Dmatek The Homefree Business Harvard Case Study Analysis

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Dmatek The Homefree Business Case Study Solution and Analysis


Historically, the business's core consumers include the Original Equipment Manufacturers (OEMs), which used to sell Dmatek The Homefree Business Case Study Analysis products withtheir own brand name. Its client circle consists of Original Devices Manufacturers (OEMs), who used to offer Company items with their own brand name. He repositioned Organization as an international brand name and educated his divisional supervisors to understand marketing and its value.

Problem Statement

Business's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to incorporate marketing successfully is still a significant challenge. Producing a consistent brand identity throughout the whole world and using marketing strategies that finest fits the local culture is no easy job. The M-net program analysis have actually been really helpful in determining the high and less possible development locations, but allowance of resources accordingly is not well gotten amongst the managers. There is no consensus among the hierarchy regarding the best matched future strategy.
Executive Summary
Situational Analysis

Dmatek The Homefree Business Case Study Help efforts for constructing its trademark name throughout the world was started after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to change Corporation from an inexpensive OEM to a high value-added product supplier. To make the vision of Venture a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Enterprise can change from a low end to a high-end product company. He knew that improvement can just be done through placing Business 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 build Organization brand, with a potential assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

Among 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 needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was excessive high, the space was too broader and to fill this gap with incorrect perceptions about marketing was rather challenging for Yun.

As specified above, marketing focus was very low in previous practices, therefore there were no correct marketing budgets for each of the item on the portfolio. There was no marketing preparation done for the existing products. In addition to it the item variety of the business was increasing with the ripening of brand-new item concepts by the R&D sector of Business. Yun had a difficulty to perform marketing preparation and to develop marketing spending plans for existing as well as for brand-new products from the very start, and this would take a big time.

A substantial shift would be needed in current marketing expenses to build the Organization brand. This would result in increased marketing expenditures for Venture and could interrupt the administration regarding increased costs, as they were hesitant to marketing expenses previously and an unexpected big shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Company strengths depend on its substantial item portfolio. Corp has biggest number of patents in the market with overall number of 15499 patents approved in US( USP). Big quantity of R&D costs has made it possible for the business to grow its product portfolio at a higher rate than its competitors. Dmatek The Homefree Business Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall revenues.

Another strength of Dmatek The Homefree Business Case Study Solution is its capability to develop ingenious products at a constant rate. It major shows for the innovation and item designing of Company is that the company has actually gotten a lot of awards for its development and item style.

Unlike Apple and other rivals, Corporation is concentrated on producing devices which can be quickly incorporated with any kind of open source Operating System (OS) and software. This provides Company an edge over Apple devices.
Porter's 5 Forces Analysis
Company's ability to produce luxury items at low cost of production is likewise one of the major strength of Corp as it makes it possible for the company to catch more market by providing quality items with expense control.

Weak points

Corp's weaknesses are concealed in the business's reliance on outsourcing software for its gadgets due to company's inability in developing software application, unlike Sony. Dmatek The Homefree Business Case Study Analysis likewise has low revenue margins as compare to Apple due to big distinction in the costs of Apple and Business with a much lower distinction in quality.


Opportunities for Business depend on the growing Mobile phone market and the company's efficiency in the market. It can increase its market share and revenues from cell phone as the business is rather effective in cell phone market. Company currently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Org can move towards acquisitions to acquire patents. It would enable the business to increase its product portfolio with a boost in its wealth.


The dynamic market environment of innovation industry posture a severe risk on Corp's survival and require the company to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is also a huge hazard for the business's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Dmatek The Homefree Business Case Study Analysis offers quality products and has a quite rich portfolio which accommodates different sectors. Most of the products are in the top 3 of their respective industries. LCD and cellphones are the biggest products of Company, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Corporation:

• Laptops.
• Mobile phones.
• Air conditioner.
• Personal computers.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Dmatek The Homefree Business Case Study Analysis uses both market competitive and market skimming pricing strategies for its variety of items. In competitive prices it adjusts the cost according to the competitors in order to gain benefit, whereas, it utilizes market skimming strategy where the item has an included worth and by selling a few products it can reach break-even.


It has among 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/ delivered to the consumers directly in case of online order.

Vrio Analysis
It uses both offline & online channels of promotion to market their items. Paid product ads, social promotion and digital advertisements are uses to develop awareness about Corporation items.

Worth Chain Analysis.

It's an analytical framework for identifying business activities that add value or competitive benefit for the business.

Inbound Logistics.

It has one of the most efficient and effective supply chain network and has more than 2700 suppliers across numerous markets around the globe. Practically 80% of which is based in Asia and the staying around the world. For its incoming logistics it owns different logistics companies as it subsidiaries. It takes care of its providers and develops an unified relationship with them and even decreased their payment cycles to enhance this relationship further which adds value to their chain network.


Org's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronics. It is keeping operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the primary reasons Dmatek The Homefree Business Case Study Solution is able to take on Apple. Venture'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 coverage claims, etc. on behalf of Corporation.

Marketing and Sales.

Bring in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the item provides. Dmatek The Homefree Business Case Study Solution marketing spending plan is continuously increasing because they started their rearranging internationally and will continue to do so as they are continually looking to invest and broaden in high prospective development markets. The budget is spent on events, print and media ads, public relations etc.

Business put their customers at the top and continually strive to deliver unmatchable consumer service requirements. By adding a direct assistance line to contact them 24 hours they have actually further increased the included value of Corporation service.


Dmatek The Homefree Business Case Study Help has actually diversified market segmentation, based upon its provision of large range of products to a great deal of customers. Organization target client sections can be divided into 3 categories i.e. Dmatek The Homefree Business Case Study Help IT and Mobile Communications, Company Consumer Electronics and Corp Device options.


Dmatek The Homefree Business Case Study Analysis geographic segmentation is based upon 2 requirements i.e. region and density. Company serves about 80 nations worldwide with its products supplied to Urban in addition to Rural areas of the nation. The Organization is also growing its global existence and the company's versatility in locating its plants encourages worldwide expansion of Enterprise.


The group segmentation of Dmatek The Homefree Business Case Study Solution is based upon gender, age, life-cycle stage and profession. Organization produces items that can be utilized by both females and males. The target clients for Business IT and mobile interaction items have an age range of 18-65 with bulk at a young or recently wed life process stage. They are mainly students, professionals and staff members. Apart from it, Corporation Consumer Electronics are targeted to a client sector with an age variety of 25-65. They are mainly employees and experts. Organization Device Solutions are targeted at students, employees and specialists with an age range of 25-65.


The psychographic segmentation of Dmatek The Homefree Business Case Study Help s based upon the social class and the life style of the consumer. Org target clients on the basis of social class are generally upper middle, middle and working class consumers, as Business offer items like cell phones not much less expensive i.e. Motorola along with not much pricey i.e. Apple. It supplies quality items to middle level consumers at a somewhat high cost than others targeting the very same section.


Dmatek The Homefree Business Case Study Analysis majority target clients have unique behavioural qualities. They are attracted towards Company since of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Dmatek The Homefree Business Case Study Analysis has increased remarkably 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 biggest selling classification of Business 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 business is presently making however long gone are those days when good products were selling themselves. Kim has currently begun to strengthen the marketing activities of Enterprise and really soon it will become one of its core strength like producing if not much better.



Enterprise operates designs, produces and sell a large portfolio of consumer electronics. It runs in a very competitive environment and has successfully placed itself as the maker of quality items. So, the answer is yes.


As, stated previously that Dmatek The Homefree Business Case Study Analysis operates in a highly competitive environment, which means all the business have similar items. The response for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to understand the performance of the items and easily make their own designs. Yes, Organization is only behind IBM in signing up new patents every year, but the advantage is really short term in this industry.


Chairman Lee has entirely turnaround Org, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 company on the planet. Definitely yes there appertains company in the company and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread almost in every nation worldwide, bulk of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. It deals with some political pressures in less industrialized 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 a result on Dmatek The Homefree Business Case Study Analysis operations.


Buying power of customers is essential for companies like Enterprise to be successful and grow. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to recession even the consumers of industrialized nations suffer badly. It is very essential for the company to keep an eye on the ongoing financial circumstance of the nation prior to going into the market.


Multinational business need to face different social and cultural issues during its operations in a foreign country. Venture has actually likewise faced numerous issues however have actually embraced to the local environments of most of the countries remarkably well. It has actually customized its items, practices, policies etc. accordingly in order to be successful.


With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with constant ingenious item launches, Dmatek The Homefree Business Case Study Help is one of the leading innovative business of the world. With a clear mission to be ahead of the rest when it pertains to technological advancements, Company has risen to the no 25 of the leading effective companies of the world.


Each nation has their own laws and policies, being a multinational company Org have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. It has to study or work with a regional law expert before beginning its operations in a particular nation.


With the increasing awareness among consumers about the environmental & ethical violations of business, Company has to make sure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some nations the effects can be very severe. On the other hand it has to do some Corporate Social Duty practices to show the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Hazard of Replacement

Threat of replacement for Org's each item classification is rather considerable. Running in an extremely vibrant market lead the business to deal with a high hazard of replacement. Factors for high risk of alternative for Dmatek The Homefree Business Case Study Analysis Smartphone consist of the presence of high variety of providers and Market saturation in industrialized nations, which make the cost of switching for consumers nearly zero. Alternative hazards for Corp visual screen lie in the altering lifestyle of consumers. Consumers can change to viewing visuals in your home towards outside activities. Together with it, Corporation printing options products are threatened by the increasing attraction of clients towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Org and its close rivals is intense. The significant reason behind this is the technique of market saturation in various number of product classifications, requiring Corp to introduce more ingenious functions in existing items and new innovative items to keep its growth. The major competitors for Dmatek The Homefree Business Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Corporation Sustainability Report, 2016) Provider's bargaining power for Venture is low as Enterprise runs economies of scale and its orders are of prospective size and worth. Due to incapability of Dmatek The Homefree Business Case Study Solution to build its own software, it has to outsource its software application development to Google, which becomes a possible provider of software for Corp, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications likewise make the bargaining power of buyers more extreme in for Organization. In spite of igh bargaining power Corp is rather capable of selling its items at a higher rate than much of its rivals, due to high end quality item and a fair brand image.

Risk of New Entrants:

Danger of new entrants for Corp 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 big amount of capital to enter in the market is also among the prospective barrier to entry. In addition to it, requirement of substantial competence and research study and development expenses for survival in the industry likewise make new entrants unwilling to go into in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of providers force the players in the industry to charge as low prices as possible and this can only be achieved by production effectiveness. New companies, in majority cases, lack the production efficiency, hence increasing the threats for entrance in the innovation industry.

Competitive Analysis

Org's high item diversification provides it differentiation from its rivals. It is among the three leading brands by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on consumer electronic devices, Nokia on mobile phone and Intel on chips, Corp had a huge R&D costs on all of its product classifications which enable the business to make prospective earnings from sales of almost all of its products. (See Exhibition) However, due to the large product variety the business faces high number of competitors.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to global market share, among 8 different product categories. Business was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Company earnings from chips was less than Intel but its revenues from chips was growing faster than Intel and has grown close to the revenue levels of Intel, as provided in the case Exhibition 2.

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

Company was likewise reaping the benefits from increasing market share of high end 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 rival for Dmatek The Homefree Business Case Study Help in LCD market, however, it had actually also begun joint venture with Organization in 2003 for LCD making, decreasing the competition for Org.

Porter's Competitive Technique

Low Expense Leadership technique of porter is totally carried out by Company the method they attain economies of scale by strengthening their core competencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to produce for them, since they were unable to take on them on low cost. Distinction is another strategy well implemented by Org by continuous financial investment in the R&D and staying ahead of the competitors. They constantly bring something new and innovative whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Dmatek The Homefree Business Case Study Help would produce a brand-new brand image by targeting the younger generation of the particular country. As, specifically mobile phones of Organization are incredibly popular amongst the more youthful demographic.


1. It is the best strategy to develop Customer Life time Value (CLV) by creating a long-term relationship with customers. Develop loyalty through providing worth and profit for long-lasting, as research has actually revealed it is more affordable to retain present customers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among more youthful people and which in turn will bring in new customers for my products.


1. Old clients who were connected with Org prior to may not like this brand-new image the business is attempting to portray.
2 It will sustain further expenditures to rearrange some items and it might not even bring success as the trends alter really quickly amongst the younger market.

Alternative option 2.

Corporation has made producing its core competency for the most part of their service and due to which its managers are not scared to fully step out of their convenience zone. It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be offered. Failure to get the passing scores will get demoted. Marketing environment need to be created internally first as real marketing begins inside the corporation.


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


2. Its con can develop a really unhealthy environment in the work environment, as people often resist change since they fear it.

Identify the very best alternative

First alternative is the very best as it plainly has more pros because when a Consumer Lifetime Value is developed the business will make money from it till that customer is alive and has purchasing power as well. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. Nonetheless, Corporation's main objective is to produce loyalty among its clients and make them repurchase it from them and even purchase their different products too.

Implementation Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations practical and attainable.
• A team including finest marketing and sales professionals must be put together, and both views ought to be taken into account prior to protecting the resources required to implement the strategy.
• Thorough interaction of the plan need to be done as it is extremely important for everybody to be on the exact same page to make it work.
• Tasks and timelines should be develop and communicated accordingly to each person responsible.
• The manager must utilize a dashboard which reveals the progress of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to keep track of and keep a constant check on the general and individual efficiency.
• Everyone ought to be willing to adapt midway due to the fact that any new trend or policy may be available in due to which all the important things already planned have to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager must communicate the results and if successful must commemorate with the team.

Budget plan

The M-net program revealed compelling analysis about the low and high development possible locations and just how much marketing spending plan need to be designated accordingly. This change the budget allowance of different nations 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 potential merited a 35% allotment while they were receiving 45%. Whereas, China and Europe ought to be getting 42% but were instead given 31%. It actually assisted to fairly distribute the resources and record more consumers by spending more on advertisements on the high growth potential areas of the world.

Its constant investment in R&D and ingenious practices have actually propelled them to new heights but for them its' only the start and they desire to be among the leading 3 brand names in the world. Their marketing efforts need to be directed towards more youthful demographic amid the internal arguments about marketing and need to create Consumer Lifetime Worth as it will not just give them advantages now however will continue to gain it till the client life time. As the expense of retaining the customer is much less expensive than attracting a brand-new one.