Hp Change Management Harvard Case Study Solution

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Hp Change Management Case Study Solution and Analysis


Hp Change Management Case Study Solution is a popular international brand name in innovation market, founded in 1938 by Lee Byung Chul, in South Korea. Hp Change Management deals in a great deal of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which used to sell Company items withtheir own brand. Till early 1990s, the core proficiency of Org depend on its low cost offerings than its competitors by making existing products at economies of scale. Its consumer circle consists of Original Devices Manufacturers (OEMs), who utilized to offer Hp Change Management Case Study Help items with their own brand name. Venture was not simply known outside Korea. There were likewise no or little interest in building the brand internationally. Marketing spending plan was managed by production department with a prime focus on supplying cheap products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most important company on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Company as an international brand name and educated his divisional supervisors to understand marketing and its significance. Now their goal is to arrive 10 by 2005.

Issue Declaration

Org's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to integrate marketing efficiently is still a major obstacle. Creating a consistent brand name identity throughout the whole world and utilizing marketing methods that finest fits the local culture is no easy task. The M-net program analysis have actually been really useful in figuring out the high and less prospective growth areas, but allowance of resources appropriately is not well received amongst the supervisors. There is no consensus among the hierarchy relating to the very best matched future strategy.
Executive Summary
Situational Analysis

Hp Change Management Case Study Solution efforts for building its trademark name throughout the world was started after introducing the "new management effort" by Chairman Lee in 1993. The goal was to change Business from an inexpensive OEM to a high value-added product company. To make the vision of Venture a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Corp can transform from a low end to a high-end product supplier. He understood that improvement can only be done through placing Enterprise as a company offering 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 Organization brand name, with a prospective support of its executives, Yun faced a number of marketing challenges in early years of its efforts.

Among 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 thought that quality products do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the existing marketing requirement was too much high, the space was too broader and to fill this gap with incorrect understandings about marketing was quite challenging for Yun.

As stated above, marketing focus was very low in previous practices, for that reason there were no proper marketing spending plans for each of the product on the portfolio. There was no marketing planning provided for the existing items. Along with it the product variety of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Business. Yun had a challenge to carry out marketing planning and to create marketing spending plans for existing in addition to for new products from the very beginning, and this would take a big time.

A big shift would be needed in present marketing expenditures to build the Hp Change Management Case Study Solution brand name. This would result in increased marketing expenditures for Business and might disrupt the administration regarding increased costs, as they were reluctant to marketing expenditures formerly and a sudden huge shiftwould make them disrupt. This could result in decreasing executive assistance for global marketing. In this scenario, Yun deals with a challenge for validating increased marketing costs by showing the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Corp strengths lie in its huge item portfolio. Business has largest variety of patents in the industry with overall number of 15499 patents given in US( USP). Big quantity of R&D spending has made it possible for the business to grow its item portfolio at a higher rate than its competitors. Hp Change Management Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total revenues.

Another strength of Hp Change Management Case Study Help is its capability to establish innovative products at a continuous rate. It major shows for the innovation and item creating of Venture is that the company has received a lot of awards for its development and product style.

Unlike Apple and other competitors, Venture is focused on producing gadgets which can be easily integrated with any type of open source Os (OS) and software application. This provides Venture an edge over Apple gadgets.
Porter's 5 Forces Analysis
Org's capability to produce luxury items at low cost of production is also one of the major strength of Organization as it enables the company to capture more market by providing quality products with expense control.


Business's weak points are concealed in the company's reliance on outsourcing software application for its devices due to company's failure in establishing software, unlike Sony. Hp Change Management Case Study Help also has low earnings margins as compare to Apple due to substantial distinction in the costs of Apple and Organization with a much lower difference in quality.


Opportunities for Hp Change Management Case Study Help lie in the growing Smart device market and the business's effectiveness in the market. Business 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.


The vibrant market environment of technology market posture a severe risk on Enterprise's survival and force the business to spend much of its profits share on R&D in order to make it through in the long run. The marketplace saturation in developed countries i.e. saturation of mobile company is likewise a huge threat for the company's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Enterprise uses quality products and has a quite abundant portfolio which caters to different segments. LCD and mobile phones are the most significant products of Company, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Hard drives.
• Washing machines.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Hp Change Management Case Study Help uses both market competitive and market skimming prices techniques for its variety of products. In competitive prices it adjusts the rate according to the competitors in order to get advantage, whereas, it uses market skimming method where the product has an included value and by selling a few products it can reach break-even.


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

Vrio Analysis
It uses both offline & online channels of promotion to market their products. Paid item advertisements, social promotion and digital ads are uses to create awareness about Enterprise products.

Worth Chain Analysis.

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

Incoming Logistics.

For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and develops a harmonious relationship with them and even minimized their payment cycles to increase this relationship even more which adds value to their chain network.


Organization's core competency is its mass making it produces 90% of its items in-house. Divided into three different departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is preserving operation hubs worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the main factors Hp Change Management Case Study Help has the ability to take on Apple. Enterprise's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Organization.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the item provides. Hp Change Management Case Study Analysis marketing budget plan is continuously rising since they began their rearranging worldwide and will continue to do so as they are continuously wanting to invest and broaden in high prospective development markets. The budget is invested in occasions, print and media ads, public relations etc.

Company Service. Company put their clients on top and continuously make every effort to provide unmatchable customer support standards. As after sales service is ending up being exceptionally important to keep clients happy and engaged, they even conduct surveys through third parties to find out their consumer's feedback and execute it in the favorable method to reduce or if possible completely eliminate their consumer problems. By adding a direct support line to contact them 24 hr they have actually even more increased the included worth of Hp Change Management Case Study Solution service.


Hp Change Management Case Study Analysis has actually diversified market division, based upon its arrangement of wide variety of products to a great deal of customers. Company target consumer sections can be divided into 3 classifications i.e. Hp Change Management Case Study Solution IT and Mobile Communications, Corporation Customer Electronic Devices and Organization Gadget options.


Hp Change Management Case Study Solution geographic segmentation is based upon 2 requirements i.e. region and density. Company serves about 80 nations worldwide with its products provided to Urban as well as Rural areas of the nation. The Venture is also growing its international presence and the business's versatility in locating its plants motivates international growth of Enterprise.


The demographic segmentation of Hp Change Management Case Study Solution is based upon gender, age, life-cycle phase and profession. Company produces products that can be used by both males and females. The target clients for Organization IT and mobile interaction products have an age series of 18-65 with majority at a young or recently wed life cycle stage. They are mainly trainees, staff members and specialists. Apart from it, Organization Customer Electronics are targeted to a consumer segment with an age series of 25-65. They are mostly experts and workers. Nevertheless Hp Change Management Case Study Solution Device Solutions are targeted at trainees, employees and experts with an age variety of 25-65.


The psychographic division of Hp Change Management Case Study Solution s based upon the social class and the life style of the consumer. Org target customers on the basis of social class are mainly upper middle, middle and working class clients, as Business sell products like cellular phone not much cheaper i.e. Motorola as well as very little costly i.e. Apple. It provides quality items to middle level customers at a somewhat high price than others targeting the same section.


Hp Change Management Case Study Solution bulk target consumers have unique behavioural characteristics. They are brought in towards Enterprise due to the fact that of its moderate costs with a degree of quality.

Quantitative analysis.

Sales of Hp Change Management Case Study Solution has increased amazingly 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 classification of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the younger audience and create an international brand image of the business. Whereas, the core strength of the company is currently making however long gone are those days when good items were offering themselves. In the current age marketing is really important and companies can not be successful without it. Kim has actually currently begun to strengthen the marketing activities of Corp and very soon it will turn into one of its core strength like making if not better.



Corporation operates designs, produces and sell a huge portfolio of consumer electronics. It operates in an extremely competitive environment and has actually successfully placed itself as the maker of quality items. So, the response is yes.


As, said earlier that Hp Change Management Case Study Analysis operates in an extremely competitive environment, which implies all the companies have similar items. The response for rarity is no.


Due to the nature of the industry, it is very easy for rivals to understand the functionality of the items and quickly make their own designs. Yes, Business is only behind IBM in registering new patents annually, however the advantage is very short term in this market.


Chairman Lee has entirely turn-around Org, from going nearly bankrupt during the Asian monetary crisis of 1997 to the leading 25 business in the world. Definitely yes there is proper company in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread nearly in every country worldwide, majority of the environments like U.S.A., Europe, China etc., are very conductive for its operations. It faces some political pressures in less industrialized nations where law and order circumstance is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Hp Change Management Case Study Solution operations.


Purchasing power of customers is vital for companies like Corporation to be successful and grow. Emerging markets like India, middle-eastern countries and so on offer development chances, whereas, due to recession even the consumers of industrialized nations suffer badly. It is very crucial for the business to keep an eye on the ongoing economic circumstance of the country prior to entering the market.


International companies have to deal with various social and cultural issues during its operations in a foreign nation. Company has actually also dealt with lots of issues however have embraced to the regional environments of most of the countries incredibly well. It has actually customized its items, practices, policies etc. appropriately in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research study & Advancement, and with continuous ingenious item launches, Hp Change Management Case Study Solution is one of the top ingenious business of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Org has risen to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational business Venture have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. So, it needs to study or work with a local law specialist prior to beginning its operations in a specific nation.


With the increasing awareness amongst customers about the environmental & ethical offenses of business, Org needs to ensure that it follows all the security guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some nations the repercussions can be very serious. 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 5 Forces

Danger of Alternative

Risk of alternative for Venture's each item classification is rather substantial. Running in an extremely dynamic industry lead the company to deal with a high risk of replacement. Factors for high risk of alternative for Hp Change Management Case Study Analysis Smartphone consist of the existence of high variety of providers and Market saturation in industrialized nations, that make the expense of changing for customers nearly zero. Replacement hazards for Business visual display screen depend on the altering life style of clients. Clients can change to watching visuals in your home towards outdoor activities. Along with it, Organization printing solutions items are threatened by the increasing destination of consumers towards cloud storage.

Competition Among Existing Companies:

The rivaly among Enterprise and its close competitors is extreme. The significant factor behind this is the method of market saturation in numerous number of item classifications, forcing Enterprise to present more innovative features in existing products and new ingenious items to preserve its development. The significant rivals for Hp Change Management Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Hp Change Management Case Study Help has a large supply chain including about 2700 providers throughout the world.( Corporation Sustainability Report, 2016) Supplier's bargaining power for Corp is low as Enterprise runs economies of scale and its orders are of potential size and worth. These huge orders allow Corp to work out costs with its providers. Nevertheless, due to incapability of Hp Change Management Case Study Help to construct its own software, it needs to outsource its software development to Google, which becomes a prospective provider of software application for Venture, leading to high bargaining power of Google. In many of Hp Change Management Case Study Analysis has a power to work out prices, but it provide significant 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 most of the item classifications likewise make the bargaining power of purchasers more intense in for Org. In spite of igh bargaining power Business is quite capable of offering its products at a higher price than much of its rivals, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Danger of new entrants for Hp Change Management Case Study Analysis is rather low. Along with it, requirement of big competence and research study and advancement expenditures for survival in the industry also make new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Corp's high item diversity supplies it differentiation from its competitors. It is one of the 3 top brands by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product classification with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Organization had a huge R&D costs on all of its item classifications which make it possible for the business to make possible profits from sales of nearly all of its products. (See Exhibition) However, due to the broad item variety the business faces high number of rivals.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to worldwide market share, among 8 various item categories. Company was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Although, Company profits from chips was less than Intel but its profits from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given in the case Display 2.

Along with the chips Corporation mobile market was likewise thriving at a high rate than its competitors i.e. Motorola and Nokia. Org's mobile phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The major reson behind Enterprise's high growth despite of greater costs than Nokia and Motorola was the business's high-end quality mobile phone.

Enterprise was also profiting from increasing market share of luxury LCDs as given in case Exhibition 3. The significant reason, making the business make it possible for to get the chance is its mass production at low cost. Sony was the most significant rival for Hp Change Management Case Study Help in LCD market, however, it had likewise started joint venture with Venture in 2003 for LCD producing, minimizing the competition for Corp.

Porter's Competitive Method

Low Expense Leadership strategy of porter is completely implemented by Organization the method they attain economies of scale by strengthening their core proficiencies of manufacturing. They always bring something brand-new and ingenious whether it's an item or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Hp Change Management Case Study Solution would create a brand-new brand image by targeting the more youthful generation of the specific country. As, specifically smart phones of Enterprise are very popular amongst the younger market.


1. It is the best method to construct Customer Life time Worth (CLV) by creating a long-term relationship with customers. Construct commitment through providing worth and reap the benefits for long-lasting, as research has actually revealed it is more affordable to maintain present customers than to attract new ones.
2. Another pro of this option is that word of mouth spread faster among more youthful individuals and which in turn will bring in new customers for my items.


1. Old clients who were connected with Company before may not like this new image the business is trying to portray.
2 It will incur more costs to reposition some items and it might not even bring success as the patterns alter really quickly amongst the younger group.

Alternative option 2.

Venture has actually made manufacturing its core competency for the many part of their service and due to which its managers are not scared to completely step out of their convenience zone. It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get demoted. Marketing environment must be created internally initially as real marketing begins inside the corporation.


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


2. Its con can develop a very unhealthy environment in the work environment, as individuals often resist modification due to the fact that they fear it.

Recognize the very best alternative

Very first alternative is the best as it plainly has more pros because when a Consumer Life time Worth is constructed the business will profit from it till that customer lives and has purchasing power too. Plus, our target clients are the younger generation which are bound to live longer than the current old age individuals. Corp's main objective is to produce loyalty among its clients and make them bought it from them and even purchase their various products.

Application Strategy

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations realistic and attainable.
• A team consisting of finest marketing and sales specialists should be put together, and both views should be taken into account before securing the resources required to carry out the strategy.
• Thorough interaction of the strategy must be done as it is extremely crucial for everybody to be on the very same page to make it work.
• Jobs and timelines must be construct and interacted appropriately to each individual accountable.
• The manager should utilize a control panel which shows the progress of all the jobs which have been done or about to be done and by whom.
• The manager should monitor and keep a consistent examine the total and specific performance.
• Everybody ought to want to adapt midway since any new pattern or policy might come in due to which all the important things already prepared need to be changed. It's much better to have contingency plans already prepared.
• At the end of the campaign the supervisor ought to communicate the results and if successful need to celebrate with the group.


This change the budget plan allotment of numerous supervisors and different nations were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia development possible warranted a 35% allocation while they were receiving 45%. It actually assisted to relatively disperse the resources and capture more customers by investing more on ads on the high development capacity areas of the world.

Hp Change Management Case Study Help is a top 25 company worldwide now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and innovative practices have propelled them to new heights but for them its' only the start and they wish to be among the leading 3 brand names worldwide. They totally turn-around from practically declaring bankruptcy during the Asian Financial Crisis to a world distinguished brand, understood for quality and innovation. Their worth chain and their core proficiency their manufacturing ability, along-with worldwide brand image building 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 just increase further in the future. Their marketing efforts should be directed towards more youthful market amidst the internal arguments about marketing and should create Customer Life time Worth as it will not only give them benefits now but will continue to reap it till the client life time. As the expense of retaining the client is more affordable than bring in a brand-new one.