Dows Bid For Rohm And Haas 7 Harvard Case Study Analysis

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Dows Bid For Rohm And Haas 7 Case Study Solution and Analysis


Dows Bid For Rohm And Haas 7 Case Study Analysis is a widely known international brand in technology market, founded in 1938 by Lee Byung Chul, in South Korea. Dows Bid For Rohm And Haas 7 handle large number of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which utilized to sell Corp products withtheir own brand. Till early 1990s, the core competency of Business depend on its low rate offerings than its rivals by making existing items at economies of scale. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Dows Bid For Rohm And Haas 7 Case Study Analysis items with their own brand name. Company was not merely known outside Korea. There were also no or little interest in building the brand globally. Marketing budget plan was controlled by production department with a focal point on providing inexpensive products.During the 1997 Asian Financial Crisis the company nearly got insolvent, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the leading 25 most important business in the world. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Organization as an international brand and informed his divisional managers to understand marketing and its significance. Now their objective is to arrive 10 by 2005.

Issue Statement

Company's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing efficiently is still a major challenge. Producing a consistent brand name 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 been really handy in determining the high and less potential growth locations, however allocation of resources accordingly is not well received amongst the managers. There is no agreement amongst the hierarchy regarding the best matched future method.
Executive Summary
Situational Analysis

Dows Bid For Rohm And Haas 7 Case Study Help efforts for constructing its brand name across the world was started after presenting the "brand-new management initiative" by Chairman Lee in 1993. The goal was to change Business from a cheap OEM to a high value-added product provider. To make the vision of Org a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Venture can change from a low end to a luxury item company. He understood that change can just be done through positioning Corp as a company providing 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 Company brand name, with a possible assistance of its executives, Yun dealt with a number of marketing challenges in early years of its efforts.

Among the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as exact same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was excessive high, the gap was too larger and to fill this gap with incorrect understandings about marketing was rather difficult for Yun.

Along with it the product variety of the company was increasing with the ripening of new item ideas by the R&D sector of Organization. Yun had a challenge to perform marketing planning and to create marketing budget plans for existing as well as for new products from the very start, and this would take a substantial time.

A big shift would be required in existing marketing expenses to develop the Dows Bid For Rohm And Haas 7 Case Study Analysis brand. This would result in increased marketing expenditures for Business and might disrupt the administration concerning increased costs, as they hesitated to marketing expenses previously and a sudden huge shiftwould make them interrupt. This could lead to declining executive assistance for worldwide marketing. In this situation, Yun deals with a difficulty for validating increased marketing expenditures by demonstrating the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Business strengths lie in its substantial item portfolio. Org has biggest number of patents in the industry with total number of 15499 patents approved in US( USP). Big amount of R&D costs has actually allowed the company to grow its item portfolio at a greater rate than its competitors. Dows Bid For Rohm And Haas 7 Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall profits.

Another strength of Dows Bid For Rohm And Haas 7 Case Study Solution is its capability to establish innovative products at a constant rate. It major shows for the development and item developing of Corp is that the company has actually gotten many awards for its development and product style.

Unlike Apple and other competitors, Corporation is focused on producing gadgets which can be easily integrated with any kind of open source Operating System (OS) and software application. This offers Company an edge over Apple gadgets.
Porter's 5 Forces Analysis
Business's ability to produce high end items at low expense of production is likewise among the significant strength of Corporation as it enables the business to record more market by supplying quality products with cost control.


Business's weak points are concealed in the company's reliance on outsourcing software for its gadgets due to business's failure in developing software application, unlike Sony. Dows Bid For Rohm And Haas 7 Case Study Help likewise has low profit margins as compare to Apple due to huge distinction in the prices of Apple and Corporation with a much lower distinction in quality.


Opportunities for Dows Bid For Rohm And Haas 7 Case Study Help lie in the growing Smartphone market and the company's effectiveness in the market. Business 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.


The vibrant industry environment of technology industry pose an extreme danger on Venture's survival and require the business to spend much of its profits share on R&D in order to survive in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is likewise a huge threat for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Dows Bid For Rohm And Haas 7 Case Study Analysis uses quality items and has a rather abundant portfolio which accommodates different segments. The majority of the products remain in the leading three of their respective industries. LCD and smart phones are the most significant items of Org, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Business:

• Laptops.
• Smart phone.
• Ac system.
• Computer.
• Disk drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Dows Bid For Rohm And Haas 7 Case Study Solution utilizes both market competitive and market skimming rates techniques for its variety of products. In competitive prices it changes the cost according to the competitors in order to get benefit, whereas, it uses market skimming strategy where the item has an included worth and by selling a couple of products it can reach break-even.


It has one of the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its products are prompt supplied to the selling place/ provided to the clients straight in case of online order.

Vrio Analysis
It wasn't a well-known business beyond Korea until 1993. The management effort taken by their CEO has actually pressed them to market more effectively outside the borders and now it has actually gotten in the league of leading 25 companies in the world in just 9 years. This is an impressive accomplishment regardless of the continuous arguments amongst the managers about adopting marketing practices. It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promo and digital advertisements are utilizes to develop awareness about Company items.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most efficient and effective supply chain network and has more than 2700 providers throughout various industries worldwide. Nearly 80% of which is based in Asia and the remaining around the globe. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and develops a harmonious relationship with them and even decreased their payment cycles to increase this relationship even more which adds worth to their chain network.


Enterprise's core competency is its mass making it produces 90% of its products internal. Divided into three different departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation centers worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is among the primary factors Dows Bid For Rohm And Haas 7 Case Study Analysis is able to take on Apple. Organization's own Electronic Logitec system plays a major function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Org.

Marketing and Sales.

Bring in target client attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the item provides. Dows Bid For Rohm And Haas 7 Case Study Analysis marketing budget is constantly increasing since they began their repositioning internationally and will continue to do so as they are continually looking to expand and invest in high potential development markets. The budget plan is spent on occasions, print and media advertisements, public relations etc.

Corp Service. Business put their clients at the top and constantly make every effort to deliver unmatchable client service requirements. As after sales service is ending up being incredibly crucial to keep clients happy and engaged, they even conduct surveys through third parties to learn their customer's feedback and execute it in the positive way to lower or if possible completely eliminate their customer problems. By including a direct assistance line to call them 24 hours they have actually even more increased the added value of Dows Bid For Rohm And Haas 7 Case Study Solution service.


Dows Bid For Rohm And Haas 7 Case Study Solution has diversified market segmentation, based upon its provision of wide range of items to large number of customers. Org target consumer sectors can be divided into 3 classifications i.e. Dows Bid For Rohm And Haas 7 Case Study Analysis IT and Mobile Communications, Org Consumer Electronic Devices and Org Device services.


Dows Bid For Rohm And Haas 7 Case Study Analysis geographic segmentation is based upon two criteria i.e. region and density. Venture serves about 80 countries worldwide with its products supplied to Urban as well as Backwoods of the nation. The Org is likewise growing its worldwide presence and the business's versatility in finding its plants encourages global expansion of Corp.


Corporation produces items that can be used by both women and males. The target consumers for Business IT and mobile interaction products have an age variety of 18-65 with bulk at a young or recently wed life cycle stage. Apart from it, Org Customer Electronics are targeted to a customer sector with an age range of 25-65.


The psychographic division of Dows Bid For Rohm And Haas 7 Case Study Help s based upon the social class and the lifestyle of the customer. Corporation target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Enterprise sell items like cellular phone not much more affordable i.e. Motorola in addition to not much pricey i.e. Apple. It supplies quality products to middle level customers at a somewhat high price than others targeting the exact same segment.


Dows Bid For Rohm And Haas 7 Case Study Solution majority target clients have unique behavioural qualities. It has clients with an ambitious, trendy and determined personality with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other popular brands i.e. Apple. The majority of Corporation consumers want quality as well as cost control. They are brought in towards Company because of its moderate rates with an extent of quality.

Quantitative analysis.

Sales of Corp has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has actually likewise minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Corporation with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead cost, earnings/ sales are increasing however net earnings is not increasing accordingly. New expansions and employing's were the main factor of the increase in the overhead costs, with china presently not providing any earnings to Venture, however there is a lot capacity in the current market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the more youthful audience and produce a worldwide brand image of the business. Whereas, the core strength of the business is presently making but long gone are those days when good products were selling themselves. In the current age marketing is extremely essential and business can not be successful without it. Kim has currently started to strengthen the marketing activities of Business and soon it will become one of its core strength like making if not better.



Corp runs designs, produces and sell a large portfolio of customer electronic devices. 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 earlier that Dows Bid For Rohm And Haas 7 Case Study Solution runs in an extremely competitive environment, which suggests all the business have similar products. So, the response for rarity is no.


Due to the nature of the industry, it is very simple for competitors to understand the functionality of the products and quickly make their own designs. Yes, Enterprise is just behind IBM in signing up new patents annually, but the advantage is very short-term in this industry.


Chairman Lee has completely turnaround Corporation, from going almost bankrupt throughout the Asian financial crisis of 1997 to the top 25 business on the planet. Certainly yes there appertains company in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread practically in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are really conductive for its operations. It deals with some political pressures in less developed nations where law and order circumstance is not excellent. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Dows Bid For Rohm And Haas 7 Case Study Help operations.


Buying power of customers is important for companies like Organization to grow and succeed. Emerging markets like India, middle-eastern countries etc. provide development chances, whereas, due to recession even the customers of developed nations suffer terribly. Hence it is extremely important for the business to watch on the continuous economic scenario of the nation before getting in the market.


Multinational companies need to deal with various social and cultural issues throughout its operations in a foreign country. Corporation has actually likewise dealt with numerous problems but have actually adopted to the regional environments of the majority of the nations incredibly well. It has actually tailored its items, practices, policies etc. accordingly in order to be successful.


With a yearly expense of 2.4 billion dollars in Research study & Development, and with consistent ingenious item launches, Dows Bid For Rohm And Haas 7 Case Study Solution is one of the top ingenious business of the world. With a clear mission to be ahead of the rest when it comes to technological developments, Corp has risen to the no 25 of the leading effective business of the world.


Each nation has their own laws and policies, being an international company Org need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal effects. So, it needs to study or employ a local law specialist before starting its operations in a particular country.


With the increasing awareness among consumers about the ethical & environmental infractions of companies, Company needs to ensure that it follows all the security guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be very extreme. On the other hand it needs to do some Corporate Social Obligation practices to reveal the residents that it appreciates their environment and individuals.

Porter's Five Forces

Risk of Replacement

Danger of alternative for Business's each item classification is quite substantial. Factors for high threat of alternative for Dows Bid For Rohm And Haas 7 Case Study Analysis Smart device include the existence of high number of providers and Market saturation in developed countries, which make the expense of changing for customers practically no. Along with it, Business printing services items are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Company and its close competitors is extreme. The major factor behind this is the method of market saturation in various number of item classifications, forcing Corporation to present more innovative functions in existing products and brand-new ingenious products to preserve its development. The major competitors for Dows Bid For Rohm And Haas 7 Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Enterprise Sustainability Report, 2016) Provider's bargaining power for Organization is low as Business runs economies of scale and its orders are of possible size and worth. Due to incapability of Dows Bid For Rohm And Haas 7 Case Study Analysis to develop its own software, it has to outsource its software application advancement to Google, which becomes a possible provider of software for Corporation, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

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

Hazard of New Entrants:

Hazard of brand-new entrants for Company is quite low. Among the significant element for low risk of new entrants is the high competition in the market. The requirement of huge amount of capital to go into in the market is likewise among the possible barrier to entry. Along with it, requirement of big competence and research study and advancement expenditures for survival in the market likewise make new entrants reluctant to go into in the marketplace. Market saturation is also among the barrier of entry in technology market. High bargaining power of providers require the players in the market to charge as low prices as possible and this can just be achieved by production effectiveness. Brand-new companies, in majority cases, lack the production efficiency, for this reason increasing the dangers for entryway in the innovation industry.

Competitive Analysis

Enterprise's high item diversification provides it distinction from its competitors. It is among the three leading brand names by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on customer electronic devices, Nokia on cellular phone and Intel on chips, Corporation had a huge R&D costs on all of its item classifications which allow the company to earn potential earnings from sales of nearly all of its items. (See Display) However, due to the wide item variety the business deals with high number of competitors.

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

Together with the chips Venture mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Org's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales growth. The major reson behind Business's high development despite of greater costs than Nokia and Motorola was the company's high-end quality cellular phone.

Business was likewise reaping the benefits from increasing market share of high end LCDs as given in case Exhibition 3. The major factor, making the company enable to obtain the opportunity is its mass production at low expense. Sony was the biggest competitor for Dows Bid For Rohm And Haas 7 Case Study Help in LCD market, however, it had actually likewise started joint venture with Venture in 2003 for LCD producing, decreasing the competition for Corporation.

Porter's Competitive Strategy

Low Expense Management technique of porter is totally implemented by Organization the method they accomplish economies of scale by strengthening their core competencies of manufacturing. They constantly bring something new and ingenious whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Dows Bid For Rohm And Haas 7 Case Study Analysis would develop a brand-new brand image by targeting the younger generation of the specific nation. As, specifically mobile phones of Org are very popular amongst the younger group.


1. It is the best method to build Client Life time Worth (CLV) by producing a long-lasting relationship with customers. Build loyalty through providing worth and profit for long-term, as research has actually revealed it is much cheaper to retain present customers than to attract new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among younger individuals and which in turn will generate brand-new customers for my products.


1. Old customers who were connected with Org prior to may not like this new image the business is trying to represent.
2 It will sustain more expenses to rearrange some items and it may not even bring success as the trends alter really rapidly amongst the more youthful market.

Alternative solution 2.

Business has actually made making its core proficiency for the many part of their service and due to which its supervisors are not scared to fully step out of their convenience zone. It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get benched. Marketing environment must be produced internally first as real marketing begins inside the corporation.


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


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

Recognize the very best alternative

Very first option is the best as it plainly has more pros since when a Client Lifetime Value is constructed the business will profit from it till that customer is alive and has acquiring power also. Plus, our target customers are the younger generation which are bound to live longer than the present old age people. Enterprise's main objective is to create commitment among its clients and make them redeemed it from them and even buy their various items.

Implementation Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations achievable and sensible.
• A group consisting of finest marketing and sales experts should be assemble, and both views must be taken into account before protecting the resources required to execute the plan.
• Thorough communication of the plan must be done as it is really essential for everybody to be on the very same page to make it work.
• Jobs and timelines should be construct and interacted appropriately to each individual accountable.
• The manager need to use a control panel which reveals the development of all the tasks which have actually been done or about to be done and by whom.
• The manager ought to keep track of and keep a constant look at the individual and overall efficiency.
Due to the fact that any new trend or policy might come in due to which all the things currently planned have actually to be adjusted, • Everyone ought to be willing to adapt midway. It's much better to have contingency strategies already prepared.
• At the end of the project the manager should communicate the results and if successful need to commemorate with the team.


The M-net program exposed engaging analysis about the low and high development prospective locations and just how much advertising spending plan ought to be allocated appropriately. This change the budget plan allocation of lots of managers and various countries were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective warranted a 35% allocation while they were receiving 45%. Whereas, China and Europe need to be getting 42% however were instead offered 31%. It actually assisted to relatively disperse the resources and catch more clients by investing more on advertisements on the high development capacity areas of the world.

Its continuous financial investment in R&D and ingenious practices have propelled them to brand-new heights however for them its' only the start and they desire to be amongst the leading 3 brands in the world. Their marketing efforts need to be directed towards younger demographic amidst the internal arguments about marketing and need to create Client Life time Worth as it will not just offer them advantages now but will continue to reap it till the consumer life time. As the expense of maintaining the customer is much cheaper than drawing in a new one.