Menu

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Harvard Case Study Help

Home >> Hrm >> Intel And The Launch Of Wimax Wireless Broadband Technology In 2008

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution & Analysis


Intro

Historically, the business's core consumers consist of the Original Equipment Manufacturers (OEMs), which used to offer Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution items withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who utilized to offer Samsung products with their own brand name. He repositioned Samsung as an international brand name and informed his divisional managers to understand marketing and its importance.

Issue Statement

Samsung's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing successfully is still a major challenge. Developing a constant brand identity across the entire world and utilizing marketing methods that finest fits the local culture is no easy task.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis can transform from a low end to a high end item company. He understood that transformation can only be done through placing Samsung as a business offering high-end products and this might just be done through high level of marketing.

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

Among the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the present marketing requirement was excessive high, the space was too broader and to fill this space with wrong understandings about marketing was rather tough for Yun.

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

A substantial shift would be needed in present marketing expenditures to construct the Samsung brand. This would result in increased marketing expenditures for Samsung and might disrupt the administration concerning increased expenses, as they were unwilling to marketing expenses formerly and an abrupt huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis
Strengths


Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution strengths lie in its substantial product portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents approved in US( USP).

Another strength of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution is its ability to develop innovative items at a continuous rate. It significant proves for the development and item developing of Samsung is that the business has actually gotten many awards for its development and item design.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be easily 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 one of the major strength of Samsung as it makes it possible for the business to catch more market by providing quality products with expense control.

Weaknesses

Samsung's weaknesses are hidden in the company's reliance on outsourcing software application for its devices due to business's inability in establishing software, unlike Sony. Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help also has low revenue margins as compare to Apple due to big distinction in the costs of Apple and Samsung with a much lower difference in quality.

Opportunities

Opportunities for Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution lie in the growing Smartphone market and the company's effectiveness in the market. Samsung presently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia.

Threats

The vibrant industry environment of innovation industry present an extreme hazard on Samsung's survival and force the business to spend much of its incomes share on R&D in order to endure in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is likewise a big hazard for the company's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis
Item

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

• LCD/ TELEVISION
• Laptops.
• Smart phone.
• Air conditioning unit.
• Desktop computer.
• Hard drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution utilizes both market competitive and market skimming pricing methods for its wide variety of items. In competitive rates it adjusts the rate according to the competition in order to acquire benefit, whereas, it utilizes market skimming method where the item has an included worth and by selling a few items it can reach break-even.

Place.

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 supplied to the selling place/ delivered to the consumers straight in case of online order.

Promo.
Vrio Analysis
It wasn't a widely known company beyond Korea up until 1993. The management initiative taken by their CEO has pushed them to market more efficiently outside the borders and now it has actually gotten in the league of leading 25 business in the world in just 9 years. This is an impressive accomplishment in spite of the ongoing arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promotion to market their products. Paid product advertisements, social promotion and digital advertisements are utilizes to produce awareness about Samsung products.

Value Chain Analysis.

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

Incoming Logistics.

It has among the most effective and reliable supply chain network and has more than 2700 providers throughout numerous industries all over the world. Practically 80% of which is based in Asia and the staying around the world. For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its suppliers and produces a harmonious relationship with them and even minimized their payment cycles to increase this relationship further which adds value to their chain network.

Operations.

Samsung's core proficiency is its mass making it produces 90% of its items in-house. Divided into three various divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary factors Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help is able to compete with Apple. Samsung's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the item is done through marketing and sales to communicate with them the worth and competitive advantage the item provides. Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis marketing spending plan is constantly growing because they started their rearranging worldwide and will continue to do so as they are constantly looking to broaden and invest in high possible growth markets. The spending plan is invested in events, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their consumers on top and constantly aim to deliver unmatchable client service standards. As after sales service is ending up being very essential to keep customers pleased and engaged, they even carry out studies through 3rd parties to discover their customer's feedback and implement it in the favorable way to minimize or if possible entirely eliminate their consumer concerns. By including a direct support line to contact them 24 hours they have further increased the included value of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis service.

Division.

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help has actually diversified market division, based upon its provision of wide range of items to a great deal of customers. Samsung target customer sectors can be divided into 3 classifications i.e. Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget solutions.

Geographic.

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution geographic division is based upon 2 requirements i.e. area and density. Samsung serves about 80 countries worldwide with its products supplied to Urban as well as Backwoods of the country. The Samsung is also growing its international presence and the company's flexibility in finding its plants encourages global expansion of Samsung.

Market.

The group division of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help is based upon gender, age, life-cycle stage and occupation. Samsung produces products that can be utilized by both males and women. The target consumers for Samsung IT and mobile communication products have an age series of 18-65 with bulk at a young or freshly wed life process stage. They are mostly workers, professionals and trainees. Apart from it, Samsung Consumer Electronic devices are targeted to a consumer section with an age variety of 25-65. They are mainly employees and specialists. Samsung Gadget Solutions are targeted at students, workers and experts with an age range of 25-65.

Psychographic.

The psychographic division of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution s based upon the social class and the life style of the consumer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class clients, as Samsung offer products like cell phones not much less expensive i.e. Motorola along with not much costly i.e. Apple. It provides quality products to middle level customers at a somewhat high cost than others targeting the exact same segment.

Behavioural.

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution bulk target customers have distinct behavioural characteristics. It has clients with an ambitious, fashionable and figured out character with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other popular brand names i.e. Apple. Most of Samsun customers want quality as well as cost control. They are brought in towards Samsung due to the fact that of its moderate rates with an extent of quality.

Quantitative analysis.

Sales of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis has increased astonishingly 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 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 company is presently making but long gone are those days when great products were offering themselves. Kim has currently begun to enhance the marketing activities of Samsung and really soon it will end up being one of its core strength like producing if not much better.

VRIO.

Worth.

Samsung runs styles, makes and offer a vast portfolio of consumer electronic devices. It operates in an exceptionally competitive environment and has actually effectively positioned itself as the maker of quality items. So, the answer is yes.

Rarity.

As, stated earlier that Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis operates in an extremely competitive environment, which indicates all the business have similar products. So, the response for rarity is no.

Imitability.

Due to the nature of the industry, it is really simple for competitors to comprehend the performance of the items and quickly make their own designs. Yes, Samsung is only behind IBM in signing up brand-new patents annually, but the benefit is very short term in this industry.

Company.

Chairman Lee has totally turnaround Samsung, from going nearly bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 company worldwide. Certainly yes there is proper company in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. However, it faces some political pressures in less industrialized nations where order scenario is not good. Latin American, African and some Asian countries fall in this category, where political instability do have a result on Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help operations.

Economic

Purchasing power of consumers is crucial for companies like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations and so on offer growth chances, whereas, due to recession even the clients of industrialized countries suffer terribly. Hence it is very important for the company to watch on the continuous economic circumstance of the nation prior to going into the market.

Socio-Cultural

International business need to face various social and cultural issues during its operations in a foreign country. Samsung has likewise faced many concerns however have adopted to the regional environments of most of the countries exceptionally well. It has actually tailored its items, practices, policies etc. appropriately in order to succeed.

Technological

With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with continuous ingenious item launches, Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help is among the leading innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Samsung has risen to the no 25 of the leading effective business of the world.

Legal

Each country has their own laws and policies, being a multinational business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. So, it has to study or hire a local law expert prior to beginning its operations in a specific nation.

Environmental

With the rising awareness amongst consumers about the ethical & environmental violations of companies, Samsung needs to ensure that it follows all the security standards. Ecological damages, ethical misconducts are not acceptable and in some countries the repercussions can be extremely severe. On the other hand it has to do some Business Social Duty practices to show the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Danger of alternative for Samsung's each product classification is quite significant. Elements for high threat of replacement for Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help Mobile phone include the existence of high number of providers and Market saturation in developed countries, which make the expense of changing for consumers almost no. Along with it, Samsung printing options items are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the technique of market saturation in different number of product classifications, forcing Samsung to introduce more innovative features in existing products and brand-new ingenious items to maintain its development. Other element for the intense rivalry amongst the rivals is the little item distinction among the items. The prominent players in the innovation market are rather aware of the importance of R&D spending for their survival and are running into a race of marketing and R&D spending, to capture the marketplace. The significant rivals for Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the changing market shares which can be seen in Display F.

Bargaining Power of Suppliers:

( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of possible size and worth. Due to incapability of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Solution to build its own software, it has to outsource its software application advancement to Google, which becomes a potential supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Negotiating power of purchasers for numerous number of item classifications of Samsung is intense. One of the factor causing the intense bargaining power is the schedule of large number of rivals in almost each item category i.e. competitors of Samsung Smart device, with a very little distinction. The high accessibility of suppliers of Mobile phones with minimum differentiation, make the changing cost for buyers practically zero, hence increasing the bargaining power of buyers. Market saturation in most of the item categories likewise make the bargaining power of purchasers more intense in for Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help. In spite of igh bargaining power Samsung is quite efficient in offering its items at a greater rate than much of its competitors, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Hazard of new entrants for Samsung is rather low. Among the significant aspect for low threat of new entrants is the high competition in the industry. The requirement of huge quantity of capital to enter in the market is likewise among the potential barrier to entry. In addition to it, requirement of substantial knowledge and research and development expenditures for survival in the industry also make new entrants hesitant to enter in the marketplace. Market saturation is also one of the barrier of entry in technology market. High bargaining power of suppliers force the gamers in the industry to charge as low rates as possible and this can just be accomplished by production effectiveness. New companies, in bulk cases, do not have the production performance, thus increasing the threats for entryway in the technology market.

Competitive Analysis

Samsung's high product diversification supplies it differentiation from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis had a substantial R&D costs on all of its product categories which enable the business to earn potential profits from sales of nearly all of its products.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of worldwide market share, among 8 different product classifications. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown near to the profits levels of Intel, as given in the case Exhibition 2.

Along with the chips Samsung mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cellular phone's sales development was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The significant reson behind Samsung's high growth despite of greater prices than Nokia and Motorola was the business's high-end quality cell phones.

Samsung was also profiting from increasing market share of high-end LCDs as given up case Display 3. The major factor, making the business allow to get the opportunity is its mass production at low expense. Sony was the biggest rival for Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help in LCD market, nevertheless, it had actually also started joint venture with Samsung in 2003 for LCD manufacturing, reducing the competition for Samsung.

Porter's Competitive Method

Low Cost Management technique of porter is totally implemented by Samsung the method they achieve economies of scale by enhancing their core competencies of production. They always bring something ingenious and new whether it's a service or a product.

Alternatives

Alternative Service 1

The Chief Marketing Officer (CMO) of Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Analysis would produce a brand-new brand image by targeting the younger generation of the specific nation. As, especially cellphones of Samsung are preferred among the younger demographic.

Pros

1. It is the very best technique to construct Client Life time Worth (CLV) by developing a long-lasting relationship with customers. Build loyalty through delivering worth and reap the benefits for long-lasting, as research study has showed it is much cheaper to keep current clients than to draw in new ones.
2. Another pro of this option is that word of mouth spread quicker among younger people and which in turn will bring in brand-new clients for my products.

Cons

1. Old customers who were associated with Samsung before might not like this brand-new image the business is trying to represent.
2 It will incur more expenditures to reposition some items and it may not even bring success as the patterns change extremely quickly amongst the younger demographic.

Alternative option 2.

It would be done by organizing training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment must be created internally first as genuine marketing starts inside the corporation.

Pros

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

Cons

2. Its con can create a really unhealthy environment in the work environment, as individuals often withstand modification since they fear it.

Identify the very best option

Option is the finest as it clearly has more pros because when a Client Lifetime Value is constructed the company will profit from it till that client is alive and has purchasing power. Plus, our target consumers are the more youthful generation which are bound to live longer than the current old age people. Samsung's main goal is to produce commitment amongst its customers and make them redeemed it from them and even buy their various items.

Execution Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi make with music. And set the expectations possible and realistic.
• A team including finest marketing and sales professionals need to be assemble, and both views must be taken into account before protecting the resources required to carry out the plan.
• Thorough communication of the plan ought to 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 accordingly to each individual accountable.
• The supervisor 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 supervisor must monitor and keep a consistent check on the specific and overall efficiency.
• Everyone must want to adapt midway due to the fact that any brand-new pattern or policy might be available in due to which all the things currently planned need to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the manager should communicate the results and if effective should commemorate with the team.

Budget plan

This change the budget plan allowance of lots of supervisors and different nations were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like North America and Russia development potential merited a 35% allowance while they were receiving 45%. It really assisted to relatively disperse the resources and record more customers by spending more on ads on the high growth potential regions of the world.
Recommendations
Conclusion

Intel And The Launch Of Wimax Wireless Broadband Technology In 2008 Case Study Help is a leading 25 company in the world now and plans to get ahead of Sony who sits currently at no. 20. Its constant investment in R&D and innovative practices have actually propelled them to brand-new heights but for them its' only the start and they want to be amongst the top 3 brand names in the world. They completely turn-around from practically declaring bankruptcy throughout the Asian Financial Crisis to a world renowned brand name, understood for quality and development. Their value chain and their core competency their production capability, along-with global brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts need to be directed towards younger demographic amidst the internal arguments about marketing and must produce Customer Life time Worth as it will not just provide benefits now however will continue to gain it till the client life time. As the expense of retaining the customer is much cheaper than bring in a brand-new one.