Corporate Entrepreneurship Designing An Entrepreneurial Organisation Harvard Case Study Analysis

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Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution and Analysis


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution is a well-known worldwide brand name in innovation market, founded in 1938 by Lee Byung Chul, in South Korea. Corporate Entrepreneurship Designing An Entrepreneurial Organisation handle a great deal of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the company's core clients consist of the Original Equipment Manufacturers (OEMs), which used to offer Samsung products withtheir own trademark name. Till early 1990s, the core competency of Samsung lie in its low price offerings than its competitors by making existing items at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who used to sell Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution products with their own brand name. Samsung was not simply known outside Korea. There were also no or little interest in developing the brand worldwide. Marketing budget was managed by production department with a prime focus on supplying cheap products.During the 1997 Asian Financial Crisis the company nearly got insolvent, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most important business in the world. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Samsung as a global brand name and educated his divisional managers to comprehend marketing and its significance. Now their goal is to arrive 10 by 2005.

Issue Statement

Samsung's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to include marketing successfully is still a major difficulty. Producing a constant brand identity across the whole world and using marketing strategies that best fits the local culture is no simple task.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis can change from a low end to a high end item supplier. He knew that change can only be done through placing Samsung as a business offering high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand name, with a possible assistance of its executives, Yun dealt with a number of marketing obstacles in early years of its efforts.

Among the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the current marketing requirement was excessive high, the space was too wider and to fill this space with incorrect perceptions about marketing was rather difficult for Yun.

As specified above, marketing focus was very low in previous practices, for that reason there were no appropriate marketing budget plans for each of the item on the portfolio. There was no marketing planning done for the existing items. Along with it the item variety of the business was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to develop marketing spending plans for existing along with for new items from the very start, and this would take a substantial time.

A big shift would be required in existing marketing expenditures to build the Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution brand. This would result in increased marketing expenses for Samsung and might interrupt the administration concerning increased expenses, as they were reluctant to marketing expenditures formerly and an abrupt big shiftwould make them disrupt. This could result in declining executive support for worldwide marketing. In this situation, Yun faces a difficulty for justifying increased marketing expenditures by demonstrating the long term value of huge marketing expenses.

Internal Analysis
SWOT Analysis

Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution strengths lie in its substantial product portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents granted in United States( USP).

Another strength of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis is its ability to develop innovative products at a constant rate. It significant proves for the development and product designing of Samsung is that the company has actually received numerous awards for its development and product design.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be easily integrated with any type of open source Os (OS) and software application. This supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's ability to produce high-end items at low expense of production is likewise among the major strength of Samsung as it makes it possible for the company to record more market by providing quality products with cost control.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help weak points are concealed in the company's dependence on outsourcing software for its devices due to company's inability in developing software, unlike Sony. Samsung also has low revenue margins as compare to Apple due to substantial distinction in the rates of Apple and Samsung with a much lesser difference in quality. The varied focus of the company due to large number of items in its portfolio, lead to the less effective production and make the company not able to charge higher costs like Apple. The business is also inefficient in managing its patents and frequently deals with the problem of patent violation.


Opportunities for Samsung depend on the growing Smart device market and the business's performance in the market. It can increase its market share and revenues from mobile phone as the business is rather efficient in smart phone market. Samsung currently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would allow the business to increase its product portfolio with an increase in its wealth.


The dynamic market environment of innovation market pose an extreme risk on Samsung's survival and require the company to spend much of its incomes share on R&D in order to endure in the long run. The market saturation in developed nations i.e. saturation of mobile company is also a huge danger for the company's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Samsung provides quality products and has a quite rich portfolio which caters to different sectors. LCD and mobile phones are the most significant items of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Cellphone.
• A/c.
• Computer.
• Hard drives.
• Washer.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help uses both market competitive and market skimming prices techniques for its wide array of items. In competitive rates it changes the cost according to the competition in order to acquire benefit, whereas, it uses market skimming strategy where the product has an included value and by selling a couple of products it can reach break-even.


It has one of the best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon and so on. All its products are prompt supplied to the selling location/ delivered to the clients directly in case of online order.

Vrio Analysis
It wasn't a popular company beyond Korea up until 1993. However the management initiative taken by their CEO has pushed them to market more efficiently outside the borders and now it has entered the league of leading 25 business on the planet in simply 9 years. This is an amazing achievement regardless of the ongoing arguments amongst the managers about embracing marketing practices. It uses both offline & online channels of promotion to market their products. Paid item ads, social promo and digital advertisements are uses to develop awareness about Samsung products.

Worth Chain Analysis.

It's an analytical framework for recognizing organisation activities that add value or competitive advantage for the company.

Incoming Logistics.

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


Samsung's core proficiency is its mass producing it produces 90% of its items in-house. Divided into 3 different departments its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is maintaining operation hubs worldwide to even more add value to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help is able to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the product offers. Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis advertising budget plan is constantly rising because they started their repositioning globally and will continue to do so as they are continuously looking to invest and broaden in high prospective growth markets. The budget is invested in events, print and media ads, public relations etc.

Samsung put their customers at the top and constantly make every effort to provide unmatchable client service requirements. By adding a direct assistance line to call them 24 hours they have even more increased the included worth of Samsung service.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution has actually diversified market division, based upon its provision of large range of items to large number of customers. Samsung target customer sections can be divided into 3 classifications i.e. Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device options.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis geographic division is based upon two criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products supplied to Urban as well as Backwoods of the nation. The Samsung is also growing its international presence and the business's versatility in finding its plants motivates worldwide growth of Samsung.


Samsung produces items that can be used by both females and males. The target clients for Samsung IT and mobile interaction products have an age variety of 18-65 with bulk at a young or newly wed life cycle stage. Apart from it, Samsung Customer Electronics are targeted to a customer 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 lifestyle of the customer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class customers, as Samsung offer products like cell phones very little cheaper i.e. Motorola as well as not much expensive i.e. Apple. It supplies quality items to middle level consumers at a somewhat high price than others targeting the same sector.


Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution majority target customers have distinct behavioural attributes. They are attracted towards Samsung due to the fact that of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Corporate Entrepreneurship Designing An Entrepreneurial Organisation 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 category of Samsung 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 mission of Kim to target the more youthful audience and create an international brand name picture of the company. Whereas, the core strength of the business is currently making however long gone are those days when excellent products were offering themselves. In the current age marketing is very essential and business can not prosper without it. Kim has currently started to enhance the marketing activities of Samsung and soon it will turn into one of its core strength like producing if not better.



Samsung operates designs, produces and offer a large portfolio of customer electronics. It operates in a very competitive environment and has actually successfully positioned itself as the maker of quality items. So, the response is yes.


As, said earlier that Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis operates in an extremely competitive environment, which suggests all the business have comparable products. The answer for rarity is no.


Due to the nature of the market, it is really simple for rivals to comprehend the functionality of the products and easily make their own designs. Yes, Samsung is only behind IBM in registering brand-new patents annually, but the advantage is very short-term in this industry.


Chairman Lee has completely turn-around Samsung, from going nearly insolvent during the Asian monetary crisis of 1997 to the top 25 company in the world. Definitely yes there appertains organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every country worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. Nevertheless, it faces some political pressures in less industrialized nations where order scenario is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help operations.


Purchasing power of consumers is crucial for companies like Samsung to prosper and grow. Emerging markets like India, middle-eastern nations etc. provide development chances, whereas, due to recession even the consumers of industrialized countries suffer badly. It is very crucial for the business to keep an eye on the continuous financial scenario of the nation prior to going into the market.


Multinational companies need to face numerous social and cultural issues throughout its operations in a foreign country. Samsung has likewise dealt with many problems but have actually adopted to the local environments of the majority of the countries extremely well. It has actually tailored its items, practices, policies and so on appropriately in order to be successful.


With a yearly expense of 2.4 billion dollars in Research & Development, and with continuous ingenious item launches, Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis is one of the leading innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological developments, Samsung has actually increased to the no 25 of the top effective business of the world.


Each country has their own laws and policies, being a multinational company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal repercussions. It has to study or work with a regional law professional before starting its operations in a particular country.


With the increasing awareness amongst customers about the environmental & ethical violations of business, Samsung has to guarantee that it follows all the security guidelines. Environmental damages, ethical misconducts are not acceptable and in some nations the consequences can be really extreme. On the other hand it needs to do some Business Social Duty practices to show the residents that it appreciates their environment and individuals.

Porter's Five Forces

Risk of Alternative

Hazard of substitution for Samsung's each item category is rather substantial. Running in a very vibrant industry lead the company to face a high risk of replacement. Elements for high risk of substitution for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis Smart device consist of the presence of high number of suppliers and Market saturation in industrialized nations, that make the cost of switching for consumers practically no. Substitution threats for Samsung visual screen depend on the altering life style of customers. Customers can switch to seeing visuals at home towards outdoor activities. Along with it, Samsung printing services items are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close competitors is extreme. The significant factor behind this is the approach of market saturation in various variety of product categories, forcing Samsung to introduce more innovative features in existing products and new ingenious items to preserve its growth. Other factor for the extreme rivalry among the competitors is the little item differentiation amongst the products. The prominent gamers in the innovation market are rather aware of the value of R&D spending for their survival and are facing a race of marketing and R&D costs, to catch the marketplace. The major rivals for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the changing market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution has a large supply chain consisting of 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 make it possible for Samsung to work out rates with its suppliers. However, due to incapability of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution to construct its own software, it has to outsource its software advancement to Google, which becomes a possible provider of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out rates, however it supply significant rates to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Negotiating power of purchasers for different variety of item categories of Samsung is intense. Among the aspect resulting in the extreme bargaining power is the schedule of a great deal of competitors in nearly each item category i.e. competitors of Samsung Smart device, with an extremely little distinction. The high availability of providers of Smart devices with minimum distinction, make the switching expense for buyers nearly absolutely no, hence increasing the bargaining power of purchasers. Market saturation in the majority of the product categories likewise make the bargaining power of purchasers more extreme in for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Solution. In spite of igh bargaining power Samsung is quite efficient in selling its items at a higher rate than much of its competitors, due to high end quality product and a fair brand name image.

Risk of New Entrants:

Risk of brand-new entrants for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help is quite low. Along with it, requirement of big knowledge and research and advancement expenses for survival in the industry also make new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high item diversity provides it differentiation from its rivals. It is one of the 3 top brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony concentrating on consumer electronics, Nokia on cellular phone and Intel on chips, Samsung had a big R&D costs on all of its product classifications which make it possible for the company to make possible revenue from sales of almost all of its products. (See Display) However, due to the wide item range the business faces high variety of competitors.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in regards to global market share, among 8 various product classifications. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Samsung earnings from chips was less than Intel however its earnings 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.

Along with the chips Samsung mobile market was also 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 just 4% and Nokia with absolutely no sales growth. The significant reson behind Samsung's high growth despite of higher prices than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The major factor, making the company make it possible for to avail the chance is its mass production at low cost. Sony was the greatest competitor for Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Analysis in LCD market, nevertheless, it had also started joint venture with Samsung in 2003 for LCD manufacturing, lessening the competitors for Samsung.

Porter's Competitive Method

Low Expense Management technique of porter is fully carried out by Samsung the method they achieve economies of scale by reinforcing their core competencies of production. Even to the point that their competitor SONY decided to form an alliance with them to produce for them, because they were not able to compete with them on low cost. Differentiation is another method well carried out by Samsung by constant financial investment in the R&D and remaining ahead of the competitors. They always bring something brand-new and ingenious whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Corporate Entrepreneurship Designing An Entrepreneurial Organisation Case Study Help would develop a brand-new brand image by targeting the younger generation of the specific nation. As, especially cellphones of Samsung are very popular among the more youthful market.


1. It is the best technique to develop Client Lifetime Value (CLV) by developing a long-term relationship with customers. Build loyalty through providing value and reap the benefits for long-lasting, as research study has showed it is more affordable to retain existing consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger individuals and which in turn will generate new clients for my items.


1. Old clients who were associated with Samsung prior to might not like this brand-new image the company is trying to represent.
2 It will incur further expenses to rearrange some items and it might not even bring success as the patterns change extremely quickly among the younger group.

Alternative service 2.

Samsung has made manufacturing its core proficiency for the most part of their company and due to which its supervisors are not afraid to completely get out of their comfort zone. It would be done by arranging training workshops during which value of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment must be created internally first as genuine marketing starts inside the corporation.


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


2. Its con can develop an extremely unhealthy environment in the work environment, as individuals often resist modification due to the fact that they fear it.

Recognize the very best option

Option is the best as it plainly has more pros since when a Customer Lifetime Worth is built the business will profit from it till that client is alive and has acquiring power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging individuals. Nevertheless, Samsung's main goal is to create commitment amongst its clients and make them repurchase it from them and even buy their various items also.

Implementation Plan

• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations attainable and reasonable.
• A team consisting of finest marketing and sales professionals must be assemble, and both views must be taken into account before securing the resources needed to carry out the strategy.
• Thorough interaction of the plan need to be done as it is very important for everybody to be on the exact same page to make it work.
• Tasks and timelines should be construct and communicated appropriately to each person accountable.
• The supervisor 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 need to keep an eye on and keep a consistent examine the overall and private efficiency.
• Everyone must want to adjust midway because any new pattern or policy may can be found in due to which all the things already prepared have to be adjusted. It's much better to have contingency strategies currently prepared.
• At the end of the project the supervisor should communicate the results and if effective ought to commemorate with the group.

Budget plan

This change the budget allowance of many managers and different nations were dissatisfied and argued but the analysis done by the program was accurate and showed figures like North America and Russia growth potential merited a 35% allocation while they were getting 45%. It truly helped to relatively distribute the resources and catch more customers by spending more on advertisements on the high development capacity areas of the world.

Its consistent investment in R&D and ingenious practices have propelled them to brand-new heights but for them its' just the start and they desire to be amongst the top 3 brand names in the world. Their marketing efforts must be directed towards more youthful group in the middle of the internal arguments about marketing and should develop Customer Life time Value as it will not only provide them advantages now however will continue to enjoy it till the consumer life time. As the cost of maintaining the client is much cheaper than bring in a new one.