBM in signing up new patents annually, but the advantage is really short term in this market.
Chairman Lee has completely turn-around Samsung, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 company in the world. Definitely yes there is proper organization in the company and the results speak for themselves.
External Ecological Analysis
Being a multinational brand spread nearly in every nation worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It deals with some political pressures in less developed nations where law and order scenario is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution operations.
Buying power of consumers is important for business like Samsung to prosper and grow. Emerging markets like India, middle-eastern countries etc. provide development opportunities, whereas, due to recession even the customers of industrialized countries suffer severely. For this reason it is extremely crucial for the business to watch on the continuous economic situation of the nation prior to getting in the marketplace.
Multinational business need to deal with different social and cultural problems throughout its operations in a foreign country. Samsung has also faced many concerns however have actually adopted to the local environments of the majority of the countries remarkably well. It has customized its items, practices, policies etc. accordingly in order to be successful.
With a yearly expense of 2.4 billion dollars in Research study & Development, and with continuous ingenious product launches, Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is among the leading innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological improvements, Samsung has risen to the no 25 of the leading effective business of the world.
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 result in severe legal repercussions. It has to study or hire a regional law expert before beginning its operations in a particular nation.
With the increasing awareness among consumers about the ethical & environmental violations of companies, Samsung needs to make sure that it follows all the security standards. Environmental damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be really severe. On the other hand it needs to do some Corporate Social Responsibility practices to show the locals that it appreciates their environment and individuals.
Porter's Five Forces
Threat of Alternative
Danger of replacement for Samsung's each item category is quite substantial. Factors for high risk of substitution for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis Smart device consist of the presence of high number of providers and Market saturation in developed countries, which make the cost of switching for customers almost absolutely no. Along with it, Samsung printing solutions items are threatened by the increasing destination of clients towards cloud storage.
Competition Among Existing Firms:
The rivaly amongst Samsung and its close competitors is extreme. The major reason behind this is the technique of market saturation in numerous variety of item categories, requiring Samsung to introduce more ingenious functions in existing products and brand-new ingenious products to keep its growth. Other aspect for the extreme rivalry among the rivals is the little product distinction among the products. The popular gamers in the innovation market are rather familiar with the significance of R&D costs for their survival and are encountering a race of marketing and R&D costs, to record the market. The significant rivals for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the varying market shares which can be seen in Exhibit F.
Bargaining Power of Suppliers:
( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. Due to incapability of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution to construct its own software application, it has to outsource its software application development to Google, which becomes a possible supplier of software for Samsung, resulting in high bargaining power of Google.
Bargaining Power of Purchasers:
Negotiating power of purchasers for various number of product categories of Samsung is intense. Among the element leading to the intense bargaining power is the accessibility of large number of rivals in nearly each item category i.e. rivals of Samsung Smartphone, with a really little differentiation. The high accessibility of providers of Smartphones with minimum distinction, make the switching cost for purchasers practically zero, hence increasing the bargaining power of buyers. Market saturation in most of the item categories likewise make the bargaining power of purchasers more intense in for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help. In spite of igh bargaining power Samsung is quite capable of offering its items at a greater price than much of its rivals, due to high-end quality item and a fair brand name image.
Risk of New Entrants:
Risk of brand-new entrants for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Solution is quite low. Along with it, requirement of huge competence and research study and advancement expenses for survival in the industry likewise make new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in technology industry.
Samsung's high item diversification provides it differentiation from its rivals. It is among the 3 top brands by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony concentrating on consumer electronic devices, Nokia on cell phones and Intel on chips, Samsung had a huge R&D spending on all of its item classifications which allow the company to earn potential profits from sales of nearly all of its items. (See Exhibit) Nevertheless, due to the wide item variety the business deals with high number of competitors.
The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to global market share, amongst 8 various product classifications. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung profits from chips was less than Intel however its earnings from chips was growing much faster than Intel and has grown near to the revenue levels of Intel, as given up the case Display 2.
In addition to the chips Samsung mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales development. The significant reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the business's high-end quality cell phones.
Samsung was also reaping the benefits from increasing market share of luxury LCDs as given up case Exhibition 3. The major factor, making the business make it possible for to obtain the opportunity is its mass production at low expense. Sony was the biggest competitor for Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Analysis in LCD market, nevertheless, it had actually likewise begun joint venture with Samsung in 2003 for LCD making, lessening the competitors for Samsung.
Porter's Competitive Technique
Low Expense Management method of porter is completely executed by Samsung the method they accomplish economies of scale by strengthening their core proficiencies of production. They always bring something innovative and new whether it's an item or a service.
Alternative Solution 1
The Chief Marketing Officer (CMO) of Case Analysis Strategic Leadership At Coca Cola The Real Thing Case Study Help would produce a new brand name image by targeting the younger generation of the specific nation. As, specifically cellphones of Samsung are very popular among the younger group.
1. It is the very best strategy to develop Consumer Lifetime Worth (CLV) by producing a long-lasting relationship with customers. Construct loyalty through delivering value and profit for long-lasting, as research study has revealed it is more affordable to keep existing clients than to draw in new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful individuals and which in turn will generate new customers for my items.
1. Old customers who were connected with Samsung before may not like this new image the company is trying to portray.
2 It will incur more costs to reposition some items and it might not even bring success as the trends change really quickly amongst the more youthful market.
Alternative solution 2.
Samsung has made manufacturing its core competency for the most part of their company and due to which its supervisors are not scared to totally get out of their comfort zone. It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get demoted. Marketing environment must be created internally initially as real marketing starts inside the corporation.
1. Its pro will be that all the marketing method fans will come out and also the opposite ones.
2. Its con can produce an extremely unhealthy environment in the office, as people typically resist modification because they fear it.
Recognize the very best option
First alternative is the very best as it clearly has more pros due to the fact that once a Consumer Life time Worth is developed the company will make money from it till that client lives and has purchasing power also. Plus, our target consumers are the more youthful generation which are bound to live longer than the current old age people. Nevertheless, Samsung's main goal is to produce commitment among its customers and make them redeemed it from them and even buy their various items also.
• Targeting more youthful generation through social marketing, producing a link with them like Pepsi make with music. And set the expectations achievable and realistic.
• A team including finest marketing and sales experts ought to be assemble, and both views ought to be considered before securing the resources needed to carry out the plan.
• Thorough interaction of the plan must be done as it is really essential for everyone to be on the very same page to make it work.
• Tasks and timelines ought to be build and communicated appropriately to each person responsible.
• The supervisor must utilize a control panel which reveals the progress of all the tasks which have actually been done or about to be done and by whom.
• The manager must keep track of and keep a constant check on the total and specific efficiency.
• Everyone must want to adjust midway since any new trend or policy may come in due to which all the important things already planned need to be changed. It's better to have contingency strategies already prepared.
• At the end of the campaign the supervisor need to interact the results and if successful must celebrate with the group.
The M-net program revealed compelling analysis about the high and low development prospective areas and how much marketing spending plan need to be designated appropriately. This modification the budget plan allocation of different countries and numerous managers were unhappy and argued however the analysis done by the program was precise and showed figures like North America and Russia development prospective merited a 35% allowance while they were receiving 45%. Whereas, China and Europe need to be receiving 42% but were rather offered 31%. It really helped to fairly distribute the resources and catch more consumers by spending more on advertisements on the high growth capacity regions of the world.
Its consistent investment in R&D and innovative practices have actually 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. Their marketing efforts should be directed towards younger market amidst the internal arguments about marketing and need to produce Client Lifetime Value as it will not only offer them benefits now however will continue to gain it till the consumer lifetime. As the expense of maintaining the customer is much less expensive than bring in a brand-new one.