Gxmba Operation A Management Individual Evaluation Harvard Case Study Help

Home >> Hrm >> Gxmba Operation A Management Individual Evaluation

Gxmba Operation A Management Individual Evaluation Case Study Solution & Analysis


Historically, the business's core consumers consist of the Original Devices Manufacturers (OEMs), which utilized to sell Gxmba Operation A Management Individual Evaluation Case Study Analysis products withtheir own brand name. Its client circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Samsung products with their own brand name. He rearranged Samsung as a global brand and educated his divisional supervisors to understand marketing and its value.

Problem Statement

Samsung's shift from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to include marketing successfully is still a major challenge. Producing a consistent brand identity across the whole world and using marketing techniques that finest fits the local culture is no easy task.

Situational Analysis

Yun had a quite clear image in his mind about how Gxmba Operation A Management Individual Evaluation Case Study Solution can change from a low end to a high end item company. He understood that transformation can just be done through positioning Samsung as a business providing high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand name, with a possible assistance of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as very same tools and believed that quality items do not needed 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 broader and to fill this gap with incorrect perceptions about marketing was rather challenging for Yun.

Along with it the item range of the business was increasing with the ripening of new item ideas by the R&D sector of Samsung. Yun had a difficulty to carry out marketing planning and to develop marketing spending plans for existing as well as for new items from the very start, and this would take a substantial time.

A substantial shift would be required in existing marketing expenses to develop the Samsung brand name. This would result in increased marketing expenditures for Samsung and might disturb the administration regarding increased costs, as they were hesitant to marketing expenditures previously and an abrupt big shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its substantial item portfolio. Samsung has largest variety of patents in the industry with overall variety of 15499 patents given in US( USP). Large amount of R&D costs has enabled the company to grow its item portfolio at a higher rate than its rivals. 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 total revenues.

Another strength of Gxmba Operation A Management Individual Evaluation Case Study Analysis is its capability to develop ingenious items at a constant rate. It significant proves for the development and product creating of Samsung is that the company has actually gotten many awards for its development and product design.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be quickly integrated with any type of open source Os (OS) and software. This provides Samsung an edge over Apple gadgets.

Samsung's ability to produce high-end products at low expense of production is also among the major strength of Samsung as it makes it possible for the business to record more market by offering quality items with expense control.


Samsung's weaknesses are concealed in the company's reliance on outsourcing software application for its devices due to company's inability in developing software, unlike Sony. Gxmba Operation A Management Individual Evaluation Case Study Analysis also has low revenue margins as compare to Apple due to big distinction in the costs of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Gxmba Operation A Management Individual Evaluation Case Study Solution lie in the growing Smartphone market and the business's performance in the market. Samsung presently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of innovation market pose an extreme risk on Samsung's survival and force the company to spend much of its incomes share on R&D in order to endure in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a huge hazard for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing


Samsung offers quality products and has a quite rich portfolio which caters to different segments. LCD and mobile phones are the greatest items of Samsung, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Cellphone.
• Ac system.
• Personal computers.
• Disk drives.
• Washing machines.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Gxmba Operation A Management Individual Evaluation Case Study Help uses both market competitive and market skimming rates methods for its variety of items. In competitive prices it adjusts the cost according to the competition in order to acquire benefit, whereas, it uses market skimming technique where the item has an included worth and by selling a few products it can reach break-even.


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


It wasn't a popular company outside of Korea up until 1993. However the management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has actually gone into the league of leading 25 business in the world in simply 9 years. This is a remarkable achievement regardless of the continuous arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promo to market their items. Paid product ads, social promo and digital advertisements are uses to produce awareness about Samsung products.

Value Chain Analysis.

It's an analytical structure for recognizing company activities that include worth or competitive advantage for the business.

Inbound Logistics.

It has among the most effective and effective supply chain network and has more than 2700 providers throughout numerous markets around the globe. Nearly 80% of which is based in Asia and the staying around the world. For its inbound logistics it owns various logistics companies as it subsidiaries. It cares for its providers and develops an unified relationship with them and even decreased their payment cycles to enhance this relationship even more which includes value to their chain network.


Samsung's core proficiency is its mass making it produces 90% of its products in-house. Divided into three various divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is maintaining operation hubs worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the primary factors Gxmba Operation A Management Individual Evaluation Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target client attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the product offers. Gxmba Operation A Management Individual Evaluation Case Study Solution marketing spending plan is continually increasing considering that they began their rearranging internationally and will continue to do so as they are continually wanting to broaden and invest in high possible growth markets. The spending plan is spent on events, print and media ads, public relations etc.

Samsung put their clients at the top and continuously aim to deliver unmatchable client service requirements. By adding a direct assistance line to call them 24 hours they have actually further increased the added value of Samsung service.


Gxmba Operation A Management Individual Evaluation Case Study Help has diversified market segmentation, based upon its arrangement of large range of items to large number of consumers. Samsung target customer segments can be divided into 3 categories i.e. Gxmba Operation A Management Individual Evaluation Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget solutions.


Gxmba Operation A Management Individual Evaluation Case Study Analysis geographic division is based upon 2 requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products offered to Urban along with Rural areas of the country. The Samsung is also growing its worldwide presence and the company's versatility in finding its plants encourages global growth of Samsung.


The demographic segmentation of Gxmba Operation A Management Individual Evaluation Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Samsung produces items that can be used by both women and males. The target clients for Samsung IT and mobile communication items have an age variety of 18-65 with majority at a young or newly married life cycle phase. They are primarily professionals, employees and trainees. Apart from it, Samsung Consumer Electronics are targeted to a customer section with an age series of 25-65. They are primarily employees and professionals. Nevertheless Gxmba Operation A Management Individual Evaluation Case Study Solution Device Solutions are targeted at students, employees and experts with an age range of 25-65.


The psychographic segmentation of Gxmba Operation A Management Individual Evaluation Case Study Solution s based upon the social class and the life style of the customer. Samsung target customers on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell products like mobile phone very little cheaper i.e. Motorola as well as not much costly i.e. Apple. It provides quality items to middle level customers at a somewhat high rate than others targeting the same sector.


Gxmba Operation A Management Individual Evaluation Case Study Help majority target consumers have unique behavioural attributes. It has customers with an ambitious, fashionable and identified character with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other distinguished brand names i.e. Apple. Most of Samsun consumers want quality along with expense control. Because of its moderate costs with a level of quality, they are attracted towards Samsung.

Quantitative analysis.

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 likewise decreased its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest 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 revenue is not increasing accordingly since of the high overhead cost. New growths and employing's were the primary reason of the boost in the overhead expenses, with china presently not offering any profit to Samsung, but there is a lot capacity in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the more youthful audience and create a global brand image of the business. Whereas, the core strength of the company is presently manufacturing but long gone are those days when great products were offering themselves. In the present age marketing is extremely important and business can not prosper without it. Kim has actually currently started to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like making if not better.



Samsung runs designs, makes and offer a huge portfolio of customer electronic devices. It operates in a very competitive environment and has actually effectively placed itself as the maker of quality items. The answer is yes.


As, stated earlier that Gxmba Operation A Management Individual Evaluation Case Study Help runs in a highly competitive environment, which implies all the companies have comparable items. So, the answer 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 easily make their own designs. Yes, Samsung is only behind IBM in signing up new patents annually, however the advantage is very short-term in this market.


Chairman Lee has completely turnaround Samsung, from going nearly insolvent throughout the Asian monetary crisis of 1997 to the top 25 company on the planet. Certainly yes there appertains company in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread almost in every nation worldwide, bulk of the environments like USA, Europe, China etc., are very conductive for its operations. Nevertheless, it deals with some political pressures in less developed countries where order scenario is bad. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Gxmba Operation A Management Individual Evaluation Case Study Analysis operations.


Buying power of consumers is essential for companies like Samsung to succeed and grow. Emerging markets like India, middle-eastern nations etc. supply growth chances, whereas, due to economic crisis even the customers of industrialized nations suffer terribly. It is very important for the business to keep an eye on the continuous economic situation of the nation prior to getting in the market.


Multinational business have to face numerous social and cultural concerns during its operations in a foreign nation. Samsung has likewise faced numerous concerns however have actually adopted to the regional environments of most of the countries exceptionally well. It has customized its items, practices, policies etc. appropriately in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with continuous ingenious product launches, Gxmba Operation A Management Individual Evaluation Case Study Solution is among the top innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological developments, Samsung has increased to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal effects. So, it has to study or work with a local law professional before starting its operations in a particular country.


With the rising awareness among customers about the ethical & environmental infractions of companies, Samsung needs to guarantee that it follows all the security guidelines. Environmental damages, ethical misconducts are not appropriate and in some countries the repercussions can be really serious. On the other hand it has to do some Business Social Duty practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Danger of Alternative

Risk of substitution for Samsung's each product category is rather significant. Factors for high danger of alternative for Gxmba Operation A Management Individual Evaluation Case Study Help Smart device consist of the existence of high number of providers and Market saturation in industrialized nations, which make the expense of switching for consumers almost no. Along with it, Samsung printing services items are threatened by the increasing tourist attraction of clients towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close competitors is intense. The significant factor behind this is the approach of market saturation in numerous number of item classifications, forcing Samsung to present more ingenious features in existing products and brand-new ingenious products to maintain its development. The major rivals for Gxmba Operation A Management Individual Evaluation Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Gxmba Operation A Management Individual Evaluation Case Study Help has a large supply chain consisting of about 2700 providers throughout 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 possible size and worth. These substantial orders make it possible for Samsung to work out prices with its providers. Due to incapability of Samsung to construct its own software, it has to outsource its software development to Google, which ends up being a prospective supplier of software application for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to negotiate prices, however it supply considerable prices to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Bargaining power of buyers for various number of item categories of Samsung is intense. Among the factor causing the intense bargaining power is the schedule of large number of competitors in almost each product category i.e. rivals of Samsung Smart device, with a very little differentiation. The high schedule of providers of Smart devices with minimum distinction, make the switching expense for buyers nearly zero, thus increasing the bargaining power of buyers. Market saturation in most of the item classifications also make the bargaining power of buyers more intense in for Gxmba Operation A Management Individual Evaluation Case Study Analysis. In spite of igh bargaining power Samsung is rather capable of selling its products at a greater rate than much of its competitors, due to high-end quality item and a reasonable brand name image.

Hazard of New Entrants:

Hazard of new entrants for Samsung is quite low. One of the major aspect for low hazard of new entrants is the high competitors in the industry. The requirement of huge quantity of capital to go into in the marketplace is also among the prospective barrier to entry. In addition to it, requirement of substantial competence and research and development expenses for survival in the industry likewise make brand-new entrants reluctant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of suppliers force the gamers in the industry to charge as low costs as possible and this can just be attained by production performance. New firms, in majority cases, lack the production performance, thus increasing the threats for entrance in the innovation market.

Competitive Analysis

Samsung's high item diversity offers it distinction from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Gxmba Operation A Management Individual Evaluation Case Study Solution had a substantial R&D costs on all of its product classifications which enable the business to make prospective income from sales of almost all of its items.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of international market share, among 8 various item classifications. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung profits from chips was less than Intel however its earnings from chips was growing faster than Intel and has grown near to the profits levels of Intel, as given in the case Display 2.

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

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 avail the opportunity is its mass production at low expense. Sony was the greatest rival for Gxmba Operation A Management Individual Evaluation Case Study Analysis in LCD market, however, it had likewise started joint venture with Samsung in 2003 for LCD producing, minimizing the competition for Samsung.

Porter's Competitive Technique

Low Cost Leadership technique of porter is totally implemented by Samsung the method they accomplish economies of scale by enhancing their core competencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to produce for them, due to the fact that they were unable to compete with them on low cost. Differentiation is another strategy well implemented by Samsung by continuous financial investment in the R&D and remaining ahead of the competitors. They always bring something innovative and new 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 Analysis would produce a new brand image by targeting the more youthful generation of the particular country. As, particularly smart phones of Samsung are incredibly popular amongst the more youthful market.


1. It is the very best strategy to develop Customer Life time Worth (CLV) by producing a long-term relationship with clients. Develop loyalty through providing worth and reap the benefits for long-term, as research study has actually revealed it is much cheaper to keep current customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful individuals and which in turn will generate new clients for my items.


1. Old clients who were associated with Samsung prior to might not like this new image the business is trying to depict.
2 It will sustain further costs to reposition some items and it may not even bring success as the patterns alter really rapidly amongst the younger demographic.

Alternative service 2.

It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be offered. Marketing environment ought to be created internally initially as genuine marketing starts inside the corporation.


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


2. Its con can develop a very unhealthy environment in the office, as individuals often withstand change because they fear it.

Identify the very best option

Option is the best as it clearly has more pros because once a Customer Life time Value is built the business will benefit from it till that client is alive and has purchasing power. Plus, our target consumers are the more youthful generation which are bound to live longer than the existing aging individuals. Samsung's primary objective is to develop loyalty amongst its customers and make them repurchase it from them and even buy their various products.

Execution Plan

• Targeting younger generation through social marketing, developing a link with them like Pepsi make with music. And set the expectations practical and possible.
• A team consisting of best marketing and sales specialists should be put together, and both views need to be considered prior to protecting the resources needed to carry out the plan.
• Thorough communication of the plan ought to be done as it is really essential for everybody to be on the exact same page to make it work.
• Jobs and timelines should be construct and communicated accordingly to each person responsible.
• The supervisor should utilize a control panel which reveals the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor ought to monitor and keep a constant check on the private and overall efficiency.
Because any brand-new pattern or policy might come in due to which all the things already prepared have actually to be changed, • Everyone must be willing to adapt midway. It's much better to have contingency plans currently prepared.
• At the end of the project the supervisor ought to communicate the results and if effective must celebrate with the group.

Spending plan

This change the budget allowance of lots of managers and various nations were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like North America and Russia development possible merited a 35% allocation while they were getting 45%. It truly assisted to fairly distribute the resources and catch more consumers by spending more on advertisements on the high growth capacity areas of the world.


Gxmba Operation A Management Individual Evaluation Case Study Help is a leading 25 company in the world now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and ingenious practices have actually propelled them to new heights however for them its' only the start and they want to be among the top 3 brands worldwide. They completely turn-around from practically going bankrupt throughout the Asian Financial Crisis to a world renowned brand name, known for quality and development. Their value chain and their core competency their production capability, along-with worldwide brand name image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts need to be directed towards younger demographic amid the internal arguments about marketing and need to develop Customer Life time Worth as it will not just give them benefits now however will continue to gain it till the customer lifetime. As the expense of keeping the consumer is more affordable than attracting a brand-new one.