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Fedex Acquisition Of Kinkos Harvard Case Study Analysis

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Fedex Acquisition Of Kinkos Case Study Solution & Analysis


Introduction

Fedex Acquisition Of Kinkos Case Study Help is a widely known international brand name in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Fedex Acquisition Of Kinkos handle large number of item categories including Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic items. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which utilized to sell Business items withtheir own brand name. Till early 1990s, the core proficiency of Venture depend on its low cost offerings than its rivals by producing existing products at economies of scale. Its client circle consists of Original Equipment Manufacturers (OEMs), who used to offer Fedex Acquisition Of Kinkos Case Study Help products with their own brand name. Corporation was not merely understood outside Korea. There were likewise no or little interest in developing the brand internationally. Marketing spending plan was managed by production department with a prime focus on supplying low-cost products.During the 1997 Asian Financial Crisis the company almost got bankrupt, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable company worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Venture as a global brand name and informed his divisional managers to comprehend marketing and its significance. Now their objective is to reach the top 10 by 2005.

Problem Declaration

Venture's shift from a product based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to integrate marketing successfully is still a major obstacle. Developing a constant brand name identity throughout the entire world and using marketing methods that finest fits the regional culture is no simple task.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Fedex Acquisition Of Kinkos Case Study Help can change from a low end to a high end product supplier. He understood that change can just be done through positioning Corp as a company using 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 Enterprise brand, with a potential support of its executives, Yun dealt with several marketing difficulties in early years of its efforts.

One of the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as exact same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the current marketing requirement was too much high, the gap was too wider and to fill this gap with wrong perceptions about marketing was rather difficult for Yun.

Along with it the item variety of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Enterprise. Yun had a challenge to perform marketing preparation and to develop marketing budget plans for existing as well as for new items from the very beginning, and this would take a huge time.

A big shift would be required in existing marketing expenses to construct the Organization brand. This would result in increased marketing expenditures for Venture and could interrupt the administration relating to increased expenditures, as they were reluctant to marketing expenditures formerly and an unexpected huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Fedex Acquisition Of Kinkos Case Study Analysis strengths lie in its huge item portfolio. Enterprise has largest number of patents in the industry with total number of 15499 patents approved in United States( USP).

Another strength of Fedex Acquisition Of Kinkos Case Study Help is its capability to develop ingenious items at a constant rate. It major proves for the development and item creating of Corporation is that the business has actually received numerous awards for its innovation and product style.

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

Weak points

Fedex Acquisition Of Kinkos Case Study Help weaknesses are hidden in the company's dependence on outsourcing software for its devices due to business's failure in establishing software application, unlike Sony. Company also has low revenue margins as compare to Apple due to big difference in the prices of Apple and Business with a much lesser difference in quality. The varied focus of the business due to a great deal of products in its portfolio, result in the less efficient production and make the business unable to charge higher costs like Apple. The business is likewise ineffective in managing its patents and frequently deals with the problem of patent violation.

Opportunities

Opportunities for Org depend on the growing Smart device market and the business's efficiency in the market. It can increase its market share and earnings from mobile phone as the business is quite effective in mobile phone market. Corp currently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Corp can move towards acquisitions to get patents. It would make it possible for the company to increase its item portfolio with a boost in its wealth.

Threats

The vibrant industry environment of technology industry posture a serious danger on Company's survival and require the company to spend much of its earnings share on R&D in order to endure in the long run. The market saturation in developed nations i.e. saturation of mobile company is likewise a big risk for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis
Product

Company uses quality items and has a rather rich portfolio which caters to different sectors. LCD and mobile phones are the greatest items of Organization, whereas DRAM is likewise not far behind in comparison of them.

• LCD/ TELEVISION
• Laptops.
• Smart phone.
• Air conditioning unit.
• Computer.
• Hard disks.
• Washing machines.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Fedex Acquisition Of Kinkos Case Study Help uses both market competitive and market skimming pricing techniques for its wide range of items. In competitive pricing it changes the cost according to the competitors in order to get advantage, whereas, it utilizes market skimming technique where the product has actually an included value and by selling a few items it can reach break-even.

Location.

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

Promo.
Vrio Analysis
It wasn't a popular business outside of Korea till 1993. The management effort taken by their CEO has pressed them to market more efficiently outside the borders and now it has actually gotten in the league of top 25 companies in the world in simply 9 years. This is an amazing accomplishment regardless of the continuous arguments among the managers about adopting marketing practices. It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promo and digital advertisements are uses to produce awareness about Organization products.

Value Chain Analysis.

It's an analytical framework for determining company activities that add value or competitive benefit for the company.

Inbound Logistics.

For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its providers and produces an unified relationship with them and even minimized their payment cycles to enhance this relationship further which adds value to their chain network.

Operations.

Corp's core competency is its mass making it produces 90% of its products internal. Divided into 3 different departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is preserving operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main factors Fedex Acquisition Of Kinkos Case Study Solution is able to compete with Apple. Organization's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Corp.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the product uses. Fedex Acquisition Of Kinkos Case Study Help advertising budget plan is constantly on the rise given that they started their rearranging globally and will continue to do so as they are continuously looking to broaden and invest in high possible development markets. The budget plan is spent on occasions, print and media advertisements, public relations and so on.

Enterprise put their clients at the leading and constantly aim to provide unmatchable customer service standards. By adding a direct assistance line to call them 24 hours they have actually even more increased the added value of Enterprise service.

Segmentation.

Fedex Acquisition Of Kinkos Case Study Help has diversified market division, based upon its provision of wide variety of products to a great deal of customers. Organization target consumer sectors can be divided into 3 classifications i.e. Fedex Acquisition Of Kinkos Case Study Help IT and Mobile Communications, Company Customer Electronics and Venture Device solutions.

Geographic.

Fedex Acquisition Of Kinkos Case Study Analysis geographical division is based upon two requirements i.e. region and density. Corporation serves about 80 nations worldwide with its items supplied to Urban as well as Backwoods of the nation. The Organization is likewise growing its global existence and the company's versatility in finding its plants encourages global growth of Org.

Market.

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

Psychographic.

The psychographic segmentation of Fedex Acquisition Of Kinkos Case Study Solution s based upon the social class and the lifestyle of the customer. Corporation target customers on the basis of social class are generally upper middle, middle and working class customers, as Org offer products like cell phones not much cheaper i.e. Motorola in addition to not much pricey i.e. Apple. It supplies quality items to middle level consumers at a slightly high price than others targeting the same section.

Behavioural.

Fedex Acquisition Of Kinkos Case Study Help bulk target clients have special behavioural attributes. It has consumers with an enthusiastic, fashionable and figured out personality with moderate level of loyalty towards the brand name. Its clients have some degree of shift towards other popular brands i.e. Apple. Most of Business customers desire quality as well as expense control. Due to the fact that of its moderate costs with an extent of quality, they are drawn in towards Company.

Quantitative analysis.

Sales of Org has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually likewise decreased its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Business with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Incomes/ sales are increasing but net profit is not increasing appropriately because of the high overhead expense. New growths and working with's were the primary factor of the boost in the overhead expenses, with china currently not offering any earnings to Enterprise, but there is so much potential in the existing market with 75 % yet to be checked out.

Qualitative analysis.

Whereas, the core strength of the company is currently manufacturing however long gone are those days when great items were selling themselves. Kim has actually currently begun to reinforce the marketing activities of Corp and really quickly it will end up being one of its core strength like manufacturing if not better.

VRIO.

Worth.

Venture operates designs, produces and sell a huge portfolio of customer electronics. It runs in an incredibly competitive environment and has actually successfully placed itself as the maker of quality products. The answer is yes.

Rarity.

As, stated previously that Fedex Acquisition Of Kinkos Case Study Analysis operates in a highly competitive environment, which suggests all the companies have comparable items. The answer for rarity is no.

Imitability.

Due to the nature of the industry, it is very easy for competitors to comprehend the functionality of the products and quickly make their own designs. Yes, Business is just behind IBM in signing up new patents yearly, but the benefit is very short term in this industry.

Company.

Chairman Lee has totally turnaround Org, from going nearly insolvent throughout the Asian monetary crisis of 1997 to the top 25 business in the world. Definitely yes there appertains company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being an international brand spread practically in every nation worldwide, bulk of the environments like USA, Europe, China etc., are extremely conductive for its operations. However, it faces some political pressures in less industrialized countries where law and order circumstance is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Fedex Acquisition Of Kinkos Case Study Solution operations.

Economic

Purchasing power of customers is crucial for business like Venture to be successful and grow. Emerging markets like India, middle-eastern countries and so on provide growth chances, whereas, due to recession even the clients of industrialized countries suffer terribly. It is very essential for the business to keep an eye on the continuous financial scenario of the country prior to going into the market.

Socio-Cultural

International business have to deal with numerous social and cultural issues during its operations in a foreign country. Company has actually also dealt with many concerns but have adopted to the local environments of most of the countries exceptionally well. It has actually tailored its items, practices, policies etc. appropriately in order to succeed.

Technological

With a yearly expenditure of 2.4 billion dollars in Research & Development, and with consistent ingenious product launches, Fedex Acquisition Of Kinkos Case Study Help is one of the leading ingenious business of the world. With a clear mission to be ahead of the rest when it pertains to technological advancements, Enterprise has risen to the no 25 of the top successful companies of the world.

Legal

Each country has their own laws and policies, being a multinational company Enterprise need to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal consequences. It has to study or hire a local law professional before beginning its operations in a particular nation.

Environmental

With the increasing awareness among consumers about the ecological & ethical violations of companies, Organization has to ensure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some countries the repercussions can be very serious. On the other hand it has to do some Business Social Responsibility practices to reveal the locals that it cares about their environment and people.

Porter's 5 Forces

Risk of Replacement

Threat of alternative for Venture's each product category is quite significant. Aspects for high threat of substitution for Fedex Acquisition Of Kinkos Case Study Analysis Smart device consist of the existence of high number of providers and Market saturation in developed nations, which make the expense of switching for consumers almost absolutely no. Along with it, Org printing options items are threatened by the increasing destination of clients towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly among Org and its close competitors is extreme. The major reason behind this is the method of market saturation in various variety of item classifications, forcing Corp to introduce more innovative functions in existing products and brand-new ingenious items to preserve its growth. Other factor for the intense rivalry among the rivals is the little product distinction among the items. The prominent gamers in the technology market are rather familiar with the significance of R&D costs for their survival and are encountering a race of marketing and R&D costs, to capture the market. The significant competitors for Fedex Acquisition Of Kinkos Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the changing market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

( Business Sustainability Report, 2016) Supplier's bargaining power for Enterprise is low as Business runs economies of scale and its orders are of prospective size and worth. Due to incapability of Fedex Acquisition Of Kinkos Case Study Analysis to construct its own software, it has to outsource its software advancement to Google, which ends up being a prospective supplier of software application for Organization, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Market saturation in most of the item classifications likewise make the bargaining power of buyers more extreme in for Organization. In spite of igh bargaining power Corporation is rather capable of offering its items at a higher cost than much of its competitors, due to high end quality item and a reasonable brand image.

Threat of New Entrants:

Danger of new entrants for Organization is rather low. One of the major 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 potential barrier to entry. Together with it, requirement of substantial know-how and research study and advancement expenditures for survival in the market also make brand-new entrants unwilling to go into in the marketplace. Market saturation is also among the barrier of entry in technology industry. High bargaining power of suppliers force the gamers in the industry to charge as low rates as possible and this can just be attained by production efficiency. New companies, in bulk cases, lack the production effectiveness, for this reason increasing the threats for entrance in the technology industry.

Competitive Analysis

Business's high product diversity supplies it distinction from its rivals. It is among the 3 top brand names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on customer electronic devices, Nokia on mobile phone and Intel on chips, Corporation had a substantial R&D spending on all of its item categories which make it possible for the business to make prospective earnings from sales of almost all of its items. (See Display) Nevertheless, due to the broad product range the company faces high variety of rivals.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of international market share, among 8 various product classifications. Org was the worldwide leader in making DRAM, SRAM and NAND flash chips. Organization incomes from chips was less than Intel but its incomes from chips was growing quicker than Intel and has actually grown close to the profits levels of Intel, as offered in the case Exhibit 2.

Along with the chips Company mobile market was also thriving at a high rate than its rivals i.e. Motorola and Nokia. Organization's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The significant reson behind Corporation's high growth despite of higher costs than Nokia and Motorola was the company's high-end quality cell phones.

Business was likewise profiting from increasing market share of luxury LCDs as given up case Display 3. The major reason, making the company allow to get the opportunity is its mass production at low cost. Sony was the most significant competitor for Fedex Acquisition Of Kinkos Case Study Solution in LCD market, however, it had likewise begun joint endeavor with Enterprise in 2003 for LCD producing, reducing the competitors for Org.

Porter's Competitive Technique

Low Expense Management strategy of porter is totally implemented by Venture the method they achieve economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something new and ingenious whether it's a service or a product.

Alternatives

Alternative Solution 1

The Chief Marketing Officer (CMO) of Fedex Acquisition Of Kinkos Case Study Analysis would produce a brand-new brand image by targeting the more youthful generation of the specific nation. As, specifically smart phones of Organization are very popular amongst the younger group.

Pros

1. It is the very best method to construct Client Life time Worth (CLV) by producing a long-term relationship with consumers. Develop commitment through providing value and reap the benefits for long-lasting, as research has revealed it is much cheaper to maintain existing clients than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly among younger people and which in turn will bring in new clients for my items.

Cons

1. Old consumers who were connected with Corp prior to might not like this brand-new image the business is trying to depict.
2 It will incur more expenses to rearrange some items and it may not even bring success as the trends change extremely quickly amongst the more youthful demographic.

Alternative service 2.

It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be offered. Marketing environment must be developed internally first as real marketing starts inside the corporation.

Pros

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

Cons

2. Its con can create a really unhealthy environment in the office, as individuals typically resist change since they fear it.

Determine the best option

First option is the very best as it plainly has more pros because once a Customer Life time Value is constructed the business will profit from it till that consumer lives and has buying power too. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. However, Organization's primary goal is to produce commitment amongst its customers and make them repurchase it from them and even purchase their different products also.

Execution Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations realistic and possible.
• A group including best marketing and sales professionals need to be put together, and both views ought to be taken into account prior to securing the resources required to carry out the strategy.
• Thorough interaction of the strategy ought to be done as it is extremely essential for everyone to be on the same page to make it work.
• Tasks and timelines ought to be construct and communicated accordingly to each person responsible.
• The supervisor need to utilize a dashboard which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The supervisor must keep track of and keep a consistent check on the individual and total performance.
• Everybody should be willing to adapt midway because any new pattern or policy may be available in due to which all the things currently prepared have to be adjusted. It's much better to have contingency plans already prepared.
• At the end of the campaign the supervisor need to interact the outcomes and if effective need to celebrate with the team.

Spending plan

This change the budget allotment of lots of managers and different nations were dissatisfied and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth prospective merited a 35% allotment while they were receiving 45%. It truly assisted to relatively distribute the resources and capture more customers by spending more on advertisements on the high growth capacity regions of the world.
Recommendations
Conclusion

Its continuous investment in R&D and ingenious practices have actually propelled them to new heights but 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 more youthful demographic in the middle of the internal arguments about marketing and ought to produce Client Lifetime Worth as it will not only offer them advantages now but will continue to gain it till the client lifetime. As the expense of maintaining the client is much more affordable than drawing in a brand-new one.