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Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution & Analysis


Corporate Entrepreneurship Leading Entrepreneurship Case Study Help is a widely known international brand in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Corporate Entrepreneurship Leading Entrepreneurship deals in a great deal of item classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core customers consist of the Original Devices Manufacturers (OEMs), which used to sell Samsung products withtheir own brand name. Till early 1990s, the core proficiency of Samsung lie in its low rate offerings than its rivals by manufacturing existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who used to sell Corporate Entrepreneurship Leading Entrepreneurship Case Study Help products with their own brand name. Samsung was not simply understood outside Korea. There were also no or little interest in building the brand name internationally. 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 insolvent, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most important company worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Samsung as a global brand name and informed his divisional supervisors to understand marketing and its value. Now their objective is to arrive 10 by 2005.

Issue Statement

Samsung's transition from a product based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to integrate marketing efficiently is still a major challenge. Developing a constant brand name identity throughout the whole world and using marketing strategies that best fits the regional culture is no simple task. The M-net program analysis have actually been truly valuable in figuring out the high and less potential growth areas, however allocation of resources appropriately is not well received among the supervisors. There is no consensus amongst the hierarchy relating to the very best matched future strategy.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution can transform from a low end to a high end product provider. He understood that improvement can only be done through positioning Samsung as a business using high-end products and this might just be done through high level of marketing.

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

One of 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 quite low in their previous organisation practices, and the present marketing requirement was excessive high, the space was too larger and to fill this gap with incorrect understandings about marketing was quite difficult for Yun.

As mentioned above, marketing focus was really low in previous practices, therefore there were no correct marketing budget plans for each of the product on the portfolio. There was no marketing preparation provided for the existing items. In addition to it the item range of the business was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had a challenge to perform marketing planning and to produce marketing budget plans for existing in addition to for new products from the very start, and this would take a substantial time.

A substantial shift would be required in current marketing expenditures to construct the Samsung brand. This would result in increased marketing expenses for Samsung and might disrupt the administration relating to increased expenses, as they were unwilling to marketing expenses formerly and an abrupt huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution strengths lie in its substantial product portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents granted in US( USP).

Another strength of Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis is its ability to develop innovative items at a continuous rate. It significant shows for the development and item creating of Samsung is that the company has actually gotten so many awards for its innovation and item design.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be easily integrated with any kind of open source Os (OS) and software application. This offers Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's ability to produce luxury items at low expense of production is likewise among the major strength of Samsung as it makes it possible for the company to catch more market by supplying quality products with cost control.


Samsung's weaknesses are concealed in the company's reliance on outsourcing software for its devices due to business's inability in establishing software, unlike Sony. Corporate Entrepreneurship Leading Entrepreneurship Case Study Help likewise has low revenue margins as compare to Apple due to huge distinction in the rates of Apple and Samsung with a much lower distinction in quality.


Opportunities for Corporate Entrepreneurship Leading Entrepreneurship Case Study Help lie in the growing Mobile phone market and the business's effectiveness in the market. Samsung presently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The vibrant market environment of technology market posture a serious threat on Samsung's survival and force the business to invest 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 threat for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Corporate Entrepreneurship Leading Entrepreneurship Case Study Help offers quality items and has a quite abundant portfolio which caters to different sections. Most of the products remain in the leading three of their respective markets. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Air conditioning system.
• Desktop computer.
• Disk drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis utilizes both market competitive and market skimming pricing methods for its wide array of items. In competitive pricing it adjusts the cost according to the competition in order to acquire benefit, whereas, it utilizes market skimming technique where the item has actually an included value and by offering a couple of products 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 and so on. All its products are prompt provided to the selling place/ provided to the customers straight in case of online order.

Vrio Analysis
It wasn't a well-known company beyond Korea up until 1993. The management effort taken by their CEO has pressed them to market more effectively outside the borders and now it has gone into the league of leading 25 companies in the world in just 9 years. This is an amazing accomplishment despite the continuous arguments among the managers about embracing 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 develop awareness about Samsung products.

Value Chain Analysis.

It's an analytical framework for identifying company activities that add worth or competitive advantage for the business.

Incoming Logistics.

It has among the most effective and effective supply chain network and has over 2700 providers throughout numerous industries around the globe. Practically 80% of which is based in Asia and the staying around the globe. For its incoming logistics it owns different logistics firms as it subsidiaries. It cares for its suppliers and produces a harmonious relationship with them and even lowered their payment cycles to enhance this relationship further which adds worth to their chain network.


Samsung's core proficiency is its mass making it produces 90% of its items internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is keeping operation centers worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the primary reasons Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution is able to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the product provides. Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution advertising spending plan is constantly rising because they began their rearranging worldwide and will continue to do so as they are constantly aiming to expand and invest in high possible development markets. The budget is invested in events, print and media advertisements, public relations etc.

Samsung Service. Samsung put their clients at the top and constantly make every effort to provide unmatchable customer service standards. As after sales service is ending up being incredibly crucial to keep clients happy and engaged, they even carry out studies through 3rd parties to discover their consumer's feedback and execute it in the positive way to minimize or if possible completely eliminate their customer concerns. By adding a direct support line to call them 24 hours they have actually even more increased the included worth of Corporate Entrepreneurship Leading Entrepreneurship Case Study Help service.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis has diversified market division, based upon its provision of vast array of items to a great deal of customers. Samsung target customer sections can be divided into 3 classifications i.e. Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget solutions.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution geographic division is based upon 2 criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items supplied to Urban as well as Rural areas of the country. The Samsung is likewise growing its global presence and the company's flexibility in locating its plants encourages international growth of Samsung.


The demographic division of Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis is based upon gender, age, life-cycle phase and profession. Samsung produces items that can be used by both males and females. The target clients for Samsung IT and mobile interaction products have an age range of 18-65 with bulk at a young or freshly wed life process stage. They are primarily trainees, professionals and staff members. Apart from it, Samsung Customer Electronics are targeted to a consumer section with an age range of 25-65. They are mainly experts and workers. Nevertheless Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution Device Solutions are targeted at trainees, workers and experts with an age range of 25-65.


The psychographic segmentation of Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis s based upon the social class and the life style of the customer. Samsung target consumers on the basis of social class are primarily upper middle, middle and working class consumers, as Samsung offer items like cellular phone not much less expensive i.e. Motorola in addition to not much costly i.e. Apple. It provides quality items to middle level consumers at a slightly high cost than others targeting the very same section.


Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution bulk target consumers have unique behavioural attributes. They are attracted towards Samsung due to the fact that of its moderate costs with a level of quality.

Quantitative analysis.

Sales of Samsung has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has likewise lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Profits/ sales are increasing however net earnings is not increasing appropriately since of the high overhead expense. New expansions and hiring's were the main factor of the boost in the overhead expenses, with china currently not supplying any earnings to Samsung, but there is a lot capacity in the current market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the younger audience and develop a global brand name picture of the company. Whereas, the core strength of the company is presently making but long gone are those days when good products were offering themselves. In the existing age marketing is really essential and companies can not succeed without it. Kim has currently begun to enhance the marketing activities of Samsung and soon it will become one of its core strength like producing if not better.



Samsung runs styles, produces and sell a huge portfolio of consumer electronics. It operates in an exceptionally competitive environment and has actually effectively positioned itself as the maker of quality items. The response is yes.


As, stated previously that Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis runs in a highly competitive environment, which suggests all the business have similar products. So, the response for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to comprehend the functionality of the items and quickly make their own models. Yes, Samsung is just behind IBM in signing up new patents annually, however the advantage is extremely short term in this market.


Chairman Lee has totally turn-around Samsung, from going practically bankrupt during the Asian financial crisis of 1997 to the leading 25 company on the planet. Absolutely yes there appertains company in the business and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread almost in every country worldwide, majority 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 not good. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Corporate Entrepreneurship Leading Entrepreneurship Case Study Help operations.


Purchasing power of customers is vital for companies like Samsung to grow and be successful. Emerging markets like India, middle-eastern countries and so on offer growth chances, whereas, due to recession even the consumers of developed countries suffer severely. Hence it is really important for the business to keep an eye on the ongoing economic situation of the country before going into the market.


Multinational companies have to deal with different social and cultural issues throughout its operations in a foreign country. Samsung has actually likewise faced many concerns but have actually adopted to the local environments of the majority of the nations exceptionally well. It has customized its items, practices, policies and so on appropriately in order to achieve success.


With an annual expense of 2.4 billion dollars in Research & Development, and with continuous innovative product launches, Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution is one of the top ingenious companies of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has actually risen to the no 25 of the top successful business of the world.


Each nation has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal effects. It has to study or employ a regional law specialist prior to beginning its operations in a particular country.


With the increasing awareness among consumers about the ethical & environmental infractions of business, Samsung has to ensure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the effects can be very severe. On the other hand it has to do some Corporate Social Obligation practices to show the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Threat of alternative for Samsung's each item classification is rather substantial. Factors for high hazard of substitution for Corporate Entrepreneurship Leading Entrepreneurship Case Study Help Mobile phone include the presence of high number of suppliers and Market saturation in developed nations, which make the expense of changing for consumers nearly absolutely no. Along with it, Samsung printing options products are threatened by the increasing tourist attraction of clients towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly amongst Samsung and its close rivals is intense. The significant reason behind this is the technique of market saturation in various number of product categories, forcing Samsung to present more ingenious features in existing products and brand-new ingenious items to keep its growth. The major rivals for Corporate Entrepreneurship Leading Entrepreneurship Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution has a huge supply chain including 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 possible size and worth. These huge orders make it possible for Samsung to work out rates with its providers. However, due to incapability of Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis to develop its own software application, it needs to outsource its software advancement to Google, which ends up being a possible supplier of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to negotiate costs, but it supply considerable costs to its providers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Haggling power of buyers for different variety of product categories of Samsung is extreme. One of the element leading to the extreme bargaining power is the availability of a great deal of competitors in practically each product category i.e. rivals of Samsung Mobile phone, with an extremely little differentiation. The high accessibility of providers of Mobile phones with minimum differentiation, make the switching expense for purchasers nearly absolutely no, thus increasing the bargaining power of purchasers. Market saturation in most of the product categories likewise make the bargaining power of purchasers more intense in for Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution. In spite of igh bargaining power Samsung is rather efficient in offering its items at a greater price than much of its competitors, due to luxury quality item and a fair brand image.

Danger of New Entrants:

Threat of new entrants for Samsung is rather low. Among the significant factor for low hazard of brand-new entrants is the high competition in the industry. The requirement of substantial quantity of capital to enter in the market is likewise among the possible barrier to entry. In addition to it, requirement of huge know-how and research and advancement expenditures for survival in the market likewise make new entrants unwilling to go into in the market. Market saturation is also one of the barrier of entry in innovation industry. High bargaining power of providers require the gamers in the industry to charge as low rates as possible and this can just be accomplished by production performance. Brand-new firms, in bulk cases, lack the production effectiveness, for this reason increasing the threats for entryway in the innovation industry.

Competitive Analysis

Samsung's high product diversity supplies it differentiation from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Corporate Entrepreneurship Leading Entrepreneurship Case Study Solution had a huge R&D costs on all of its item classifications which make it possible for the business to make possible profits from sales of nearly all of its items.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to worldwide market share, among 8 various product categories. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel but its revenues from chips was growing quicker than Intel and has grown close to the profits levels of Intel, as offered in the case Exhibit 2.

Together with the chips Samsung mobile market was also flourishing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The major reson behind Samsung's high development despite of greater costs than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise profiting from increasing market share of high end LCDs as given in case Exhibition 3. The major reason, making the company allow to get the opportunity is its mass production at low cost. Sony was the biggest rival for Corporate Entrepreneurship Leading Entrepreneurship Case Study Analysis in LCD market, nevertheless, it had actually also begun joint endeavor with Samsung in 2003 for LCD making, lessening the competitors for Samsung.

Porter's Competitive Technique

Low Cost Leadership strategy of porter is totally carried out by Samsung the method they accomplish economies of scale by strengthening their core proficiencies of manufacturing. 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 create a new brand image by targeting the more youthful generation of the particular nation. As, specifically mobile phones of Samsung are incredibly popular amongst the younger group.


1. It is the best method to construct Customer Life time Worth (CLV) by creating a long-lasting relationship with clients. Develop loyalty through providing value and profit for long-lasting, as research has revealed it is much cheaper to maintain current clients than to bring in new ones.
2. Another pro of this option is that word of mouth spread faster amongst younger individuals and which in turn will bring in brand-new clients for my items.


1. Old consumers who were related to Samsung before might not like this brand-new image the business is attempting to represent.
2 It will incur additional costs to reposition some products and it may not even bring success as the trends change extremely quickly amongst the younger market.

Alternative option 2.

Samsung has actually made manufacturing its core proficiency for the most part of their business and due to which its managers are not afraid to totally step out of their comfort zone. It would be done by arranging training workshops during which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be produced internally initially as genuine marketing starts inside the corporation.


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


2. Its con can develop a really unhealthy environment in the work environment, as individuals typically withstand change because they fear it.

Identify the best alternative

Alternative is the finest as it plainly has more pros since once a Client Life time Worth is built the company will profit from it till that consumer is alive and has purchasing power. Plus, our target consumers are the younger generation which are bound to live longer than the existing old age individuals. Samsung's primary goal is to produce loyalty among its customers and make them redeemed it from them and even purchase their various items.

Implementation Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations achievable and practical.
• A group including finest marketing and sales specialists should be assemble, and both views must be taken into consideration before securing the resources needed to carry out the strategy.
• Thorough communication of the plan must be done as it is very crucial for everybody to be on the exact same page to make it work.
• Tasks and timelines need to be build and interacted accordingly to each person responsible.
• The manager need to utilize a dashboard which shows the progress of all the jobs which have been done or about to be done and by whom.
• The manager ought to keep track of and keep a continuous look at the overall and private performance.
• Everyone should want to adapt midway due to the fact that any new trend or policy may be available in due to which all the important things currently prepared need to be adjusted. It's much better to have contingency plans already prepared.
• At the end of the project the supervisor must communicate the outcomes and if effective must celebrate with the group.


This modification the budget allowance of various countries and numerous supervisors were unhappy and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth possible merited a 35% allowance while they were receiving 45%. It truly assisted to fairly distribute the resources and catch more consumers by investing more on ads on the high development potential areas of the world.

Its continuous investment in R&D and ingenious practices have propelled them to new heights however for them its' just the start and they desire to be among the leading 3 brands in the world. Their marketing efforts must be directed towards more youthful group amid the internal arguments about marketing and ought to create Customer Lifetime Worth as it will not just provide them benefits now but will continue to reap it till the consumer lifetime. As the expense of keeping the customer is much less expensive than drawing in a new one.