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Ipad Vs Kindle E Books In The U S In 2010 Harvard Case Study Help

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Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution and Analysis


Introduction

Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which used to offer Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis items withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who utilized to sell Samsung items with their own brand name. He repositioned Samsung as an international brand name and informed his divisional supervisors to comprehend marketing and its value.

Issue Statement

Samsung's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to include marketing effectively is still a major obstacle. Developing a consistent brand identity across the entire world and using marketing techniques that finest fits the regional culture is no simple job. The M-net program analysis have actually been really handy in identifying the high and less potential development areas, however allocation of resources appropriately is not well gotten among the managers. There is no agreement amongst the hierarchy regarding the very best matched future strategy.

Situational Analysis

Ipad Vs Kindle E Books In The U S In 2010 Case Study Help efforts for building its brand across the world was begun after introducing the "brand-new management initiative" by Chairman Lee in 1993. The objective was to transform Samsung from a cheap OEM to a high value-added item provider. To make the vision of Samsung a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Samsung can change from a low end to a high-end item supplier. He understood that change can just be done through placing Samsung as a company 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 construct Samsung brand, with a prospective assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

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

Along with it the product range of the business was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had a challenge to perform marketing preparation and to develop marketing budgets for existing as well as for brand-new products from the very beginning, and this would take a huge time.

A substantial shift would be required in existing marketing expenditures to build the Samsung brand. This would result in increased marketing expenditures for Samsung and might disrupt the administration concerning increased expenses, as they were reluctant to marketing expenses previously and a sudden big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Ipad Vs Kindle E Books In The U S In 2010 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 granted in United States( USP).

Another strength of Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis is its capability to develop innovative products at a continuous rate. It significant shows for the innovation and item developing of Samsung is that the business has received so many awards for its development and product design.

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

Samsung's capability to produce high end items at low expense of production is also among the major strength of Samsung as it allows the business to capture more market by offering quality products with expense control.

Weaknesses

Ipad Vs Kindle E Books In The U S In 2010 Case Study Help weaknesses are hidden in the business's dependence on outsourcing software application for its gadgets due to business's failure in establishing software, unlike Sony. Samsung also has low earnings margins as compare to Apple due to huge difference in the rates of Apple and Samsung with a much lesser difference in quality. The varied focus of the business due to a great deal of products in its portfolio, result in the less efficient production and make the company unable to charge greater costs like Apple. The business is also ineffective in managing its patents and regularly faces the problem of patent offense.

Opportunities

Opportunities for Ipad Vs Kindle E Books In The U S In 2010 Case Study Help lie in the growing Mobile phone market and the business's effectiveness in the market. Samsung currently runs in about 80 nations 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 market position a serious danger on Samsung's survival and force the business to spend much of its earnings share on R&D in order to survive in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is also a huge risk for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing

Product

Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis offers quality products and has a rather abundant portfolio which accommodates various sectors. The majority of the items are in the leading three of their respective markets. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Samsung:

• LCD/ TV
• Laptops.
• Mobile phones.
• Air conditioner.
• Personal computers.
• Hard drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.

Cost.

Ipad Vs Kindle E Books In The U S In 2010 Case Study Help utilizes both market competitive and market skimming pricing strategies for its wide array of products. In competitive prices it changes the rate according to the competitors in order to acquire benefit, whereas, it uses market skimming method where the product has an included value and by offering a couple of items it can reach break-even.

Location.

It has one of the very best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon etc. All its items are timely provided to the selling place/ delivered to the clients straight in case of online order.

Promo.

It wasn't a widely known business outside of Korea up until 1993. The management effort taken by their CEO has actually pressed them to market more effectively outside the borders and now it has actually gone into the league of leading 25 business in the world in simply 9 years. This is a remarkable accomplishment despite the continuous arguments among the supervisors about adopting marketing practices. It utilizes both offline & online channels of promotion to market their items. Paid product ads, social promo and digital ads are uses to develop awareness about Samsung products.

Value Chain Analysis.

It's an analytical structure for recognizing organisation activities that add value or competitive advantage for the business.

Incoming Logistics.

It has among the most efficient and effective supply chain network and has more than 2700 providers across numerous markets around the globe. Almost 80% of which is based in Asia and the staying worldwide. For its inbound logistics it owns various logistics companies as it subsidiaries. It takes care of its providers and creates a harmonious relationship with them and even minimized their payment cycles to increase this relationship even more which adds value to their chain network.

Operations.

Samsung's core competency is its mass manufacturing it produces 90% of its products in-house. Divided into three different departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is keeping operation centers worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main factors Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the item provides. Ipad Vs Kindle E Books In The U S In 2010 Case Study Help advertising spending plan is continuously increasing since they started their repositioning worldwide and will continue to do so as they are continuously seeking to invest and expand in high possible development markets. The budget plan is invested in occasions, print and media ads, public relations etc.

Samsung put their clients at the top and continually aim to deliver unmatchable client service standards. By adding a direct support line to contact them 24 hours they have even more increased the added value of Samsung service.

Segmentation.

Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis has diversified market segmentation, based upon its arrangement of large range of products to a great deal of consumers. Samsung target consumer segments can be divided into 3 categories i.e. Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget options.

Geographical.

Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution geographic segmentation is based upon 2 requirements i.e. region and density. Samsung serves about 80 nations worldwide with its items provided to Urban in addition to Backwoods of the country. The Samsung is also growing its international presence and the business's flexibility in finding its plants motivates global growth of Samsung.

Group.

Samsung produces products that can be used by both women and males. The target consumers for Samsung IT and mobile communication items have an age range of 18-65 with majority at a young or recently married life cycle phase. Apart from it, Samsung Customer Electronics are targeted to a customer sector with an age variety of 25-65.

Psychographic.

The psychographic segmentation of Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution s based upon the social class and the life style of the customer. Samsung target customers on the basis of social class are generally upper middle, middle and working class consumers, as Samsung offer products like mobile phone very little less expensive i.e. Motorola in addition to very little pricey i.e. Apple. It supplies quality items to middle level consumers at a slightly high rate than others targeting the same segment.

Behavioural.

Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis majority target customers have distinct behavioural attributes. It has consumers with an ambitious, fashionable and figured out personality with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other popular brands i.e. Apple. Most of Samsun clients want quality in addition to cost control. Because of its moderate rates with an extent of quality, they are drawn in towards Samsung.

Quantitative analysis.

Sales of Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution 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 biggest 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 manufacturing but long gone are those days when great items were selling themselves. Kim has currently begun to strengthen the marketing activities of Samsung and extremely quickly it will become one of its core strength like manufacturing if not much better.

VRIO.

Value.

Samsung runs designs, makes and sell a huge portfolio of consumer electronics. It operates in an incredibly competitive environment and has successfully positioned itself as the maker of quality products. The response is yes.

Rarity.

As, said earlier that Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution runs in an extremely competitive environment, which indicates all the business have similar products. So, the answer for rarity is no.

Imitability.

Due to the nature of the market, 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 registering new patents yearly, but the benefit is extremely short term in this industry.

Company.

Chairman Lee has entirely turnaround Samsung, from going nearly bankrupt throughout the Asian monetary crisis of 1997 to the top 25 company in the world. Definitely yes there is proper organization in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being a multinational brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. It deals with some political pressures in less developed countries where law and order scenario is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis operations.

Economic

Buying power of clients is essential for business like Samsung to prosper and grow. Emerging markets like India, middle-eastern nations and so on offer growth chances, whereas, due to recession even the clients of developed countries suffer badly. Hence it is extremely crucial for the company to keep an eye on the ongoing financial scenario of the nation prior to entering the market.

Socio-Cultural

International business have to face numerous social and cultural concerns during its operations in a foreign nation. Samsung has likewise faced many concerns but have actually adopted to the local environments of the majority of the nations extremely well. It has tailored its products, practices, policies and so on accordingly in order to achieve success.

Technological

With an annual expense of 2.4 billion dollars in Research & Advancement, and with consistent ingenious item launches, Ipad Vs Kindle E Books In The U S In 2010 Case Study Help is among the leading ingenious business 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 business of the world.

Legal

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. So, it needs to study or employ a regional law expert prior to starting its operations in a specific nation.

Environmental

With the rising awareness amongst consumers about the ecological & ethical offenses of business, Samsung needs to ensure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be really serious. On the other hand it needs to do some Business Social Duty practices to reveal the locals that it appreciates their environment and people.

Porter's Five Forces

Risk of Replacement

Hazard of replacement for Samsung's each product category is quite significant. Factors for high threat of replacement for Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis Mobile phone include the existence of high number of providers and Market saturation in developed nations, which make the expense of changing for customers almost zero. Along with it, Samsung printing services items are threatened by the increasing destination of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the technique of market saturation in numerous number of item classifications, requiring Samsung to introduce more ingenious features in existing products and new innovative products to preserve its development. The significant rivals for Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution has a vast supply chain consisting of 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 potential size and worth. These huge orders allow Samsung to work out rates with its suppliers. Due to incapability of Samsung to develop its own software, it has to outsource its software advancement to Google, which ends up being a possible supplier of software for Samsung, resulting in high bargaining power of Google. In most of Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution has a power to work out costs, however it offer considerable costs to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Bargaining power of purchasers for different variety of product categories of Samsung is extreme. One of the factor causing the extreme bargaining power is the schedule of a great deal of rivals in almost each product category i.e. competitors of Samsung Smartphone, with a really little distinction. The high schedule of suppliers of Smartphones with minimum distinction, make the switching expense for buyers almost absolutely no, hence increasing the bargaining power of buyers. Market saturation in the majority of the item classifications also make the bargaining power of buyers more extreme in for Ipad Vs Kindle E Books In The U S In 2010 Case Study Help. In spite of igh bargaining power Samsung is quite capable of selling its products at a higher rate than much of its competitors, due to high end quality product and a fair brand image.

Risk of New Entrants:

Danger of brand-new entrants for Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution is quite low. Along with it, requirement of huge knowledge and research and development expenses for survival in the industry also make brand-new entrants hesitant to go into in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high item diversification supplies it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis had a substantial R&D spending on all of its product categories which allow the business to earn potential profits from sales of nearly all of its products.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of international market share, amongst 8 various item categories. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung profits from chips was less than Intel however its earnings from chips was growing quicker than Intel and has actually grown close to the profits levels of Intel, as offered in the case Exhibit 2.

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

Samsung was also profiting from increasing market share of high end LCDs as given up case Exhibition 3. The major reason, making the company make it possible for to avail the opportunity is its mass production at low expense. Sony was the greatest rival for Ipad Vs Kindle E Books In The U S In 2010 Case Study Solution in LCD market, nevertheless, it had actually also started joint endeavor with Samsung in 2003 for LCD manufacturing, reducing the competition for Samsung.

Porter's Competitive Technique

Low Cost Leadership method of porter is completely carried out by Samsung the way they accomplish economies of scale by reinforcing their core competencies of production. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, because they were unable to take on them on low cost. Differentiation is another method well executed by Samsung by constant investment in the R&D and staying ahead of the competitors. They constantly bring something innovative and new whether it's a service or an item.

Alternatives

Alternative Service 1

The Chief Marketing Officer (CMO) of Ipad Vs Kindle E Books In The U S In 2010 Case Study Analysis would create a new brand image by targeting the more youthful generation of the particular nation. As, especially smart phones of Samsung are incredibly popular among the younger group.

Pros

1. It is the best technique to build Customer Life time Value (CLV) by producing a long-lasting relationship with consumers. Construct loyalty through delivering value and profit for long-lasting, as research has actually showed it is more affordable to retain current consumers than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly amongst more youthful individuals and which in turn will bring in new customers for my products.

Cons

1. Old clients who were related to Samsung prior to may not like this brand-new image the business is attempting to represent.
2 It will sustain more costs to reposition some items and it might not even bring success as the trends alter really rapidly among the more youthful market.

Alternative option 2.

It would be done by organizing training workshops during which value of marketing will be taught and numbers will be given. Marketing environment ought to be developed internally initially as genuine marketing starts inside the corporation.

Pros

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

Cons

2. Its con can produce an extremely unhealthy environment in the work environment, as people often withstand modification since they fear it.

Recognize the best option

Alternative is the finest as it clearly has more pros since when a Client Life time Value is built the business will benefit from it till that client is alive and has buying power. Plus, our target customers are the younger generation which are bound to live longer than the current aging people. However, Samsung's main goal is to develop commitment among its customers and make them bought it from them and even buy their various products too.

Application Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations reasonable and attainable.
• A group consisting of finest marketing and sales specialists must be assemble, and both views should be taken into account before protecting the resources required to carry out the plan.
• Thorough interaction of the strategy ought to be done as it is really important for everybody to be on the very same page to make it work.
• Tasks and timelines must be build and communicated accordingly to each person accountable.
• The supervisor ought to utilize a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a continuous examine the overall and specific efficiency.
Because any new pattern or policy may come in due to which all the things currently prepared have actually to be adjusted, • Everybody should be willing to adjust midway. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor need to interact the results and if successful ought to celebrate with the team.

Budget plan

This change the budget allowance of lots of supervisors and various countries were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth prospective warranted a 35% allowance while they were receiving 45%. It truly assisted to fairly disperse the resources and capture more clients by investing more on ads on the high growth potential regions of the world.

Conclusion

Its consistent investment in R&D and ingenious practices have actually propelled them to new heights but for them its' only the start and they desire to be among the leading 3 brands in the world. Their marketing efforts ought to be directed towards younger market amidst the internal arguments about marketing and ought to create Consumer Life time Value as it will not just give them advantages now but will continue to reap it till the customer life time. As the cost of keeping the consumer is much less expensive than drawing in a brand-new one.