Corporate Entrepreneurship Leading Entrepreneurship Harvard Case Study Solution

Home >> Hrm >> Corporate Entrepreneurship Leading Entrepreneurship

Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution and Analysis


Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution is a widely known international brand name in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Corporate Entrepreneurship Leading Entrepreneurship deals in large number of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the company's core clients include the Original Devices Manufacturers (OEMs), which utilized to sell Corp items withtheir own brand name. Till early 1990s, the core competency of Venture depend on its low rate offerings than its competitors by producing existing items at economies of scale. Its consumer circle includes Original Devices Manufacturers (OEMs), who utilized to offer Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution items with their own brand. Corp was not simply understood outside Korea. There were also no or little interest in constructing the trademark name globally. Marketing spending plan was managed by production department with a prime focus on supplying low-cost products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the leading 25 most important company worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Business as an international brand name and educated his divisional managers to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Declaration

Business's shift from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional managers to integrate marketing efficiently is still a significant difficulty. Developing a constant brand name identity throughout the whole world and utilizing marketing techniques that finest fits the regional culture is no easy task. The M-net program analysis have actually been truly handy in figuring out the high and less potential development areas, but allocation of resources appropriately is not well gotten among the managers. There is no agreement amongst the hierarchy regarding the best suited future method.
Executive Summary
Situational Analysis

Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution efforts for constructing its brand name across the world was started after presenting the "brand-new management effort" by Chairman Lee in 1993. The objective was to change Business from a low-cost OEM to a high value-added product company. To make the vision of Enterprise a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear image in his mind about how Org can change from a low end to a high end item service provider. He understood that improvement can just be done through placing Organization as a company using high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to build Org brand name, with a possible assistance of its executives, Yun dealt with numerous marketing difficulties 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 very same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the present marketing requirement was excessive high, the space was too wider and to fill this space with incorrect perceptions about marketing was rather tough for Yun.

Along with it the product variety of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Company. Yun had an obstacle to perform marketing planning and to produce marketing budgets for existing as well as for new items from the very beginning, and this would take a huge time.

A substantial shift would be needed in present marketing expenditures to develop the Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution brand. This would lead to increased marketing expenditures for Enterprise and might interrupt the administration relating to increased costs, as they hesitated to marketing expenditures previously and a sudden huge shiftwould make them disrupt. This could lead to decreasing executive support for worldwide marketing. In this situation, Yun deals with a difficulty for justifying increased marketing expenditures by showing the long term worth of big marketing expenses.

Internal Analysis
SWOT Analysis

Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution strengths lie in its big item portfolio. Company has biggest number of patents in the industry with overall number of 15499 patents given in United States( USP).

Another strength of Corporate Entrepreneurship Leading Entrepreneurship Case Study Help is its ability to develop ingenious items at a constant rate. It major proves for the development and product developing of Org is that the company has gotten numerous awards for its innovation and item style.

Unlike Apple and other competitors, Corporation is concentrated on producing gadgets which can be quickly incorporated with any kind of open source Os (OS) and software. This offers Corporation an edge over Apple gadgets.
Porter's 5 Forces Analysis
Venture's capability to produce luxury products at low cost of production is also among the major strength of Company as it makes it possible for the business to catch more market by offering quality products with cost control.

Weak points

Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis weaknesses are concealed in the company's dependence on outsourcing software for its devices due to business's failure in developing software application, unlike Sony. Organization also has low profit margins as compare to Apple due to huge distinction in the prices of Apple and Corporation with a much lesser distinction in quality. The varied focus of the business due to a great deal of items in its portfolio, result in the less effective production and make the business unable to charge higher prices like Apple. The business is likewise inefficient in managing its patents and frequently faces the issue of patent violation.


Opportunities for Enterprise depend on the growing Smart device market and the company's performance in the market. It can increase its market share and revenues from cellular phone as the company is rather effective in cell phone market. Org currently runs in about 80 countries and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Corp can move towards acquisitions to obtain patents. It would allow the company to increase its product portfolio with a boost in its wealth.


The vibrant market environment of innovation market present a severe danger on Venture's survival and force the company to spend much of its profits share on R&D in order to survive in the long run. The market saturation in developed nations i.e. saturation of mobile company is also a huge hazard for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Corporate Entrepreneurship Leading Entrepreneurship Case Study Help uses quality items and has a rather abundant portfolio which deals with different segments. Most of the items remain in the leading 3 of their particular 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 Corp:

• Laptops.
• Cellphone.
• Ac system.
• Desktop computer.
• Hard disk drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help utilizes both market competitive and market skimming prices strategies for its wide range of items. In competitive prices it adjusts the rate according to the competitors in order to gain benefit, whereas, it uses market skimming method where the product has an included worth and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It uses both offline & online channels of promotion to market their products. Paid product ads, social promotion and digital ads are uses to create awareness about Company products.

Value Chain Analysis.

It's an analytical framework for determining business activities that include worth or competitive benefit for the business.

Incoming Logistics.

It has among the most effective and effective supply chain network and has over 2700 providers throughout numerous markets all over the world. Practically 80% of which is based in Asia and the remaining around the globe. For its incoming logistics it owns different logistics firms as it subsidiaries. It cares for its providers and creates a harmonious relationship with them and even minimized their payment cycles to improve this relationship further which includes worth to their chain network.


Organization's core proficiency is its mass manufacturing it produces 90% of its items in-house. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronics. It is maintaining operation hubs worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main reasons Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution is able to compete with Apple. Corp's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Org.

Marketing and Sales.

Attracting target client attention towards the product is done through marketing and sales to interact with them the value and competitive advantage the product provides. Corporate Entrepreneurship Leading Entrepreneurship Case Study Help advertising budget plan is constantly increasing given that they began their rearranging globally and will continue to do so as they are continually wanting to invest and expand in high prospective development markets. The budget plan is spent on events, print and media ads, public relations etc.

Corp put their clients at the leading and continuously strive to deliver unmatchable customer service requirements. By adding a direct support line to contact them 24 hours they have actually even more increased the included worth of Organization service.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help has diversified market division, based upon its arrangement of wide range of items to large number of customers. Corp target consumer sections can be divided into 3 categories i.e. Corporate Entrepreneurship Leading Entrepreneurship Case Study Help IT and Mobile Communications, Enterprise Customer Electronics and Enterprise Gadget options.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis geographic segmentation is based upon 2 requirements i.e. region and density. Company serves about 80 nations worldwide with its products offered to Urban along with Rural areas of the nation. The Org is also growing its worldwide existence and the business's flexibility in locating its plants encourages international expansion of Company.


Company produces products that can be utilized by both women and males. The target clients for Organization IT and mobile communication products have an age range of 18-65 with majority at a young or newly wed life cycle stage. Apart from it, Organization Customer Electronic devices are targeted to a client sector with an age variety of 25-65.


The psychographic division of Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution s based upon the social class and the lifestyle of the consumer. Corp target customers on the basis of social class are primarily upper middle, middle and working class customers, as Venture sell items like cell phones not much cheaper i.e. Motorola as well as not much costly i.e. Apple. It offers quality items to middle level customers at a slightly high price than others targeting the exact same segment.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help bulk target consumers have special behavioural qualities. It has consumers with an enthusiastic, trendy and determined personality with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other prominent brand names i.e. Apple. Most of Enterprise clients desire quality in addition to cost control. They are attracted towards Corporation since of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Corporate Entrepreneurship Leading Entrepreneurship Case Study Help has 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 largest selling category of Organization 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 younger audience and develop a worldwide brand picture of the company. Whereas, the core strength of the business is presently making however long gone are those days when great items were offering themselves. In the present age marketing is very crucial and companies can not prosper without it. Kim has already started to reinforce the marketing activities of Enterprise and soon it will become one of its core strength like making if not better.



Org runs styles, produces and offer a huge portfolio of consumer electronics. It runs in an extremely competitive environment and has actually effectively placed itself as the maker of quality products. The answer is yes.


As, stated earlier that Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis runs in a highly competitive environment, which indicates all the companies have similar items. The answer for rarity is no.


Due to the nature of the market, it is really easy for rivals to comprehend the performance of the items and quickly make their own designs. Yes, Corporation is just behind IBM in signing up brand-new patents annually, however the benefit is extremely short term in this market.


Chairman Lee has totally turn-around Enterprise, from going nearly insolvent during the Asian financial crisis of 1997 to the top 25 company in the world. Certainly yes there is proper organization in the business and the results promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are really conductive for its operations. It deals with some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis operations.


Purchasing power of consumers is important for business like Company to prosper and grow. Emerging markets like India, middle-eastern countries etc. supply growth chances, whereas, due to recession even the consumers of industrialized countries suffer badly. Hence it is really essential for the business to watch on the ongoing financial situation of the nation before entering the market.


Multinational companies need to face different social and cultural concerns during its operations in a foreign nation. Business has also dealt with many problems but have embraced to the local environments of most of the nations remarkably well. It has actually customized its products, practices, policies and so on appropriately in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research study & Advancement, and with continuous innovative product launches, Corporate Entrepreneurship Leading Entrepreneurship Case Study Help is one of the leading ingenious business of the world. With a clear objective to be ahead of the rest when it concerns technological advancements, Enterprise has increased to the no 25 of the top successful companies of the world.


Each nation has their own laws and policies, being a multinational business Venture need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. It has to study or hire a local law professional prior to beginning its operations in a specific nation.


With the rising awareness among customers about the ethical & ecological offenses of companies, Business has to make sure that it follows all the security standards. Ecological damages, ethical misbehaviors are not acceptable and in some nations the effects can be extremely extreme. On the other hand it has to do some Corporate Social Obligation practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Hazard of Replacement

Hazard of alternative for Company's each product category is quite considerable. Running in an incredibly dynamic market lead the business to deal with a high risk of replacement. Aspects for high hazard of substitution for Corporate Entrepreneurship Leading Entrepreneurship Case Study Help Smartphone consist of the presence of high number of providers and Market saturation in industrialized nations, that make the expense of switching for consumers almost absolutely no. Replacement risks for Organization visual display screen lie in the altering lifestyle of clients. Clients can switch to enjoying visuals in the house towards outdoor activities. Together with it, Business printing options products are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Amongst Existing Firms:

The rivaly amongst Venture and its close competitors is intense. The significant reason behind this is the technique of market saturation in different number of item categories, requiring Business to present more ingenious functions in existing items and brand-new ingenious products to preserve its growth. Other element for the extreme competition amongst the rivals is the little product differentiation among the products. The popular players in the technology industry are quite aware of the value of R&D spending for their survival and are running into a race of marketing and R&D spending, to catch the market. The significant rivals for Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the changing market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

( Organization Sustainability Report, 2016) Provider's bargaining power for Business is low as Business runs economies of scale and its orders are of possible size and worth. Due to incapability of Corporate Entrepreneurship Leading Entrepreneurship Case Study Help to construct its own software, it has to outsource its software application development to Google, which becomes a potential supplier of software for Business, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Market saturation in most of the item categories likewise make the bargaining power of purchasers more extreme in for Company. In spite of igh bargaining power Corporation is quite capable of offering its items at a greater price than much of its competitors, due to high end quality product and a reasonable brand image.

Hazard of New Entrants:

Threat of brand-new entrants for Company is rather low. One of the major aspect for low risk of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to enter in the market is likewise among the potential barrier to entry. Along with it, requirement of substantial proficiency and research and advancement expenses for survival in the industry likewise make new entrants unwilling to go into in the marketplace. Market saturation is also one of the barrier of entry in technology market. High bargaining power of suppliers require the players in the industry to charge as low prices as possible and this can just be achieved by production effectiveness. New firms, in majority cases, lack the production efficiency, for this reason increasing the dangers for entrance in the innovation industry.

Competitive Analysis

Org's high item diversity provides it differentiation from its competitors. It is among the three leading brand names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on customer electronic devices, Nokia on cellular phone and Intel on chips, Organization had a substantial R&D spending on all of its product classifications which make it possible for the business to make prospective profits from sales of almost all of its items. (See Exhibition) However, due to the broad item variety the business faces high variety of rivals.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of worldwide market share, amongst 8 different product categories. Organization was the international leader in producing DRAM, SRAM and NAND flash chips. Although, Org earnings from chips was less than Intel however its revenues from chips was growing faster than Intel and has actually grown near the profits levels of Intel, as given in the case Exhibit 2.

In addition to the chips Org mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Venture's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The major reson behind Venture's high development despite of greater prices than Nokia and Motorola was the business's high-end quality cellular phone.

Org was likewise reaping the benefits from increasing market share of high-end LCDs as given in case Display 3. The major factor, making the company enable to avail the chance is its mass production at low expense. Sony was the greatest competitor for Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution in LCD market, however, it had likewise started joint endeavor with Organization in 2003 for LCD making, reducing the competitors for Enterprise.

Porter's Competitive Strategy

Low Expense Management strategy of porter is fully executed by Corporation the way they accomplish economies of scale by reinforcing their core competencies of production. They always bring something brand-new and ingenious whether it's a service or an item.


Alternative Option 1

The Chief Marketing Officer (CMO) of Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution would develop a new brand name image by targeting the younger generation of the specific country. As, especially cellphones of Corporation are very popular amongst the younger demographic.


1. It is the very best method to develop Consumer Lifetime Value (CLV) by producing a long-lasting relationship with clients. Develop commitment through providing value and reap the benefits for long-lasting, as research study has actually showed it is much cheaper to retain present clients than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly amongst younger people and which in turn will bring in brand-new clients for my products.


1. Old clients who were connected with Company before might not like this new image the company is trying to represent.
2 It will sustain more expenditures to reposition some items and it may not even bring success as the patterns change really quickly amongst the younger group.

Alternative solution 2.

Venture has made making its core competency for the most part of their business and due to which its managers are not scared to completely get out of their comfort zone. It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get benched. Marketing environment ought to be produced internally first as real marketing starts inside the corporation.


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


2. Its con can produce a really unhealthy environment in the work environment, as people often resist modification because they fear it.

Recognize the best option

Alternative is the finest as it clearly has more pros because when a Customer Life time Value is built the company will benefit from it till that client is alive and has purchasing power. Plus, our target consumers are the more youthful generation which are bound to live longer than the existing old age individuals. Organization's primary objective is to create commitment amongst its customers and make them repurchase it from them and even purchase their different products.

Implementation Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations achievable and realistic.
• A group including best marketing and sales experts must be assemble, and both views need to be considered prior to securing the resources needed to carry out the plan.
• Thorough communication of the plan should 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 build and communicated appropriately to each person responsible.
• The supervisor must utilize a dashboard which shows the progress of all the tasks which have been done or about to be done and by whom.
• The supervisor need to monitor and keep a consistent check on the overall and individual performance.
Since any new pattern or policy may come in due to which all the things currently prepared have to be adjusted, • Everyone should be prepared to adjust midway. It's much better to have contingency plans already prepared.
• At the end of the project the supervisor ought to communicate the results and if successful need to commemorate with the team.

Spending plan

The M-net program exposed engaging analysis about the high and low growth potential areas and how much advertising spending plan should be assigned accordingly. This modification the budget plan allotment of various countries and lots of supervisors were dissatisfied and argued however the analysis done by the program was precise and showed figures like The United States and Canada and Russia growth possible merited a 35% allowance while they were receiving 45%. Whereas, China and Europe need to be getting 42% but were rather given 31%. It truly assisted to relatively distribute the resources and record more consumers by investing more on ads on the high development potential areas of the world.

Its constant financial investment in R&D and innovative practices have actually propelled them to new heights but for them its' just the start and they desire to be among the leading 3 brand names in the world. Their marketing efforts need to be directed towards younger group amid the internal arguments about marketing and need to develop Consumer Lifetime Worth as it will not only offer them benefits now however will continue to gain it till the consumer lifetime. As the cost of keeping the consumer is much less expensive than drawing in a brand-new one.