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Gxmba Operation A Management Individual Evaluation Case Study Solution & Analysis


Gxmba Operation A Management Individual Evaluation Case Study Analysis is a popular global brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Gxmba Operation A Management Individual Evaluation deals in large number of product classifications consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the company's core customers consist of the Original Devices Manufacturers (OEMs), which used to sell Enterprise products withtheir own trademark name. Till early 1990s, the core competency of Enterprise lie in its low rate offerings than its competitors by producing existing items at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Gxmba Operation A Management Individual Evaluation Case Study Analysis items with their own brand name. Business was not merely known outside Korea. There were likewise no or little interest in building the brand name worldwide. Marketing budget plan was managed by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the company practically got insolvent, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most valuable company in the world. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Company as an international brand name and informed his divisional supervisors to understand marketing and its importance. Now their objective is to arrive 10 by 2005.

Problem Statement

Corp's transition from a product based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to include marketing successfully is still a major challenge. Developing a consistent brand name identity across the whole world and using marketing methods that finest fits the local culture is no easy task.
Executive Summary
Situational Analysis

Gxmba Operation A Management Individual Evaluation Case Study Help efforts for constructing its brand name throughout the world was started after introducing the "new management effort" by Chairman Lee in 1993. The objective was to transform Org from an inexpensive OEM to a high value-added product supplier. To make the vision of Org a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Corp can change from a low end to a high-end item company. He understood that change can just be done through positioning Business as a business offering high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Venture brand name, 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 value of marketing. They considered marketing and selling as very same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was excessive high, the space was too larger and to fill this gap with wrong perceptions about marketing was quite challenging for Yun.

As specified above, marketing focus was extremely low in previous practices, for that reason there were no appropriate marketing budgets for each of the product on the portfolio. There was no marketing planning provided for the existing items. In addition to it the product range of the company was increasing with the ripening of brand-new item ideas by the R&D sector of Company. Yun had an obstacle to carry out marketing preparation and to produce marketing spending plans for existing in addition to for new products from the very beginning, and this would take a huge time.

A substantial shift would be required in present marketing expenses to build the Gxmba Operation A Management Individual Evaluation Case Study Help brand. This would result in increased marketing expenditures for Corporation and could interrupt the administration concerning increased expenditures, as they were reluctant to marketing expenditures previously and an abrupt big shiftwould make them disturb. This could lead to declining executive support for global marketing. In this situation, Yun faces a difficulty for justifying increased marketing expenses by demonstrating the long term value of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Corp strengths lie in its huge product portfolio. Org has biggest variety of patents in the market with total variety of 15499 patents given in US( USP). Big quantity of R&D spending has actually allowed the business to grow its product portfolio at a greater rate than its competitors. Gxmba Operation A Management Individual Evaluation Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Gxmba Operation A Management Individual Evaluation Case Study Solution is its capability to develop innovative items at a continuous rate. It significant proves for the development and item creating of Business is that the business has actually gotten numerous awards for its innovation and product style.

Unlike Apple and other competitors, Venture is concentrated on producing gadgets which can be quickly incorporated with any kind of open source Os (OS) and software. This offers Corporation an edge over Apple devices.
Porter's 5 Forces Analysis
Enterprise's ability to produce luxury items at low cost of production is likewise among the major strength of Company as it makes it possible for the company to catch more market by offering quality items with expense control.


Gxmba Operation A Management Individual Evaluation Case Study Analysis weak points are hidden in the business's reliance on outsourcing software application for its devices due to company's failure in developing software, unlike Sony. Company also has low profit margins as compare to Apple due to huge difference in the rates of Apple and Business with a much lesser difference in quality. The varied focus of the company due to large number of products in its portfolio, result in the less effective production and make the business unable to charge greater costs like Apple. The company is also inefficient in handling its patents and often deals with the problem of patent infraction.


Opportunities for Company lie in the growing Smartphone market and the company's efficiency in the market. It can increase its market share and earnings from mobile phone as the company is rather efficient in cell phone market. Corporation presently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Enterprise can move towards acquisitions to acquire patents. It would enable the company to increase its item portfolio with an increase in its wealth.


The vibrant industry environment of technology industry posture an extreme risk on Corp's survival and force the company to invest much of its profits share on R&D in order to endure in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a huge hazard for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Business provides quality products and has a quite abundant portfolio which caters to different sections. LCD and mobile phones are the biggest products of Org, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Mobile phones.
• Air conditioning system.
• Computer.
• Hard drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Gxmba Operation A Management Individual Evaluation Case Study Solution utilizes both market competitive and market skimming pricing methods for its wide variety of products. In competitive rates it adjusts the cost according to the competitors in order to acquire advantage, whereas, it uses market skimming strategy where the item has an added value and by selling a couple of products it can reach break-even.


It has among the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its items are timely provided to the selling location/ provided to the clients directly in case of online order.

Vrio Analysis
It wasn't a widely known company outside of Korea up until 1993. The management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has gotten in the league of top 25 business in the world in simply 9 years. This is an amazing accomplishment regardless of the ongoing arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital advertisements are utilizes to produce awareness about Org products.

Worth Chain Analysis.

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

Incoming Logistics.

For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and develops an unified relationship with them and even lowered their payment cycles to improve this relationship even more which includes worth to their chain network.


Enterprise's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three various departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is keeping operation centers worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main factors Gxmba Operation A Management Individual Evaluation Case Study Solution has the ability to take on Apple. Corporation's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Organization.

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to communicate with them the worth and competitive advantage the item offers. Gxmba Operation A Management Individual Evaluation Case Study Analysis advertising budget plan is constantly growing since they started their rearranging globally and will continue to do so as they are constantly seeking to expand and invest in high potential growth markets. The spending plan is invested in events, print and media advertisements, public relations and so on.

Venture put their customers at the top and continually strive to provide unmatchable client service requirements. By including a direct assistance line to call them 24 hours they have actually further increased the included value of Organization service.


Gxmba Operation A Management Individual Evaluation Case Study Solution has diversified market division, based upon its provision of wide variety of items to large number of customers. Enterprise target customer sections can be divided into 3 categories i.e. Gxmba Operation A Management Individual Evaluation Case Study Help IT and Mobile Communications, Corp Customer Electronics and Corp Gadget services.


Gxmba Operation A Management Individual Evaluation Case Study Help geographical division is based upon 2 requirements i.e. area and density. Corporation serves about 80 countries worldwide with its items provided to Urban as well as Backwoods of the country. The Corp is likewise growing its international existence and the company's versatility in locating its plants motivates worldwide expansion of Company.


The demographic segmentation of Gxmba Operation A Management Individual Evaluation Case Study Solution is based upon gender, age, life-cycle stage and profession. Company produces products that can be used by both females and males. The target customers for Venture IT and mobile communication products have an age range of 18-65 with bulk at a young or newly wed life cycle phase. They are mostly staff members, professionals and trainees. Apart from it, Business Customer Electronics are targeted to a customer sector with an age series of 25-65. They are mainly workers and professionals. Company Device Solutions are targeted at students, staff members and professionals with an age variety of 25-65.


The psychographic segmentation of Gxmba Operation A Management Individual Evaluation Case Study Analysis s based upon the social class and the lifestyle of the customer. Corporation target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Business offer items like mobile phone not much more affordable i.e. Motorola in addition to not much pricey i.e. Apple. It offers quality products to middle level customers at a slightly high cost than others targeting the same section.


Gxmba Operation A Management Individual Evaluation Case Study Analysis majority target clients have special behavioural qualities. They are brought in towards Venture because of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Venture has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise reduced its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Corporation 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 due to the fact that of the high overhead expense. New expansions and employing's were the primary reason of the increase in the overhead costs, with china currently not providing any revenue to Company, but there is a lot capacity in the existing market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the more youthful audience and produce a global brand picture of the company. Whereas, the core strength of the business is presently producing but long gone are those days when great items were offering themselves. In the existing age marketing is really essential and business can not be successful without it. Kim has actually already begun to strengthen the marketing activities of Venture and very soon it will become one of its core strength like making if not better.



Company operates styles, manufactures and sell a vast portfolio of consumer electronic devices. It runs in an extremely competitive environment and has actually effectively positioned itself as the maker of quality products. So, the response is yes.


As, stated earlier that Gxmba Operation A Management Individual Evaluation Case Study Help operates in a highly competitive environment, which suggests all the companies have comparable products. So, the answer for rarity is no.


Due to the nature of the market, it is really easy for competitors to comprehend the performance of the products and easily make their own models. Yes, Enterprise is just behind IBM in signing up brand-new patents each year, but the advantage is very short term in this industry.


Chairman Lee has totally turn-around Enterprise, from going nearly bankrupt during the Asian financial crisis of 1997 to the leading 25 business in the world. Definitely yes there appertains company in the company and the results promote 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 and so on, are very conductive for its operations. It deals with some political pressures in less industrialized countries where law and order circumstance is not great. 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.


Buying power of clients is important for companies like Organization to grow and succeed. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to recession even the customers of industrialized countries suffer severely. It is really important for the business to keep an eye on the ongoing financial scenario of the country prior to entering the market.


Multinational business have to face different social and cultural concerns during its operations in a foreign country. Enterprise has likewise dealt with lots of issues but have actually embraced to the local environments of the majority of the nations incredibly well. It has customized its products, practices, policies and so on accordingly in order to achieve success.


With an annual expense of 2.4 billion dollars in Research & Development, and with continuous innovative product launches, Gxmba Operation A Management Individual Evaluation Case Study Solution is among the leading innovative business of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Org has actually increased to the no 25 of the leading successful business of the world.


Each nation has their own laws and policies, being an international business Corporation need to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal consequences. It has to study or hire a regional law expert prior to beginning its operations in a specific country.


With the increasing awareness among customers about the environmental & ethical offenses of business, Enterprise needs to make sure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some nations the repercussions can be extremely extreme. On the other hand it has to do some Corporate Social Responsibility practices to show the residents that it appreciates their environment and people.

Porter's Five Forces

Threat of Substitution

Risk of substitution for Corporation's each item classification is quite significant. Running in an exceptionally vibrant market lead the business to deal with a high danger of substitution. Elements for high risk of alternative for Gxmba Operation A Management Individual Evaluation Case Study Solution Smart device include the presence of high variety of suppliers and Market saturation in industrialized nations, that make the cost of changing for consumers practically absolutely no. Alternative risks for Business visual display screen lie in the altering life style of customers. Consumers can change to seeing visuals at home towards outside activities. Along with it, Company printing options products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Business and its close rivals is intense. The major factor behind this is the method of market saturation in numerous variety of product categories, forcing Enterprise to introduce more innovative features in existing items and new ingenious items to maintain its development. Other aspect for the extreme competition amongst the rivals is the little product differentiation among the products. The prominent players in the innovation market are quite aware of the significance of R&D costs for their survival and are running into a race of marketing and R&D costs, to catch the market. The major rivals for Gxmba Operation A Management Individual Evaluation Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the fluctuating market shares which can be seen in Exhibit F.

Bargaining Power of Suppliers:

Gxmba Operation A Management Individual Evaluation Case Study Help has a vast supply chain including about 2700 suppliers across the world.( Enterprise Sustainability Report, 2016) Supplier's bargaining power for Venture is low as Corporation runs economies of scale and its orders are of prospective size and worth. These substantial orders make it possible for Venture to negotiate costs with its providers. However, due to incapability of Gxmba Operation A Management Individual Evaluation Case Study Help to construct its own software, it has to outsource its software application development to Google, which becomes a prospective provider of software application for Venture, resulting in high bargaining power of Google. In most of Gxmba Operation A Management Individual Evaluation Case Study Solution has a power to work out prices, however it offer substantial costs to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Bargaining power of buyers for different variety of product classifications of Corp is intense. Among the factor resulting in the extreme bargaining power is the availability of large number of rivals in nearly each product classification i.e. competitors of Enterprise Smartphone, with a really little differentiation. The high schedule of suppliers of Smartphones with minimum differentiation, make the changing expense for buyers nearly absolutely no, hence increasing the bargaining power of buyers. Market saturation in the majority of the item classifications likewise make the bargaining power of purchasers more intense in for Gxmba Operation A Management Individual Evaluation Case Study Analysis. In spite of igh bargaining power Organization is quite capable of offering its items at a higher cost than much of its competitors, due to luxury quality item and a reasonable brand name image.

Hazard of New Entrants:

Threat of new entrants for Business is quite low. Among the major element for low risk of brand-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 potential barrier to entry. Together with it, requirement of big proficiency and research and development expenses for survival in the industry also make brand-new entrants hesitant to go into in the marketplace. Market saturation is also among the barrier of entry in innovation market. High bargaining power of suppliers force the gamers in the market to charge as low prices as possible and this can only be attained by production efficiency. Brand-new firms, in majority cases, do not have the production effectiveness, thus increasing the threats for entrance in the innovation industry.

Competitive Analysis

Organization's high product diversity provides it distinction from its rivals. It is among the 3 top brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on consumer electronics, Nokia on mobile phone and Intel on chips, Company had a substantial R&D costs on all of its item classifications which allow the company to make prospective profits from sales of almost all of its items. (See Display) Nevertheless, due to the wide item variety the company faces high variety of competitors.

The company ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in regards to global market share, among 8 various item categories. Business was the global leader in making DRAM, SRAM and NAND flash chips. Organization profits from chips was less than Intel but its revenues from chips was growing quicker than Intel and has grown close to the earnings levels of Intel, as given in the case Exhibition 2.

Together with the chips Enterprise mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Corporation's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales growth. The major reson behind Org's high development despite of higher costs than Nokia and Motorola was the company's high-end quality cell phones.

Venture was likewise reaping the benefits from increasing market share of high-end LCDs as given up case Exhibition 3. The major factor, making the business enable to avail the chance is its mass production at low expense. Sony was the greatest rival for Gxmba Operation A Management Individual Evaluation Case Study Help in LCD market, however, it had actually likewise begun joint venture with Business in 2003 for LCD manufacturing, reducing the competition for Company.

Porter's Competitive Strategy

Low Expense Leadership technique of porter is fully executed by Organization the method they attain 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 produce for them, because they were unable to take on them on low expense. Differentiation is another technique well implemented by Corp by continuous investment in the R&D and remaining ahead of the competitors. They always bring something brand-new and ingenious whether it's a product or a service.


Alternative Solution 1

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


1. It is the best strategy to construct Customer Lifetime Worth (CLV) by producing a long-lasting relationship with clients. Build commitment through delivering value and profit for long-lasting, as research has actually revealed it is much cheaper to maintain current consumers than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among more youthful people and which in turn will bring in new customers for my products.


1. Old consumers who were associated with Business prior to might not like this brand-new image the company is trying to portray.
2 It will sustain additional costs to reposition some items and it may not even bring success as the patterns change very rapidly among the younger group.

Alternative service 2.

Corporation has actually made manufacturing its core competency for the many part of their business and due to which its supervisors are not scared to fully get out of their convenience 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 ratings will get benched. Marketing environment should be produced internally initially as real marketing begins inside the corporation.


1. Its pro will be that all the marketing technique advocates will come out and likewise the opposite ones.


2. Its con can create a really unhealthy environment in the workplace, as individuals frequently resist modification since they fear it.

Determine the best alternative

Alternative is the best as it clearly has more pros due to the fact that when a Customer Lifetime Worth is developed the company will profit from it till that consumer is alive and has buying power. Plus, our target clients are the younger generation which are bound to live longer than the present old age people. Business's primary goal is to develop commitment amongst its consumers and make them redeemed it from them and even buy their various products.

Implementation Plan

• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations reasonable and attainable.
• A group including finest marketing and sales experts must be put together, and both views must be taken into account prior to protecting the resources needed to implement the plan.
• Thorough communication of the strategy ought to be done as it is extremely important for everyone to be on the very same page to make it work.
• Tasks and timelines need to be build and communicated accordingly to each individual accountable.
• The manager must use 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 look at the overall and private efficiency.
• Everybody must want to adapt midway due to the fact that any new pattern or policy may can be found in due to which all the things already prepared have to be changed. It's better to have contingency plans currently prepared.
• At the end of the project the supervisor should interact the outcomes and if effective need to celebrate with the team.

Budget plan

This change the spending plan allowance of different countries and numerous supervisors were unhappy and argued but the analysis done by the program was precise and revealed figures like North America and Russia development prospective warranted a 35% allowance while they were receiving 45%. It truly assisted to relatively distribute the resources and record more consumers by spending more on advertisements on the high development potential areas of the world.

Its constant investment in R&D and innovative practices have moved them to new heights however for them its' just the start and they desire to be amongst the top 3 brand names in the world. Their marketing efforts ought to be directed towards more youthful demographic amid the internal arguments about marketing and ought to develop Client Lifetime Value as it will not only give them benefits now however will continue to enjoy it till the client lifetime. As the cost of retaining the consumer is much less expensive than drawing in a new one.