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Faith And Work Hobby Lobby And Autozone 2 Case Study Solution & Analysis


Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which utilized to sell Faith And Work Hobby Lobby And Autozone 2 Case Study Help items withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Samsung products with their own brand name. He rearranged Samsung as a worldwide brand and educated his divisional managers to understand marketing and its value.

Issue Statement

Samsung's shift from a product based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to integrate marketing successfully is still a major challenge. Developing a consistent brand identity throughout the whole world and utilizing marketing strategies that best fits the local culture is no simple job.

Situational Analysis

Faith And Work Hobby Lobby And Autozone 2 Case Study Solution efforts for building its brand name throughout the world was started after presenting the "new management effort" by Chairman Lee in 1993. The objective was to transform Samsung from a low-cost OEM to a high value-added product company. To make the vision of Samsung a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can transform from a low end to a luxury product provider. He knew that change can just be done through placing Samsung as a company providing high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a prospective support of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as very same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the existing marketing requirement was too much high, the space was too wider and to fill this gap with incorrect perceptions about marketing was rather tough for Yun.

Along with it the item variety of the company was increasing with the ripening of brand-new item ideas by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to produce marketing budgets for existing as well as for new products from the very start, and this would take a huge time.

A substantial shift would be required in current marketing expenses to construct the Samsung brand name. This would result in increased marketing expenses for Samsung and could disrupt the administration relating to increased costs, as they were unwilling to marketing expenses previously and an unexpected huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its huge product portfolio. Samsung has largest variety of patents in the market with overall number of 15499 patents approved in United States( USP). Big amount of R&D spending has actually allowed the company to grow its product portfolio at a greater rate than its rivals. Faith And Work Hobby Lobby And Autozone 2 Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Faith And Work Hobby Lobby And Autozone 2 Case Study Help is its ability to establish innovative items at a continuous rate. It major proves for the innovation and item creating of Samsung is that the company has received numerous awards for its development and item style.

Unlike Apple and other competitors, Samsung is concentrated on producing devices which can be quickly incorporated with any kind of open source Os (OS) and software. This supplies Samsung an edge over Apple gadgets.

Samsung's ability to produce high-end items at low cost of production is likewise one of the significant strength of Samsung as it makes it possible for the company to record more market by offering quality products with expense control.

Weak points

Samsung's weaknesses are hidden in the company's reliance on outsourcing software application for its devices due to company's inability in establishing software, unlike Sony. Faith And Work Hobby Lobby And Autozone 2 Case Study Solution likewise has low revenue margins as compare to Apple due to big difference in the rates of Apple and Samsung with a much lesser difference in quality.


Opportunities for Faith And Work Hobby Lobby And Autozone 2 Case Study Help lie in the growing Mobile phone market and the business's efficiency in the market. Samsung presently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of innovation industry position a severe danger on Samsung's survival and require the company to invest much of its profits share on R&D in order to survive in the long run. The marketplace saturation in developed countries i.e. saturation of mobile company is likewise a huge danger for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing


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

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Hard disk drives.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Faith And Work Hobby Lobby And Autozone 2 Case Study Analysis utilizes both market competitive and market skimming pricing strategies for its wide variety of products. In competitive prices it changes the rate according to the competitors in order to get advantage, whereas, it uses market skimming technique where the product has actually an included value and by offering a few products it can reach break-even.


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


It uses both offline & online channels of promo to market their products. Paid product advertisements, social promo and digital ads are uses to produce awareness about Samsung products.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most reliable and efficient supply chain network and has more than 2700 suppliers throughout different industries around the globe. Practically 80% of which is based in Asia and the staying around the globe. For its inbound logistics it owns different logistics firms as it subsidiaries. It looks after its suppliers and develops an unified relationship with them and even decreased their payment cycles to improve this relationship even more which includes worth to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 different divisions its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronics. It is keeping operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main reasons Faith And Work Hobby Lobby And Autozone 2 Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive advantage the item provides. Faith And Work Hobby Lobby And Autozone 2 Case Study Solution marketing budget plan is continually on the rise because they began their repositioning internationally and will continue to do so as they are continually aiming to invest and broaden in high potential development markets. The budget plan is spent on events, print and media advertisements, public relations etc.

Samsung put their consumers at the leading and continually aim to provide unmatchable customer service requirements. By including a direct support line to contact them 24 hours they have even more increased the included value of Samsung service.


Faith And Work Hobby Lobby And Autozone 2 Case Study Solution has diversified market division, based upon its arrangement of large range of items to a great deal of consumers. Samsung target customer sections can be divided into 3 categories i.e. Faith And Work Hobby Lobby And Autozone 2 Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget services.


Faith And Work Hobby Lobby And Autozone 2 Case Study Solution geographic division is based upon two criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products offered to Urban as well as Rural areas of the country. The Samsung is likewise growing its international existence and the business's versatility in finding its plants encourages global expansion of Samsung.


Samsung produces items that can be utilized by both males and females. The target consumers for Samsung IT and mobile communication products have an age variety of 18-65 with bulk at a young or recently wed life cycle phase. Apart from it, Samsung Consumer Electronic devices are targeted to a client segment with an age range of 25-65.


The psychographic division of Faith And Work Hobby Lobby And Autozone 2 Case Study Help s based upon the social class and the lifestyle of the consumer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class customers, as Samsung sell items like cellular phone very little cheaper i.e. Motorola along with very little expensive i.e. Apple. It supplies quality products to middle level customers at a somewhat high price than others targeting the exact same sector.


Faith And Work Hobby Lobby And Autozone 2 Case Study Analysis bulk target consumers have special behavioural qualities. They are attracted towards Samsung because of its moderate rates with an extent of quality.

Quantitative analysis.

Sales of Samsung has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has also minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Since of the high overhead expense, incomes/ sales are increasing but net revenue is not increasing accordingly. New growths and hiring's were the main reason of the increase in the overhead costs, with china currently not supplying any earnings to Samsung, however there is a lot potential in the existing market with 75 % yet to be checked out.

Qualitative analysis.

Whereas, the core strength of the business is presently producing however long gone are those days when good items were selling themselves. Kim has actually currently begun to reinforce the marketing activities of Samsung and very quickly it will become one of its core strength like manufacturing if not better.



Samsung operates designs, produces and offer a vast portfolio of consumer electronic devices. It runs in a very competitive environment and has actually successfully positioned itself as the maker of quality products. The answer is yes.


As, stated earlier that Faith And Work Hobby Lobby And Autozone 2 Case Study Solution runs in an extremely competitive environment, which means all the companies have comparable products. The answer 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 models. Yes, Samsung is just behind IBM in registering brand-new patents annually, however the advantage is very short term in this industry.


Chairman Lee has totally turn-around Samsung, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 business in the world. Certainly yes there appertains company in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread practically in every country worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. Nevertheless, it deals with some political pressures in less developed nations where order situation is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Faith And Work Hobby Lobby And Autozone 2 Case Study Analysis operations.


Buying power of customers is essential for business like Samsung to succeed and grow. Emerging markets like India, middle-eastern countries etc. provide growth chances, whereas, due to recession even the clients of developed nations suffer badly. Hence it is very important for the company to keep an eye on the ongoing economic scenario of the nation prior to getting in the marketplace.


Multinational companies have to deal with numerous social and cultural concerns throughout its operations in a foreign nation. Samsung has actually also dealt with numerous problems but have embraced to the regional environments of most of the nations incredibly well. It has customized its products, practices, policies and so on appropriately in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Faith And Work Hobby Lobby And Autozone 2 Case Study Help is among the top innovative companies of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Samsung has increased to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. So, it has to study or work with a regional law professional before beginning its operations in a specific nation.


With the increasing awareness amongst customers about the ecological & ethical violations of companies, Samsung has to guarantee that it follows all the safety standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the consequences can be very serious. On the other hand it has to do some Corporate Social Duty practices to show the locals that it appreciates their environment and individuals.

Porter's 5 Forces

Danger of Alternative

Danger of replacement for Samsung's each item category is quite substantial. Running in an exceptionally vibrant market lead the company to face a high danger of replacement. Factors for high risk of replacement for Faith And Work Hobby Lobby And Autozone 2 Case Study Solution Smartphone consist of the presence of high variety of suppliers and Market saturation in industrialized countries, that make the cost of changing for customers nearly no. Alternative risks for Samsung visual display lie in the altering lifestyle of consumers. Clients can switch to enjoying visuals in your home towards outside activities. Together with it, Samsung printing solutions products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Samsung and its close competitors is extreme. The major reason behind this is the technique of market saturation in different number of item classifications, forcing Samsung to introduce more ingenious features in existing products and brand-new ingenious products to keep its development. The major competitors for Faith And Work Hobby Lobby And Autozone 2 Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Faith And Work Hobby Lobby And Autozone 2 Case Study Solution has a large 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 possible size and worth. These huge orders allow Samsung to negotiate costs with its suppliers. Nevertheless, due to incapability of Faith And Work Hobby Lobby And Autozone 2 Case Study Analysis to construct its own software, it needs to outsource its software application advancement to Google, which ends up being a prospective provider of software for Samsung, leading to high bargaining power of Google. In many of Faith And Work Hobby Lobby And Autozone 2 Case Study Solution has a power to work out prices, but it supply substantial prices to its suppliers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

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

Threat of New Entrants:

Threat of brand-new entrants for Samsung is rather low. Among the major factor for low threat of brand-new entrants is the high competitors in the market. The requirement of big amount of capital to enter in the marketplace is also among the prospective barrier to entry. In addition to it, requirement of big proficiency and research study and advancement expenses 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 market. High bargaining power of providers require the players in the market to charge as low rates as possible and this can just be achieved by production efficiency. New companies, in majority cases, lack the production efficiency, hence increasing the dangers for entryway in the innovation market.

Competitive Analysis

Samsung's high product diversity provides it differentiation from its rivals. It is one of the 3 top brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on customer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a substantial R&D costs on all of its item categories which allow the business to make prospective income from sales of almost all of its items. (See Display) Nevertheless, due to the wide product range the business deals with high variety of rivals.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of international market share, among 8 different product classifications. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its revenues from chips was growing faster than Intel and has actually grown near the profits levels of Intel, as given in the case Exhibit 2.

In addition to the chips Samsung mobile market was also 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 only 4% and Nokia with zero sales growth. The significant reson behind Samsung's high growth despite of higher prices than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was likewise profiting from increasing market share of high end LCDs as given in case Exhibition 3. The significant factor, making the company make it possible for to obtain the chance is its mass production at low cost. Sony was the most significant rival for Faith And Work Hobby Lobby And Autozone 2 Case Study Help in LCD market, however, it had likewise started joint venture with Samsung in 2003 for LCD making, decreasing the competitors for Samsung.

Porter's Competitive Technique

Low Cost Leadership method of porter is totally executed by Samsung the way they attain economies of scale by strengthening their core proficiencies of production. They always bring something innovative and new whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Faith And Work Hobby Lobby And Autozone 2 Case Study Solution would develop a brand-new brand name image by targeting the younger generation of the specific nation. As, specifically mobile phones of Samsung are preferred amongst the younger market.


1. It is the best strategy to develop Consumer Life time Worth (CLV) by producing a long-term relationship with customers. Develop commitment through providing value and reap the benefits for long-term, as research study has actually revealed it is more affordable to keep current consumers than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker amongst younger individuals and which in turn will bring in brand-new clients for my items.


1. Old consumers who were connected with Samsung prior to might not like this brand-new image the company is trying to depict.
2 It will sustain additional expenses to rearrange some items and it might not even bring success as the trends change really quickly amongst the more youthful market.

Alternative service 2.

Samsung has made making its core proficiency for the a lot of part of their business and due to which its supervisors are not afraid to completely step out of their convenience zone. It would be done by arranging training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get benched. Marketing environment need to be created internally first as genuine marketing starts inside the corporation.


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


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

Recognize the best alternative

Very first alternative is the best as it plainly has more pros because once a Client Life time Value is developed the business will profit from it till that customer is alive and has purchasing power as well. Plus, our target consumers are the younger generation which are bound to live longer than the present aging individuals. However, Samsung's primary objective is to produce commitment amongst its clients and make them repurchase it from them and even buy their various items as well.

Implementation Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi do with music. And set the expectations attainable and reasonable.
• A team consisting of best marketing and sales professionals need to be put together, and both views must be taken into account before securing the resources required to implement the strategy.
• Thorough communication of the strategy ought to be done as it is very essential for everybody to be on the very same page to make it work.
• Jobs and timelines ought to be develop and communicated appropriately to each person responsible.
• The supervisor ought to utilize a control panel which shows the progress of all the tasks which have actually been done or about to be done and by whom.
• The supervisor must monitor and keep a consistent examine the general and individual performance.
• Everybody ought to be willing to adapt midway since any new trend or policy may come in due to which all the things already prepared need to be adjusted. It's better to have contingency plans already prepared.
• At the end of the project the supervisor must communicate the outcomes and if successful must celebrate with the group.

Spending plan

The M-net program exposed engaging analysis about the low and high development possible areas and how much advertising budget plan should be allocated appropriately. This change the budget plan allocation of different countries and many managers were unhappy and argued however the analysis done by the program was accurate and showed figures like The United States and Canada and Russia growth potential warranted a 35% allocation while they were getting 45%. Whereas, China and Europe should be getting 42% but were instead offered 31%. It actually helped to fairly distribute the resources and capture more customers by investing more on ads on the high development capacity regions of the world.


Its continuous investment in R&D and innovative practices have moved them to brand-new heights but for them its' only the start and they want to be amongst the top 3 brand names in the world. Their marketing efforts ought to be directed towards younger demographic in the middle of the internal arguments about marketing and need to develop Client Lifetime Value as it will not just offer them advantages now but will continue to enjoy it till the client lifetime. As the cost of maintaining the customer is much less expensive than drawing in a brand-new one.