Dows Bid For Rohm And Haas 7 Harvard Case Study Solution

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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 global brand name in innovation market, founded in 1938 by Lee Byung Chul, in South Korea. Dows Bid For Rohm And Haas 7 deals in a great deal of item classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which used to offer Samsung items withtheir own brand name. Till early 1990s, the core competency of Samsung lie in its low cost offerings than its rivals by making existing products at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Dows Bid For Rohm And Haas 7 Case Study Analysis items with their own brand name. Samsung was not merely known outside Korea. There were also no or little interest in building the brand internationally. Marketing budget was managed by production department with a prime focus on providing low-cost products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most valuable company on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even noted. He rearranged Samsung as a global brand name and educated his divisional supervisors to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Statement

Samsung's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing successfully is still a significant obstacle. Producing a consistent brand identity across the whole world and utilizing marketing techniques that best fits the regional culture is no simple job. The M-net program analysis have been actually helpful in determining the high and less potential development locations, but allocation of resources appropriately is not well gotten amongst the supervisors. There is no agreement amongst the hierarchy regarding the very best fit future technique.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Dows Bid For Rohm And Haas 7 Case Study Help can transform from a low end to a high end item provider. He understood that improvement can just be done through placing Samsung as a company offering high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand name, with a potential support of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as 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 organisation practices, and the current marketing requirement was too much high, the space was too larger and to fill this space with incorrect understandings about marketing was quite tough for Yun.

As mentioned above, marketing focus was very low in previous practices, for that reason there were no correct marketing budgets for each of the item on the portfolio. There was no marketing planning provided for the existing products. Along with it the item variety of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing planning and to produce marketing spending plans for existing as well as for new items from the very beginning, and this would take a huge time.

A substantial shift would be required in present marketing expenses to build the Samsung brand. This would result in increased marketing expenditures for Samsung and could interrupt the administration regarding increased expenses, as they were reluctant to marketing expenses formerly and an unexpected huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its big item portfolio. Samsung has largest variety of patents in the market with total number of 15499 patents given in US( USP). Large amount of R&D spending has actually made it possible for the business to grow its item portfolio at a higher 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 earnings.

Another strength of Dows Bid For Rohm And Haas 7 Case Study Analysis is its capability to establish innovative products at a continuous rate. It significant proves for the development and product designing of Samsung is that the company has gotten numerous awards for its innovation and product 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 supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end items at low expense of production is also one of the major strength of Samsung as it makes it possible for the company to catch more market by offering quality products with expense control.

Weak points

Dows Bid For Rohm And Haas 7 Case Study Analysis weak points are hidden in the business's dependence on outsourcing software for its devices due to company's failure in developing software, unlike Sony. Samsung likewise has low earnings margins as compare to Apple due to big difference in the prices of Apple and Samsung with a much lower difference in quality. The varied focus of the company due to large number of products in its portfolio, result in the less efficient production and make the business not able to charge higher prices like Apple. The company is also ineffective in handling its patents and frequently faces the issue of patent violation.


Opportunities for Samsung depend on the growing Mobile phone market and the business's efficiency in the market. It can increase its market share and profits from cellular phone as the business is quite effective in cellular phone market. Samsung presently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would enable the company to increase its item portfolio with an increase in its wealth.


The dynamic industry environment of technology industry present a serious danger on Samsung's survival and require the company to spend much of its earnings share on R&D in order to make it through in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile business is also a big danger for the company's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Samsung provides quality products and has a quite rich portfolio which caters to various segments. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Smart phone.
• A/c.
• Personal computers.
• Hard drives.
• Washing machines.
• Refrigerators.
• Cams.
• 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 variety of products. In competitive rates it changes the rate according to the competitors in order to acquire benefit, whereas, it utilizes market skimming method where the product has an added value and by selling a few products it can reach break-even.


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

Vrio Analysis
It wasn't a well-known business outside of Korea till 1993. However the management initiative taken by their CEO has actually pushed them to market more efficiently outside the borders and now it has actually entered the league of leading 25 companies in the world in simply 9 years. This is an impressive achievement in spite of the ongoing arguments among the supervisors about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid product ads, social promo and digital advertisements are uses to create awareness about Samsung items.

Worth Chain Analysis.

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

Inbound Logistics.

It has one of the most effective and effective supply chain network and has over 2700 suppliers throughout numerous industries around the world. Nearly 80% of which is based in Asia and the staying all over the world. For its incoming logistics it owns various logistics firms as it subsidiaries. It takes care of its suppliers and creates a harmonious relationship with them and even lowered their payment cycles to boost this relationship further which adds worth to their chain network.


Samsung's core competency is its mass manufacturing it produces 90% of its items internal. Divided into 3 different divisions its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is keeping operation hubs worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main 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 outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to communicate with them the worth and competitive advantage the product provides. Dows Bid For Rohm And Haas 7 Case Study Solution advertising spending plan is continuously on the rise because they began their repositioning internationally and will continue to do so as they are continually aiming to invest and expand in high possible development markets. The spending plan is invested in occasions, print and media ads, public relations and so on.

Samsung Service. Samsung put their customers on top and continuously make every effort to deliver unmatchable customer care requirements. As after sales service is ending up being incredibly important to keep customers pleased and engaged, they even perform surveys through 3rd parties to learn their customer's feedback and implement it in the favorable method to decrease or if possible entirely remove their client concerns. By adding a direct support line to contact them 24 hr they have actually even more increased the added worth of Dows Bid For Rohm And Haas 7 Case Study Help service.


Dows Bid For Rohm And Haas 7 Case Study Analysis has actually diversified market division, based upon its arrangement of wide range of items to large number of consumers. Samsung target client segments 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 services.


Dows Bid For Rohm And Haas 7 Case Study Analysis geographical segmentation is based upon two criteria i.e. region and density. Samsung serves about 80 nations worldwide with its products provided to Urban along with Rural areas of the nation. The Samsung is likewise growing its international presence and the company's versatility in locating its plants encourages international growth of Samsung.


The demographic division of Dows Bid For Rohm And Haas 7 Case Study Solution is based upon gender, age, life-cycle stage and profession. Samsung produces items that can be used by both males and females. The target consumers for Samsung IT and mobile communication items have an age variety of 18-65 with bulk at a young or newly married life process phase. They are mainly employees, students and professionals. Apart from it, Samsung Customer Electronic devices are targeted to a customer section with an age series of 25-65. They are primarily employees and professionals. Nevertheless Dows Bid For Rohm And Haas 7 Case Study Analysis Device Solutions are targeted at students, employees and experts with an age series of 25-65.


The psychographic division 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 primarily upper middle, middle and working class consumers, as Samsung sell items like cell phones very little less expensive i.e. Motorola in addition to very little pricey i.e. Apple. It supplies quality products to middle level customers at a slightly high cost than others targeting the very same segment.


Dows Bid For Rohm And Haas 7 Case Study Help majority target consumers have unique behavioural attributes. They are drawn in towards Samsung since of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Dows Bid For Rohm And Haas 7 Case Study Solution 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 $. 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.

Qualitative analysis.

Yes, this decision is based upon the objective of Kim to target the younger audience and develop an international brand name image of the business. Whereas, the core strength of the company is presently producing however long gone are those days when excellent items were selling themselves. In the current age marketing is extremely important and companies can not prosper without it. Kim has actually currently begun to reinforce the marketing activities of Samsung and soon it will become one of its core strength like manufacturing if not much better.



Samsung operates styles, makes and sell a vast portfolio of customer electronics. It runs in an exceptionally competitive environment and has actually effectively placed itself as the maker of quality products. So, the answer is yes.


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


Due to the nature of the industry, it is extremely simple for competitors to understand the functionality of the products and quickly make their own models. Yes, Samsung is only behind IBM in signing up new patents each year, but the advantage is very short-term in this industry.


Chairman Lee has entirely turnaround Samsung, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 company on the planet. Absolutely yes there is proper organization in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread almost in every country worldwide, majority of the environments like USA, Europe, China etc., are really conductive for its operations. However, it deals with some political pressures in less industrialized nations where order scenario is bad. 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.


Purchasing power of customers is essential for companies like Samsung to succeed and grow. Emerging markets like India, middle-eastern countries etc. supply development opportunities, whereas, due to recession even the clients of industrialized nations suffer severely. For this reason it is very crucial for the business to watch on the continuous financial circumstance of the nation before going into the market.


International business have to deal with various social and cultural concerns during its operations in a foreign country. Samsung has actually also dealt with many problems however have adopted to the regional environments of most of the nations extremely well. It has customized its products, practices, policies etc. appropriately in order to be successful.


With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with continuous innovative product launches, Dows Bid For Rohm And Haas 7 Case Study Solution is among the leading innovative business of the world. With a clear objective to be ahead of the rest when it pertains to technological improvements, Samsung has actually increased to the no 25 of the top effective business of the world.


Each nation 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 result in severe legal effects. It has to study or work with a regional law expert before beginning its operations in a particular nation.


With the increasing awareness among customers about the environmental & ethical violations of companies, Samsung has to ensure that it follows all the security standards. Environmental damages, ethical misbehaviors are not appropriate and in some countries the repercussions can be very extreme. On the other hand it needs to do some Corporate Social Obligation practices to show the locals that it cares about their environment and individuals.

Porter's Five Forces

Hazard of Replacement

Hazard of replacement for Samsung's each item category is quite significant. Factors for high threat of replacement for Dows Bid For Rohm And Haas 7 Case Study Analysis Smart device consist of the presence of high number of providers and Market saturation in developed nations, which make the expense of changing for customers practically zero. Along with it, Samsung printing solutions products are threatened by the increasing destination of clients towards cloud storage.

Competition Among Existing Companies:

The rivaly among Samsung and its close competitors is extreme. The major reason behind this is the method of market saturation in different variety of product classifications, forcing Samsung to introduce more innovative functions in existing products and new innovative items to keep its development. Other element for the intense rivalry among the competitors is the little item differentiation among the products. The prominent players in the technology market are rather aware of the value of R&D spending for their survival and are facing a race of marketing and R&D costs, to capture the marketplace. The significant competitors for Dows Bid For Rohm And Haas 7 Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the varying market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

Dows Bid For Rohm And Haas 7 Case Study Analysis has a vast supply chain including about 2700 providers across the world.( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These substantial orders enable Samsung to work out costs with its suppliers. Nevertheless, due to incapability of Dows Bid For Rohm And Haas 7 Case Study Analysis to build its own software, it needs to outsource its software application advancement to Google, which ends up being a potential provider of software application for Samsung, resulting in high bargaining power of Google. In many of Dows Bid For Rohm And Haas 7 Case Study Solution has a power to work out prices, but it supply substantial rates to its providers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

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

Risk of New Entrants:

Threat of new entrants for Samsung is rather low. One of the major aspect for low risk of new entrants is the high competition in the industry. The requirement of substantial amount of capital to enter in the market is also among the potential barrier to entry. In addition to it, requirement of big expertise and research study and advancement expenditures for survival in the market likewise make brand-new entrants reluctant to go into in the marketplace. Market saturation is also one of the barrier of entry in technology industry. High bargaining power of suppliers require the players in the industry to charge as low prices as possible and this can just be attained by production efficiency. New firms, in bulk cases, lack the production performance, for this reason increasing the dangers for entrance in the technology market.

Competitive Analysis

Samsung's high item diversification supplies it differentiation from its rivals. It is among the 3 leading brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Samsung had a substantial R&D costs on all of its product classifications which enable the company to make prospective profits from sales of nearly all of its products. (See Exhibit) However, due to the broad item range the company deals with high variety of competitors.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to global market share, among 8 various product classifications. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Although, Samsung earnings from chips was less than Intel but its revenues from chips was growing quicker than Intel and has grown near the earnings levels of Intel, as given up the case Exhibit 2.

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

Samsung was also profiting from increasing market share of luxury LCDs as given in case Exhibit 3. The major reason, making the company allow to get the chance is its mass production at low cost. Sony was the greatest competitor for Dows Bid For Rohm And Haas 7 Case Study Solution in LCD market, nevertheless, it had actually also begun joint venture with Samsung in 2003 for LCD producing, minimizing the competition for Samsung.

Porter's Competitive Strategy

Low Cost Management method of porter is totally executed by Samsung the method they attain economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to make for them, since they were unable to take on them on low cost. Differentiation is another strategy well carried out by Samsung by continuous investment in the R&D and remaining ahead of the competitors. They constantly bring something new and ingenious whether it's a service or an item.


Alternative Option 1

The Chief Marketing Officer (CMO) of Dows Bid For Rohm And Haas 7 Case Study Analysis would produce a new brand name image by targeting the younger generation of the particular country. As, especially mobile phones of Samsung are popular amongst the more youthful market.


1. It is the best strategy to build Customer Lifetime Worth (CLV) by developing a long-lasting relationship with clients. Develop loyalty through delivering value and reap the benefits for long-term, as research has actually showed it is more affordable to retain present customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will bring in brand-new customers for my products.


1. Old customers who were related to Samsung before might not like this new image the company is trying to portray.
2 It will incur more costs to reposition some products and it may not even bring success as the trends alter extremely rapidly amongst the more youthful group.

Alternative solution 2.

Samsung has made producing its core competency for the many part of their business and due to which its managers are not afraid to totally get out of their convenience zone. It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment should be created internally first as genuine marketing starts 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 a very unhealthy environment in the office, as individuals frequently withstand change due to the fact that they fear it.

Determine the best alternative

Very first alternative is the best as it clearly has more pros because once a Consumer Lifetime Value is developed the company will benefit from it till that customer lives and has purchasing power too. Plus, our target clients are the younger generation which are bound to live longer than the current aging individuals. Nonetheless, Samsung's main goal is to develop commitment amongst its customers and make them bought it from them and even purchase their different items too.

Execution Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations attainable and sensible.
• A group consisting of best marketing and sales experts must be put together, and both views need to be taken into consideration before protecting the resources needed to implement the plan.
• Thorough communication of the strategy should be done as it is extremely essential for everybody to be on the same page to make it work.
• Tasks and timelines should be develop and interacted accordingly to each person accountable.
• The supervisor must utilize a control panel which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to monitor and keep a consistent check on the individual and general efficiency.
Because any new pattern or policy may come in due to which all the things currently prepared have to be changed, • Everybody should be willing to adapt midway. It's better to have contingency plans currently prepared.
• At the end of the campaign the manager must interact the results and if effective must celebrate with the group.

Budget plan

The M-net program exposed compelling analysis about the low and high growth possible locations and just how much advertising spending plan ought to be assigned accordingly. This modification the budget allotment of various nations and numerous managers were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia growth possible warranted a 35% allotment while they were receiving 45%. Whereas, China and Europe ought to be getting 42% but were instead offered 31%. It actually assisted to relatively distribute the resources and record more customers by investing more on ads on the high growth potential areas of the world.

Its consistent investment in R&D and ingenious practices have moved them to brand-new heights but for them its' just the start and they desire to be amongst the leading 3 brands in the world. Their marketing efforts must be directed towards younger group in the middle of the internal arguments about marketing and ought to develop Customer Lifetime Worth as it will not just offer them advantages now but will continue to reap it till the client lifetime. As the expense of keeping the client is much more affordable than drawing in a new one.