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Hero Dog Treats Case Study Solution & Analysis


Hero Dog Treats Case Study Solution is a widely known worldwide brand in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Hero Dog Treats deals in large number of product categories including Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to sell Business products withtheir own trademark name. Till early 1990s, the core competency of Corp depend on its low cost offerings than its rivals by producing existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Hero Dog Treats Case Study Solution items with their own brand. Business was not merely known outside Korea. There were likewise no or little interest in constructing the brand globally. Marketing spending plan was controlled by production department with a prime focus on supplying low-cost products.During the 1997 Asian Financial Crisis the company almost got insolvent, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most important company in the world. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Corp as an international brand and informed his divisional managers to comprehend marketing and its value. Now their objective is to arrive 10 by 2005.

Issue Statement

Business's shift from a product based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to incorporate marketing effectively is still a major challenge. Developing a constant brand name identity across the whole world and utilizing marketing techniques that best fits the local culture is no simple task. The M-net program analysis have been truly helpful in identifying the high and less potential growth locations, but allocation of resources accordingly is not well gotten amongst the supervisors. There is no consensus amongst the hierarchy regarding the best matched future strategy.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Hero Dog Treats Case Study Analysis can transform from a low end to a high end product supplier. He knew that transformation can just be done through placing Corporation as a business providing high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Business brand name, with a prospective support of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as exact same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the present marketing requirement was too much high, the gap was too wider and to fill this gap with wrong understandings about marketing was quite challenging for Yun.

As stated 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 provided for the existing items. Along with it the item range of the company was increasing with the ripening of new item ideas by the R&D sector of Organization. Yun had an obstacle to perform marketing planning and to develop marketing budgets for existing in addition to for brand-new products from the very start, and this would take a huge time.

A substantial shift would be needed in current marketing expenses to develop the Hero Dog Treats Case Study Solution brand name. This would result in increased marketing expenses for Venture and might interrupt the administration relating to increased expenses, as they were reluctant to marketing expenditures formerly and a sudden big shiftwould make them disturb. This could lead to declining executive support for worldwide marketing. In this circumstance, Yun faces an obstacle for justifying increased marketing costs by showing the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Hero Dog Treats Case Study Analysis strengths lie in its huge product portfolio. Org has largest number of patents in the industry with total number of 15499 patents granted in United States( USP).

Another strength of Hero Dog Treats Case Study Analysis is its ability to develop ingenious products at a continuous rate. It major shows for the innovation and product creating of Business is that the company has actually gotten numerous awards for its innovation and item design.

Unlike Apple and other rivals, Venture is concentrated on producing devices which can be quickly integrated with any type of open source Os (OS) and software. This supplies Business an edge over Apple gadgets.
Porter's 5 Forces Analysis
Venture's ability to produce high-end products at low cost of production is likewise one of the significant strength of Corporation as it allows the company to catch more market by supplying quality products with expense control.

Weak points

Enterprise's weaknesses are concealed in the company's reliance on outsourcing software for its devices due to company's inability in establishing software, unlike Sony. Hero Dog Treats Case Study Solution likewise has low revenue margins as compare to Apple due to substantial distinction in the rates of Apple and Business with a much lower distinction in quality.


Opportunities for Company depend on the growing Smart device market and the company's efficiency in the market. It can increase its market share and incomes from cellular phone as the company is quite effective in cellular phone market. Enterprise presently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to obtain patents. It would allow the business to increase its item portfolio with an increase in its wealth.


The vibrant industry environment of technology market posture a severe hazard on Corp's survival and force the business to invest much of its revenues 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 likewise a huge risk for the company's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Hero Dog Treats Case Study Analysis offers quality products and has a quite rich portfolio which deals with various sectors. Most of the items remain in the top 3 of their particular industries. LCD and smart phones are the biggest products of Org, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Enterprise:

• Laptops.
• Smart phone.
• Air conditioning system.
• Desktop computer.
• Hard drives.
• Washing machines.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Hero Dog Treats Case Study Solution utilizes both market competitive and market skimming rates strategies for its wide array of products. In competitive pricing it changes the price according to the competitors in order to get advantage, whereas, it uses market skimming method where the item has an added value and by offering a few items 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 supplied to the selling location/ delivered to the clients directly in case of online order.

Vrio Analysis
It wasn't a well-known business beyond Korea up until 1993. The management initiative taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has actually entered the league of leading 25 business in the world in just 9 years. This is an amazing accomplishment despite the ongoing arguments amongst the managers about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid product advertisements, social promotion and digital ads are utilizes to produce awareness about Venture products.

Value Chain Analysis.

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

Inbound Logistics.

It has among the most effective and reliable supply chain network and has more than 2700 providers across numerous markets worldwide. Nearly 80% of which is based in Asia and the remaining around the globe. For its inbound logistics it owns different logistics firms as it subsidiaries. It cares for its suppliers and produces an unified relationship with them and even reduced their payment cycles to enhance this relationship further which includes worth to their chain network.


Company's core competency is its mass making it produces 90% of its items in-house. Divided into 3 different departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is preserving operation hubs worldwide to even more add worth to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main reasons Hero Dog Treats Case Study Solution is able to compete with Apple. Corp's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Business.

Marketing and Sales.

Attracting target consumer attention towards the product is done through marketing and sales to interact with them the value and competitive benefit the product uses. Hero Dog Treats Case Study Analysis advertising spending plan is continuously rising because they started their rearranging worldwide and will continue to do so as they are continuously wanting to expand and invest in high prospective development markets. The budget plan is spent on occasions, print and media ads, public relations etc.

Company put their clients at the top and continuously make every effort to deliver unmatchable customer service standards. By adding a direct assistance line to call them 24 hours they have actually further increased the included worth of Venture service.


Hero Dog Treats Case Study Analysis has diversified market segmentation, based upon its arrangement of large range of items to large number of consumers. Corp target client sectors can be divided into 3 classifications i.e. Hero Dog Treats Case Study Analysis IT and Mobile Communications, Organization Consumer Electronics and Org Device options.


Hero Dog Treats Case Study Analysis geographic segmentation is based upon two criteria i.e. area and density. Business serves about 80 countries worldwide with its products offered to Urban along with Rural areas of the nation. The Business is also growing its global presence and the business's versatility in locating its plants motivates international growth of Company.


Venture produces items that can be used by both females and males. The target consumers for Org IT and mobile communication products have an age range of 18-65 with bulk at a young or freshly married life cycle stage. Apart from it, Venture Consumer Electronic devices are targeted to a consumer section with an age variety of 25-65.


The psychographic segmentation of Hero Dog Treats Case Study Solution s based upon the social class and the lifestyle of the consumer. Corporation target clients on the basis of social class are primarily upper middle, middle and working class customers, as Organization offer items like cell phones very little cheaper i.e. Motorola as well as very little expensive i.e. Apple. It offers quality products to middle level customers at a somewhat high rate than others targeting the exact same sector.


Hero Dog Treats Case Study Analysis bulk target customers have distinct behavioural characteristics. They are attracted towards Corp because of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Hero Dog Treats Case Study Analysis has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the largest selling category of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based upon the mission of Kim to target the younger audience and develop a global brand name picture of the company. Whereas, the core strength of the business is currently producing but long gone are those days when good products were selling themselves. In the current age marketing is really essential and business can not be successful without it. Kim has actually already begun to enhance the marketing activities of Organization and very soon it will turn into one of its core strength like manufacturing if not much better.



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


As, stated earlier that Hero Dog Treats Case Study Help runs in an extremely competitive environment, which suggests all the business have comparable items. So, the response for rarity is no.


Due to the nature of the industry, it is extremely simple for competitors to comprehend the performance of the items and quickly make their own designs. Yes, Venture is just behind IBM in signing up brand-new patents yearly, however the advantage is extremely short-term in this industry.


Chairman Lee has completely turn-around Corp, from going almost bankrupt during the Asian monetary crisis of 1997 to the top 25 business on the planet. Definitely yes there appertains organization in the business and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread practically in every country worldwide, majority of the environments like USA, Europe, China etc., are extremely conductive for its operations. However, it deals with some political pressures in less industrialized nations where law and order circumstance is bad. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Hero Dog Treats Case Study Help operations.


Purchasing power of customers is essential for companies like Corporation to succeed and grow. Emerging markets like India, middle-eastern nations etc. offer growth opportunities, whereas, due to economic crisis even the clients of developed countries suffer terribly. It is extremely important for the business to keep an eye on the ongoing economic scenario of the country prior to going into the market.


International business have to face numerous social and cultural concerns throughout its operations in a foreign country. Company has actually also faced numerous issues however have actually embraced to the local environments of the majority of the nations exceptionally well. It has actually customized its products, practices, policies etc. appropriately in order to succeed.


With a yearly expenditure of 2.4 billion dollars in Research study & Advancement, and with consistent ingenious product launches, Hero Dog Treats 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, Corp has actually increased to the no 25 of the leading successful companies of the world.


Each country has their own laws and policies, being an international company Venture need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. It has to study or hire a local law specialist prior to starting its operations in a particular nation.


With the increasing awareness amongst consumers about the ecological & ethical infractions of companies, Business has to make sure that it follows all the safety guidelines. Ecological damages, ethical misconducts are not acceptable and in some countries the consequences can be really severe. On the other hand it needs to do some Corporate Social Responsibility practices to reveal the residents that it cares about their environment and people.

Porter's 5 Forces

Risk of Alternative

Danger of replacement for Enterprise's each item classification is quite considerable. Factors for high risk of replacement for Hero Dog Treats Case Study Help Mobile phone include the presence of high number of suppliers and Market saturation in industrialized nations, which make the expense of changing for customers almost absolutely no. Along with it, Company printing solutions products are threatened by the increasing destination of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly among Corporation and its close rivals is intense. The major factor behind this is the method of market saturation in numerous number of item classifications, requiring Corp to introduce more innovative functions in existing products and new ingenious products to maintain its growth. Other factor for the extreme competition among the competitors is the little item distinction amongst the items. The prominent gamers in the technology industry are rather familiar with the importance of R&D costs for their survival and are encountering a race of marketing and R&D costs, to record the market. The significant rivals for Hero Dog Treats Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the changing market shares which can be seen in Display F.

Bargaining Power of Suppliers:

Hero Dog Treats Case Study Solution has a large supply chain consisting of about 2700 providers across the world.( Venture Sustainability Report, 2016) Provider's bargaining power for Company is low as Corporation runs economies of scale and its orders are of prospective size and worth. These huge orders allow Org to negotiate rates with its providers. Due to incapability of Organization to construct its own software application, it has to outsource its software application development to Google, which becomes a prospective supplier of software for Org, resulting in high bargaining power of Google. Although, in the majority of cases Corp has a power to work out prices, but it provide substantial costs to its suppliers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in many of the item classifications likewise make the bargaining power of buyers more intense in for Corporation. In spite of igh bargaining power Venture is quite capable of selling its products at a greater price than much of its rivals, due to high end quality product and a fair brand name image.

Danger of New Entrants:

Hazard of brand-new entrants for Corporation is rather low. Among the significant factor for low risk of new entrants is the high competitors in the market. The requirement of substantial amount of capital to enter in the marketplace is likewise one of the possible barrier to entry. In addition to it, requirement of substantial expertise and research and development expenditures for survival in the industry also make new entrants unwilling to enter in the marketplace. Market saturation is likewise among the barrier of entry in innovation industry. High bargaining power of suppliers require the gamers in the industry to charge as low rates as possible and this can just be achieved by production effectiveness. Brand-new firms, in majority cases, do not have the production performance, hence increasing the risks for entrance in the technology industry.

Competitive Analysis

Company's high item diversification supplies it differentiation from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Hero Dog Treats Case Study Solution had a big R&D costs on all of its item classifications which make it possible for the company to make possible profits from sales of almost all of its products.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in regards to global market share, among 8 different product classifications. Company was the global leader in making DRAM, SRAM and NAND flash chips. Organization incomes from chips was less than Intel but its revenues from chips was growing quicker than Intel and has actually grown close to the revenue levels of Intel, as given in the case Display 2.

In addition to the chips Org mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Org's cellular phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales development. The significant reson behind Corporation's high growth despite of higher rates than Nokia and Motorola was the company's high-end quality mobile phone.

Enterprise was likewise profiting from increasing market share of high end LCDs as given in case Display 3. The significant reason, making the company allow to obtain the opportunity is its mass production at low expense. Sony was the most significant rival for Hero Dog Treats Case Study Help in LCD market, however, it had actually likewise begun joint endeavor with Business in 2003 for LCD manufacturing, decreasing the competition for Corp.

Porter's Competitive Method

Low Cost Management strategy of porter is totally carried out by Corp the way they achieve economies of scale by enhancing their core competencies of manufacturing. They always bring something new and innovative whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Hero Dog Treats Case Study Help would develop a new brand image by targeting the younger generation of the particular country. As, especially mobile phones of Org are very popular among the younger group.


1. It is the very best strategy to build Consumer Life time Value (CLV) by creating a long-term relationship with customers. Construct loyalty through providing value and reap the benefits for long-term, as research study has actually revealed it is more affordable to maintain present clients than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful individuals and which in turn will bring in new consumers for my products.


1. Old customers who were associated with Corp prior to might not like this brand-new image the company is attempting to represent.
2 It will sustain additional costs to rearrange some items and it might not even bring success as the patterns change very quickly amongst the younger market.

Alternative option 2.

Company has actually made manufacturing its core proficiency for the most part of their business and due to which its supervisors are not afraid to fully step out of their convenience zone. It would be done by arranging training workshops during which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be produced internally initially as real marketing begins inside the corporation.


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


2. Its con can develop an extremely unhealthy environment in the work environment, as people frequently withstand change since they fear it.

Determine the best alternative

First option is the very best as it plainly has more pros since as soon as a Client Lifetime Value is developed the company will make money from it till that customer lives and has acquiring power too. Plus, our target consumers are the younger generation which are bound to live longer than the present aging people. However, Org's primary objective is to create commitment among its consumers and make them bought it from them and even buy their different items too.

Execution Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations practical and attainable.
• A group including finest marketing and sales specialists ought to be assemble, and both views need to be taken into account prior to protecting the resources required to execute the strategy.
• Thorough interaction of the plan must be done as it is really important for everybody to be on the very same page to make it work.
• Tasks and timelines need to be develop and communicated accordingly to each individual accountable.
• The supervisor need to use a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor need to monitor and keep a continuous check on the overall and individual performance.
• Everyone should want to adjust midway since any new pattern or policy may be available in due to which all the important things currently prepared have to be adjusted. It's much better to have contingency plans currently prepared.
• At the end of the project the supervisor must interact the results and if effective ought to celebrate with the group.

Budget plan

This modification the budget allocation of numerous supervisors and different countries were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia development prospective merited a 35% allotment while they were getting 45%. It really helped to relatively distribute the resources and record more clients by investing more on advertisements on the high development capacity regions of the world.

Its consistent investment in R&D and ingenious practices have propelled them to new heights but for them its' just the start and they want to be among the top 3 brand names in the world. Their marketing efforts need to be directed towards younger group in the middle of the internal arguments about marketing and need to produce Consumer Lifetime Worth as it will not just provide them benefits now but will continue to reap it till the client lifetime. As the expense of maintaining the consumer is much more affordable than attracting a brand-new one.