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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 Help is a widely known global brand in technology industry, established in 1938 by Lee Byung Chul, in South Korea. Dows Bid For Rohm And Haas 7 handle large number of product classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic items. Historically, the business's core customers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Samsung products withtheir own brand. Till early 1990s, the core proficiency of Samsung depend on its low cost offerings than its rivals by manufacturing existing items at economies of scale. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to offer Dows Bid For Rohm And Haas 7 Case Study Help items with their own trademark name. Samsung was not merely known outside Korea. There were also no or little interest in developing the brand name globally. Marketing spending plan was managed by production department with a focal point on providing low-cost products.During the 1997 Asian Financial Crisis the business practically got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the leading 25 most valuable business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Samsung as an international brand name and educated his divisional managers to understand marketing and its significance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Samsung's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional managers to integrate marketing successfully is still a major obstacle. Developing a constant brand identity across the entire world and using marketing strategies that finest fits the regional culture is no easy job.

Situational Analysis

Dows Bid For Rohm And Haas 7 Case Study Help efforts for developing its brand across the world was begun after introducing the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from a low-cost OEM to a high value-added item provider. To make the vision of Samsung a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Samsung can change from a low end to a high end item supplier. He understood that transformation can just be done through placing Samsung as a business offering 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, with a prospective assistance of its executives, Yun faced several marketing challenges in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as exact same tools and believed that quality products do not needed 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 space was too broader and to fill this space with wrong understandings about marketing was rather difficult for Yun.

As mentioned above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing spending plans for each of the item on the portfolio. There was no marketing planning done for the existing products. Along with it the product variety of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a difficulty to carry out marketing preparation and to develop marketing spending plans for existing along with for brand-new items from the very beginning, and this would take a huge time.

A substantial shift would be needed in current marketing expenditures to build the Dows Bid For Rohm And Haas 7 Case Study Analysis brand. This would lead to increased marketing expenditures for Samsung and might interrupt the administration concerning increased costs, as they were reluctant to marketing expenses previously and an unexpected huge shiftwould make them disrupt. This might result in decreasing executive support for worldwide marketing. In this scenario, Yun deals with a difficulty for validating increased marketing expenses by showing the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its substantial product portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents approved in US( USP). Large quantity of R&D costs has actually enabled the company to grow its product portfolio at a higher rate than its rivals. Dows Bid For Rohm And Haas 7 Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total earnings.

Another strength of Dows Bid For Rohm And Haas 7 Case Study Analysis is its capability to establish ingenious items at a constant rate. It major proves for the development and item designing of Samsung is that the company has gotten many awards for its development and product style.

Unlike Apple and other rivals, Samsung is focused on producing devices which can be quickly incorporated with any kind of open source Os (OS) and software application. This provides Samsung an edge over Apple devices.

Samsung's capability to produce high-end items at low expense of production is likewise one of the significant strength of Samsung as it allows the business to capture more market by supplying quality products with expense control.


Dows Bid For Rohm And Haas 7 Case Study Analysis weaknesses are hidden in the business's dependence on outsourcing software application for its devices due to company's failure in developing software application, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to big difference in the prices of Apple and Samsung with a much lesser difference in quality. The diverse focus of the company due to large number of items in its portfolio, result in the less effective production and make the company unable to charge greater rates like Apple. The business is also inefficient in managing its patents and regularly deals with the issue of patent infraction.


Opportunities for Samsung depend on the growing Smartphone market and the business's effectiveness in the market. It can increase its market share and incomes from cell phone as the company is quite effective in mobile phone market. Samsung presently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to acquire patents. It would make it possible for the company to increase its item portfolio with a boost in its wealth.


The vibrant market environment of innovation industry pose a serious threat on Samsung's survival and require the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile company is also a huge risk for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing


Dows Bid For Rohm And Haas 7 Case Study Solution uses quality items and has a rather rich portfolio which accommodates various sectors. The majority of the items are in the leading 3 of their particular industries. LCD and cellphones are the most significant products of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Samsung:

• Laptops.
• Cellphone.
• Air conditioning system.
• Personal computers.
• Disk drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Dows Bid For Rohm And Haas 7 Case Study Analysis uses both market competitive and market skimming pricing techniques for its variety of products. In competitive pricing it changes the rate according to the competition in order to gain benefit, whereas, it uses market skimming method where the item has an added value and by offering a couple of items it can reach break-even.


It has among the very best supply chain networks, with retail distributors, 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 customers straight in case of online order.


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

Value Chain Analysis.

It's an analytical framework for recognizing business activities that include worth or competitive benefit for the business.

Incoming Logistics.

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


Samsung's core proficiency is its mass manufacturing it produces 90% of its items in-house. Divided into three various divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the primary factors Dows Bid For Rohm And Haas 7 Case Study Solution has the ability to compete with Apple. Samsung'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 claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product offers. Dows Bid For Rohm And Haas 7 Case Study Help marketing spending plan is continuously rising because they began their repositioning internationally and will continue to do so as they are constantly aiming to broaden and invest in high possible development markets. The budget plan is invested in events, print and media ads, public relations and so on.

Samsung put their consumers at the top and continuously make every effort to provide unmatchable client service standards. By adding a direct assistance line to call them 24 hours they have further increased the included value of Samsung service.


Dows Bid For Rohm And Haas 7 Case Study Solution has diversified market division, based upon its arrangement of wide range of items to a great deal of customers. Samsung target consumer sections can be divided into 3 categories i.e. Dows Bid For Rohm And Haas 7 Case Study Help IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device options.


Dows Bid For Rohm And Haas 7 Case Study Analysis geographic segmentation is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its items provided to Urban as well as Backwoods of the nation. The Samsung is also growing its international existence and the company's versatility in locating its plants motivates worldwide expansion of Samsung.


The group division of Dows Bid For Rohm And Haas 7 Case Study Analysis is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both males and women. The target clients for Samsung IT and mobile interaction items have an age range of 18-65 with bulk at a young or freshly married life cycle phase. They are mainly professionals, trainees and staff members. Apart from it, Samsung Customer Electronics are targeted to a customer segment with an age range of 25-65. They are primarily specialists and workers. Samsung Device Solutions are targeted at students, staff members and specialists with an age variety of 25-65.


The psychographic segmentation of Dows Bid For Rohm And Haas 7 Case Study Analysis s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Samsung offer products like mobile phone not much less expensive i.e. Motorola as well as very little pricey i.e. Apple. It offers quality items to middle level customers at a somewhat high price than others targeting the very same segment.


Dows Bid For Rohm And Haas 7 Case Study Analysis bulk target consumers have unique behavioural qualities. They are drawn in towards Samsung since of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Samsung has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has also lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead expense, profits/ sales are increasing but net profit is not increasing accordingly. New growths and hiring's were the main factor of the increase in the overhead costs, with china currently not supplying any profit to Samsung, but there is a lot capacity in the current market with 75 % yet to be checked out.

Qualitative analysis.

Whereas, the core strength of the company is presently making however long gone are those days when excellent items were selling themselves. Kim has currently begun to reinforce the marketing activities of Samsung and extremely soon it will end up being one of its core strength like producing if not much better.



Samsung runs designs, makes and offer a large portfolio of customer electronics. It runs in an extremely competitive environment and has successfully placed itself as the maker of quality items. So, the response is yes.


As, stated earlier that Dows Bid For Rohm And Haas 7 Case Study Analysis runs in a highly competitive environment, which indicates all the companies have similar items. The answer for rarity is no.


Due to the nature of the market, it is very simple for competitors to comprehend the functionality of the items and easily make their own designs. Yes, Samsung is just behind IBM in signing up new patents annually, however the benefit is really short term in this industry.


Chairman Lee has entirely turn-around Samsung, from going nearly insolvent during the Asian financial crisis of 1997 to the leading 25 company in the world. Absolutely yes there is proper organization in the company and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized countries where order situation is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Dows Bid For Rohm And Haas 7 Case Study Analysis operations.


Purchasing power of clients is important for companies like Samsung to grow and be successful. Emerging markets like India, middle-eastern countries etc. provide development chances, whereas, due to recession even the customers of industrialized nations suffer badly. It is really important for the company to keep an eye on the continuous financial scenario of the nation before getting in the market.


Multinational companies need to face different social and cultural concerns throughout its operations in a foreign nation. Samsung has actually also faced lots of concerns however have adopted to the regional environments of most of the nations extremely well. It has tailored its products, practices, policies etc. appropriately in order to succeed.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with constant ingenious product launches, Dows Bid For Rohm And Haas 7 Case Study Help is among the leading ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. It has to study or employ a regional law expert before beginning its operations in a specific country.


With the rising awareness among consumers about the ecological & ethical infractions of companies, Samsung has to ensure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not appropriate and in some countries the effects can be extremely severe. On the other hand it has to do some Business Social Duty practices to reveal the locals that it appreciates their environment and people.

Porter's 5 Forces

Hazard of Replacement

Hazard of substitution for Samsung's each product category is rather substantial. Elements for high danger of alternative for Dows Bid For Rohm And Haas 7 Case Study Analysis Smartphone consist of the existence of high number of suppliers and Market saturation in industrialized nations, which make the cost of changing for consumers nearly zero. Along with it, Samsung printing solutions items are threatened by the increasing attraction of consumers towards cloud storage.

Competition Amongst Existing Firms:

The rivaly amongst Samsung and its close competitors is intense. The major factor behind this is the technique of market saturation in different variety of product categories, forcing Samsung to introduce more ingenious features in existing products and brand-new innovative products to maintain its growth. Other element for the extreme competition among the rivals is the little item distinction among the items. The popular gamers in the innovation market are rather familiar with the importance of R&D costs for their survival and are encountering a race of marketing and R&D costs, to catch the marketplace. The significant rivals for Dows Bid For Rohm And Haas 7 Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the varying market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

Dows Bid For Rohm And Haas 7 Case Study Solution has a vast supply chain including about 2700 suppliers across the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of possible size and worth. These big orders make it possible for Samsung to work out costs with its suppliers. However, due to incapability of Dows Bid For Rohm And Haas 7 Case Study Help to build its own software application, it needs to outsource its software application advancement to Google, which ends up being a possible supplier of software for Samsung, leading to high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out prices, however it offer considerable prices to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in many of the product classifications also make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its products at a greater cost than much of its competitors, due to high end quality item and a fair brand name image.

Threat of New Entrants:

Risk of brand-new entrants for Samsung is quite low. One of the significant aspect for low threat of new entrants is the high competition in the industry. The requirement of big quantity of capital to enter in the market is also among the prospective barrier to entry. In addition to it, requirement of substantial knowledge and research study and development expenditures for survival in the market likewise make brand-new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in innovation industry. High bargaining power of suppliers require the gamers in the industry to charge as low costs as possible and this can just be attained by production effectiveness. New firms, in majority cases, do not have the production effectiveness, hence increasing the threats for entrance in the technology industry.

Competitive Analysis

Samsung's high product diversification offers it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Dows Bid For Rohm And Haas 7 Case Study Analysis had a huge R&D costs on all of its item categories which make it possible for the company to earn potential income from sales of practically all of its items.

The business ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in regards to worldwide market share, amongst 8 various product categories. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its incomes from chips was growing quicker than Intel and has actually grown close to the revenue levels of Intel, as provided in the case Exhibition 2.

In addition to the chips Samsung mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cell phone's sales growth 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 higher prices than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was likewise reaping the benefits from increasing market share of high-end LCDs as given up case Exhibit 3. The significant reason, making the business enable to obtain the chance is its mass production at low expense. Sony was the biggest rival for Dows Bid For Rohm And Haas 7 Case Study Help in LCD market, nevertheless, it had also started joint endeavor with Samsung in 2003 for LCD making, lessening the competition for Samsung.

Porter's Competitive Method

Low Cost Leadership method of porter is totally implemented by Samsung the way they attain economies of scale by reinforcing their core competencies of production. They always 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 create a new brand image by targeting the more youthful generation of the particular country. As, specifically cellphones of Samsung are incredibly popular among the younger demographic.


1. It is the very best method to develop Consumer Lifetime Worth (CLV) by developing a long-lasting relationship with customers. Construct commitment through providing value and profit for long-lasting, as research has actually revealed it is more affordable to maintain present consumers than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread faster amongst younger individuals and which in turn will bring in brand-new consumers for my items.


1. Old consumers who were associated with Samsung before may not like this brand-new image the company is trying to depict.
2 It will sustain further costs to reposition some products and it may not even bring success as the trends change extremely rapidly amongst the more youthful demographic.

Alternative service 2.

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


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


2. Its con can develop an extremely unhealthy environment in the work environment, as people frequently resist modification due to the fact that they fear it.

Identify the very best alternative

First option is the very best as it plainly has more pros because once a Client Life time Worth is built the company will profit from it till that client is alive and has buying power as well. Plus, our target consumers are the more youthful generation which are bound to live longer than the existing old age individuals. Nonetheless, Samsung's main objective is to produce commitment amongst its consumers and make them repurchase it from them and even purchase their various items as well.

Application Plan

• Targeting younger generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations sensible and achievable.
• A team consisting of finest marketing and sales professionals ought to be assemble, and both views must be considered prior to protecting the resources needed to carry out the strategy.
• Thorough communication of the plan should be done as it is really important for everybody to be on the same page to make it work.
• Jobs and timelines need to be develop and interacted appropriately to each person accountable.
• The manager must use a control panel which shows the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor need to keep an eye on and keep a continuous check on the general and specific efficiency.
Because any brand-new pattern or policy may come in due to which all the things already prepared have to be adjusted, • Everyone must be ready to adapt midway. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor should interact the results and if effective should celebrate with the group.


The M-net program revealed compelling analysis about the low and high growth possible areas and just how much marketing budget should be allocated appropriately. This change the spending plan allocation of lots of supervisors and different countries were unhappy and argued but the analysis done by the program was precise and revealed figures like North America and Russia development prospective merited a 35% allotment while they were getting 45%. Whereas, China and Europe need to be getting 42% but were rather offered 31%. It truly helped to relatively distribute the resources and record more clients by spending more on ads on the high development capacity regions of the world.


Dows Bid For Rohm And Haas 7 Case Study Analysis is a top 25 business worldwide now and prepares to get ahead of Sony who sits presently at no. 20. Its constant investment in R&D and ingenious practices have propelled them to brand-new heights however for them its' only the start and they wish to be among the top 3 brand names in the world. They entirely turn-around from nearly going bankrupt during the Asian Financial Crisis to a world distinguished brand name, understood for quality and innovation. Their value chain and their core competency their manufacturing ability, along-with worldwide brand name image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts must be directed towards more youthful demographic in the middle of the internal arguments about marketing and ought to create Consumer Life time Value as it will not just give them advantages now but will continue to gain it till the customer life time. As the expense of keeping the consumer is more affordable than attracting a new one.