Corporate Entrepreneurship Designing An Entrepreneurial Organisation Harvard Case Study Analysis

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Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution & Analysis


Historically, the business's core clients consist of the Original Devices Manufacturers (OEMs), which utilized to offer Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis products withtheir own brand name. Its customer circle consists of Original Devices Manufacturers (OEMs), who utilized to offer Venture products with their own brand name. He repositioned Org as an international brand and informed his divisional managers to comprehend marketing and its value.

Problem Declaration

Venture's shift from a product based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing efficiently is still a significant obstacle. Developing a consistent brand identity throughout the entire world and using marketing methods that best fits the local culture is no easy job.
Executive Summary
Situational Analysis

Yun had a quite clear image in his mind about how Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution can transform from a low end to a high end product company. He knew that improvement can just be done through placing Corporation as a business using high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to build Organization brand, with a potential support of its executives, Yun dealt with a number of marketing challenges in early years of its efforts.

Among the marketing challenges for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was rather 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 wrong understandings about marketing was rather difficult for Yun.

As stated above, marketing focus was very low in previous practices, therefore there were no correct marketing budgets for each of the item on the portfolio. There was no marketing preparation done for the existing products. In addition to it the product variety of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Corp. Yun had a difficulty to perform marketing preparation and to produce marketing budgets for existing as well as for new items from the very start, and this would take a big time.

A substantial shift would be required in existing marketing expenses to build the Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis brand name. This would result in increased marketing expenditures for Venture and could disturb the administration relating to increased expenditures, as they were reluctant to marketing expenses previously and an unexpected big shiftwould make them disrupt. This could lead to decreasing executive support for global marketing. In this situation, Yun deals with a challenge for validating increased marketing expenditures by showing the long term value of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Venture strengths depend on its huge product portfolio. Organization has biggest variety of patents in the industry with overall number of 15499 patents granted in United States( USP). Big amount of R&D costs has actually enabled the company to grow its product portfolio at a higher rate than its rivals. Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall earnings.

Another strength of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution is its ability to develop innovative products at a continuous rate. It major shows for the innovation and item creating of Corp is that the company has gotten many awards for its innovation and item style.

Unlike Apple and other competitors, Corporation is focused on producing devices which can be easily incorporated with any type of open source Os (OS) and software application. This offers Company an edge over Apple gadgets.
Porter's 5 Forces Analysis
Corporation's capability to produce luxury items at low expense of production is also among the major strength of Org as it makes it possible for the company to capture more market by providing quality items with expense control.

Weak points

Company's weak points are hidden in the company's reliance on outsourcing software application for its devices due to company's inability in developing software, unlike Sony. Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help likewise has low earnings margins as compare to Apple due to huge distinction in the prices of Apple and Enterprise with a much lower distinction in quality.


Opportunities for Corporation depend on the growing Smartphone market and the business's effectiveness in the market. It can increase its market share and earnings from cellular phone as the business is rather efficient in mobile phone market. Venture presently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Organization can move towards acquisitions to get patents. It would make it possible for the business to increase its item portfolio with a boost in its wealth.


The vibrant market environment of technology market present a serious danger on Corporation's survival and force the business to spend much of its profits share on R&D in order to make it through in the long run. The marketplace saturation in developed nations i.e. saturation of mobile company is likewise a huge danger for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help uses quality products and has a rather abundant portfolio which accommodates various sections. Most of the items are in the top three of their respective markets. LCD and smart phones are the most significant products of Venture, whereas DRAM is also not far behind in comparison of them. Following is the product line of Company:

• Laptops.
• Cellphone.
• A/c unit.
• Desktop computer.
• Disk drives.
• Washer.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution uses both market competitive and market skimming pricing methods for its wide variety of items. In competitive prices it adjusts the cost according to the competitors in order to gain benefit, whereas, it utilizes market skimming technique where the item has actually an included value and by offering a few items it can reach break-even.


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

Vrio Analysis
It wasn't a popular company outside of Korea until 1993. But the management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has entered the league of top 25 business on the planet in just 9 years. This is an exceptional accomplishment regardless of the continuous arguments among the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their products. Paid item advertisements, social promo and digital ads are utilizes to produce awareness about Corp items.

Value Chain Analysis.

It's an analytical structure for recognizing company activities that include worth or competitive advantage for the business.

Incoming Logistics.

It has one of the most efficient and efficient supply chain network and has over 2700 providers throughout various markets worldwide. Nearly 80% of which is based in Asia and the remaining worldwide. For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its providers and develops an unified relationship with them and even decreased their payment cycles to enhance this relationship further which adds value to their chain network.


Business's core proficiency is its mass manufacturing it produces 90% of its products in-house. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is preserving operation hubs worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution has the ability to take on Apple. Venture's own Electronic Logitec system plays a major role in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Venture.

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 provides. Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis marketing spending plan is constantly rising because they started their repositioning internationally and will continue to do so as they are continually wanting to invest and broaden in high prospective development markets. The budget is spent on occasions, print and media ads, public relations and so on.

Company Service. Business put their customers on top and continuously strive to deliver unmatchable customer service standards. As after sales service is becoming very important to keep consumers happy and engaged, they even perform studies through third parties to find out their client's feedback and implement it in the favorable way to decrease or if possible totally eliminate their consumer concerns. By including a direct assistance line to contact them 24 hours they have actually further increased the included value of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution service.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution has diversified market segmentation, based upon its provision of large range of items to large number of consumers. Business target customer sectors can be divided into 3 classifications i.e. Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis IT and Mobile Communications, Org Consumer Electronic Devices and Org Device options.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution geographic division is based upon 2 requirements i.e. area and density. Org serves about 80 countries worldwide with its products offered to Urban along with Rural areas of the nation. The Organization is also growing its global presence and the company's versatility in finding its plants encourages global expansion of Company.


Enterprise produces items that can be utilized by both males and females. The target customers for Venture IT and mobile communication items have an age range of 18-65 with majority at a young or freshly wed life cycle phase. Apart from it, Org Consumer Electronics are targeted to a client sector with an age variety of 25-65.


The psychographic segmentation of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution s based upon the social class and the life style of the customer. Business target consumers on the basis of social class are mainly upper middle, middle and working class customers, as Venture offer items like mobile phone not much cheaper i.e. Motorola as well as very little costly i.e. Apple. It supplies quality products to middle level consumers at a somewhat high rate than others targeting the same segment.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis bulk target customers have distinct behavioural characteristics. It has clients with an ambitious, trendy and identified personality with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other prominent brands i.e. Apple. Most of Venture customers desire quality as well as cost control. Because of its moderate costs with a level of quality, they are drawn in towards Business.

Quantitative analysis.

Sales of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings 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 upon the objective of Kim to target the more youthful audience and create an international brand picture of the business. Whereas, the core strength of the company is currently manufacturing but long gone are those days when good items were offering themselves. In the present age marketing is very important and companies can not prosper without it. Kim has actually already started to strengthen the marketing activities of Corporation and very soon it will turn into one of its core strength like making if not much better.



Organization operates styles, manufactures and sell a vast portfolio of consumer electronics. It operates in an exceptionally competitive environment and has actually successfully placed itself as the maker of quality items. The answer is yes.


As, said previously that Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis operates in an extremely competitive environment, which implies all the business have similar items. So, the answer for rarity is no.


Due to the nature of the market, it is really easy for rivals to comprehend the functionality of the products and quickly make their own designs. Yes, Company is only behind IBM in signing up new patents each year, however the benefit is extremely short term in this market.


Chairman Lee has entirely turn-around Corporation, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the top 25 business on the planet. Absolutely yes there is proper company in the business and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. However, it deals with some political pressures in less developed nations where law and order scenario is bad. Latin American, African and some Asian nations fall in this category, where political instability do have a result on Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution operations.


Buying power of customers is essential for business like Venture to prosper and grow. Emerging markets like India, middle-eastern nations and so on provide development chances, whereas, due to economic crisis even the consumers of industrialized countries suffer badly. Thus it is very crucial for the business to keep an eye on the ongoing financial circumstance of the nation before entering the marketplace.


International business need to face various social and cultural concerns throughout its operations in a foreign country. Corporation has actually likewise faced numerous concerns but have actually embraced to the regional environments of the majority of the nations remarkably well. It has actually tailored its products, practices, policies etc. accordingly in order to succeed.


With an annual expense of 2.4 billion dollars in Research study & Advancement, and with constant ingenious item launches, Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help 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 developments, Venture has actually increased to the no 25 of the leading effective business of the world.


Each nation has their own laws and policies, being an international company Corporation have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal repercussions. It has to study or work with a regional law expert before starting its operations in a specific country.


With the increasing awareness among consumers about the ethical & environmental offenses of companies, Corp needs to ensure that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be very extreme. On the other hand it needs to do some Business Social Duty practices to reveal the locals that it appreciates their environment and individuals.

Porter's 5 Forces

Hazard of Alternative

Risk of substitution for Venture's each item category is quite substantial. Running in an exceptionally dynamic market lead the company to face a high hazard of replacement. Aspects for high risk of alternative for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution Smart device include the existence of high number of suppliers and Market saturation in industrialized countries, that make the cost of switching for customers nearly zero. Replacement threats for Venture visual display lie in the changing lifestyle of clients. Consumers can switch to seeing visuals in your home towards outside activities. In addition to it, Organization printing options items are threatened by the increasing destination of customers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Company and its close rivals is intense. The major factor behind this is the approach of market saturation in numerous number of item classifications, requiring Venture to present more innovative functions in existing products and new innovative products to preserve its growth. The major rivals for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

( Corporation Sustainability Report, 2016) Supplier's bargaining power for Organization is low as Venture runs economies of scale and its orders are of possible size and worth. Due to incapability of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution to develop its own software application, it has to outsource its software application advancement to Google, which ends up being a prospective supplier of software application for Business, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Market saturation in most of the product categories likewise make the bargaining power of purchasers more extreme in for Enterprise. In spite of igh bargaining power Corp is quite capable of selling its products at a greater cost than much of its competitors, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Danger of brand-new entrants for Corp is rather low. One of the major element for low hazard of brand-new entrants is the high competition in the market. The requirement of big quantity of capital to enter in the market is also among the potential barrier to entry. Together with it, requirement of big knowledge and research and development expenditures for survival in the market also make new entrants hesitant to go into in the market. Market saturation is also among the barrier of entry in technology market. High bargaining power of providers force the players in the market to charge as low rates as possible and this can just be accomplished by production efficiency. New firms, in majority cases, do not have the production effectiveness, thus increasing the threats for entrance in the technology market.

Competitive Analysis

Company's high product diversification provides it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis had a huge R&D costs on all of its product classifications which allow the company to make possible revenue from sales of almost all of its products.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of global market share, among 8 various product classifications. Venture was the international leader in producing DRAM, SRAM and NAND flash chips. Although, Company profits from chips was less than Intel however its revenues from chips was growing quicker than Intel and has actually grown near the earnings levels of Intel, as given in the case Display 2.

In addition to the chips Venture mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Business's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Company's high development despite of greater costs than Nokia and Motorola was the company's high-end quality cellular phone.

Company was likewise profiting from increasing market share of high-end LCDs as given up case Display 3. The major factor, making the business allow to get the opportunity is its mass production at low expense. Sony was the biggest competitor for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis in LCD market, however, it had likewise begun joint venture with Company in 2003 for LCD manufacturing, reducing the competitors for Org.

Porter's Competitive Strategy

Low Cost Leadership strategy of porter is fully carried out by Venture the method they accomplish economies of scale by enhancing their core competencies of production. They constantly bring something new and ingenious whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help would produce a brand-new brand image by targeting the younger generation of the particular nation. As, specifically smart phones of Org are incredibly popular amongst the younger market.


1. It is the very best method to construct Consumer Lifetime Value (CLV) by producing a long-term relationship with clients. Build commitment through providing worth and reap the benefits for long-lasting, as research has actually revealed it is much cheaper to keep present clients than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger people and which in turn will bring in brand-new customers for my items.


1. Old clients who were related to Corporation prior to may not like this new image the business is attempting to depict.
2 It will incur more expenditures to reposition some items and it may not even bring success as the patterns alter really quickly amongst the more youthful market.

Alternative option 2.

Org has actually made making its core proficiency for the many part of their business and due to which its supervisors are not scared to fully get out of their convenience zone. It would be done by setting up training workshops during which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get benched. Marketing environment should be created internally first as real marketing starts inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the office, as people frequently withstand modification due to the fact that they fear it.

Identify the very best option

First alternative is the best as it plainly has more pros because once a Consumer Lifetime Value is developed the business will benefit from it till that customer lives and has buying power also. Plus, our target customers are the younger generation which are bound to live longer than the present aging people. Nevertheless, Venture's primary goal is to develop loyalty among its customers and make them bought it from them and even buy their various products also.

Implementation Strategy

• Targeting younger generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations attainable and reasonable.
• A group including finest marketing and sales specialists ought to be assemble, and both views need to be taken into account before protecting the resources needed to implement the strategy.
• Thorough communication of the plan ought to be done as it is really essential for everybody to be on the very same page to make it work.
• Tasks and timelines need to be construct and communicated accordingly to each person accountable.
• The manager ought to use a control panel which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a continuous check on the private and total efficiency.
• Everyone must be willing to adjust midway because any new pattern or policy may come in due to which all the things currently prepared have to be adjusted. It's much better to have contingency strategies already prepared.
• At the end of the project the manager must communicate the results and if successful must celebrate with the group.

Spending plan

This change the budget allowance of numerous managers and different nations were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia development prospective warranted a 35% allotment while they were getting 45%. It really helped to fairly distribute the resources and capture more consumers by spending more on advertisements on the high development capacity areas of the world.

Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis is a leading 25 business worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its consistent 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 top 3 brands on the planet. They entirely turnaround from practically going bankrupt during the Asian Financial Crisis to a world popular brand, understood for quality and innovation. Their value chain and their core proficiency their manufacturing ability, along-with worldwide brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts ought to be directed towards more youthful group in the middle of the internal arguments about marketing and must produce Consumer Life time Worth as it will not just give them benefits now but will continue to gain it till the client lifetime. As the cost of maintaining the client is more affordable than bring in a new one.