Menu

Dmatek The Homefree Business Harvard Case Study Help

Home >> Hrm >> Dmatek The Homefree Business

Dmatek The Homefree Business Case Study Solution and Analysis


Intro

Dmatek The Homefree Business Case Study Help is a widely known worldwide brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Dmatek The Homefree Business handle large number of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which utilized to offer Samsung items withtheir own trademark name. Till early 1990s, the core competency of Samsung lie in its low price offerings than its competitors by making existing products at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Dmatek The Homefree Business Case Study Help products with their own trademark name. Samsung was not simply known outside Korea. There were also no or little interest in developing the brand name worldwide. Marketing budget plan was managed by production department with a focal point on supplying low-cost products.During the 1997 Asian Financial Crisis the company nearly got insolvent, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the top 25 most important company on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Samsung as an international brand name and educated his divisional supervisors to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Samsung's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to integrate marketing efficiently is still a significant challenge. Developing a consistent brand identity throughout the entire world and utilizing marketing techniques that finest fits the regional culture is no simple job.
Executive Summary
Situational Analysis

Dmatek The Homefree Business Case Study Help efforts for building its trademark name across the world was begun after introducing the "new management effort" by Chairman Lee in 1993. The objective was to change Samsung from a cheap OEM to a high value-added product company. To make the vision of Samsung a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can change from a low end to a high-end product service provider. He understood that change can just be done through positioning Samsung as a business using high-end products and this might only be done through high level of marketing.

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

One of the marketing obstacles for Yun was the perceptions 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 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 wrong understandings about marketing was rather tough for Yun.

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

A substantial shift would be needed in current marketing expenses to build the Dmatek The Homefree Business Case Study Solution brand name. This would result in increased marketing expenses for Samsung and could disturb the administration concerning increased costs, as they were reluctant to marketing expenditures previously and an abrupt huge shiftwould make them disrupt. This could lead to declining executive support for international marketing. In this circumstance, Yun faces a difficulty for validating increased marketing costs by demonstrating the long term value of huge marketing expenses.

Internal Analysis
SWOT Analysis
Strengths


Dmatek The Homefree Business Case Study Analysis strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents given in US( USP).

Another strength of Dmatek The Homefree Business Case Study Analysis is its capability to develop ingenious items at a constant rate. It major shows for the development and product designing 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 concentrated on producing gadgets which can be easily integrated with any kind of open source Operating System (OS) and software application. This offers Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury items at low cost of production is likewise one of the significant strength of Samsung as it allows the company to catch more market by providing quality products with expense control.

Weak points

Dmatek The Homefree Business Case Study Help weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to business's failure in establishing software application, unlike Sony. Samsung likewise has low earnings margins as compare to Apple due to huge difference in the costs of Apple and Samsung with a much lesser difference in quality. The varied focus of the company due to large number of items in its portfolio, lead to the less effective production and make the business not able to charge higher costs like Apple. The business is also inefficient in managing its patents and regularly deals with the issue of patent violation.

Opportunities

Opportunities for Samsung depend on the growing Smartphone market and the company's effectiveness in the market. It can increase its market share and revenues from cellular phone as the business is rather efficient in cell phone market. Samsung currently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would make it possible for the company to increase its item portfolio with an increase in its wealth.

Threats

The dynamic industry environment of innovation industry position a severe hazard on Samsung's survival and require the company to spend much of its profits share on R&D in order to survive in the long run. The market saturation in developed countries i.e. saturation of mobile business is likewise a big danger for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis
Item

Dmatek The Homefree Business Case Study Help provides quality products and has a rather abundant portfolio which accommodates different segments. The majority of the items are in the leading three of their respective industries. LCD and cellphones are the biggest products of Samsung, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Samsung:

• LCD/ TV
• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Hard disk drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Dmatek The Homefree Business Case Study Analysis utilizes both market competitive and market skimming pricing strategies for its wide variety of products. In competitive prices it changes the price according to the competitors in order to acquire benefit, whereas, it uses market skimming technique where the product has an included worth and by offering a couple of items it can reach break-even.

Place.

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

Promo.
Vrio Analysis
It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promotion and digital advertisements are uses to develop awareness about Samsung products.

Worth Chain Analysis.

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

Inbound Logistics.

It has among the most effective and effective supply chain network and has more than 2700 suppliers throughout various industries worldwide. Almost 80% of which is based in Asia and the staying all over the world. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It takes care of its providers and develops an unified relationship with them and even lowered their payment cycles to increase this relationship further which includes value to their chain network.

Operations.

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, Device Solutions and Customer Electronics. It is preserving operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Dmatek The Homefree Business Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the item uses. Dmatek The Homefree Business Case Study Solution marketing budget plan is constantly increasing since they began 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 ads, public relations and so on.

Samsung Service. Samsung put their consumers on top and continuously make every effort to deliver unmatchable customer support standards. As after sales service is ending up being very essential to keep consumers delighted and engaged, they even carry out surveys through third parties to discover their customer's feedback and implement it in the positive way to lower or if possible completely eliminate their client issues. By including a direct assistance line to contact them 24 hours they have further increased the added worth of Dmatek The Homefree Business Case Study Help service.

Division.

Dmatek The Homefree Business Case Study Help has diversified market division, based upon its arrangement of large range of items to large number of consumers. Samsung target client sectors can be divided into 3 classifications i.e. Dmatek The Homefree Business Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Device solutions.

Geographical.

Dmatek The Homefree Business Case Study Help geographical segmentation is based upon two criteria i.e. region and density. Samsung serves about 80 nations worldwide with its items provided to Urban in addition to Rural areas of the country. The Samsung is also growing its international presence and the company's flexibility in finding its plants motivates international expansion of Samsung.

Group.

The demographic division of Dmatek The Homefree Business Case Study Help is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both females and males. The target clients for Samsung IT and mobile communication items have an age range of 18-65 with bulk at a young or newly married life cycle stage. They are mainly staff members, experts and trainees. Apart from it, Samsung Consumer Electronics are targeted to a client segment with an age variety of 25-65. They are mostly workers and experts. However Dmatek The Homefree Business Case Study Help Gadget Solutions are targeted at trainees, staff members and specialists with an age range of 25-65.

Psychographic.

The psychographic division of Dmatek The Homefree Business Case Study Help s based upon the social class and the lifestyle of the customer. Samsung target clients on the basis of social class are generally upper middle, middle and working class consumers, as Samsung offer products like mobile phone very little more affordable i.e. Motorola in addition to very little expensive i.e. Apple. It provides quality items to middle level consumers at a slightly high price than others targeting the exact same section.

Behavioural.

Dmatek The Homefree Business Case Study Help majority target consumers have special behavioural attributes. They are attracted towards Samsung because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Dmatek The Homefree Business Case Study Analysis has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the largest selling category of 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 business is currently making but long gone are those days when good items were selling themselves. Kim has actually currently started to reinforce the marketing activities of Samsung and really soon it will end up being one of its core strength like making if not better.

VRIO.

Worth.

Samsung runs designs, manufactures and sell a huge portfolio of consumer electronic devices. It runs in an extremely competitive environment and has actually successfully positioned itself as the maker of quality items. The answer is yes.

Rarity.

As, stated earlier that Dmatek The Homefree Business Case Study Analysis operates in an extremely competitive environment, which indicates all the companies have comparable items. The answer for rarity is no.

Imitability.

Due to the nature of the market, it is really simple for competitors to understand the performance of the items and easily make their own models. Yes, Samsung is only behind IBM in registering brand-new patents annually, but the benefit is very short-term in this market.

Organization.

Chairman Lee has completely turn-around Samsung, from going practically bankrupt during the Asian financial crisis of 1997 to the top 25 business on the planet. Absolutely yes there is proper organization in the business and the results promote themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being an international brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. It deals with some political pressures in less developed nations where law and order circumstance is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Dmatek The Homefree Business Case Study Solution operations.

Economic

Purchasing power of clients is essential for business like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries and so on supply growth chances, whereas, due to recession even the clients of industrialized countries suffer badly. It is extremely important for the company to keep an eye on the ongoing economic circumstance of the country before entering the market.

Socio-Cultural

Multinational business have to deal with different social and cultural problems during its operations in a foreign country. Samsung has actually also dealt with lots of problems but have actually adopted to the local environments of most of the countries remarkably well. It has tailored its items, practices, policies and so on appropriately in order to achieve success.

Technological

With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with constant innovative product launches, Dmatek The Homefree Business Case Study Analysis is one of the top ingenious companies of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Samsung has actually risen to the no 25 of the leading effective companies of the world.

Legal

Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. It has to study or work with a local law specialist prior to beginning its operations in a specific nation.

Environmental

With the increasing awareness amongst consumers about the ethical & environmental offenses of business, Samsung has to ensure that it follows all the security standards. Environmental damages, ethical misconducts are not appropriate and in some countries the effects can be extremely extreme. On the other hand it needs to do some Business Social Duty practices to reveal the residents that it appreciates their environment and people.

Porter's Five Forces

Threat of Alternative

Danger of replacement for Samsung's each item classification is rather considerable. Aspects for high risk of substitution for Dmatek The Homefree Business 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 zero. Along with it, Samsung printing services items are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close rivals is extreme. The significant reason behind this is the approach of market saturation in numerous number of item categories, forcing Samsung to present more ingenious features in existing products and new ingenious items to keep its development. Other factor for the intense rivalry among the rivals is the little product distinction amongst the products. The popular gamers in the innovation industry are quite knowledgeable about the importance of R&D costs for their survival and are running into a race of marketing and R&D costs, to record the market. The major rivals for Dmatek The Homefree Business Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the varying market shares which can be seen in Exhibit 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 possible size and worth. Due to incapability of Dmatek The Homefree Business Case Study Help to construct its own software application, it has to outsource its software development to Google, which becomes a prospective supplier of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in many of the item classifications likewise make the bargaining power of buyers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its items at a higher rate than much of its competitors, due to high end quality product and a reasonable brand name image.

Danger of New Entrants:

Danger of brand-new entrants for Dmatek The Homefree Business Case Study Analysis is quite low. Along with it, requirement of big expertise and research study and advancement expenses for survival in the market likewise make new entrants reluctant to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Samsung's high product diversity supplies it distinction from its competitors. It is among the three leading 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 concentrating on consumer electronic devices, Nokia on cellular phone and Intel on chips, Samsung had a big R&D spending on all of its product categories which make it possible for the business to earn potential earnings from sales of nearly all of its items. (See Display) Nevertheless, due to the wide product variety the business deals with high number of rivals.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of global market share, amongst 8 different item classifications. Samsung was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel however its incomes from chips was growing much faster than Intel and has actually grown close to the income levels of Intel, as given in the case Exhibition 2.

Along with the chips Samsung mobile market was likewise flourishing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cellular phone's sales development was 51% as compare to Motorola with just 4% and Nokia with no sales development. The significant reson behind Samsung's high growth despite of greater rates than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was also profiting from increasing market share of luxury LCDs as given in case Display 3. The significant factor, making the company make it possible for to avail the opportunity is its mass production at low cost. Sony was the most significant rival for Dmatek The Homefree Business Case Study Analysis in LCD market, nevertheless, it had actually likewise started joint venture with Samsung in 2003 for LCD producing, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Management method of porter is completely executed by Samsung the way they attain economies of scale by reinforcing their core proficiencies of production. Even to the point that their rival SONY chose to form an alliance with them to produce for them, since they were not able to compete with them on low cost. Distinction is another method well carried out by Samsung by continuous investment in the R&D and remaining ahead of the competition. They always bring something ingenious and brand-new whether it's a service or a product.

Alternatives

Alternative Service 1

The Chief Marketing Officer (CMO) of Dmatek The Homefree Business Case Study Solution would create a brand-new brand image by targeting the younger generation of the specific nation. As, especially cellphones of Samsung are very popular among the more youthful market.

Pros

1. It is the very best method to develop Client Lifetime Worth (CLV) by producing a long-term relationship with customers. Construct loyalty through delivering worth and reap the benefits for long-term, as research has showed it is more affordable to maintain current consumers than to bring in new ones.
2. Another pro of this option is that word of mouth spread faster among younger individuals and which in turn will generate brand-new clients for my products.

Cons

1. Old customers who were associated with Samsung prior to may not like this brand-new image the company is trying to depict.
2 It will incur additional expenses to reposition some items and it may not even bring success as the trends change really quickly among the more youthful market.

Alternative solution 2.

Samsung has made manufacturing its core competency for the many part of their company and due to which its managers are not scared to totally get out of their convenience zone. It would be done by arranging training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing scores will get benched. Marketing environment need to be created internally initially as real marketing starts inside the corporation.

Pros

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

Cons

2. Its con can develop a very unhealthy environment in the office, as individuals frequently withstand modification because they fear it.

Determine the best alternative

Option is the finest as it plainly has more pros due to the fact that as soon as a Customer Lifetime Worth is constructed the company will benefit from it till that customer is alive and has acquiring power. Plus, our target consumers are the more youthful generation which are bound to live longer than the present aging people. Samsung's main goal is to produce commitment amongst its customers and make them bought it from them and even purchase their different products.

Application Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations sensible and possible.
• A team including best marketing and sales specialists need to be put together, and both views need to be taken into consideration before protecting the resources required to execute the strategy.
• Thorough interaction of the plan should be done as it is very important for everyone to be on the very same page to make it work.
• Tasks and timelines should be build and communicated accordingly to each individual responsible.
• The manager should 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 supervisor must keep track of and keep a consistent check on the general and private performance.
• Everyone ought to be willing to adapt midway since any brand-new pattern or policy might be available in due to which all the important things currently prepared need to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor must communicate the outcomes and if effective ought to celebrate with the group.

Spending plan

The M-net program exposed engaging analysis about the high and low growth prospective areas and just how much advertising budget ought to be allocated appropriately. This modification the budget allocation of different nations and many supervisors were dissatisfied and argued however the analysis done by the program was accurate and showed figures like The United States and Canada and Russia development potential warranted a 35% allocation while they were receiving 45%. Whereas, China and Europe ought to be receiving 42% but were instead provided 31%. It really assisted to fairly disperse the resources and capture more customers by spending more on advertisements on the high growth potential areas of the world.
Recommendations
Conclusion

Dmatek The Homefree Business Case Study Solution is a leading 25 business in the world now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent financial investment in R&D and ingenious practices have propelled them to new heights however for them its' just the start and they wish to be amongst the leading 3 brands in the world. They completely turn-around from almost going bankrupt throughout the Asian Financial Crisis to a world prominent brand name, understood for quality and innovation. Their value chain and their core competency their manufacturing capability, along-with worldwide brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts must be directed towards more youthful group in the middle of the internal arguments about marketing and need to develop Consumer Life time Value as it will not just provide advantages now however will continue to enjoy it till the client life time. As the expense of retaining the customer is more affordable than drawing in a new one.