Google Glass 3 Case Study Solution and Analysis
Historically, the business's core consumers include the Original Equipment Manufacturers (OEMs), which used to offer Google Glass 3 Case Study Help items withtheir own brand name. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to sell Samsung products with their own brand name. He rearranged Samsung as an international brand and educated his divisional managers to understand marketing and its significance.
Samsung's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to incorporate marketing effectively is still a major challenge. Developing a consistent brand identity across the whole world and using marketing techniques that finest fits the regional culture is no easy task. The M-net program analysis have been actually useful in identifying the high and less possible growth locations, but allotment of resources appropriately is not well received among the supervisors. There is no consensus amongst the hierarchy regarding the very best fit future method.
Google Glass 3 Case Study Help efforts for building its brand name throughout the world was started after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to change Samsung from an inexpensive OEM to a high value-added product supplier. To make the vision of Samsung a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Samsung can transform from a low end to a high-end item supplier. He knew that transformation can just be done through placing 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, with a prospective assistance of its executives, Yun dealt with several marketing difficulties in early years of its efforts.
One of the marketing obstacles for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as exact same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous service practices, and the existing marketing requirement was excessive high, the space was too larger and to fill this gap with incorrect understandings about marketing was quite challenging for Yun.
As mentioned above, marketing focus was really low in previous practices, therefore there were no appropriate marketing budget plans for each of the product on the portfolio. There was no marketing preparation done for the existing products. In addition to it the product range of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing preparation and to develop marketing spending plans for existing along with for brand-new products from the very start, and this would take a big time.
A huge shift would be required in current marketing expenditures to develop the Samsung brand name. This would result in increased marketing expenditures for Samsung and might disrupt the administration relating to increased costs, as they were hesitant to marketing expenditures formerly and an unexpected huge shiftwould make them disturb.
Samsung strengths lie in its big product portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents approved in United States( USP). Big amount of R&D spending has made it possible for the business to grow its product portfolio at a greater rate than its competitors. Google Glass 3 Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall incomes.
Another strength of Google Glass 3 Case Study Solution is its ability to develop ingenious products at a constant rate. It significant shows for the innovation and item designing of Samsung is that the company has actually received so many awards for its innovation and item design.
Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be easily integrated with any type of open source Operating System (OS) and software application. This offers Samsung an edge over Apple devices.
Samsung's ability to produce high end items at low expense of production is likewise among the major strength of Samsung as it enables the business to record more market by supplying quality products with expense control.
Samsung's weak points are hidden in the company's dependence on outsourcing software for its devices due to business's inability in developing software, unlike Sony. Google Glass 3 Case Study Solution also has low revenue margins as compare to Apple due to huge distinction in the rates of Apple and Samsung with a much lower distinction in quality.
Opportunities for Samsung depend on the growing Smart device market and the business's performance in the market. It can increase its market share and profits from cellular phone as the company is rather efficient in mobile phone market. Samsung presently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung 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.
The dynamic industry environment of innovation industry position an extreme danger on Samsung's survival and require the company to invest much of its earnings share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a huge hazard for the business's development in the presence of strong rivals like Apple.
4 P's of Marketing
Samsung uses quality products and has a rather rich portfolio which caters to different sectors. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is likewise not far behind in contrast of them.
• LCD/ TELEVISION
• Air conditioner.
• Hard drives.
• Washing machines.
• Electronic cameras.
• Flash memory.
Google Glass 3 Case Study Help utilizes both market competitive and market skimming pricing strategies for its wide variety of products. In competitive rates it changes the price according to the competition in order to get benefit, whereas, it uses market skimming method where the item has actually an included value and by offering a few items 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 prompt supplied to the selling place/ provided to the customers directly in case of online order.
It utilizes both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital ads are utilizes to develop awareness about Samsung products.
Worth Chain Analysis.
It's an analytical framework for determining service activities that add value or competitive benefit for the company.
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 lowered their payment cycles to enhance this relationship further which adds worth to their chain network.
Samsung's core proficiency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 various departments its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronics. It is preserving operation hubs worldwide to even more add worth to its worth chain network.
Its outgoing logistics system efficiency is one of the main factors Google Glass 3 Case Study Help is able to take on Apple. Samsung's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the jobs 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 interact with them the value and competitive benefit the item uses. Google Glass 3 Case Study Analysis marketing budget plan is continuously on the rise considering that they began their repositioning worldwide and will continue to do so as they are constantly looking to invest and expand in high possible development markets. The budget is invested in events, print and media advertisements, public relations etc.
Samsung Service. Samsung put their customers on top and constantly strive to deliver unmatchable client service standards. As after sales service is ending up being incredibly crucial to keep consumers delighted and engaged, they even carry out surveys through third parties to find out their customer's feedback and execute it in the favorable way to decrease or if possible totally remove their customer concerns. By adding a direct support line to contact them 24 hr they have even more increased the included value of Google Glass 3 Case Study Help service.
Google Glass 3 Case Study Analysis has actually diversified market division, based upon its provision of vast array of products to a great deal of customers. Samsung target consumer sectors can be divided into 3 classifications i.e. Google Glass 3 Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget options.
Google Glass 3 Case Study Analysis geographical division is based upon two requirements i.e. region and density. Samsung serves about 80 countries worldwide with its items offered to Urban as well as Rural areas of the nation. The Samsung is also growing its global existence and the company's versatility in finding its plants motivates global expansion of Samsung.
Samsung produces items that can be used by both males and females. The target consumers for Samsung IT and mobile communication items have an age range of 18-65 with majority at a young or freshly wed life cycle stage. Apart from it, Samsung Customer Electronic devices are targeted to a consumer section with an age variety of 25-65.
The psychographic segmentation of Google Glass 3 Case Study Analysis s based upon the social class and the life style of the customer. Samsung target clients on the basis of social class are generally upper middle, middle and working class customers, as Samsung offer products like mobile phone very little more affordable i.e. Motorola along with not much pricey i.e. Apple. It supplies quality products to middle level customers at a slightly high rate than others targeting the very same segment.
Google Glass 3 Case Study Analysis majority target clients have unique behavioural attributes. It has clients with an enthusiastic, trendy and figured out personality with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other distinguished brand names i.e. Apple. The majority of Samsun clients desire quality along with cost control. Because of its moderate rates with a degree of quality, they are drawn in towards Samsung.
Sales of Samsung has actually increased astonishingly 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 also minimized 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 however net profit is not increasing appropriately because of the high overhead cost. New growths and working with's were the primary reason of the boost in the overhead costs, with china currently not providing any profit to Samsung, however there is a lot potential in the present market with 75 % yet to be explored.
Yes, this choice is based on the mission of Kim to target the more youthful audience and create an international brand name image of the company. Whereas, the core strength of the business is presently making but long gone are those days when good products were offering themselves. In the present age marketing is very crucial and business can not be successful without it. Kim has currently begun to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not much better.
Samsung runs styles, makes and offer a large portfolio of consumer electronics. It operates in an incredibly competitive environment and has effectively positioned itself as the maker of quality products. The answer is yes.
As, said previously that Google Glass 3 Case Study Help runs in an extremely competitive environment, which suggests all the business have similar items. So, the answer for rarity is no.
Due to the nature of the industry, it is very simple for rivals to comprehend the performance of the items and quickly make their own models. Yes, Samsung is only behind IBM in signing up new patents each year, but the benefit is extremely short-term in this industry.
Chairman Lee has completely turn-around Samsung, from going almost insolvent during the Asian financial crisis of 1997 to the top 25 company on the planet. Certainly yes there appertains organization in the business and the outcomes promote themselves.
External Ecological Analysis
Being an international brand spread almost in every country worldwide, bulk of the environments like USA, Europe, China etc., are very conductive for its operations. It faces some political pressures in less developed nations where law and order situation is not excellent. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Google Glass 3 Case Study Analysis operations.
Buying power of customers is vital for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern countries and so on supply growth opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer terribly. It is extremely important for the business to keep an eye on the continuous financial circumstance of the country before getting in the market.
Multinational business have to deal with various social and cultural issues throughout its operations in a foreign country. Samsung has actually also dealt with lots of concerns but have actually adopted to the local environments of most of the countries incredibly well. It has actually customized its items, practices, policies and so on appropriately in order to succeed.
With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with continuous ingenious product launches, Google Glass 3 Case Study Solution is among the top innovative companies of the world. With a clear objective to be ahead of the rest when it pertains to technological developments, Samsung has actually risen to the no 25 of the top successful companies of the world.
Each nation has their own laws and policies, being a multinational company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. So, it has to study or work with a local law professional prior to beginning its operations in a particular nation.
With the increasing awareness among customers about the ethical & environmental violations of business, Samsung has to guarantee that it follows all the safety guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some nations the effects can be extremely serious. On the other hand it needs to do some Business Social Duty practices to reveal the residents that it appreciates their environment and individuals.
Porter's 5 Forces
Threat of Alternative
Risk of alternative for Samsung's each item category is quite significant. Factors for high danger of replacement for Google Glass 3 Case Study Help Mobile phone consist of the presence of high number of providers and Market saturation in developed nations, which make the cost of changing for customers nearly zero. Along with it, Samsung printing options items are threatened by the increasing tourist attraction of consumers towards cloud storage.
Rivalry Among Existing Firms:
The rivaly amongst Samsung and its close rivals is extreme. The major reason behind this is the method of market saturation in numerous number of product categories, forcing Samsung to introduce more innovative features in existing items and brand-new ingenious products to keep its development. The major competitors for Google Glass 3 Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.
Google Glass 3 Case Study Help has a huge supply chain consisting of about 2700 suppliers throughout 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 potential size and worth. These big orders allow Samsung to work out prices with its suppliers. Nevertheless, due to incapability of Google Glass 3 Case Study Help to construct its own software application, it has to outsource its software application development to Google, which becomes a prospective supplier 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 provide substantial prices to its providers to build a strong supply chain and to have strong relationships with its suppliers.
Bargaining Power of Buyers:
Market saturation in most of the item categories also make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher cost than much of its rivals, due to high end quality item and a reasonable brand image.
Threat of New Entrants:
Hazard of new entrants for Google Glass 3 Case Study Help is rather low. Along with it, requirement of huge expertise and research and development expenditures for survival in the industry also make new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation market.
Samsung's high product diversification offers it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Google Glass 3 Case Study Analysis had a substantial R&D spending on all of its product categories which allow the business to make potential income from sales of practically all of its products.
The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to global market share, among 8 various item classifications. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel however its profits from chips was growing quicker than Intel and has actually grown close to the revenue levels of Intel, as given up the case Exhibit 2.
Along with the chips Samsung mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with no sales growth. The significant reson behind Samsung's high growth despite of higher rates than Nokia and Motorola was the business's high-end quality mobile phone.
Samsung was also profiting from increasing market share of high-end LCDs as given up case Display 3. The significant reason, making the business make it possible for to avail the chance is its mass production at low expense. Sony was the greatest rival for Google Glass 3 Case Study Solution in LCD market, however, it had actually also started joint venture with Samsung in 2003 for LCD making, lessening the competitors for Samsung.
Porter's Competitive Technique
Low Cost Leadership technique of porter is completely implemented by Samsung the method they achieve economies of scale by reinforcing their core competencies of production. Even to the point that their competitor SONY decided to form an alliance with them to produce for them, because they were unable to compete with them on low expense. Differentiation is another technique well executed by Samsung by continuous investment in the R&D and remaining ahead of the competitors. They always bring something new and innovative whether it's an item or a service.
Alternative Option 1
The Chief Marketing Officer (CMO) of Google Glass 3 Case Study Solution would create a brand-new brand image by targeting the younger generation of the particular nation. As, particularly smart phones of Samsung are preferred amongst the younger market.
1. It is the best strategy to build Consumer Life time Value (CLV) by producing a long-lasting relationship with consumers. Build commitment through providing value and reap the benefits for long-term, as research has actually revealed it is much cheaper to keep current clients than to attract new ones.
2. Another pro of this option is that word of mouth spread quicker among younger people and which in turn will generate new customers for my products.
1. Old clients who were associated with Samsung before may not like this brand-new image the company is trying to portray.
2 It will incur additional expenditures to reposition some items and it might not even bring success as the trends change extremely rapidly among the younger group.
Alternative option 2.
Samsung has actually made making its core competency for the most part of their company and due to which its managers are not afraid to totally step out of their comfort zone. It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get benched. Marketing environment need to be produced internally initially as genuine 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 create a really unhealthy environment in the workplace, as individuals frequently withstand change due to the fact that they fear it.
Recognize the very best alternative
Alternative is the finest as it clearly has more pros because when a Customer Life time Worth is built the company will benefit from it till that consumer is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging individuals. However, Samsung's primary goal is to produce loyalty among its consumers and make them repurchase it from them and even purchase their different products as well.
• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations sensible and possible.
• A team consisting of best marketing and sales experts should be put together, and both views must be taken into consideration prior to protecting the resources required to implement the plan.
• Thorough communication of the plan need to be done as it is very important for everyone to be on the same page to make it work.
• Jobs and timelines must be develop and interacted appropriately to each person accountable.
• The supervisor should utilize a control panel which reveals the development of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a continuous examine the specific and general performance.
• Everybody need to want to adapt midway since any new pattern or policy may can be found in due to which all the things already prepared have to be adjusted. It's better to have contingency plans already prepared.
• At the end of the campaign the manager must interact the results and if successful ought to commemorate with the team.
This modification the spending plan allotment of various countries and numerous managers were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia development prospective warranted a 35% allocation while they were receiving 45%. It truly assisted to relatively disperse the resources and catch more consumers by spending more on ads on the high development capacity regions of the world.
Its consistent financial investment in R&D and innovative practices have actually propelled them to brand-new heights however for them its' only the start and they want to be amongst the top 3 brand names in the world. Their marketing efforts should be directed towards younger market amidst the internal arguments about marketing and ought to produce Client Lifetime Worth as it will not just provide them benefits now however will continue to reap it till the consumer life time. As the cost of keeping the customer is much more affordable than bring in a new one.