Hp Change Management Harvard Case Study Analysis

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Hp Change Management Case Study Solution & Analysis


Historically, the company's core clients consist of the Original Devices Manufacturers (OEMs), which used to sell Hp Change Management Case Study Help items withtheir own brand name. Its client circle consists of Original Devices Manufacturers (OEMs), who utilized to offer Samsung products with their own brand name. He repositioned Samsung as a worldwide brand name and informed his divisional supervisors to comprehend marketing and its significance.

Problem Statement

Samsung's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to integrate marketing successfully is still a significant challenge. Creating a consistent brand identity throughout the entire world and using marketing techniques that best fits the local culture is no simple task. The M-net program analysis have actually been truly valuable in determining the high and less potential development areas, however allotment of resources appropriately is not well gotten amongst the supervisors. There is no agreement amongst the hierarchy relating to the very best suited future strategy.
Executive Summary
Situational Analysis

Hp Change Management Case Study Analysis efforts for building its trademark name across the world was begun after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to change Samsung from a cheap OEM to a high value-added item provider. To make the vision of Samsung a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Samsung can change from a low end to a luxury item supplier. He understood that transformation can just be done through placing Samsung as a company providing high-end items and this could just be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand, with a prospective support of its executives, Yun faced several marketing challenges in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the present marketing requirement was too much high, the space was too broader and to fill this gap with wrong perceptions about marketing was quite difficult for Yun.

As specified above, marketing focus was really low in previous practices, therefore there were no correct marketing budget plans for each of the product on the portfolio. There was no marketing planning provided for the existing products. Together with it the item variety of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to develop marketing budget plans for existing in addition to for new products from the very start, and this would take a huge time.

A substantial shift would be required in existing marketing expenses to develop the Samsung brand name. This would result in increased marketing expenditures for Samsung and might interrupt the administration relating to increased expenses, as they were reluctant to marketing expenses formerly and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Hp Change Management Case Study Help strengths lie in its big product portfolio. Samsung has biggest number of patents in the industry with overall number of 15499 patents approved in United States( USP).

Another strength of Hp Change Management Case Study Solution is its ability to develop ingenious items at a constant rate. It major proves for the development and item designing of Samsung is that the business has received numerous awards for its development and item style.

Unlike Apple and other competitors, Samsung is concentrated on producing devices which can be quickly integrated with any kind of open source Operating System (OS) and software application. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's ability to produce luxury items at low cost of production is likewise among the major strength of Samsung as it makes it possible for the business to capture more market by supplying quality products with expense control.


Samsung's weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to business's inability in developing software, unlike Sony. Hp Change Management Case Study Solution also has low profit margins as compare to Apple due to huge difference in the costs of Apple and Samsung with a much lower distinction in quality.


Opportunities for Hp Change Management Case Study Help lie in the growing Smart device market and the company's performance in the market. Samsung presently runs in about 80 countries and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia.


The vibrant market environment of innovation market posture an extreme danger on Samsung's survival and require the company to invest much of its incomes share on R&D in order to survive in the long run. The market saturation in developed countries i.e. saturation of mobile company is likewise a big threat for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Hp Change Management Case Study Solution provides quality products and has a rather abundant portfolio which deals with various segments. Most of the products remain in the leading three of their respective markets. LCD and cellphones are the most significant products of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Air conditioner.
• Personal computers.
• Hard disk drives.
• Washer.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Hp Change Management Case Study Analysis uses both market competitive and market skimming rates methods for its wide range of items. In competitive rates it changes the price according to the competitors in order to acquire benefit, whereas, it uses market skimming strategy where the product has an included value and by offering a couple of products it can reach break-even.


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

Vrio Analysis
It wasn't a widely known business beyond Korea until 1993. However the management initiative taken by their CEO has actually pressed them to market more effectively outside the borders and now it has gone into the league of top 25 business in the world in simply 9 years. This is an impressive accomplishment in spite of the continuous arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promo to market their products. Paid item advertisements, social promotion and digital ads are utilizes to create awareness about Samsung products.

Worth Chain Analysis.

It's an analytical framework for recognizing organisation activities that add worth or competitive advantage for the company.

Inbound Logistics.

It has among the most effective and efficient supply chain network and has more than 2700 providers throughout different industries all over the world. Practically 80% of which is based in Asia and the remaining around the globe. For its inbound logistics it owns numerous logistics firms as it subsidiaries. It takes care of its providers and produces an unified relationship with them and even minimized their payment cycles to enhance this relationship further which includes value to their chain network.


Samsung's core competency is its mass producing it produces 90% of its items internal. Divided into 3 various divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is keeping operation hubs worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary factors Hp Change Management Case Study Solution has the ability to take on Apple. Samsung's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the item offers. Hp Change Management Case Study Solution advertising budget is continually increasing given that they started their repositioning globally and will continue to do so as they are continuously aiming to invest and broaden in high possible growth markets. The budget is spent on events, print and media ads, public relations and so on.

Samsung Service. Samsung put their consumers at the top and constantly strive to deliver unmatchable client service requirements. As after sales service is ending up being extremely essential to keep clients pleased and engaged, they even carry out surveys through 3rd parties to discover their customer's feedback and execute it in the positive method to reduce or if possible entirely remove their consumer issues. By including a direct assistance line to contact them 24 hr they have even more increased the included value of Hp Change Management Case Study Help service.


Hp Change Management Case Study Help has actually diversified market segmentation, based upon its arrangement of vast array of products to large number of consumers. Samsung target customer sections can be divided into 3 classifications i.e. Hp Change Management Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget solutions.


Hp Change Management Case Study Help geographic division is based upon 2 requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products supplied to Urban in addition to Rural areas of the country. The Samsung is also growing its international existence and the company's versatility in locating its plants encourages international growth of Samsung.


Samsung produces products that can be used by both males and women. The target clients for Samsung IT and mobile communication items have an age range of 18-65 with bulk at a young or newly wed life cycle stage. Apart from it, Samsung Consumer Electronic devices are targeted to a consumer segment with an age variety of 25-65.


The psychographic segmentation of Hp Change Management Case Study Solution s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are primarily upper middle, middle and working class customers, as Samsung offer products like mobile phone very little more affordable i.e. Motorola in addition to very little pricey i.e. Apple. It supplies quality products to middle level customers at a somewhat high rate than others targeting the very same sector.


Hp Change Management Case Study Analysis bulk target clients have unique behavioural qualities. It has consumers with an ambitious, trendy and determined personality with moderate level of commitment towards the brand name. Its customers have some degree of shift towards other prominent brand names i.e. Apple. Most of Samsun consumers want quality in addition to cost control. They are attracted towards Samsung due to the fact that of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Hp Change Management Case Study Help has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is currently making but long gone are those days when great items were offering themselves. Kim has actually already started to strengthen the marketing activities of Samsung and really soon it will become one of its core strength like producing if not much better.



Samsung runs designs, makes and offer a large portfolio of customer electronics. It operates in an exceptionally competitive environment and has actually successfully positioned itself as the maker of quality items. The answer is yes.


As, stated earlier that Hp Change Management Case Study Help runs in an extremely competitive environment, which implies all the companies have comparable items. The response for rarity is no.


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


Chairman Lee has entirely turn-around Samsung, from going nearly bankrupt during the Asian financial crisis of 1997 to the top 25 business in the world. Absolutely yes there is proper company in the business and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread practically in every country worldwide, bulk of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. Nevertheless, it deals with some political pressures in less developed countries where order circumstance is bad. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Hp Change Management Case Study Analysis operations.


Purchasing power of customers is crucial for business like Samsung to grow and succeed. Emerging markets like India, middle-eastern nations and so on supply development opportunities, whereas, due to recession even the clients of industrialized countries suffer severely. It is very important for the company to keep an eye on the continuous economic scenario of the country before entering the market.


International companies have to deal with various social and cultural issues during its operations in a foreign country. Samsung has likewise faced lots of concerns but have actually embraced to the local environments of the majority of the countries incredibly well. It has actually customized its items, practices, policies etc. appropriately in order to succeed.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with consistent innovative product launches, Hp Change Management Case Study Solution is one of the top innovative companies of the world. With a clear mission to be ahead of the rest when it concerns technological advancements, Samsung has actually increased to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being an international company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal repercussions. It has to study or hire a local law professional before starting its operations in a specific nation.


With the increasing awareness among consumers about the ethical & environmental offenses of business, Samsung has to ensure that it follows all the safety standards. Environmental damages, ethical misbehaviors are not appropriate and in some countries the consequences can be extremely extreme. On the other hand it has to do some Business Social Duty practices to reveal the residents that it cares about their environment and individuals.

Porter's 5 Forces

Danger of Substitution

Threat of substitution for Samsung's each item category is rather significant. Running in a very vibrant market lead the company to deal with a high threat of substitution. Factors for high danger of replacement for Hp Change Management Case Study Help Smart device consist of the existence of high variety of providers and Market saturation in developed countries, that make the cost of changing for consumers practically no. Replacement threats for Samsung visual display lie in the changing lifestyle of clients. Customers can change to watching visuals in your home towards outdoor activities. Together with it, Samsung printing options products are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly among Samsung and its close rivals is intense. The significant reason behind this is the technique of market saturation in numerous variety of product classifications, forcing Samsung to present more ingenious functions in existing products and brand-new innovative items to preserve its growth. Other factor for the extreme rivalry among the rivals is the little item differentiation amongst the items. The popular players in the technology market are quite knowledgeable about the significance of R&D costs for their survival and are running into a race of marketing and R&D costs, to capture the market. The major rivals for Hp Change Management Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

Hp Change Management Case Study Analysis has a vast supply chain including about 2700 providers throughout the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These big orders enable Samsung to work out costs with its suppliers. Due to incapability of Samsung to build its own software, it has to outsource its software development to Google, which ends up being a potential supplier of software for Samsung, resulting in high bargaining power of Google. In most of Hp Change Management Case Study Help has a power to negotiate costs, however it offer considerable costs to its suppliers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in many of the item classifications also make the bargaining power of buyers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its items at a greater cost than much of its rivals, due to high end quality item and a reasonable brand name image.

Threat of New Entrants:

Risk of brand-new entrants for Hp Change Management Case Study Analysis is quite low. Along with it, requirement of big expertise and research study and development expenditures for survival in the market also make brand-new entrants hesitant to go into in the market. Market saturation is likewise one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high item diversification supplies it differentiation from its competitors. It is among the 3 top brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item category with Sony concentrating on customer electronics, Nokia on cellular phone and Intel on chips, Samsung had a substantial R&D spending on all of its item classifications which make it possible for the company to make potential earnings from sales of nearly all of its items. (See Exhibition) However, due to the wide product variety the company deals with high number of competitors.

The business ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of worldwide market share, amongst 8 various item classifications. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel however its revenues from chips was growing much faster than Intel and has grown close to the earnings levels of Intel, as offered in the case Exhibit 2.

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

Samsung was also profiting from increasing market share of high end LCDs as given in case Exhibition 3. The significant reason, making the business make it possible for to obtain the opportunity is its mass production at low cost. Sony was the greatest rival for Hp Change Management Case Study Solution in LCD market, nevertheless, it had actually also started joint endeavor with Samsung in 2003 for LCD making, reducing the competition for Samsung.

Porter's Competitive Strategy

Low Expense Leadership method of porter is completely executed by Samsung the way they achieve economies of scale by strengthening their core competencies of production. They constantly bring something innovative and brand-new whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Hp Change Management Case Study Analysis would create a brand-new brand name image by targeting the more youthful generation of the specific country. As, specifically smart phones of Samsung are preferred amongst the younger demographic.


1. It is the very best strategy to construct Client Lifetime Value (CLV) by developing a long-lasting relationship with consumers. Develop loyalty through providing worth and reap the benefits for long-lasting, as research has actually revealed it is more affordable to retain present customers than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will generate new customers for my items.


1. Old customers who were associated with Samsung before might not like this brand-new image the company is trying to depict.
2 It will incur more expenses to rearrange some products and it might not even bring success as the trends change very quickly among the more youthful demographic.

Alternative solution 2.

Samsung has actually made manufacturing its core competency for the a lot of part of their business and due to which its managers are not afraid to completely get out of their comfort zone. It would be done by organizing training workshops during which value of marketing will be taught and numbers will be offered. Failure to get the passing scores will get benched. Marketing environment ought to be created internally first 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 produce a very unhealthy environment in the workplace, as people typically resist change because they fear it.

Determine the best alternative

Alternative is the finest as it plainly has more pros since once a Consumer Lifetime Worth is constructed the business will benefit from it till that consumer is alive and has buying power. Plus, our target clients are the more youthful generation which are bound to live longer than the current aging individuals. Samsung's main objective is to create loyalty among its clients and make them redeemed it from them and even buy their various products.

Application Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi do with music. And set the expectations realistic and attainable.
• A team including best marketing and sales professionals need to be put together, and both views ought to be considered before protecting the resources needed to implement the plan.
• Thorough communication of the plan should be done as it is really crucial for everyone to be on the very same page to make it work.
• Jobs and timelines should be develop and communicated appropriately to each person accountable.
• The manager ought to utilize a dashboard which reveals the progress of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to monitor and keep a consistent look at the individual and general performance.
• Everybody ought to want to adapt midway since any brand-new trend or policy might be available in due to which all the important things currently prepared have to be changed. It's better to have contingency plans currently prepared.
• At the end of the project the manager should interact the results and if successful must commemorate with the team.

Budget plan

This modification the spending plan allotment of lots of managers and various countries were unhappy and argued however the analysis done by the program was precise and showed figures like North America and Russia development potential merited a 35% allowance while they were getting 45%. It truly helped to relatively distribute the resources and capture more consumers by spending more on ads on the high development capacity areas of the world.

Its constant financial investment in R&D and innovative practices have propelled them to brand-new heights however for them its' only the start and they desire to be among the top 3 brand names in the world. Their marketing efforts should be directed towards more youthful demographic amid the internal arguments about marketing and should develop Customer Life time Value as it will not just offer them benefits now however will continue to reap it till the consumer life time. As the expense of maintaining the client is much less expensive than drawing in a new one.