Hp Change Management Harvard Case Study Analysis

Home >> Hrm >> Hp Change Management

Hp Change Management Case Study Solution and Analysis


Historically, the company's core customers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Hp Change Management Case Study Solution products withtheir own brand name. Its consumer circle consists of Original Devices Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He rearranged Samsung as an international brand and educated his divisional supervisors to understand marketing and its significance.

Issue Declaration

Samsung's shift from an item based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional managers to incorporate marketing successfully is still a significant challenge. Creating a constant brand name identity throughout the entire world and utilizing marketing methods that best fits the regional culture is no easy task.

Situational Analysis

Yun had a quite clear picture in his mind about how Hp Change Management Case Study Analysis can change from a low end to a high end product provider. He understood that improvement can only be done through placing Samsung as a business using high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand name, with a prospective assistance of its executives, Yun faced numerous marketing obstacles in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the worth 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 organisation practices, and the current marketing requirement was excessive high, the space was too larger and to fill this gap with incorrect perceptions about marketing was quite challenging for Yun.

Along with it the product range of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had a challenge to perform marketing preparation and to create marketing spending plans for existing as well as for brand-new products from the very start, and this would take a substantial time.

A substantial shift would be required in current marketing expenditures to construct the Hp Change Management Case Study Analysis brand. This would lead to increased marketing expenses for Samsung and might disturb the administration relating to increased expenses, as they hesitated to marketing expenditures formerly and an abrupt huge shiftwould make them disrupt. This could lead to declining executive support for international marketing. In this scenario, Yun faces a difficulty for justifying increased marketing costs by showing the long term worth of big marketing expenses.

Internal Analysis
SWOT Analysis

Hp Change Management Case Study Help strengths lie in its big product portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents approved in US( USP).

Another strength of Hp Change Management Case Study Analysis is its capability to develop ingenious products at a continuous rate. It major shows for the innovation and item developing of Samsung is that the company has actually received a lot of awards for its innovation and product style.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be quickly incorporated with any kind of open source Operating System (OS) and software. This supplies Samsung an edge over Apple gadgets.

Samsung's ability to produce high end products at low expense of production is likewise among the significant strength of Samsung as it makes it possible for the company to catch more market by providing quality products with cost control.

Weak points

Samsung's weaknesses are concealed in the company's reliance on outsourcing software for its devices due to business's inability in establishing software, unlike Sony. Hp Change Management Case Study Analysis likewise has low earnings margins as compare to Apple due to substantial difference in the prices of Apple and Samsung with a much lower distinction in quality.


Opportunities for Samsung depend on the growing Smartphone market and the company's effectiveness in the market. It can increase its market share and earnings from cellular phone as the company is rather efficient in mobile phone market. Samsung currently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would make it possible for the business to increase its product portfolio with an increase in its wealth.


The dynamic market environment of innovation industry posture an extreme threat on Samsung's survival and force the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in industrialized nations i.e. saturation of mobile business is likewise a big hazard for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing


Samsung offers quality products and has a quite rich portfolio which caters to various sections. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Mobile phones.
• A/c unit.
• Personal computers.
• Disk drives.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Hp Change Management Case Study Analysis utilizes both market competitive and market skimming prices strategies for its wide variety of products. In competitive prices it adjusts the cost according to the competition in order to gain advantage, whereas, it uses market skimming strategy where the item has actually an included worth and by selling a few items it can reach break-even.


It has among the best supply chain networks, with retail distributors, their own sole distributors, 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 widely known company outside of Korea 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 gone into the league of top 25 companies worldwide in simply 9 years. This is a remarkable accomplishment despite the continuous arguments among the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promo and digital advertisements are utilizes to create awareness about Samsung items.

Worth Chain Analysis.

It's an analytical framework for identifying business activities that include value or competitive benefit for the company.

Inbound Logistics.

For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even lowered their payment cycles to increase this relationship even more which adds value to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three various divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronics. It is preserving operation centers worldwide to even more include value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main factors Hp Change Management Case Study Help has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target client attention towards the product is done through marketing and sales to interact with them the value and competitive benefit the item provides. Hp Change Management Case Study Help advertising budget plan is constantly increasing considering that they started their repositioning globally and will continue to do so as they are constantly seeking to invest and expand in high potential growth markets. The spending plan is invested in occasions, print and media ads, public relations and so on.

Samsung put their clients at the top and continuously strive to deliver unmatchable consumer service standards. By including a direct assistance line to contact them 24 hours they have actually further increased the included value of Samsung service.


Hp Change Management Case Study Solution has diversified market division, based upon its arrangement of wide variety of items to large number of customers. Samsung target consumer sections can be divided into 3 categories i.e. Hp Change Management Case Study Help IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget services.


Hp Change Management Case Study Solution geographical division is based upon two requirements i.e. area and density. Samsung serves about 80 nations worldwide with its items provided to Urban as well as Backwoods of the country. The Samsung is likewise growing its worldwide existence and the company's flexibility in locating its plants encourages worldwide expansion of Samsung.


The group division of Hp Change Management Case Study Analysis is based upon gender, age, life-cycle phase and profession. Samsung produces items that can be utilized by both women and males. The target consumers for Samsung IT and mobile communication items have an age variety of 18-65 with majority at a young or newly wed life cycle phase. They are mostly specialists, employees and students. Apart from it, Samsung Customer Electronics are targeted to a consumer sector with an age range of 25-65. They are primarily experts and staff members. However Hp Change Management Case Study Analysis Gadget Solutions are targeted at students, staff members and professionals with an age range of 25-65.


The psychographic division of Hp Change Management Case Study Solution s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are primarily upper middle, middle and working class customers, as Samsung sell items like mobile phone very little cheaper i.e. Motorola along with very little costly i.e. Apple. It supplies quality products to middle level consumers at a slightly high price than others targeting the very same section.


Hp Change Management Case Study Analysis bulk target consumers have unique behavioural characteristics. It has clients with an ambitious, fashionable and identified personality with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other prominent brand names i.e. Apple. Most of Samsun customers desire quality as well as expense control. Since of its moderate prices with a level of quality, they are drawn in towards Samsung.

Quantitative analysis.

Sales of Hp Change Management Case Study Analysis has 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 Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is currently making but long gone are those days when great products were offering themselves. Kim has currently started to strengthen the marketing activities of Samsung and really quickly it will end up being one of its core strength like producing if not better.



Samsung operates styles, produces and offer a vast portfolio of customer electronic devices. It runs in a very competitive environment and has actually successfully positioned itself as the maker of quality items. The answer is yes.


As, said previously that Hp Change Management Case Study Analysis runs in an extremely competitive environment, which means all the business have similar items. The answer for rarity is no.


Due to the nature of the market, it is extremely easy for competitors to understand the functionality of the items and quickly make their own models. Yes, Samsung is just behind IBM in signing up brand-new patents yearly, but the advantage is very short-term in this industry.


Chairman Lee has totally turnaround Samsung, from going practically insolvent throughout the Asian monetary crisis of 1997 to the leading 25 company worldwide. Absolutely yes there appertains organization in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are very conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized nations where law and order situation is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Hp Change Management Case Study Solution operations.


Buying power of consumers is important for companies like Samsung to grow and be successful. Emerging markets like India, middle-eastern nations and so on supply development chances, whereas, due to economic crisis even the customers of developed countries suffer severely. Thus it is extremely essential for the business to watch on the ongoing financial scenario of the country prior to going into the market.


International companies need to deal with numerous social and cultural concerns during its operations in a foreign nation. Samsung has also faced lots of concerns however have embraced to the local environments of the majority of the countries incredibly well. It has actually customized its products, practices, policies etc. appropriately in order to be successful.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with constant innovative product launches, Hp Change Management Case Study Analysis is among the leading innovative companies of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Samsung has risen to the no 25 of the top successful companies of the world.


Each nation has their own laws and policies, being a multinational company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. It has to study or employ a regional law specialist before starting its operations in a specific nation.


With the increasing awareness amongst customers about the ethical & environmental violations of business, Samsung needs to ensure that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be extremely severe. On the other hand it has to do some Business Social Duty practices to show the locals that it cares about their environment and people.

Porter's 5 Forces

Hazard of Replacement

Hazard of alternative for Samsung's each item category is rather substantial. Running in a very vibrant industry lead the company to face a high hazard of replacement. Factors for high hazard of replacement for Hp Change Management Case Study Analysis Smart device include the existence of high variety of providers and Market saturation in industrialized nations, which make the cost of switching for consumers nearly no. Alternative threats for Samsung visual screen depend on the changing lifestyle of customers. Consumers can change to viewing visuals in the house towards outside activities. Along with it, Samsung printing services items are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the technique of market saturation in different variety of item classifications, forcing Samsung to present more ingenious features in existing products and new ingenious products to maintain its development. Other element for the intense competition amongst the rivals is the little item differentiation amongst the products. The popular gamers in the technology industry are rather aware of the importance of R&D costs for their survival and are facing a race of marketing and R&D costs, to capture the market. The major competitors for Hp Change Management Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the changing market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. Due to incapability of Hp Change Management Case Study Help to construct its own software application, it has to outsource its software development to Google, which becomes a possible provider of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Haggling power of buyers for various number of item classifications of Samsung is extreme. One of the aspect resulting in the extreme bargaining power is the schedule of a great deal of rivals in practically each item category i.e. competitors of Samsung Smart device, with a very little differentiation. The high availability of suppliers of Smart devices with minimum distinction, make the changing cost for purchasers practically zero, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product categories also make the bargaining power of purchasers more intense in for Hp Change Management Case Study Solution. In spite of igh bargaining power Samsung is quite capable of selling its items at a greater price than much of its competitors, due to high-end quality item and a fair brand name image.

Threat of New Entrants:

Danger of new entrants for Samsung is quite low. One of the major aspect for low threat of brand-new entrants is the high competition in the market. The requirement of big amount of capital to go into in the marketplace is also one of the possible barrier to entry. Together with it, requirement of substantial proficiency and research and advancement expenses for survival in the market likewise make brand-new entrants unwilling to go into in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of providers require the gamers in the market to charge as low prices as possible and this can just be accomplished by production efficiency. New companies, in majority cases, do not have the production effectiveness, thus increasing the threats for entryway in the innovation industry.

Competitive Analysis

Samsung's high product diversification provides it differentiation from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Hp Change Management Case Study Help had a substantial R&D costs on all of its item classifications which enable the company to make potential earnings from sales of almost all of its products.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of worldwide market share, among 8 different product categories. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel however its incomes from chips was growing faster than Intel and has actually grown close to the earnings levels of Intel, as given in the case Exhibition 2.

Along with the chips Samsung mobile market was likewise flourishing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The significant reson behind Samsung's high growth despite of higher rates than Nokia and Motorola was the business's high-end quality mobile phone.

Samsung was also profiting from increasing market share of luxury LCDs as given up case Exhibit 3. The major reason, making the company make it possible for to get the chance is its mass production at low expense. Sony was the biggest rival for Hp Change Management Case Study Help in LCD market, however, it had likewise started joint venture with Samsung in 2003 for LCD manufacturing, minimizing the competitors for Samsung.

Porter's Competitive Technique

Low Expense Management method of porter is totally implemented by Samsung the method they accomplish economies of scale by reinforcing their core proficiencies of production. Even to the point that their competitor SONY decided to form an alliance with them to manufacture for them, due to the fact that they were unable to take on them on low cost. Distinction is another strategy well implemented by Samsung by continuous financial investment in the R&D and remaining ahead of the competitors. They constantly bring something brand-new and innovative 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 name image by targeting the younger generation of the particular country. As, particularly cellphones of Samsung are incredibly popular among the younger group.


1. It is the best method to develop Customer Lifetime Value (CLV) by developing a long-lasting relationship with consumers. Develop loyalty through delivering worth and reap the benefits for long-lasting, as research has showed it is much cheaper to retain current customers than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among more youthful people and which in turn will bring in brand-new customers for my items.


1. Old customers who were connected with Samsung prior to may not like this brand-new image the business is trying to depict.
2 It will incur additional expenses to reposition some products and it may not even bring success as the patterns alter really quickly amongst the younger group.

Alternative solution 2.

Samsung has made producing its core proficiency for the most part of their service and due to which its managers are not scared to fully get out of their comfort zone. It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment need to be developed internally first as real marketing begins inside the corporation.


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


2. Its con can develop a very unhealthy environment in the work environment, as individuals frequently resist modification because they fear it.

Determine the very best alternative

Option is the best as it plainly has more pros because as soon as a Customer Lifetime Value is constructed the business will profit from it till that consumer is alive and has purchasing power. Plus, our target customers are the younger generation which are bound to live longer than the present old age people. Samsung's primary goal is to create loyalty amongst its clients and make them redeemed it from them and even buy their different products.

Execution Strategy

• Targeting more youthful generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations possible and reasonable.
• A team consisting of finest marketing and sales specialists must be put together, and both views should be taken into consideration prior to protecting the resources required to carry out the strategy.
• Thorough interaction of the plan should be done as it is extremely crucial for everybody to be on the exact same page to make it work.
• Jobs and timelines must be build and communicated appropriately to each person responsible.
• The manager ought to use a dashboard which reveals the development of all the jobs which have been done or about to be done and by whom.
• The supervisor should monitor and keep a constant check on the individual and total efficiency.
Because any brand-new trend or policy may come in due to which all the things currently planned have actually to be adjusted, • Everyone ought to be ready to adjust midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the supervisor should interact the outcomes and if effective ought to commemorate with the group.

Budget plan

This modification the budget plan allocation of many managers and different countries were unhappy and argued however the analysis done by the program was precise and revealed figures like North America and Russia development possible warranted a 35% allowance while they were receiving 45%. It truly assisted to fairly disperse the resources and catch more customers by investing more on ads on the high development potential areas of the world.


Hp Change Management Case Study Analysis is a leading 25 business on the planet now and plans to get ahead of Sony who sits presently at no. 20. Its constant investment in R&D and innovative practices have moved them to brand-new heights but for them its' just the start and they wish to be amongst the leading 3 brand names on the planet. They entirely turn-around from nearly going bankrupt during the Asian Financial Crisis to a world distinguished brand name, known for quality and development. Their worth chain and their core proficiency their manufacturing capability, along-with worldwide brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts should be directed towards more youthful market in the middle of the internal arguments about marketing and should develop Customer Life time Worth as it will not just provide advantages now however will continue to reap it till the client lifetime. As the expense of maintaining the consumer is much cheaper than drawing in a new one.