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Decopier Technologies Inc Harvard Case Study Solution

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Decopier Technologies Inc Case Study Solution and Analysis


Introduction

Decopier Technologies Inc Case Study Help is a widely known global brand name in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. Decopier Technologies Inc deals in large number of product categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core consumers consist of the Original Devices Manufacturers (OEMs), which utilized to sell Venture products withtheir own brand. Till early 1990s, the core proficiency of Org lie in its low price offerings than its rivals by manufacturing existing products at economies of scale. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Decopier Technologies Inc Case Study Solution products with their own trademark name. Business was not merely known outside Korea. There were likewise no or little interest in constructing the brand name worldwide. Marketing budget was managed by production department with a prime focus on supplying low-cost products.During the 1997 Asian Financial Crisis the company practically got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most important business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Enterprise as a global brand and educated his divisional supervisors to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Corporation's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to include marketing efficiently is still a major obstacle. Creating a constant brand identity throughout the whole world and employing marketing methods that finest fits the regional culture is no simple task. The M-net program analysis have actually been really valuable in identifying the high and less potential growth areas, however allotment of resources appropriately is not well received among the supervisors. There is no consensus amongst the hierarchy concerning the best suited future technique.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Decopier Technologies Inc Case Study Analysis can transform from a low end to a high end item company. He understood that change can only be done through placing Corporation as a company providing high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to build Enterprise brand, with a potential assistance of its executives, Yun faced numerous marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous service practices, and the existing marketing requirement was too much high, the gap was too larger and to fill this gap with incorrect understandings about marketing was quite challenging for Yun.

As specified above, marketing focus was very low in previous practices, therefore there were no appropriate marketing budget plans for each of the product on the portfolio. There was no marketing planning provided for the existing items. Along with it the item range of the business was increasing with the ripening of brand-new item ideas by the R&D sector of Org. Yun had an obstacle to carry out marketing preparation and to develop marketing spending plans for existing as well as for new items from the very start, and this would take a big time.

A substantial shift would be needed in present marketing expenses to develop the Decopier Technologies Inc Case Study Solution brand. This would result in increased marketing expenditures for Enterprise and could disturb the administration regarding increased expenditures, as they were reluctant to marketing expenses formerly and an unexpected big shiftwould make them disturb. This could result in decreasing executive assistance for worldwide marketing. In this situation, Yun faces a difficulty for validating increased marketing costs by demonstrating the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis
Strengths


Corporation strengths depend on its big product portfolio. Company has biggest variety of patents in the industry with total number of 15499 patents approved in United States( USP). Big quantity of R&D spending has actually enabled the business to grow its product portfolio at a higher rate than its rivals. Decopier Technologies Inc Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total earnings.

Another strength of Decopier Technologies Inc Case Study Analysis is its ability to establish ingenious items at a continuous rate. It major shows for the development and product developing of Venture is that the company has received a lot of awards for its innovation and product style.

Unlike Apple and other rivals, Corp is focused on producing devices which can be easily integrated with any kind of open source Operating System (OS) and software. This provides Enterprise an edge over Apple devices.
Porter's 5 Forces Analysis
Corporation's ability to produce high-end products at low expense of production is likewise among the major strength of Organization as it makes it possible for the company to catch more market by offering quality products with cost control.

Weaknesses

Business's weak points are hidden in the company's reliance on outsourcing software for its gadgets due to business's inability in developing software application, unlike Sony. Decopier Technologies Inc Case Study Help also has low profit margins as compare to Apple due to huge difference in the costs of Apple and Venture with a much lesser distinction in quality.

Opportunities

Opportunities for Org lie in the growing Smart device market and the company's effectiveness in the market. It can increase its market share and profits from mobile phone as the company is quite effective in cell phone market. Corporation 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. Org can move towards acquisitions to get patents. It would enable the company to increase its product portfolio with an increase in its wealth.

Hazards

The dynamic market environment of technology industry position an extreme danger on Venture's survival and require the company to invest much of its revenues share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile company is also a big hazard for the business's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis
Product

Decopier Technologies Inc Case Study Solution offers quality items and has a quite abundant portfolio which accommodates various sectors. Most of the items are in the top three of their particular industries. LCD and smart phones are the most significant products of Corporation, whereas DRAM is also not far behind in comparison of them. Following is the product line of Organization:

• LCD/ TV
• Laptops.
• Cellphone.
• A/c unit.
• Computer.
• Disk drives.
• Washing machines.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.
• DRAM.

Cost.

Decopier Technologies Inc Case Study Analysis utilizes both market competitive and market skimming rates methods for its wide array of products. In competitive pricing it changes the price according to the competition in order to acquire benefit, whereas, it utilizes market skimming strategy where the item has an added value and by selling a few products it can reach break-even.

Location.

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 products are timely provided to the selling place/ provided to the consumers directly in case of online order.

Promotion.
Vrio Analysis
It utilizes both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital ads are uses to develop awareness about Business products.

Worth Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns different logistics firms as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even decreased their payment cycles to enhance this relationship even more which includes value to their chain network.

Operations.

Business's core competency is its mass producing it produces 90% of its products internal. Divided into three different departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is preserving operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main reasons Decopier Technologies Inc Case Study Analysis is able to compete with Apple. Enterprise's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Org.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the product uses. Decopier Technologies Inc Case Study Help advertising budget plan is continually growing considering that they started their repositioning worldwide and will continue to do so as they are continuously seeking to broaden and invest in high prospective growth markets. The budget is spent on occasions, print and media ads, public relations etc.

Organization put their consumers at the top and constantly aim to deliver unmatchable consumer service requirements. By adding a direct support line to call them 24 hours they have actually further increased the included value of Org service.

Division.

Decopier Technologies Inc Case Study Analysis has diversified market segmentation, based upon its arrangement of wide range of items to large number of consumers. Corporation target customer segments can be divided into 3 categories i.e. Decopier Technologies Inc Case Study Analysis IT and Mobile Communications, Org Customer Electronics and Organization Gadget options.

Geographic.

Decopier Technologies Inc Case Study Analysis geographical segmentation is based upon two requirements i.e. area and density. Venture serves about 80 countries worldwide with its items provided to Urban along with Backwoods of the nation. The Venture is likewise growing its international existence and the company's versatility in finding its plants encourages worldwide growth of Enterprise.

Demographic.

Enterprise produces items that can be utilized by both females and males. The target consumers for Org IT and mobile interaction products have an age range of 18-65 with bulk at a young or newly wed life cycle stage. Apart from it, Company Customer Electronic devices are targeted to a consumer segment with an age variety of 25-65.

Psychographic.

The psychographic segmentation of Decopier Technologies Inc Case Study Help s based upon the social class and the life style of the consumer. Enterprise target customers on the basis of social class are generally upper middle, middle and working class clients, as Venture offer items like mobile phone very little less expensive i.e. Motorola as well as very little pricey i.e. Apple. It provides quality items to middle level customers at a slightly high price than others targeting the exact same sector.

Behavioural.

Decopier Technologies Inc Case Study Solution bulk target clients have special behavioural characteristics. They are drawn in towards Company because of its moderate costs with a degree of quality.

Quantitative analysis.

Sales of Decopier Technologies Inc Case Study Solution has actually increased remarkably 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 category of Company 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 currently producing but long gone are those days when good products were selling themselves. Kim has actually already started to enhance the marketing activities of Enterprise and very soon it will end up being one of its core strength like producing if not better.

VRIO.

Value.

Company operates designs, makes and offer a large portfolio of customer electronics. It runs in an exceptionally competitive environment and has effectively placed itself as the maker of quality items. The answer is yes.

Rarity.

As, said earlier that Decopier Technologies Inc Case Study Solution operates in a highly competitive environment, which means all the business have similar products. The answer for rarity is no.

Imitability.

Due to the nature of the market, it is extremely simple for competitors to comprehend the performance of the products and easily make their own models. Yes, Venture is just behind IBM in signing up brand-new patents every year, however the benefit is extremely short term in this market.

Organization.

Chairman Lee has entirely turn-around Corp, from going practically bankrupt throughout the Asian monetary 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 Ecological Analysis

PESTLE Analysis

Political

Being a multinational brand name spread almost in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. However, it deals with some political pressures in less industrialized countries where law and order scenario is bad. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Decopier Technologies Inc Case Study Solution operations.

Economic

Buying power of clients is crucial for business like Corporation to succeed and grow. Emerging markets like India, middle-eastern countries and so on provide development chances, whereas, due to economic crisis even the clients of developed nations suffer severely. Thus it is very essential for the company to keep an eye on the ongoing economic circumstance of the country before going into the market.

Socio-Cultural

International companies need to face various social and cultural problems during its operations in a foreign nation. Organization has also faced numerous concerns but have actually embraced to the local environments of the majority of the nations exceptionally well. It has actually tailored its items, practices, policies and so on accordingly in order to be successful.

Technological

With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with constant ingenious item launches, Decopier Technologies Inc Case Study Analysis is one of the top innovative companies of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Enterprise has risen to the no 25 of the top successful business of the world.

Legal

Each nation has their own laws and policies, being an international company Org have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. So, it needs to study or employ a regional law professional before beginning its operations in a particular nation.

Environmental

With the rising awareness among consumers about the ethical & ecological violations of business, Corporation has to make sure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some countries the effects can be really extreme. On the other hand it has to do some Business Social Duty practices to reveal the residents that it appreciates their environment and individuals.

Porter's Five Forces

Danger of Substitution

Hazard of replacement for Company's each item category is rather considerable. Running in an exceptionally vibrant industry lead the company to face a high hazard of replacement. Elements for high risk of replacement for Decopier Technologies Inc Case Study Help Smart device consist of the presence of high number of providers and Market saturation in developed nations, that make the cost of changing for customers almost zero. Replacement dangers for Organization visual display screen lie in the changing life style of clients. Consumers can switch to watching visuals in your home towards outdoor activities. In addition to it, Business printing options products are threatened by the increasing destination of clients towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Organization and its close competitors is extreme. The major reason behind this is the technique of market saturation in numerous number of product classifications, forcing Venture to present more innovative functions in existing products and new innovative products to maintain its development. Other aspect for the intense competition among the rivals is the little product distinction among the products. The popular players in the technology market are rather aware of the significance of R&D spending for their survival and are running into a race of marketing and R&D spending, to record the marketplace. The significant competitors for Decopier Technologies Inc Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the fluctuating market shares which can be seen in Display F.

Bargaining Power of Providers:

Decopier Technologies Inc Case Study Analysis has a large supply chain including about 2700 providers throughout the world.( Corp Sustainability Report, 2016) Provider's bargaining power for Venture is low as Business runs economies of scale and its orders are of possible size and worth. These substantial orders enable Company to work out prices with its providers. Due to incapability of Business to construct its own software application, it has to outsource its software advancement to Google, which ends up being a potential provider of software for Corporation, resulting in high bargaining power of Google. Although, in most of cases Enterprise has a power to work out prices, however it supply considerable rates to its suppliers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

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

Threat of New Entrants:

Hazard of brand-new entrants for Corporation is quite low. One of the significant factor for low threat of new entrants is the high competitors in the industry. The requirement of substantial quantity of capital to enter in the market is also one of the prospective barrier to entry. Together with it, requirement of big knowledge and research study and advancement expenditures for survival in the market also make new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of suppliers require the players in the industry to charge as low costs as possible and this can only be achieved by production efficiency. Brand-new firms, in bulk cases, do not have the production effectiveness, hence increasing the threats for entryway in the innovation market.

Competitive Analysis

Corporation's high item diversity offers it differentiation from its competitors. It is one of the three leading brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product classification with Sony concentrating on consumer electronics, Nokia on cellular phone and Intel on chips, Venture had a substantial R&D costs on all of its product classifications which enable the business to make possible profits from sales of practically all of its products. (See Exhibit) Nevertheless, due to the broad item variety the business faces high number of rivals.

The business ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to international market share, among 8 various product classifications. Venture was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Business earnings from chips was less than Intel however its incomes from chips was growing quicker than Intel and has actually grown close to the earnings levels of Intel, as offered in the case Exhibition 2.

Along with the chips Enterprise mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Organization's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Organization's high development despite of higher costs than Nokia and Motorola was the business's high-end quality cell phones.

Enterprise was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The major factor, making the business make it possible for to avail the opportunity is its mass production at low cost. Sony was the biggest competitor for Decopier Technologies Inc Case Study Help in LCD market, however, it had actually likewise started joint venture with Org in 2003 for LCD making, lessening the competition for Enterprise.

Porter's Competitive Strategy

Low Expense Leadership technique of porter is totally implemented by Organization the method they attain economies of scale by reinforcing their core proficiencies of production. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, since they were not able to take on them on low cost. Differentiation is another technique well carried out by Business by constant financial investment in the R&D and staying ahead of the competition. They always bring something brand-new and innovative whether it's a product or a service.

Alternatives

Alternative Solution 1

The Chief Marketing Officer (CMO) of Decopier Technologies Inc Case Study Solution would develop a new brand image by targeting the younger generation of the particular country. As, specifically cellphones of Enterprise are very popular amongst the younger demographic.

Pros

1. It is the very best technique to build Customer Lifetime Value (CLV) by developing a long-term relationship with customers. Develop commitment through providing value and profit for long-lasting, as research study has actually revealed it is more affordable to maintain current customers than to draw in new ones.
2. Another pro of this option is that word of mouth spread quicker among more youthful people and which in turn will generate new customers for my products.

Cons

1. Old consumers who were related to Org prior to might not like this brand-new image the company is trying to represent.
2 It will incur further expenditures to rearrange some items and it might not even bring success as the patterns change really rapidly amongst the more youthful group.

Alternative service 2.

It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be given. Marketing environment must be produced internally initially as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can produce a very unhealthy environment in the work environment, as individuals frequently withstand modification due to the fact that they fear it.

Recognize the best option

Very first alternative is the very best as it plainly has more pros since when a Consumer Life time Value is developed the company will make money from it till that consumer lives and has purchasing power also. Plus, our target customers are the more youthful generation which are bound to live longer than the present old age people. Enterprise's main objective is to develop commitment among its clients and make them redeemed it from them and even buy their different products.

Execution Plan

• Targeting more youthful generation through social marketing, creating a link with them like Pepsi do with music. And set the expectations practical and attainable.
• A team consisting of best marketing and sales specialists must be put together, and both views should be taken into consideration before protecting the resources needed to carry out the plan.
• Thorough interaction of the strategy need to be done as it is very crucial for everybody to be on the exact same page to make it work.
• Tasks and timelines must be build and communicated accordingly to each person responsible.
• The supervisor should use a control panel which reveals the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a consistent examine the specific and total performance.
• Everyone should be willing to adapt midway due to the fact that any brand-new pattern or policy may can be found in due to which all the things currently prepared need to be changed. It's better to have contingency strategies currently prepared.
• At the end of the project the supervisor should communicate the results and if successful must celebrate with the group.

Spending plan

This change the spending plan allocation of different nations and many supervisors were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like North America and Russia growth possible warranted a 35% allocation while they were getting 45%. It really helped to relatively disperse the resources and capture more clients by investing more on ads on the high development capacity regions of the world.
Recommendations
Conclusion

Its constant investment in R&D and ingenious practices have actually propelled them to brand-new heights but for them its' just the start and they desire to be amongst the leading 3 brands in the world. Their marketing efforts should be directed towards younger market in the middle of the internal arguments about marketing and ought to create Consumer Life time Value as it will not just give them benefits now however will continue to enjoy it till the client life time. As the expense of retaining the consumer is much cheaper than drawing in a new one.