Google Glass 3 Case Study Solution and Analysis
Google Glass 3 Case Study Help is a well-known worldwide brand name in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Google Glass 3 handle a great deal of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which utilized to offer Corporation items withtheir own brand name. Till early 1990s, the core competency of Corp lie in its low cost offerings than its competitors by producing existing products at economies of scale. Its customer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Google Glass 3 Case Study Solution items with their own brand name. Venture was not merely understood outside Korea. There were also no or little interest in building the brand name worldwide. Marketing budget plan was managed by production department with a prime focus on providing cheap products.During the 1997 Asian Financial Crisis the business almost got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most important business in the world. When Kim was worked with as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Company as a worldwide brand and educated his divisional supervisors to understand marketing and its importance. Now their goal is to arrive 10 by 2005.
Organization's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to include marketing efficiently is still a major challenge. Producing a consistent brand name identity across the entire world and using marketing strategies that best fits the regional culture is no simple task. The M-net program analysis have been really handy in figuring out the high and less potential growth areas, however allowance of resources appropriately is not well gotten among the supervisors. There is no agreement amongst the hierarchy regarding the best matched future technique.
Yun had a quite clear image in his mind about how Google Glass 3 Case Study Help can change from a low end to a high end item supplier. He knew that change can just be done through placing Venture as a business offering high-end items and this might just be done through high level of marketing.
In spite of having a clear vision about how to construct Corporation brand name, with a possible assistance of its executives, Yun faced numerous marketing difficulties in early years of its efforts.
One of the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous service practices, and the existing marketing requirement was too much high, the gap was too larger and to fill this gap with incorrect perceptions about marketing was quite challenging for Yun.
As specified above, marketing focus was really low in previous practices, for that reason there were no proper marketing budgets for each of the product on the portfolio. There was no marketing planning done for the existing items. Along with it the product range of the business was increasing with the ripening of new product concepts by the R&D sector of Company. Yun had a difficulty to carry out marketing planning and to develop marketing spending plans for existing in addition to for new items from the very start, and this would take a huge time.
A huge shift would be needed in current marketing expenses to develop the Org brand name. This would result in increased marketing expenditures for Business and could disturb the administration regarding increased costs, as they were hesitant to marketing expenses formerly and a sudden huge shiftwould make them disrupt.
Corporation strengths lie in its huge product portfolio. Org has biggest variety of patents in the industry with overall variety of 15499 patents given in US( USP). Large amount of R&D spending has actually allowed the business to grow its item portfolio at a greater rate than its competitors. Google Glass 3 Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall profits.
Another strength of Google Glass 3 Case Study Analysis is its capability to establish ingenious products at a continuous rate. It significant shows for the development and product creating of Org is that the business has received many awards for its development and item design.
Unlike Apple and other competitors, Business is concentrated on producing gadgets which can be quickly integrated with any type of open source Os (OS) and software application. This offers Company an edge over Apple devices.
Organization's capability to produce luxury products at low cost of production is also among the major strength of Organization as it makes it possible for the company to record more market by providing quality items with expense control.
Corporation's weaknesses are hidden in the company's dependence on outsourcing software for its devices due to business's inability in establishing software application, unlike Sony. Google Glass 3 Case Study Solution likewise has low earnings margins as compare to Apple due to substantial distinction in the costs of Apple and Organization with a much lower distinction in quality.
Opportunities for Corp depend on the growing Mobile phone market and the company's performance in the market. It can increase its market share and profits from cellular phone as the business is rather effective in mobile phone market. Corporation 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. Organization can move towards acquisitions to obtain patents. It would allow the business to increase its item portfolio with a boost in its wealth.
The vibrant market environment of technology market present a serious danger on Enterprise's survival and force the business to spend much of its earnings share on R&D in order to survive in the long run. The market saturation in developed countries i.e. saturation of mobile company is also a huge danger for the business's development in the presence of strong competitors like Apple.
4 P's of Marketing
Business uses quality products and has a quite abundant portfolio which caters to various sectors. LCD and mobile phones are the greatest items of Organization, whereas DRAM is also not far behind in comparison of them.
• LCD/ TELEVISION
• Mobile phones.
• Air conditioner.
• Personal computers.
• Disk drives.
• Washing machines.
• Flash memory.
Google Glass 3 Case Study Analysis utilizes both market competitive and market skimming pricing techniques for its wide array of products. In competitive rates it changes the rate according to the competition in order to acquire advantage, whereas, it uses market skimming technique where the item has actually an added value and by offering a few products it can reach break-even.
It has one of the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its items are prompt provided to the selling location/ provided to the consumers directly in case of online order.
It wasn't a well-known company outside of Korea until 1993. The management effort taken by their CEO has pressed them to market more effectively outside the borders and now it has entered the league of top 25 companies in the world in just 9 years. This is an impressive achievement despite the ongoing arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promo to market their items. Paid item advertisements, social promotion and digital advertisements are uses to develop awareness about Business items.
Worth Chain Analysis.
It's an analytical structure for recognizing service activities that include value or competitive benefit for the business.
It has one of the most effective and effective supply chain network and has over 2700 suppliers across various markets around the globe. Nearly 80% of which is based in Asia and the remaining worldwide. For its inbound logistics it owns numerous logistics companies as it subsidiaries. It takes care of its providers and produces a harmonious relationship with them and even minimized their payment cycles to increase this relationship even more which adds value to their chain network.
Company's core proficiency is its mass producing it produces 90% of its items in-house. Divided into three different departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to even more add worth to its worth chain network.
Its outbound logistics system efficiency is among the main factors Google Glass 3 Case Study Analysis is able to compete with Apple. Company's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Org.
Marketing and Sales.
Drawing in target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the item offers. Google Glass 3 Case Study Solution marketing budget plan is constantly growing since they started their rearranging internationally and will continue to do so as they are constantly wanting to invest and broaden in high prospective development markets. The budget plan is invested in events, print and media ads, public relations etc.
Venture Service. Corp put their clients at the top and constantly strive to provide unmatchable client service requirements. As after sales service is becoming extremely crucial to keep clients delighted and engaged, they even carry out studies through third parties to discover their client's feedback and execute it in the favorable method to decrease or if possible totally eliminate their customer problems. By adding a direct support line to contact them 24 hr they have further increased the added worth of Google Glass 3 Case Study Solution service.
Google Glass 3 Case Study Analysis has diversified market division, based upon its provision of large range of items to a great deal of customers. Corp target consumer segments can be divided into 3 categories i.e. Google Glass 3 Case Study Analysis IT and Mobile Communications, Corp Consumer Electronic Devices and Company Gadget services.
Google Glass 3 Case Study Analysis geographical division is based upon two requirements i.e. area and density. Corporation serves about 80 nations worldwide with its items supplied to Urban along with Backwoods of the nation. The Organization is also growing its international existence and the business's versatility in finding its plants encourages worldwide growth of Enterprise.
The market segmentation of Google Glass 3 Case Study Help is based upon gender, age, life-cycle phase and occupation. Org produces products that can be used by both females and males. The target customers for Corporation IT and mobile interaction items have an age range of 18-65 with majority at a young or recently wed life cycle stage. They are mainly professionals, students and staff members. Apart from it, Organization Consumer Electronics are targeted to a customer section with an age range of 25-65. They are primarily professionals and employees. However Google Glass 3 Case Study Analysis Device Solutions are targeted at students, workers and specialists with an age range of 25-65.
The psychographic segmentation of Google Glass 3 Case Study Solution s based upon the social class and the life style of the consumer. Corporation target clients on the basis of social class are primarily upper middle, middle and working class customers, as Company sell products like mobile phone very little cheaper i.e. Motorola along with very little pricey i.e. Apple. It provides quality products to middle level customers at a somewhat high rate than others targeting the same section.
Google Glass 3 Case Study Solution majority target customers have unique behavioural attributes. It has clients with an enthusiastic, stylish and figured out personality with moderate level of commitment towards the brand name. Its clients have some degree of shift towards other renowned brands i.e. Apple. The majority of Company consumers desire quality along with cost control. Because of its moderate rates with a degree of quality, they are attracted towards Venture.
Sales of Org has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has also lowered its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Company with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Since of the high overhead expense, profits/ sales are increasing however net revenue is not increasing appropriately. New growths and employing's were the main factor of the boost in the overhead expenses, with china presently not providing any revenue to Venture, however there is so much potential in the present market with 75 % yet to be explored.
Whereas, the core strength of the business is currently making but long gone are those days when excellent items were selling themselves. Kim has already started to enhance the marketing activities of Enterprise and really quickly it will become one of its core strength like making if not much better.
Enterprise runs designs, produces and offer a huge portfolio of customer electronics. It operates in an extremely competitive environment and has effectively positioned itself as the maker of quality items. The response is yes.
As, said previously that Google Glass 3 Case Study Analysis runs in a highly competitive environment, which means all the companies have comparable items. The response for rarity is no.
Due to the nature of the market, it is very easy for competitors to comprehend the performance of the products and quickly make their own designs. Yes, Org is only behind IBM in registering brand-new patents every year, however the benefit is extremely short-term in this industry.
Chairman Lee has totally turnaround Enterprise, from going practically insolvent during the Asian monetary crisis of 1997 to the top 25 company on the planet. Definitely yes there appertains organization in the company and the outcomes promote themselves.
External Environmental Analysis
Being a multinational brand spread nearly in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. Nevertheless, it deals with some political pressures in less developed countries where order situation is bad. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Google Glass 3 Case Study Help operations.
Buying power of customers is crucial for business like Venture to succeed and grow. Emerging markets like India, middle-eastern nations and so on supply growth chances, whereas, due to economic crisis even the customers of industrialized countries suffer badly. For this reason it is extremely important for the business to watch on the continuous economic circumstance of the nation before getting in the market.
Multinational companies need to deal with different social and cultural problems throughout its operations in a foreign country. Business has actually also dealt with numerous problems but have actually embraced to the local environments of the majority of the nations remarkably well. It has actually tailored its items, practices, policies and so on accordingly in order to be successful.
With a yearly expense of 2.4 billion dollars in Research & Development, and with continuous innovative item launches, Google Glass 3 Case Study Solution is among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it pertains to technological developments, Organization 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 Corporation need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. It has to study or hire a local law expert before starting its operations in a particular nation.
With the increasing awareness among customers about the ethical & environmental infractions of business, Organization needs to guarantee that it follows all the security standards. Environmental damages, ethical misconducts are not appropriate and in some nations the effects can be very serious. On the other hand it needs to do some Corporate Social Duty practices to show the residents that it cares about their environment and people.
Porter's Five Forces
Threat of Substitution
Threat of replacement for Venture's each product classification is rather significant. Running in a very dynamic market lead the company to face a high danger of alternative. Aspects for high risk of substitution for Google Glass 3 Case Study Solution Smart device include the existence of high number of suppliers and Market saturation in developed countries, which make the cost of switching for customers practically no. Substitution dangers for Corp visual display lie in the altering lifestyle of clients. Customers can change to viewing visuals in your home towards outside activities. In addition to it, Venture printing options items are threatened by the increasing destination of customers towards cloud storage.
Rivalry Amongst Existing Companies:
The rivaly among Business and its close rivals is extreme. The major reason behind this is the approach of market saturation in various number of product categories, requiring Enterprise to present more innovative functions in existing items and brand-new innovative products to preserve its growth. The significant rivals for Google Glass 3 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.
( Corporation Sustainability Report, 2016) Provider's bargaining power for Enterprise is low as Venture runs economies of scale and its orders are of prospective size and worth. Due to incapability of Google Glass 3 Case Study Analysis to develop its own software, it has to outsource its software advancement to Google, which becomes a possible provider of software for Venture, resulting in high bargaining power of Google.
Bargaining Power of Buyers:
Haggling power of purchasers for different number of product categories of Corp is extreme. Among the aspect resulting in the extreme bargaining power is the availability of a great deal of rivals in practically each item category i.e. competitors of Corp Smart device, with an extremely little distinction. The high schedule of suppliers of Mobile phones with minimum distinction, make the switching expense for buyers nearly no, thus increasing the bargaining power of buyers. Market saturation in most of the product categories also make the bargaining power of buyers more extreme in for Google Glass 3 Case Study Analysis. In spite of igh bargaining power Corporation is rather capable of selling its products at a greater rate than much of its competitors, due to luxury quality item and a reasonable brand image.
Threat of New Entrants:
Hazard of brand-new entrants for Corp is rather low. Among the significant element for low risk of new entrants is the high competition in the industry. The requirement of substantial amount of capital to go into in the marketplace is likewise among the prospective barrier to entry. Along with it, requirement of substantial know-how and research study and advancement expenditures for survival in the market likewise make new entrants unwilling to go into in the marketplace. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of providers force the gamers in the market to charge as low costs as possible and this can just be accomplished by production efficiency. Brand-new firms, in bulk cases, lack the production performance, hence increasing the threats for entryway in the innovation industry.
Venture's high product diversification supplies it distinction from its rivals. It is among the 3 top brands by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on customer electronics, Nokia on mobile phone and Intel on chips, Organization had a substantial R&D costs on all of its product classifications which make it possible for the company to earn prospective income from sales of nearly all of its items. (See Exhibition) Nevertheless, due to the wide product range the business deals with high number of rivals.
The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in regards to international market share, among 8 various product classifications. Org was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Company incomes from chips was less than Intel however its revenues from chips was growing much faster than Intel and has actually grown near to the revenue levels of Intel, as given in the case Display 2.
Together with the chips Organization mobile market was also flourishing at a high rate than its rivals i.e. Motorola and Nokia. Business's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The significant reson behind Corp's high development despite of higher costs than Nokia and Motorola was the business's high-end quality mobile phone.
Corp was likewise profiting from increasing market share of high-end LCDs as given up case Display 3. The major reason, making the company enable to avail the chance is its mass production at low expense. Sony was the biggest rival for Google Glass 3 Case Study Analysis in LCD market, however, it had actually also begun joint venture with Organization in 2003 for LCD making, decreasing the competitors for Venture.
Porter's Competitive Method
Low Expense Leadership strategy of porter is totally implemented by Corporation the way they accomplish economies of scale by strengthening their core proficiencies of production. They always bring something new and ingenious whether it's a product or a service.
Alternative Option 1
The Chief Marketing Officer (CMO) of Google Glass 3 Case Study Analysis would develop a new brand name image by targeting the younger generation of the specific country. As, specifically smart phones of Enterprise are preferred amongst the more youthful demographic.
1. It is the best technique to develop Client Life time Value (CLV) by producing a long-term relationship with consumers. Build commitment through providing value and profit for long-lasting, as research study has 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 more quickly amongst more youthful people and which in turn will generate brand-new customers for my products.
1. Old consumers who were associated with Venture before may not like this new image the company is attempting to portray.
2 It will incur further expenses to rearrange some items and it might not even bring success as the trends change extremely rapidly among the more youthful demographic.
Alternative solution 2.
It would be done by organizing training workshops during which value of marketing will be taught and numbers will be provided. Marketing environment ought to be developed internally first as real marketing starts inside the corporation.
1. Its pro will be that all the marketing method fans will come out and also the opposite ones.
2. Its con can develop a very unhealthy environment in the workplace, as individuals typically resist change since they fear it.
Identify the very best alternative
First option is the best as it plainly has more pros since as soon as a Client Life time Worth is constructed the company will benefit from it till that customer lives and has acquiring power also. Plus, our target clients are the younger generation which are bound to live longer than the current aging people. However, Organization's primary objective is to produce commitment amongst its customers and make them bought it from them and even buy their various products too.
• Targeting more youthful generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations possible and sensible.
• A group including best marketing and sales experts need to be put together, and both views ought to be considered prior to securing the resources required to carry out the plan.
• Thorough communication of the strategy should be done as it is very essential for everyone to be on the very same page to make it work.
• Tasks and timelines need to be build and interacted appropriately to each person responsible.
• The manager need to 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 supervisor ought to keep an eye on and keep a consistent examine the private and general efficiency.
• Everybody ought to be willing to adapt midway due to the fact that any new pattern or policy may be available in due to which all the things already prepared need to be adjusted. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor must interact the results and if effective must commemorate with the team.
The M-net program exposed compelling analysis about the high and low growth potential areas and just how much marketing budget plan ought to be assigned accordingly. This change the budget plan allotment of lots of supervisors and various nations were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia development potential merited a 35% allotment while they were getting 45%. Whereas, China and Europe ought to be receiving 42% but were instead given 31%. It really assisted to fairly disperse the resources and capture more clients by investing more on ads on the high growth capacity regions of the world.
Google Glass 3 Case Study Analysis is a top 25 business worldwide now and plans to get ahead of Sony who sits presently at no. 20. Its consistent financial investment in R&D and ingenious practices have actually moved them to new heights but for them its' only the start and they want to be amongst the leading 3 brands on the planet. They completely turnaround from almost declaring bankruptcy throughout the Asian Financial Crisis to a world popular brand name, understood for quality and innovation. Their value chain and their core proficiency their manufacturing ability, along-with international brand name image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts should be directed towards more youthful demographic amid the internal arguments about marketing and need to produce Client Lifetime Value as it will not only give them benefits now however will continue to reap it till the client life time. As the cost of retaining the consumer is more affordable than attracting a brand-new one.