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Gxmba Operation A Management Individual Evaluation Case Study Solution and Analysis


Historically, the business's core consumers consist of the Original Equipment Manufacturers (OEMs), which utilized to offer Gxmba Operation A Management Individual Evaluation Case Study Help items withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Samsung products with their own brand name. He repositioned Samsung as a worldwide brand name and informed his divisional supervisors to comprehend marketing and its importance.

Issue Declaration

Samsung's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to integrate marketing efficiently is still a significant challenge. Developing a constant brand identity across the entire world and utilizing marketing strategies that best fits the local culture is no simple task.
Executive Summary
Situational Analysis

Yun had a quite clear image in his mind about how Gxmba Operation A Management Individual Evaluation Case Study Help can transform from a low end to a high end item provider. He knew that improvement can just be done through placing Samsung as a business providing high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand, with a potential support of its executives, Yun faced several marketing obstacles 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 needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was too much high, the gap was too larger and to fill this space with incorrect understandings about marketing was quite tough for Yun.

As stated above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing budget plans for each of the item on the portfolio. There was no marketing planning provided for the existing products. Along with it the item range of the company was increasing with the ripening of brand-new item ideas by the R&D sector of Samsung. Yun had a challenge to perform marketing preparation and to produce marketing budgets for existing in addition to for new items from the very beginning, and this would take a huge time.

A substantial shift would be needed in existing marketing expenses to develop the Gxmba Operation A Management Individual Evaluation Case Study Analysis brand name. This would result in increased marketing expenses for Samsung and might interrupt the administration regarding increased expenses, as they were reluctant to marketing expenses formerly and an abrupt big shiftwould make them interrupt. This could lead to decreasing executive support for worldwide marketing. In this scenario, Yun deals with an obstacle for justifying increased marketing costs by demonstrating the long term value of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its substantial item portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents approved in US( USP). Large quantity of R&D spending has made it possible for the company to grow its item portfolio at a higher rate than its competitors. Gxmba Operation A Management Individual Evaluation Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall revenues.

Another strength of Gxmba Operation A Management Individual Evaluation Case Study Solution is its ability to establish innovative items at a constant rate. It significant shows for the development and product developing of Samsung is that the company has actually received many awards for its innovation and item design.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be quickly incorporated with any kind of open source Os (OS) and software. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's ability to produce high end products at low cost of production is also among the significant strength of Samsung as it makes it possible for the company to record more market by providing quality products with expense control.

Weak points

Gxmba Operation A Management Individual Evaluation Case Study Solution weaknesses are hidden in the company's dependence on outsourcing software for its devices due to business's failure in developing software application, unlike Sony. Samsung also has low revenue margins as compare to Apple due to big distinction in the costs of Apple and Samsung with a much lower difference in quality. The diverse focus of the company due to a great deal of items in its portfolio, result in the less efficient production and make the business not able to charge greater costs like Apple. The business is also inefficient in handling its patents and regularly deals with the issue of patent violation.


Opportunities for Gxmba Operation A Management Individual Evaluation Case Study Analysis lie in the growing Smart device market and the company's efficiency in the market. Samsung currently runs in about 80 nations and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia.


The dynamic industry environment of innovation market pose an extreme hazard on Samsung's survival and force the business to spend much of its incomes share on R&D in order to endure in the long run. The market saturation in industrialized countries i.e. saturation of mobile company is also a huge threat for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Samsung uses quality items and has a quite rich portfolio which caters to various sectors. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Mobile phones.
• A/c unit.
• Desktop computer.
• Disk drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Gxmba Operation A Management Individual Evaluation Case Study Solution utilizes both market competitive and market skimming prices strategies for its wide array of items. In competitive prices it adjusts the rate according to the competition in order to gain benefit, whereas, it utilizes market skimming strategy where the product has an included value and by offering a few items it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole suppliers, 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 company beyond Korea until 1993. But the management initiative taken by their CEO has pressed them to market more efficiently outside the borders and now it has actually gotten in the league of top 25 companies worldwide in just 9 years. This is an exceptional achievement in spite of the continuous arguments among the supervisors about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital advertisements are uses to produce awareness about Samsung products.

Value Chain Analysis.

It's an analytical framework for determining organisation activities that include value or competitive advantage for the business.

Inbound Logistics.

For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its suppliers and develops a harmonious relationship with them and even lowered their payment cycles to enhance this relationship even more which includes worth to their chain network.


Samsung's core proficiency is its mass producing it produces 90% of its products internal. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is keeping operation hubs worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the main reasons Gxmba Operation A Management Individual Evaluation Case Study Analysis is able to compete with Apple. Samsung'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 claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target consumer attention towards the product is done through marketing and sales to interact with them the value and competitive advantage the product uses. Gxmba Operation A Management Individual Evaluation Case Study Solution advertising budget plan is continually increasing considering that they started their rearranging worldwide and will continue to do so as they are constantly wanting to invest and expand in high possible growth markets. The spending plan is invested in occasions, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their clients on top and continually aim to provide unmatchable customer service requirements. As after sales service is becoming exceptionally crucial to keep customers happy and engaged, they even perform studies through 3rd parties to find out their customer's feedback and implement it in the favorable way to minimize or if possible totally remove their consumer problems. By adding a direct assistance line to contact them 24 hours they have actually even more increased the included value of Gxmba Operation A Management Individual Evaluation Case Study Help service.


Gxmba Operation A Management Individual Evaluation Case Study Analysis has actually diversified market segmentation, based upon its provision of large range of items to large number of customers. Samsung target client segments can be divided into 3 classifications i.e. Gxmba Operation A Management Individual Evaluation Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.


Gxmba Operation A Management Individual Evaluation Case Study Help geographical division is based upon two criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products supplied to Urban in addition to Rural areas of the nation. The Samsung is also growing its international presence and the business's flexibility in locating its plants encourages international expansion of Samsung.


The demographic segmentation of Gxmba Operation A Management Individual Evaluation Case Study Solution is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be used by both females and males. The target consumers for Samsung IT and mobile communication items have an age variety of 18-65 with bulk at a young or newly married life process stage. They are mainly workers, trainees and experts. Apart from it, Samsung Customer Electronic devices are targeted to a consumer segment with an age range of 25-65. They are mostly experts and staff members. Nevertheless Gxmba Operation A Management Individual Evaluation Case Study Help Gadget Solutions are targeted at trainees, employees and professionals with an age range of 25-65.


The psychographic division of Gxmba Operation A Management Individual Evaluation Case Study Solution s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung sell items like cell phones very little less expensive i.e. Motorola along with not much expensive i.e. Apple. It offers quality products to middle level customers at a somewhat high price than others targeting the very same segment.


Gxmba Operation A Management Individual Evaluation Case Study Solution majority target customers have unique behavioural qualities. It has consumers with an ambitious, trendy and identified personality with moderate level of loyalty towards the brand name. Its customers have some degree of shift towards other distinguished brands i.e. Apple. The majority of Samsun customers want quality along with cost control. Since of its moderate rates with a level of quality, they are attracted towards Samsung.

Quantitative analysis.

Sales of Samsung has increased amazingly 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 also reduced its financial obligation 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. Incomes/ sales are increasing however net profit is not increasing accordingly since of the high overhead expense. New expansions and working with's were the main reason of the boost in the overhead costs, with china presently not offering any revenue to Samsung, but there is a lot potential in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the more youthful audience and create a global brand picture of the company. Whereas, the core strength of the business is currently producing but long gone are those days when excellent items were offering themselves. In the current age marketing is really important and business can not prosper without it. Kim has currently started to strengthen the marketing activities of Samsung and very soon it will turn into one of its core strength like manufacturing if not much better.



Samsung operates styles, manufactures and sell a large portfolio of customer electronic devices. It operates in an exceptionally competitive environment and has actually successfully placed itself as the maker of quality products. The response is yes.


As, said previously that Gxmba Operation A Management Individual Evaluation Case Study Analysis operates in a highly competitive environment, which suggests all the business have similar products. So, the response for rarity is no.


Due to the nature of the industry, it is really simple for competitors to comprehend the performance of the items and quickly make their own designs. Yes, Samsung is only behind IBM in registering brand-new patents each year, however the benefit is extremely short term in this market.


Chairman Lee has totally turn-around Samsung, from going practically bankrupt throughout the Asian monetary crisis of 1997 to the top 25 business on the planet. Absolutely yes there appertains company in the business and the outcomes 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 and so on, are very conductive for its operations. It deals with some political pressures in less developed countries where law and order circumstance is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Gxmba Operation A Management Individual Evaluation Case Study Solution operations.


Purchasing power of customers is crucial for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern countries etc. offer development chances, whereas, due to recession even the customers of industrialized countries suffer badly. Hence it is extremely essential for the business to watch on the ongoing financial situation of the country before getting in the market.


International companies have to face numerous social and cultural problems during its operations in a foreign nation. Samsung has actually likewise faced numerous problems however have embraced to the regional environments of most of the countries incredibly well. It has actually tailored its products, practices, policies etc. appropriately in order to succeed.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with constant ingenious item launches, Gxmba Operation A Management Individual Evaluation Case Study Analysis is among the leading innovative business of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Samsung has risen to the no 25 of the top successful business of the world.


Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. So, it needs to study or employ a regional law specialist before beginning its operations in a specific nation.


With the increasing awareness amongst customers about the environmental & ethical violations of companies, Samsung has to ensure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be very serious. On the other hand it has to do some Corporate Social Obligation practices to reveal the residents that it appreciates their environment and people.

Porter's Five Forces

Risk of Substitution

Risk of replacement for Samsung's each item classification is quite considerable. Aspects for high threat of replacement for Gxmba Operation A Management Individual Evaluation Case Study Help Mobile phone consist of the presence of high number of suppliers and Market saturation in industrialized countries, which make the cost of switching for customers almost zero. Along with it, Samsung printing solutions products are threatened by the increasing tourist attraction of consumers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Samsung and its close rivals is intense. The significant factor behind this is the technique of market saturation in numerous number of item classifications, forcing Samsung to introduce more ingenious functions in existing products and new innovative products to preserve its development. The major rivals for Gxmba Operation A Management Individual Evaluation Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Gxmba Operation A Management Individual Evaluation Case Study Analysis has a large supply chain including about 2700 suppliers across the world.( Samsung Sustainability Report, 2016) Provider'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 enable Samsung to work out costs with its suppliers. However, due to incapability of Gxmba Operation A Management Individual Evaluation Case Study Help to construct its own software application, it has to outsource its software advancement to Google, which becomes a possible provider of software for Samsung, leading to high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out rates, but it supply substantial prices to its suppliers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in many of the item classifications also make the bargaining power of buyers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its products at a higher rate than much of its rivals, due to high end quality item and a fair brand image.

Risk of New Entrants:

Risk of brand-new entrants for Gxmba Operation A Management Individual Evaluation Case Study Help is rather low. Along with it, requirement of substantial competence and research and development expenses for survival in the market likewise make new entrants hesitant to enter in the market. Market saturation is also one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high product diversity supplies it distinction from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Gxmba Operation A Management Individual Evaluation Case Study Analysis had a huge R&D costs on all of its product classifications which enable the company to make prospective income from sales of practically all of its products.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of global market share, among 8 different item categories. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its earnings from chips was growing faster than Intel and has actually grown close to the profits levels of Intel, as provided in the case Display 2.

Along with the chips Samsung mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales growth. The major reson behind Samsung's high growth despite of greater rates than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise reaping the benefits from increasing market share of high end LCDs as given in case Exhibition 3. The significant reason, making the business allow to get the opportunity is its mass production at low expense. Sony was the most significant competitor for Gxmba Operation A Management Individual Evaluation Case Study Help in LCD market, nevertheless, it had actually also started joint venture with Samsung in 2003 for LCD producing, reducing the competition for Samsung.

Porter's Competitive Method

Low Expense Leadership method of porter is completely implemented by Samsung the method they achieve economies of scale by reinforcing their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to make for them, due to the fact that they were unable to take on them on low cost. Differentiation is another strategy well implemented by Samsung by continuous investment in the R&D and staying ahead of the competitors. They always bring something new and innovative whether it's a service or an item.


Alternative Option 1

The Chief Marketing Officer (CMO) of Gxmba Operation A Management Individual Evaluation Case Study Help would create a brand-new brand name image by targeting the more youthful generation of the specific nation. As, particularly cellphones of Samsung are preferred amongst the younger market.


1. It is the best technique to construct Consumer Life time Worth (CLV) by producing a long-lasting relationship with clients. Develop loyalty through delivering value and profit for long-term, as research study has actually showed it is more affordable to retain present clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among younger individuals and which in turn will bring in brand-new consumers for my products.


1. Old clients who were connected with Samsung prior to might not like this new image the business is trying to depict.
2 It will incur further expenditures to rearrange some products and it may not even bring success as the trends change very rapidly among the more youthful demographic.

Alternative solution 2.

Samsung has made producing its core proficiency for the most part of their organisation and due to which its managers are not scared to totally get out of their comfort zone. It would be done by arranging training workshops during which value of marketing will be taught and numbers will be offered. Failure to get the passing scores will get benched. Marketing environment need to be created internally first as genuine 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 office, as people often resist modification because they fear it.

Determine the best alternative

First alternative is the very best as it clearly has more pros due to the fact that as soon as a Client Lifetime Worth is developed the business will benefit from it till that customer lives and has buying power too. Plus, our target customers are the more youthful generation which are bound to live longer than the present old age people. However, Samsung's primary objective is to produce commitment amongst its customers and make them bought it from them and even purchase their different products also.

Implementation Strategy

• Targeting younger generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations attainable and realistic.
• A group consisting of finest marketing and sales experts should be assemble, and both views need to be taken into consideration prior to securing the resources required to execute the plan.
• Thorough communication of the plan must be done as it is very important for everyone to be on the exact same page to make it work.
• Jobs and timelines ought to be develop and communicated appropriately to each person accountable.
• The manager ought to use a dashboard which reveals the progress of all the jobs which have been done or about to be done and by whom.
• The manager ought to keep track of and keep a consistent examine the private and general performance.
• Everybody must be willing to adapt midway due to the fact that any new trend or policy may come in due to which all the things currently planned have to be adjusted. It's better to have contingency plans currently prepared.
• At the end of the campaign the manager should communicate the outcomes and if successful need to celebrate with the team.

Spending plan

The M-net program revealed engaging analysis about the high and low growth possible areas and how much advertising budget must be allocated accordingly. This change the budget plan allowance of various nations and numerous managers were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth prospective warranted a 35% allowance while they were getting 45%. Whereas, China and Europe should be getting 42% however were rather offered 31%. It truly assisted to relatively disperse the resources and capture more customers by investing more on advertisements on the high development potential regions of the world.

Gxmba Operation A Management Individual Evaluation Case Study Help is a top 25 business worldwide now and prepares to get ahead of Sony who sits presently at no. 20. Its constant financial investment in R&D and innovative practices have propelled them to new heights but for them its' just the start and they want to be amongst the leading 3 brands in the world. They completely turnaround from nearly going bankrupt during the Asian Financial Crisis to a world prominent brand, understood for quality and innovation. Their worth chain and their core proficiency their production ability, along-with international brand name image building have 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 even more in the future. Their marketing efforts must be directed towards younger demographic in the middle of the internal arguments about marketing and need to create Customer Lifetime Worth as it will not just provide advantages now but will continue to reap it till the client life time. As the cost of maintaining the client is more affordable than bring in a new one.