Google Glass 3 Case Study Solution & Analysis
Google Glass 3 Case Study Analysis is a popular worldwide brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Google Glass 3 handle large number of item classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the company's core clients include the Original Equipment Manufacturers (OEMs), which utilized to sell Samsung products withtheir own brand. Till early 1990s, the core proficiency of Samsung depend on its low price offerings than its rivals by manufacturing existing products at economies of scale. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to offer Google Glass 3 Case Study Solution products with their own trademark name. Samsung was not merely known outside Korea. There were likewise no or little interest in developing the trademark name globally. Marketing budget was controlled by production department with a focal point on providing cheap products.During the 1997 Asian Financial Crisis the business almost got insolvent, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the leading 25 most valuable company in the world. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even listed. He repositioned Samsung as a worldwide brand name and educated his divisional supervisors to comprehend marketing and its value. Now their objective is to arrive 10 by 2005.
Samsung's shift from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional managers to integrate marketing efficiently is still a major difficulty. Developing a consistent brand identity throughout the entire world and using marketing methods that finest fits the local culture is no easy task. The M-net program analysis have been really valuable in determining the high and less prospective development areas, but allowance of resources appropriately is not well received among the managers. There is no consensus among the hierarchy concerning the very best suited future method.
Yun had a rather clear image in his mind about how Google Glass 3 Case Study Solution can change from a low end to a high end item provider. He understood that transformation can only be done through positioning Samsung as a company using high-end products and this might just be done through high level of marketing.
In spite of having a clear vision about how to construct Samsung brand name, with a prospective assistance of its executives, Yun dealt with a number of marketing obstacles in early years of its efforts.
One of the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the current marketing requirement was too much high, the space was too larger and to fill this gap with wrong perceptions about marketing was quite challenging for Yun.
As specified above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing spending plans for each of the item on the portfolio. There was no marketing planning provided for the existing products. Along with it the item variety of the business was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing planning and to develop marketing budget plans for existing in addition to for brand-new products from the very start, and this would take a substantial time.
A substantial shift would be needed in existing marketing expenditures to develop the Samsung brand name. This would result in increased marketing expenses for Samsung and might disrupt the administration concerning increased expenditures, as they were reluctant to marketing expenditures formerly and a sudden huge shiftwould make them disrupt.
Google Glass 3 Case Study Help strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents granted in United States( USP).
Another strength of Google Glass 3 Case Study Solution is its capability to establish innovative products at a continuous rate. It major shows for the innovation and product creating of Samsung is that the business has received many awards for its development and item design.
Unlike Apple and other competitors, Samsung is concentrated on producing gadgets which can be quickly integrated with any kind of open source Os (OS) and software application. This provides Samsung an edge over Apple devices.
Samsung's ability to produce luxury items at low cost of production is likewise one of the major strength of Samsung as it enables the business to record more market by providing quality items with cost control.
Samsung's weaknesses are hidden in the business's dependence on outsourcing software for its gadgets due to business's failure in establishing software application, unlike Sony. Google Glass 3 Case Study Solution likewise has low profit margins as compare to Apple due to big distinction in the prices of Apple and Samsung with a much lesser distinction in quality.
Opportunities for Google Glass 3 Case Study Solution lie in the growing Mobile phone market and the company's performance in the market. Samsung presently runs in about 80 nations and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.
The dynamic market environment of innovation market posture an extreme danger on Samsung's survival and require the company to invest much of its earnings share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile business is also a huge risk for the company's development in the existence of strong rivals like Apple.
4 P's of Marketing
Samsung provides quality items and has a quite rich portfolio which caters to various sectors. LCD and mobile phones are the most significant items of Samsung, whereas DRAM is likewise not far behind in contrast of them.
• LCD/ TELEVISION
• Air conditioning system.
• Personal computers.
• Hard disks.
• Washing machines.
• Video cameras.
• Flash memory.
Google Glass 3 Case Study Help utilizes both market competitive and market skimming pricing techniques for its variety of products. In competitive rates it changes the price according to the competition in order to gain advantage, whereas, it uses market skimming strategy where the product has actually an added worth and by offering a couple of items 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 products are prompt provided to the selling location/ delivered to the consumers straight in case of online order.
It utilizes both offline & online channels of promo to market their products. Paid product ads, social promo and digital advertisements are utilizes to produce awareness about Samsung products.
Value Chain Analysis.
It's an analytical framework for determining service activities that add value or competitive benefit for the company.
For its incoming logistics it owns different logistics companies as it subsidiaries. It looks after its suppliers and creates an unified relationship with them and even minimized their payment cycles to enhance this relationship even more which includes value to their chain network.
Samsung's core competency is its mass producing it produces 90% of its products in-house. Divided into three various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is keeping operation hubs worldwide to further include value to its worth chain network.
Its outgoing logistics system performance is one of the main factors Google Glass 3 Case Study Solution is able to take on Apple. Samsung'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 coverage claims, etc. on behalf of Samsung.
Marketing and Sales.
Bring in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the product provides. Google Glass 3 Case Study Analysis marketing spending plan is continuously growing because they began their repositioning worldwide and will continue to do so as they are continually looking to expand and invest in high possible development markets. The budget is spent on events, print and media advertisements, public relations etc.
Samsung put their customers at the leading and constantly make every effort to deliver unmatchable customer service standards. By including a direct assistance line to call them 24 hours they have further increased the included value of Samsung service.
Google Glass 3 Case Study Help has actually diversified market division, based upon its arrangement of large range of products to large number of consumers. Samsung target consumer segments can be divided into 3 categories i.e. Google Glass 3 Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device services.
Google Glass 3 Case Study Solution geographical segmentation is based upon 2 criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products supplied to Urban in addition to Backwoods of the country. The Samsung is also growing its worldwide presence and the company's flexibility in locating its plants motivates global growth of Samsung.
Samsung produces items that can be utilized by both males and women. The target clients for Samsung IT and mobile communication items have an age variety of 18-65 with majority at a young or recently married life cycle phase. Apart from it, Samsung Customer Electronics are targeted to a consumer sector with an age variety of 25-65.
The psychographic division of Google Glass 3 Case Study Help s based upon the social class and the life style of the customer. Samsung target consumers on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung offer products like cell phones not much more affordable i.e. Motorola in addition to very little pricey i.e. Apple. It offers quality items to middle level consumers at a slightly high rate than others targeting the exact same segment.
Google Glass 3 Case Study Help bulk target customers have unique behavioural characteristics. It has clients with an enthusiastic, trendy and identified character with moderate level of commitment towards the brand. Its clients have some degree of shift towards other popular brand names i.e. Apple. The majority of Samsun customers desire quality along with cost control. They are drawn in towards Samsung due to the fact that of its moderate costs with an extent of quality.
Sales of Samsung has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise decreased its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing but net profit is not increasing accordingly since of the high overhead expense. New growths and hiring's were the main reason of the increase in the overhead costs, with china presently not supplying any profit to Samsung, however there is a lot capacity in the present market with 75 % yet to be checked out.
Yes, this decision is based on the objective of Kim to target the younger audience and develop an international brand picture of the company. Whereas, the core strength of the company is currently making however long gone are those days when good items were offering themselves. In the present age marketing is very important and companies can not prosper without it. Kim has actually already begun to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like producing if not better.
Samsung operates designs, manufactures and offer a vast portfolio of customer electronics. It operates in an incredibly competitive environment and has effectively positioned itself as the maker of quality items. The answer is yes.
As, said earlier that Google Glass 3 Case Study Solution runs in a highly competitive environment, which implies all the companies have comparable products. The answer for rarity is no.
Due to the nature of the industry, it is extremely simple for competitors to understand the functionality of the items and quickly make their own models. Yes, Samsung is just behind IBM in registering new patents every year, but the benefit is extremely short-term in this market.
Chairman Lee has entirely turn-around Samsung, from going practically bankrupt throughout the Asian financial crisis of 1997 to the leading 25 business worldwide. Certainly yes there appertains company in the company and the outcomes speak for themselves.
External Ecological Analysis
Being an international brand name spread nearly in every nation worldwide, bulk of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. However, it faces some political pressures in less developed countries where law and order scenario is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Google Glass 3 Case Study Solution operations.
Buying power of clients is important for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations etc. provide growth opportunities, whereas, due to recession even the consumers of industrialized nations suffer severely. Thus it is extremely important for the company to watch on the continuous economic circumstance of the country before getting in the marketplace.
Multinational companies need to face different social and cultural issues during its operations in a foreign country. Samsung has likewise dealt with numerous concerns but have embraced to the regional environments of the majority of the countries incredibly well. It has actually customized its items, practices, policies and so on accordingly in order to succeed.
With a yearly expense of 2.4 billion dollars in Research study & Development, and with consistent ingenious product launches, Google Glass 3 Case Study Analysis is among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it pertains to technological improvements, Samsung has risen to the no 25 of the top successful business of the world.
Each country has their own laws and policies, being an international business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. So, it has to study or hire a local law expert before starting its operations in a specific country.
With the increasing awareness amongst consumers about the environmental & ethical offenses of companies, Samsung has to make sure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not appropriate and in some nations the repercussions can be really severe. On the other hand it has to do some Corporate Social Duty practices to reveal the locals that it appreciates their environment and individuals.
Porter's 5 Forces
Hazard of Replacement
Risk of replacement for Samsung's each item classification is quite substantial. Running in an incredibly dynamic industry lead the business to face a high danger of alternative. Elements for high hazard of substitution for Google Glass 3 Case Study Help Smartphone include the existence of high variety of suppliers and Market saturation in industrialized nations, which make the expense of switching for customers almost no. Alternative dangers for Samsung visual display screen lie in the changing life style of consumers. Clients can switch to enjoying visuals in the house towards outdoor activities. Together with it, Samsung printing solutions products are threatened by the increasing attraction of customers towards cloud storage.
Competition Amongst Existing Companies:
The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the approach of market saturation in numerous number of product classifications, forcing Samsung to present more ingenious functions in existing items and brand-new innovative items to keep its development. The significant competitors for Google Glass 3 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.
Google Glass 3 Case Study Help has a large supply chain including about 2700 providers across the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of possible size and worth. These substantial orders make it possible for Samsung to work out prices with its suppliers. Due to incapability of Samsung to construct its own software application, it has to outsource its software application advancement to Google, which becomes a potential provider of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out rates, however it offer considerable rates to its suppliers to construct a strong supply chain and to have strong relationships with its suppliers.
Bargaining Power of Buyers:
Market saturation in most of the product categories also make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its products at a higher rate than much of its competitors, due to high end quality item and a reasonable brand name image.
Hazard of New Entrants:
Hazard of brand-new entrants for Google Glass 3 Case Study Solution is quite low. Along with it, requirement of big competence and research and advancement expenditures for survival in the industry likewise make new entrants hesitant to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.
Samsung's high product diversification supplies it distinction from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Google Glass 3 Case Study Analysis had a big R&D spending on all of its item categories which make it possible for the company to earn prospective revenue from sales of practically all of its items.
The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in regards to international market share, amongst 8 different item classifications. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Samsung earnings from chips was less than Intel but its incomes from chips was growing quicker than Intel and has grown close to the earnings levels of Intel, as offered in the case Exhibit 2.
Together with the chips Samsung mobile market was also growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The major reson behind Samsung's high growth despite of greater prices than Nokia and Motorola was the business's high-end quality mobile phone.
Samsung was also reaping the benefits from increasing market share of high-end LCDs as given in case Exhibit 3. The major reason, making the company make it possible for to obtain the opportunity is its mass production at low cost. Sony was the biggest rival for Google Glass 3 Case Study Analysis in LCD market, however, it had also begun joint endeavor with Samsung in 2003 for LCD making, minimizing the competitors for Samsung.
Porter's Competitive Technique
Low Cost Leadership method of porter is completely implemented by Samsung the way they achieve economies of scale by strengthening their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, because they were not able to compete with them on low expense. Distinction is another strategy well implemented by Samsung by continuous investment in the R&D and remaining ahead of the competition. They always bring something innovative and new whether it's a service or a product.
Alternative Solution 1
The Chief Marketing Officer (CMO) of Google Glass 3 Case Study Solution would develop a new brand image by targeting the more youthful generation of the particular country. As, particularly mobile phones of Samsung are very popular among the younger market.
1. It is the best technique to develop Consumer Life time Worth (CLV) by creating a long-term relationship with customers. Construct loyalty through delivering worth and reap the benefits for long-term, as research has actually revealed it is more affordable to keep existing clients than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger people and which in turn will bring in brand-new clients for my items.
1. Old clients who were related to Samsung before might not like this new image the business is attempting to represent.
2 It will incur further costs to reposition some items and it might not even bring success as the trends change really quickly amongst the more youthful demographic.
Alternative solution 2.
It would be done by organizing training workshops during which significance of marketing will be taught and numbers will be offered. Marketing environment must be developed internally first as genuine marketing begins inside the corporation.
1. Its pro will be that all the marketing approach fans will come out and likewise the opposite ones.
2. Its con can develop an extremely unhealthy environment in the work environment, as people typically withstand change since they fear it.
Identify the very best option
Option is the best as it plainly has more pros due to the fact that when a Consumer Life time Value is constructed the business will profit from it till that consumer is alive and has buying power. Plus, our target consumers are the younger generation which are bound to live longer than the present old age people. Samsung's main goal is to develop commitment among its clients and make them redeemed it from them and even purchase their various items.
• Targeting younger generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations achievable and reasonable.
• A group including best marketing and sales experts need to be put together, and both views must be taken into consideration prior to securing the resources needed to execute the plan.
• Thorough communication of the plan need to be done as it is really crucial for everybody to be on the exact same page to make it work.
• Jobs 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 jobs which have actually been done or about to be done and by whom.
• The manager need to keep track of and keep a constant look at the total and private efficiency.
Since any new pattern or policy may come in due to which all the things already planned have to be adjusted, • Everyone should be prepared to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the project the manager should communicate the outcomes and if effective need to commemorate with the group.
This modification the budget allowance of different countries and numerous supervisors were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia growth potential warranted a 35% allotment while they were receiving 45%. It really helped to fairly distribute the resources and capture more clients by investing more on ads on the high growth capacity areas of the world.
Google Glass 3 Case Study Help is a leading 25 business in the world now and plans to get ahead of Sony who sits presently at no. 20. Its constant investment in R&D and ingenious practices have moved them to brand-new heights but for them its' only the start and they wish to be amongst the top 3 brands worldwide. They entirely turnaround from almost declaring bankruptcy throughout the Asian Financial Crisis to a world renowned brand name, understood for quality and development. Their worth chain and their core proficiency their production capability, along-with global brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts need to be directed towards younger group amidst the internal arguments about marketing and ought to create Client Lifetime Value as it will not only provide benefits now however will continue to enjoy it till the client lifetime. As the cost of keeping the client is more affordable than drawing in a brand-new one.