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 & Analysis


Dows Bid For Rohm And Haas 7 Case Study Help is a widely known international brand name in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Dows Bid For Rohm And Haas 7 handle large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core consumers include the Original Equipment Manufacturers (OEMs), which used to offer Company items withtheir own brand name. Till early 1990s, the core competency of Company lie in its low cost offerings than its competitors by making existing products at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Dows Bid For Rohm And Haas 7 Case Study Analysis products with their own brand name. Company was not simply understood outside Korea. There were also no or little interest in developing the brand internationally. Marketing budget plan was controlled by production department with a prime focus on offering low-cost products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the leading 25 most valuable business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Venture as a worldwide brand and informed his divisional supervisors to understand marketing and its value. Now their goal is to reach the top 10 by 2005.

Issue Statement

Enterprise's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional managers to integrate marketing efficiently is still a major challenge. Producing a consistent brand identity across the whole world and using marketing strategies that finest fits the local culture is no easy task.
Executive Summary
Situational Analysis

Yun had a quite clear image in his mind about how Dows Bid For Rohm And Haas 7 Case Study Solution can change from a low end to a high end item provider. He understood that transformation can only be done through positioning Business as a company using high-end products and this could just be done through high level of marketing.

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

One of the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as exact 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 organisation practices, and the current marketing requirement was excessive high, the gap was too broader and to fill this space with incorrect perceptions about marketing was rather tough for Yun.

Along with it the item range of the business was increasing with the ripening of new item ideas by the R&D sector of Corporation. Yun had a challenge to perform marketing preparation and to create marketing budgets for existing as well as for brand-new products from the very start, and this would take a substantial time.

A big shift would be needed in existing marketing expenses to build the Dows Bid For Rohm And Haas 7 Case Study Help brand name. This would lead to increased marketing expenses for Organization and might disturb the administration concerning increased expenditures, as they were reluctant to marketing expenses formerly and an abrupt huge shiftwould make them interrupt. This might result in decreasing executive support for worldwide marketing. In this situation, Yun faces a challenge for validating increased marketing costs by demonstrating the long term worth of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Venture strengths lie in its huge product portfolio. Org has largest variety of patents in the industry with total variety of 15499 patents granted in US( USP). Large quantity of R&D spending has enabled the business 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 total revenues.

Another strength of Dows Bid For Rohm And Haas 7 Case Study Solution is its capability to develop innovative items at a constant rate. It significant proves for the innovation and product designing of Organization is that the company has gotten many awards for its development and product style.

Unlike Apple and other rivals, Venture is focused on producing devices which can be quickly integrated with any type of open source Os (OS) and software application. This offers Org an edge over Apple gadgets.
Porter's 5 Forces Analysis
Corp's capability to produce high-end products at low cost of production is likewise among the major strength of Venture as it makes it possible for the company to record more market by providing quality products with cost control.


Dows Bid For Rohm And Haas 7 Case Study Solution weak points are concealed in the company's dependence on outsourcing software for its devices due to company's inability in developing software application, unlike Sony. Org likewise has low earnings margins as compare to Apple due to substantial difference in the prices of Apple and Corp with a much lower distinction in quality. The varied focus of the company due to a great deal of products in its portfolio, result in the less effective production and make the business not able to charge greater prices like Apple. The business is likewise ineffective in managing its patents and frequently faces the problem of patent infraction.


Opportunities for Dows Bid For Rohm And Haas 7 Case Study Help lie in the growing Mobile phone market and the company's effectiveness in the market. Organization presently 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 innovation industry present an extreme threat on Corporation's survival and force the company to invest much of its profits share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile business is likewise a big 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 products and has a quite abundant portfolio which accommodates various segments. The majority of the products are in the leading 3 of their particular markets. LCD and mobile phones are the most significant items of Company, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Business:

• Laptops.
• Smart phone.
• A/c unit.
• Computer.
• Disk drives.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Dows Bid For Rohm And Haas 7 Case Study Solution uses both market competitive and market skimming rates methods for its wide array of products. In competitive prices it changes the rate according to the competitors in order to acquire benefit, whereas, it utilizes market skimming strategy where the product has actually an included value and by offering a few items it can reach break-even.


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

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

Worth Chain Analysis.

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

Inbound Logistics.

It has among the most effective and efficient supply chain network and has more than 2700 suppliers throughout numerous markets around the world. Nearly 80% of which is based in Asia and the staying worldwide. For its incoming logistics it owns various logistics companies as it subsidiaries. It cares for its suppliers and produces a harmonious relationship with them and even decreased their payment cycles to boost this relationship further which adds worth to their chain network.


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

Outbound Logistics.

Its outbound logistics system efficiency is among the primary factors Dows Bid For Rohm And Haas 7 Case Study Help is able to compete with Apple. Business'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 Corp.

Marketing and Sales.

Drawing in target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the product provides. Dows Bid For Rohm And Haas 7 Case Study Help marketing budget plan is continuously growing given that they began their repositioning globally and will continue to do so as they are continuously aiming to invest and expand in high possible growth markets. The budget is spent on events, print and media ads, public relations etc.

Venture Service. Organization put their clients at the top and constantly aim to provide unmatchable customer service standards. As after sales service is becoming very crucial to keep consumers delighted and engaged, they even perform studies through 3rd parties to learn their consumer's feedback and implement it in the positive way to decrease or if possible completely eliminate their customer issues. By adding a direct support line to contact them 24 hr they have actually further increased the included worth of Dows Bid For Rohm And Haas 7 Case Study Help service.


Dows Bid For Rohm And Haas 7 Case Study Analysis has diversified market division, based upon its provision of vast array of items to large number of customers. Enterprise target consumer segments can be divided into 3 categories i.e. Dows Bid For Rohm And Haas 7 Case Study Solution IT and Mobile Communications, Corporation Consumer Electronics and Venture Device options.


Dows Bid For Rohm And Haas 7 Case Study Help geographical segmentation is based upon 2 requirements i.e. area and density. Corp serves about 80 nations worldwide with its items provided to Urban as well as Backwoods of the nation. The Corporation is also growing its worldwide presence and the company's versatility in finding its plants encourages worldwide expansion of Company.


The demographic segmentation of Dows Bid For Rohm And Haas 7 Case Study Solution is based upon gender, age, life-cycle stage and occupation. Company produces products that can be used by both males and females. The target consumers for Corporation IT and mobile interaction items have an age range of 18-65 with bulk at a young or newly wed life cycle stage. They are primarily specialists, trainees and employees. Apart from it, Company Consumer Electronics are targeted to a consumer section with an age series of 25-65. They are mostly staff members and experts. However Dows Bid For Rohm And Haas 7 Case Study Solution Device Solutions are targeted at students, employees and experts with an age variety of 25-65.


The psychographic segmentation of Dows Bid For Rohm And Haas 7 Case Study Help s based upon the social class and the life style of the customer. Enterprise target customers on the basis of social class are mainly upper middle, middle and working class customers, as Corporation offer items like cell phones not much more affordable i.e. Motorola along with very little costly i.e. Apple. It supplies quality products to middle level consumers at a somewhat high cost than others targeting the exact same segment.


Dows Bid For Rohm And Haas 7 Case Study Solution bulk target consumers have distinct behavioural attributes. It has customers with an ambitious, stylish and figured out character with moderate level of loyalty towards the brand. Its clients have some degree of shift towards other renowned brands i.e. Apple. The majority of Business consumers want quality along with expense control. They are drawn in towards Corp since of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Corporation has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has also lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Business with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead cost, revenues/ sales are increasing however net profit is not increasing appropriately. New growths and hiring's were the primary factor of the boost in the overhead costs, with china presently not providing any revenue to Corp, but there is a lot potential in the present market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the more youthful audience and produce a worldwide brand name picture of the company. Whereas, the core strength of the business is currently producing however long gone are those days when good products were offering themselves. In the current age marketing is extremely important and companies can not be successful without it. Kim has actually already started to reinforce the marketing activities of Organization and very soon it will become one of its core strength like making if not better.



Organization operates styles, manufactures and offer a vast portfolio of customer electronic devices. It runs in a very competitive environment and has effectively positioned itself as the maker of quality products. The response is yes.


As, stated previously that Dows Bid For Rohm And Haas 7 Case Study Solution operates in an extremely competitive environment, which indicates all the business have similar products. The response for rarity is no.


Due to the nature of the industry, it is extremely easy for rivals to understand the functionality of the products and quickly make their own models. Yes, Venture is only behind IBM in signing up new patents every year, however the advantage is really short term in this industry.


Chairman Lee has completely turn-around Venture, from going almost insolvent during the Asian monetary crisis of 1997 to the top 25 company on the planet. Certainly yes there appertains organization in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread almost in every nation worldwide, bulk of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. Nevertheless, it faces some political pressures in less developed countries where law and order circumstance is bad. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Dows Bid For Rohm And Haas 7 Case Study Analysis operations.


Purchasing power of consumers is essential for companies like Corporation to grow and prosper. Emerging markets like India, middle-eastern nations and so on offer growth opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer severely. Hence it is very important for the business to keep an eye on the ongoing economic circumstance of the country before entering the market.


International companies have to face different social and cultural problems throughout its operations in a foreign country. Corporation has likewise dealt with lots of issues but have actually embraced to the local environments of most of the nations remarkably well. It has tailored its products, practices, policies and so on accordingly in order to succeed.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with consistent innovative product launches, Dows Bid For Rohm And Haas 7 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 concerns technological advancements, Business has actually risen to the no 25 of the top effective business of the world.


Each nation has their own laws and policies, being a multinational business Enterprise have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. It has to study or employ a regional law professional prior to starting its operations in a particular country.


With the rising awareness among consumers about the ethical & ecological violations of companies, Corp needs to ensure that it follows all the security standards. Ecological damages, ethical misbehaviors are not acceptable and in some nations the consequences can be really serious. On the other hand it needs to do some Business Social Duty practices to show the locals that it appreciates their environment and people.

Porter's 5 Forces

Danger of Alternative

Threat of alternative for Enterprise's each item classification is quite significant. Elements for high danger of replacement for Dows Bid For Rohm And Haas 7 Case Study Solution Smartphone include the presence of high number of providers and Market saturation in industrialized nations, which make the expense of switching for customers almost no. Along with it, Organization printing solutions products are threatened by the increasing tourist attraction of clients towards cloud storage.

Competition Among Existing Firms:

The rivaly amongst Organization and its close rivals is extreme. The major factor behind this is the technique of market saturation in different number of product classifications, requiring Organization to present more ingenious features in existing items and brand-new ingenious items to maintain its development. The major competitors for Dows Bid For Rohm And Haas 7 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

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

Bargaining Power of Buyers:

Market saturation in most of the item categories also make the bargaining power of buyers more intense in for Org. In spite of igh bargaining power Corporation is quite capable of selling its products at a higher rate than much of its competitors, due to high end quality item and a reasonable brand image.

Hazard of New Entrants:

Hazard of new entrants for Enterprise is rather low. One of the major element for low threat of brand-new entrants is the high competitors in the industry. The requirement of substantial quantity of capital to go into in the marketplace is also one of the potential barrier to entry. In addition to it, requirement of substantial know-how and research study and development expenses for survival in the market likewise make brand-new entrants hesitant to enter in the market. Market saturation is likewise among the barrier of entry in innovation market. High bargaining power of providers force the players in the market to charge as low costs as possible and this can only be accomplished by production efficiency. New companies, in bulk cases, lack the production efficiency, thus increasing the risks for entrance in the technology market.

Competitive Analysis

Organization's high item diversity supplies it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Dows Bid For Rohm And Haas 7 Case Study Analysis had a substantial R&D costs on all of its item classifications which make it possible for the business to make potential income from sales of nearly all of its items.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in terms of worldwide market share, among 8 different item categories. Company was the worldwide leader in making DRAM, SRAM and NAND flash chips. Enterprise revenues from chips was less than Intel but its incomes from chips was growing much faster than Intel and has actually grown close to the earnings levels of Intel, as offered in the case Exhibit 2.

In addition to the chips Corporation mobile market was likewise growing at a high rate than its competitors i.e. Motorola and Nokia. Company's mobile phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Company's high development despite of greater prices than Nokia and Motorola was the company's high-end quality cell phones.

Org was also profiting from increasing market share of luxury LCDs as given up case Exhibit 3. The significant factor, making the business make it possible for to get the opportunity is its mass production at low expense. Sony was the greatest rival for Dows Bid For Rohm And Haas 7 Case Study Analysis in LCD market, nevertheless, it had actually likewise started joint venture with Organization in 2003 for LCD making, lessening the competitors for Venture.

Porter's Competitive Method

Low Expense Management technique of porter is fully carried out by Enterprise the way they accomplish economies of scale by strengthening their core proficiencies of production. They constantly bring something ingenious and brand-new whether it's an item or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Dows Bid For Rohm And Haas 7 Case Study Analysis would develop a new brand image by targeting the more youthful generation of the particular country. As, particularly mobile phones of Enterprise are incredibly popular among the younger group.


1. It is the best method to construct Customer Life time Worth (CLV) by developing a long-lasting relationship with clients. Build loyalty through providing value and profit for long-lasting, as research has actually revealed it is more affordable to keep current customers than to bring in new ones.
2. Another pro of this option is that word of mouth spread more quickly among younger individuals and which in turn will bring in brand-new consumers for my items.


1. Old clients who were related to Business before might not like this new image the company is attempting to depict.
2 It will sustain additional expenses to rearrange some items and it may not even bring success as the trends alter very quickly amongst the more youthful group.

Alternative option 2.

Organization has made manufacturing its core competency for the many part of their company and due to which its supervisors are not scared to totally step out of their comfort zone. It would be done by organizing training workshops during which importance of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get benched. Marketing environment must be developed internally first as genuine marketing starts inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the workplace, as individuals frequently withstand change because they fear it.

Recognize the best option

First alternative is the best as it plainly has more pros because when a Client Lifetime Worth is developed the business will profit from it till that customer is alive and has purchasing power as well. Plus, our target clients are the more youthful generation which are bound to live longer than the current old age individuals. Nevertheless, Enterprise's primary objective is to develop loyalty among its clients and make them repurchase it from them and even purchase their various items too.

Execution Strategy

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations attainable and practical.
• A group consisting of best marketing and sales specialists ought to be assemble, and both views must be taken into consideration prior to protecting the resources required to carry out the strategy.
• Thorough interaction of the plan need to be done as it is really important for everybody to be on the very same page to make it work.
• Tasks and timelines must be develop and communicated appropriately to each individual accountable.
• The manager ought to utilize a dashboard which shows the development of all the tasks which have been done or about to be done and by whom.
• The manager must keep track of and keep a constant check on the specific and total efficiency.
Because any new pattern or policy might come in due to which all the things already planned have actually to be changed, • Everybody should be prepared to adjust midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the manager need to interact the results and if effective need to celebrate with the group.


The M-net program revealed compelling analysis about the low and high growth potential locations and how much marketing budget plan should be allocated appropriately. This change the spending plan allocation of lots of supervisors and various countries were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia growth prospective merited a 35% allocation while they were receiving 45%. Whereas, China and Europe need to be getting 42% however were instead given 31%. It really helped to fairly distribute the resources and catch more consumers by spending more on advertisements on the high growth capacity regions of the world.

Its constant financial investment in R&D and innovative practices have actually propelled them to new heights however for them its' just the start and they desire to be amongst the top 3 brand names in the world. Their marketing efforts should be directed towards younger group amid the internal arguments about marketing and must create Consumer Lifetime Value as it will not only offer them benefits now but will continue to reap it till the consumer lifetime. As the cost of retaining the client is much less expensive than attracting a new one.