Corporate Entrepreneurship Leading Entrepreneurship Harvard Case Study Solution

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Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution & Analysis


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help is a popular global brand name in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. Corporate Entrepreneurship Leading Entrepreneurship deals in a great deal of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Samsung products withtheir own trademark name. Till early 1990s, the core competency of Samsung lie in its low price offerings than its rivals by producing existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Corporate Entrepreneurship Leading Entrepreneurship Case Study Help items with their own trademark name. Samsung was not simply known outside Korea. There were also no or little interest in developing the brand worldwide. Marketing budget was controlled by production department with a prime focus on supplying inexpensive products.During the 1997 Asian Financial Crisis the company practically got bankrupt, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most important company in the world. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Samsung as a global brand name and educated his divisional managers to comprehend marketing and its importance. Now their goal is to arrive 10 by 2005.

Issue Declaration

Samsung's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to include marketing efficiently is still a major obstacle. Producing a constant brand name identity across the whole world and utilizing marketing techniques that best fits the local culture is no easy job.

Situational Analysis

Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution efforts for building its brand name throughout the world was begun after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to change Samsung from an inexpensive OEM to a high value-added item service provider. To make the vision of Samsung a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Samsung can transform from a low end to a luxury product supplier. He understood that improvement can only be done through placing Samsung as a business offering high-end items and this could just be done through high level of marketing.

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

Among the marketing challenges for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as exact 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 existing marketing requirement was excessive high, the gap was too wider and to fill this space with wrong perceptions about marketing was quite tough for Yun.

Along with it the item range of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing planning and to create marketing spending plans for existing as well as for brand-new products from the very start, and this would take a substantial time.

A huge shift would be needed in existing marketing expenses to develop the Samsung brand name. This would result in increased marketing expenses for Samsung and could disrupt the administration relating to increased expenses, as they were unwilling to marketing expenditures previously and a sudden big shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its substantial product portfolio. Samsung has largest variety of patents in the market with overall number of 15499 patents granted in US( USP). Large amount of R&D costs has allowed the business to grow its product portfolio at a higher rate than its rivals. Corporate Entrepreneurship Leading Entrepreneurship Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total revenues.

Another strength of Corporate Entrepreneurship Leading Entrepreneurship Case Study Help is its capability to develop ingenious products at a constant rate. It significant proves for the development and product creating of Samsung is that the business has actually received so many awards for its development and product style.

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. This supplies Samsung an edge over Apple devices.

Samsung's capability to produce high end products at low expense of production is likewise one of the major strength of Samsung as it allows the business to catch more market by supplying quality items with expense control.

Weak points

Samsung's weak points are concealed in the business's reliance on outsourcing software application for its gadgets due to company's failure in developing software, unlike Sony. Corporate Entrepreneurship Leading Entrepreneurship Case Study Help also has low revenue margins as compare to Apple due to big difference in the rates of Apple and Samsung with a much lower difference in quality.


Opportunities for Samsung lie in the growing Smartphone market and the business's performance in the market. It can increase its market share and incomes from cellular phone as the company is quite efficient in smart phone market. Samsung presently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would enable the company to increase its item portfolio with an increase in its wealth.


The vibrant industry environment of technology market present a severe danger on Samsung's survival and require the company to spend much of its revenues share on R&D in order to survive in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is likewise a huge hazard for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing


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

• Laptops.
• Mobile phones.
• A/c unit.
• Computer.
• Hard drives.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis utilizes both market competitive and market skimming pricing techniques for its wide variety of products. In competitive pricing it adjusts the cost according to the competition in order to get advantage, whereas, it utilizes market skimming method where the product has actually an included value 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 clients directly in case of online order.


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

Worth Chain Analysis.

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

Inbound Logistics.

It has one of the most effective and efficient supply chain network and has more than 2700 providers across numerous industries around the world. Almost 80% of which is based in Asia and the remaining all over the world. For its inbound logistics it owns different logistics firms as it subsidiaries. It takes care of its suppliers and develops an unified relationship with them and even minimized their payment cycles to boost this relationship further which includes value to their chain network.


Samsung's core competency is its mass producing it produces 90% of its items internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronics. It is preserving operation centers worldwide to further add value to its worth chain network.

Outbound Logistics.

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

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to communicate with them the value and competitive advantage the product provides. Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution marketing spending plan is constantly rising because they started their rearranging globally and will continue to do so as they are continually seeking to broaden and invest in high possible development markets. The spending plan is invested in events, print and media advertisements, public relations etc.

Samsung put their clients at the leading and constantly strive to provide unmatchable customer service standards. By adding a direct assistance line to contact them 24 hours they have actually further increased the added worth of Samsung service.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help has diversified market division, based upon its provision of vast array of items to large number of customers. Samsung target customer sectors can be divided into 3 classifications i.e. Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget options.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis geographical division is based upon two criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products provided to Urban in addition to Backwoods of the country. The Samsung is also growing its worldwide presence and the company's flexibility in locating its plants motivates global growth of Samsung.


Samsung produces items that can be utilized by both males and females. The target customers for Samsung IT and mobile communication products have an age variety of 18-65 with majority at a young or newly married life cycle phase. Apart from it, Samsung Consumer Electronic devices are targeted to a customer section with an age variety of 25-65.


The psychographic segmentation of Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution s based upon the social class and the life style of the consumer. Samsung target consumers on the basis of social class are primarily upper middle, middle and working class customers, as Samsung sell products like mobile phone not much less expensive i.e. Motorola along with very little costly i.e. Apple. It supplies quality items to middle level customers at a slightly high cost than others targeting the very same section.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help bulk target clients have distinct behavioural qualities. It has clients with an ambitious, trendy and identified personality with moderate level of loyalty towards the brand. Its clients have some degree of shift towards other popular brand names i.e. Apple. The majority of Samsun customers want quality in addition to expense control. Since of its moderate prices with an extent of quality, they are brought in towards Samsung.

Quantitative analysis.

Sales of Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the company is presently making however long gone are those days when excellent items were offering themselves. Kim has actually already begun to enhance the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not much better.



Samsung operates styles, manufactures and sell a huge portfolio of customer electronics. It runs in a very competitive environment and has effectively placed itself as the maker of quality items. The answer is yes.


As, said previously that Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis operates in an extremely competitive environment, which implies all the companies have similar products. So, the answer for rarity is no.


Due to the nature of the market, it is very simple for rivals to comprehend the functionality of the items and quickly make their own designs. Yes, Samsung is just behind IBM in signing up new patents yearly, but the benefit is very short-term in this industry.


Chairman Lee has entirely turnaround Samsung, from going practically bankrupt throughout the Asian financial crisis of 1997 to the top 25 business on the planet. Definitely yes there appertains organization in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are really conductive for its operations. Nevertheless, it faces some political pressures in less industrialized countries where law and order situation is not good. Latin American, African and some Asian countries fall in this category, where political instability do have a result on Corporate Entrepreneurship Leading Entrepreneurship Case Study Help operations.


Purchasing power of customers is essential for companies like Samsung to grow and be successful. Emerging markets like India, middle-eastern nations and so on supply development opportunities, whereas, due to economic crisis even the customers of industrialized countries suffer terribly. Thus it is extremely crucial for the business to watch on the ongoing economic scenario of the country prior to entering the market.


Multinational business have to face numerous social and cultural problems during its operations in a foreign nation. Samsung has actually likewise dealt with numerous issues but have actually adopted to the regional environments of the majority of the countries extremely well. It has actually customized its products, practices, policies etc. appropriately in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research & Development, and with continuous ingenious product launches, Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution is one of the leading innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Samsung has actually increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. So, it needs to study or hire a local law expert prior to starting its operations in a specific country.


With the increasing awareness amongst consumers about the environmental & ethical violations of companies, Samsung needs to make sure that it follows all the safety guidelines. Ecological damages, ethical misconducts are not acceptable and in some countries the consequences can be very severe. On the other hand it needs to do some Corporate Social Obligation practices to show the residents that it appreciates their environment and people.

Porter's 5 Forces

Threat of Replacement

Threat of substitution for Samsung's each item classification is quite substantial. Elements for high risk of replacement for Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution Smartphone consist of the presence of high number of providers and Market saturation in industrialized countries, which make the expense of switching for consumers almost absolutely no. Along with it, Samsung printing options products are threatened by the increasing destination of consumers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Samsung and its close competitors is intense. The major factor behind this is the technique of market saturation in various number of product categories, forcing Samsung to introduce more innovative functions in existing items and brand-new ingenious products to maintain its development. Other element for the extreme rivalry amongst the competitors is the little item distinction among the products. The prominent gamers in the innovation industry are rather aware of the value of R&D spending for their survival and are encountering a race of marketing and R&D spending, to catch the marketplace. The significant rivals for Corporate Entrepreneurship Leading Entrepreneurship Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the changing market shares which can be seen in Display F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Provider'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 Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution to develop its own software application, it has to outsource its software development to Google, which becomes a potential supplier of software for Samsung, 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 buyers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its products at a higher price than much of its competitors, due to high end quality item and a reasonable brand image.

Danger of New Entrants:

Threat of brand-new entrants for Samsung is quite low. One of the significant element for low risk of brand-new entrants is the high competitors in the industry. The requirement of huge amount of capital to go into in the market is likewise among the possible barrier to entry. In addition to it, requirement of big know-how and research study and advancement expenses for survival in the industry likewise make new entrants reluctant to go into in the marketplace. Market saturation is also one of the barrier of entry in innovation industry. High bargaining power of suppliers require the players in the market to charge as low prices as possible and this can just be accomplished by production efficiency. New firms, in bulk cases, lack the production effectiveness, for this reason increasing the risks for entrance in the innovation industry.

Competitive Analysis

Samsung's high product diversity provides it differentiation from its competitors. It is one of the 3 top brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product classification with Sony focusing on customer electronics, Nokia on mobile phone and Intel on chips, Samsung had a substantial R&D costs on all of its item classifications which make it possible for the business to earn potential earnings from sales of practically all of its items. (See Display) However, due to the large item variety the company faces high number of rivals.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in terms of international market share, among 8 different product classifications. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel however its earnings from chips was growing quicker than Intel and has actually grown close to the profits levels of Intel, as given up the case Exhibition 2.

Along with the chips Samsung mobile market was likewise thriving at a high rate than its competitors 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 development. The major reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was likewise profiting from increasing market share of luxury LCDs as given up case Exhibit 3. The major reason, making the business make it possible for to obtain the chance is its mass production at low cost. Sony was the biggest competitor for Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution in LCD market, nevertheless, it had also begun joint endeavor with Samsung in 2003 for LCD making, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Management method of porter is completely carried out by Samsung the way they achieve economies of scale by strengthening their core proficiencies of production. Even to the point that their rival SONY chose to form an alliance with them to make for them, due to the fact that they were not able to take on them on low expense. Distinction is another method well implemented by Samsung by continuous financial investment in the R&D and staying ahead of the competition. They always bring something ingenious and new whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Corporate Entrepreneurship Leading Entrepreneurship Case Study Help would create a brand-new brand image by targeting the more youthful generation of the specific nation. As, specifically mobile phones of Samsung are very popular among the more youthful market.


1. It is the very best method to construct Consumer Lifetime Worth (CLV) by developing a long-lasting relationship with clients. Construct loyalty through providing worth and profit for long-term, as research has actually revealed it is more affordable to maintain existing consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will generate new clients for my products.


1. Old consumers who were related to Samsung before might not like this new image the business is attempting to represent.
2 It will sustain further costs to reposition some products and it may not even bring success as the patterns change very rapidly among the younger demographic.

Alternative solution 2.

It would be done by organizing training workshops during which importance of marketing will be taught and numbers will be offered. Marketing environment need to be developed internally initially as genuine marketing starts inside the corporation.


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


2. Its con can create a very unhealthy environment in the office, as people typically resist change since they fear it.

Recognize the very best option

First option is the best as it plainly has more pros due to the fact that as soon as a Client Life time Worth is constructed the business will make money from it till that consumer is alive and has purchasing power as well. Plus, our target consumers are the younger generation which are bound to live longer than the current old age people. Nonetheless, Samsung's primary goal is to develop commitment among its clients and make them bought it from them and even buy their different items too.

Application Strategy

• Targeting younger generation through social marketing, developing a link with them like Pepsi make with music. And set the expectations possible and realistic.
• A team consisting of finest marketing and sales specialists must be assemble, and both views need to be taken into account prior to protecting the resources needed to implement the strategy.
• Thorough interaction of the strategy need to be done as it is extremely crucial for everyone to be on the very same page to make it work.
• Tasks and timelines need to be develop and communicated accordingly to each person accountable.
• The manager need to utilize a dashboard which reveals the progress of all the tasks which have actually been done or about to be done and by whom.
• The manager ought to keep an eye on and keep a continuous check on the individual and total performance.
Since any brand-new trend or policy might come in due to which all the things currently prepared have to be changed, • Everyone must be ready to adapt midway. It's much better to have contingency strategies already prepared.
• At the end of the campaign the manager need to interact the results and if successful should celebrate with the team.

Spending plan

The M-net program revealed engaging analysis about the low and high development potential locations and just how much marketing budget need to be designated appropriately. This modification the budget allotment of many managers and various nations were unhappy and argued but the analysis done by the program was precise and revealed figures like The United States and Canada and Russia development possible warranted a 35% allotment while they were getting 45%. Whereas, China and Europe ought to be receiving 42% but were instead provided 31%. It actually helped to fairly distribute the resources and capture more consumers by investing more on ads on the high growth capacity regions of the world.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution is a leading 25 company worldwide now and prepares to get ahead of Sony who sits presently at no. 20. Its constant financial investment in R&D and ingenious practices have actually moved them to new heights but for them its' only the start and they want to be amongst the top 3 brands on the planet. They totally turnaround from almost declaring bankruptcy during the Asian Financial Crisis to a world distinguished brand, known for quality and development. Their value chain and their core competency their production capability, along-with international brand image structure have 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 demographic in the middle of the internal arguments about marketing and should create Customer Lifetime Worth as it will not only provide benefits now however will continue to reap it till the client lifetime. As the expense of keeping the client is much cheaper than drawing in a brand-new one.