Gemini Electronics 4 Harvard Case Study Solution

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Gemini Electronics 4 Case Study Solution and Analysis


Historically, the company's core customers consist of the Original Equipment Manufacturers (OEMs), which used to offer Gemini Electronics 4 Case Study Solution products withtheir own brand name. Its consumer circle includes Original Equipment Manufacturers (OEMs), who used to sell Enterprise items with their own brand name. He repositioned Company as an international brand and educated his divisional managers to understand marketing and its importance.

Issue Statement

Venture's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to integrate marketing effectively is still a major difficulty. Developing a constant brand name identity across the entire world and using marketing methods that finest fits the regional culture is no easy task.
Executive Summary
Situational Analysis

Gemini Electronics 4 Case Study Analysis efforts for developing its trademark name throughout the world was begun after introducing the "new management effort" by Chairman Lee in 1993. The objective was to change Organization from a cheap OEM to a high value-added item supplier. To make the vision of Company a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Business can transform from a low end to a high-end item company. He knew that transformation can only be done through placing Company as a company using high-end items and this might only be done through high level of marketing.

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

One of the marketing difficulties for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as same tools and thought 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 excessive high, the space was too larger and to fill this gap with wrong perceptions about marketing was quite difficult for Yun.

Along with it the product range of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Company. Yun had a challenge to perform marketing planning and to develop marketing budget plans for existing as well as for new products from the very beginning, and this would take a substantial time.

A big shift would be needed in existing marketing expenditures to build the Gemini Electronics 4 Case Study Solution brand. This would lead to increased marketing expenses for Enterprise and could interrupt the administration regarding increased costs, as they were reluctant to marketing expenditures formerly and an abrupt huge shiftwould make them disturb. This might lead to decreasing executive support for global marketing. In this situation, Yun faces an obstacle for justifying increased marketing costs by showing the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Corporation strengths depend on its big product portfolio. Organization has largest variety of patents in the market with overall variety of 15499 patents given in United States( USP). Large quantity of R&D spending has allowed the business to grow its product portfolio at a greater rate than its rivals. Gemini Electronics 4 Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall incomes.

Another strength of Gemini Electronics 4 Case Study Solution is its capability to develop innovative products at a continuous rate. It significant shows for the innovation and item developing of Venture is that the company has actually gotten a lot of awards for its innovation and product design.

Unlike Apple and other rivals, Business is focused on producing devices which can be quickly integrated with any kind of open source Operating System (OS) and software. This provides Business an edge over Apple devices.
Porter's 5 Forces Analysis
Enterprise's capability to produce high end items at low expense of production is also one of the significant strength of Company as it enables the company to record more market by supplying quality items with expense control.

Weak points

Enterprise's weak points are concealed in the business's reliance on outsourcing software for its devices due to company's inability in establishing software application, unlike Sony. Gemini Electronics 4 Case Study Analysis likewise has low earnings margins as compare to Apple due to substantial distinction in the rates of Apple and Venture with a much lower difference in quality.


Opportunities for Org depend on the growing Smart device market and the company's efficiency in the market. It can increase its market share and profits from cell phone as the company is quite effective in smart phone market. Organization 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. Organization can move towards acquisitions to get patents. It would make it possible for the business to increase its item portfolio with a boost in its wealth.


The vibrant market environment of technology market present a serious risk on Org'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 marketplace saturation in industrialized countries i.e. saturation of mobile business is also a big danger for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Gemini Electronics 4 Case Study Help offers quality items and has a quite rich portfolio which caters to different sections. The majority of the items are in the top three of their particular industries. LCD and cellphones are the most significant products of Business, whereas DRAM is also not far behind in contrast of them. Following is the product line of Company:

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Gemini Electronics 4 Case Study Analysis uses both market competitive and market skimming rates strategies for its wide array of products. In competitive pricing it adjusts the price according to the competitors in order to get advantage, whereas, it utilizes market skimming technique where the product has actually an added worth and by selling a few products it can reach break-even.


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

Vrio Analysis
It wasn't a popular business beyond Korea up until 1993. But the management effort taken by their CEO has pushed them to market more efficiently outside the borders and now it has actually gone into the league of leading 25 business worldwide in just 9 years. This is a remarkable accomplishment in spite of the ongoing arguments amongst the supervisors about adopting marketing practices. It utilizes both offline & online channels of promo to market their items. Paid item advertisements, social promo and digital ads are utilizes to develop awareness about Company items.

Value Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and creates a harmonious relationship with them and even decreased their payment cycles to improve this relationship even more which includes worth to their chain network.


Company's core proficiency is its mass producing it produces 90% of its items internal. Divided into 3 different divisions its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is keeping operation centers worldwide to even more add value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main reasons Gemini Electronics 4 Case Study Analysis is able to take on Apple. Organization's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Organization.

Marketing and Sales.

Bring in target consumer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the item offers. Gemini Electronics 4 Case Study Solution advertising budget is constantly increasing since they started their repositioning internationally and will continue to do so as they are continuously looking to invest and expand in high potential growth markets. The budget is invested in occasions, print and media advertisements, public relations and so on.

Enterprise Service. Organization put their consumers on top and continuously aim to provide unmatchable customer support requirements. As after sales service is ending up being incredibly crucial to keep consumers pleased and engaged, they even perform surveys through 3rd parties to discover their client's feedback and implement it in the positive method to reduce or if possible entirely remove their customer concerns. By adding a direct assistance line to contact them 24 hours they have actually even more increased the added worth of Gemini Electronics 4 Case Study Analysis service.


Gemini Electronics 4 Case Study Help has actually diversified market segmentation, based upon its provision of large range of products to a great deal of consumers. Org target consumer sections can be divided into 3 categories i.e. Gemini Electronics 4 Case Study Help IT and Mobile Communications, Org Customer Electronics and Organization Device services.


Gemini Electronics 4 Case Study Help geographic division is based upon 2 requirements i.e. area and density. Organization serves about 80 nations worldwide with its products offered to Urban along with Backwoods of the country. The Corp is likewise growing its global existence and the business's flexibility in finding its plants motivates worldwide expansion of Venture.


The group division of Gemini Electronics 4 Case Study Help is based upon gender, age, life-cycle stage and occupation. Corp produces items that can be utilized by both males and females. The target consumers for Org IT and mobile interaction products have an age series of 18-65 with bulk at a young or freshly married life process phase. They are mostly experts, workers and trainees. Apart from it, Corporation Customer Electronic devices are targeted to a customer sector with an age range of 25-65. They are primarily staff members and experts. However Gemini Electronics 4 Case Study Help Device Solutions are targeted at trainees, workers and professionals with an age variety of 25-65.


The psychographic segmentation of Gemini Electronics 4 Case Study Analysis s based upon the social class and the lifestyle of the customer. Venture target customers on the basis of social class are generally upper middle, middle and working class consumers, as Enterprise offer products like mobile phone not much less expensive i.e. Motorola along with very little pricey i.e. Apple. It provides quality items to middle level consumers at a somewhat high price than others targeting the same sector.


Gemini Electronics 4 Case Study Solution majority target customers have unique behavioural attributes. It has consumers with an enthusiastic, fashionable and determined personality with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other renowned brand names i.e. Apple. The majority of Organization consumers want quality as well as cost control. Because of its moderate prices with an extent of quality, they are drawn in towards Business.

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 also lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification 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 expansions and working with's were the main factor of the increase in the overhead costs, with china currently not supplying any earnings to Corp, but there is a lot capacity in the present market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based on the mission of Kim to target the younger audience and produce an international brand image of the business. Whereas, the core strength of the company is currently making however long gone are those days when great items were selling themselves. In the current age marketing is really important and business can not be successful without it. Kim has currently begun to reinforce the marketing activities of Company and very soon it will become one of its core strength like producing if not better.



Business runs styles, makes and sell a huge portfolio of customer electronic devices. It operates in an incredibly competitive environment and has actually effectively positioned itself as the maker of quality items. So, the response is yes.


As, stated earlier that Gemini Electronics 4 Case Study Solution operates in an extremely competitive environment, which implies all the companies have similar products. So, the answer for rarity is no.


Due to the nature of the industry, it is really easy for competitors to understand the functionality of the items and quickly make their own models. Yes, Org is just behind IBM in signing up new patents each year, however the benefit is extremely short term in this market.


Chairman Lee has completely turnaround Enterprise, from going nearly bankrupt during the Asian financial crisis of 1997 to the leading 25 company on the planet. Absolutely yes there appertains company in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread almost in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are very conductive for its operations. It deals with some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Gemini Electronics 4 Case Study Help operations.


Purchasing power of customers is crucial for companies 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 consumers of developed nations suffer badly. It is very crucial for the business to keep an eye on the continuous financial circumstance of the nation prior to entering the market.


Multinational business need to face different social and cultural problems throughout its operations in a foreign country. Organization has also faced lots of problems however have adopted to the regional environments of the majority of the nations incredibly well. It has tailored its items, practices, policies and so on appropriately in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with constant ingenious item launches, Gemini Electronics 4 Case Study Solution is one of the top innovative business of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Venture has actually increased to the no 25 of the top successful business of the world.


Each country has their own laws and policies, being a multinational company Business need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. So, it has to study or hire a regional law professional before starting its operations in a particular nation.


With the rising awareness among consumers about the ecological & ethical infractions of companies, Business needs to ensure that it follows all the safety guidelines. Environmental damages, ethical misconducts are not appropriate and in some countries the repercussions can be extremely serious. On the other hand it has to do some Corporate Social Responsibility practices to reveal the residents that it appreciates their environment and individuals.

Porter's Five Forces

Hazard of Substitution

Hazard of alternative for Company's each product category is quite considerable. Running in an exceptionally dynamic market lead the company to face a high danger of replacement. Elements for high risk of substitution for Gemini Electronics 4 Case Study Help Smart device consist of the existence of high number of providers and Market saturation in developed countries, which make the cost of changing for customers almost zero. Substitution hazards for Enterprise visual display screen lie in the changing lifestyle of consumers. Customers can change to viewing visuals at home towards outdoor activities. Along with it, Business printing solutions products are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Corp and its close rivals is intense. The significant reason behind this is the technique of market saturation in different number of item categories, forcing Corporation to present more innovative features in existing items and brand-new ingenious items to keep its growth. Other element for the intense competition amongst the competitors is the little item distinction amongst the items. The popular players in the innovation industry are rather aware of the significance of R&D costs for their survival and are facing a race of marketing and R&D costs, to catch the market. The major competitors for Gemini Electronics 4 Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry results in the varying market shares which can be seen in Display F.

Bargaining Power of Suppliers:

( Business Sustainability Report, 2016) Provider's bargaining power for Venture is low as Org runs economies of scale and its orders are of potential size and worth. Due to incapability of Gemini Electronics 4 Case Study Analysis to construct its own software application, it has to outsource its software application development to Google, which ends up being a prospective supplier of software for Organization, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications likewise make the bargaining power of buyers more intense in for Venture. In spite of igh bargaining power Business is rather capable of offering its items at a greater rate than much of its competitors, due to high end quality product and a fair brand name image.

Threat of New Entrants:

Danger of new entrants for Gemini Electronics 4 Case Study Analysis is rather low. Along with it, requirement of substantial knowledge and research study and development expenses for survival in the market also make new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in technology market.

Competitive Analysis

Enterprise's high item diversification offers it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Gemini Electronics 4 Case Study Help had a substantial R&D costs on all of its product categories which make it possible for the company to make possible revenue from sales of nearly all of its items.

The business ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to international market share, among 8 different product classifications. Corporation was the international leader in producing DRAM, SRAM and NAND flash chips. Enterprise earnings from chips was less than Intel however its earnings from chips was growing much faster than Intel and has actually grown close to the income levels of Intel, as provided in the case Exhibition 2.

In addition to the chips Organization mobile market was likewise flourishing at a high rate than its competitors i.e. Motorola and Nokia. Corporation'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 Company's high development despite of greater costs than Nokia and Motorola was the company's high-end quality cellular phone.

Company was also profiting from increasing market share of high end LCDs as given in case Exhibit 3. The major reason, making the company enable to avail the opportunity is its mass production at low expense. Sony was the biggest competitor for Gemini Electronics 4 Case Study Help in LCD market, nevertheless, it had likewise begun joint venture with Venture in 2003 for LCD making, minimizing the competitors for Business.

Porter's Competitive Strategy

Low Cost Management method of porter is completely executed by Enterprise the way they attain economies of scale by reinforcing their core competencies of production. They constantly bring something brand-new and ingenious whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Gemini Electronics 4 Case Study Analysis would create a brand-new brand image by targeting the more youthful generation of the particular country. As, particularly mobile phones of Org are popular among the more youthful group.


1. It is the best strategy to construct Client Life time Value (CLV) by creating a long-lasting relationship with customers. Construct loyalty through delivering value and reap the benefits for long-term, as research has actually revealed it is more affordable to retain current customers than to bring in new ones.
2. Another pro of this alternative is that word of mouth spread quicker amongst more youthful people and which in turn will bring in brand-new clients for my products.


1. Old clients who were associated with Venture prior to may not like this brand-new image the business is attempting to depict.
2 It will sustain further costs to reposition some items and it may not even bring success as the trends change very rapidly amongst the more youthful demographic.

Alternative option 2.

Corp has made producing its core proficiency for the most part of their service and due to which its supervisors are not afraid to totally get out of their convenience zone. It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be given. Failure to get the passing scores will get benched. Marketing environment need to be developed internally initially as real marketing starts inside the corporation.


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


2. Its con can develop a really unhealthy environment in the work environment, as people typically withstand change since they fear it.

Recognize the very best option

Option is the best as it plainly has more pros due to the fact that once a Customer Life time Worth is developed the business will benefit from it till that consumer is alive and has buying power. Plus, our target clients are the more youthful generation which are bound to live longer than the existing aging individuals. However, Business's main objective is to create loyalty amongst its clients and make them redeemed it from them and even buy their various items also.

Application Plan

• Targeting more youthful generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations possible and reasonable.
• A group consisting of best marketing and sales experts should be put together, and both views must be taken into account before securing the resources required to execute the plan.
• Thorough interaction of the plan need to be done as it is really crucial for everybody to be on the very same page to make it work.
• Tasks and timelines ought to be build and interacted accordingly to each person responsible.
• The supervisor should utilize a control panel which reveals the development of all the tasks which have been done or about to be done and by whom.
• The manager ought to monitor and keep a consistent look at the specific and overall efficiency.
• Everyone ought to be willing to adapt midway because any brand-new pattern or policy may be available in due to which all the important things already planned need to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor need to communicate the results and if successful must commemorate with the group.

Budget plan

This change the budget allocation of numerous supervisors and various countries were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia development prospective warranted a 35% allowance while they were receiving 45%. It actually assisted to relatively distribute the resources and capture more clients by spending more on advertisements on the high growth capacity areas of the world.

Its constant investment in R&D and innovative practices have actually moved them to new heights however for them its' just the start and they desire to be amongst the top 3 brand names in the world. Their marketing efforts should be directed towards younger market in the middle of the internal arguments about marketing and need to develop Client Lifetime Worth as it will not just offer them advantages now however will continue to enjoy it till the customer lifetime. As the expense of keeping the customer is much more affordable than attracting a brand-new one.