Ism Analytics Harvard Case Study Analysis

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Ism Analytics Case Study Solution and Analysis


Ism Analytics Case Study Help is a well-known global brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Ism Analytics deals in a great deal of item classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core clients consist of the Original Equipment Manufacturers (OEMs), which used to offer Samsung items withtheir own brand name. Till early 1990s, the core competency of Samsung lie in its low cost offerings than its competitors by manufacturing existing products at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who used to sell Ism Analytics Case Study Analysis items with their own brand name. Samsung was not simply understood outside Korea. There were also no or little interest in constructing the brand worldwide. Marketing budget plan was managed by production department with a prime focus on offering low-cost products.During the 1997 Asian Financial Crisis the business practically got insolvent, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most valuable business on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as a global brand name and educated his divisional managers to understand marketing and its value. Now their objective is to arrive 10 by 2005.

Issue Statement

Samsung's shift from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to include marketing effectively is still a significant obstacle. Producing a consistent brand identity across the whole world and using marketing techniques that best fits the regional culture is no simple task.

Situational Analysis

Yun had a rather clear photo in his mind about how Ism Analytics Case Study Solution can change from a low end to a high end item supplier. He understood that transformation can just be done through placing Samsung as a business offering high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand, with a possible support of its executives, Yun dealt with a number of marketing obstacles in early years of its efforts.

Among the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They considered 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 service practices, and the existing marketing requirement was excessive high, the space was too wider and to fill this space with wrong perceptions about marketing was rather tough for Yun.

As mentioned above, marketing focus was very low in previous practices, therefore there were no proper marketing budgets for each of the product on the portfolio. There was no marketing preparation done for the existing products. Along with it the item series of the business was increasing with the ripening of new item ideas by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to produce marketing budgets for existing in addition to for brand-new products from the very beginning, and this would take a substantial time.

A huge shift would be needed in present marketing expenses to construct the Ism Analytics Case Study Help brand. This would result in increased marketing expenses for Samsung and might interrupt the administration regarding increased expenses, as they hesitated to marketing expenses formerly and a sudden huge shiftwould make them interrupt. This could lead to decreasing executive assistance for global marketing. In this scenario, Yun faces an obstacle for justifying increased marketing expenses by demonstrating the long term worth of huge marketing expenses.

Internal Analysis
SWOT Analysis

Ism Analytics Case Study Analysis strengths lie in its huge product portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents approved in US( USP).

Another strength of Ism Analytics Case Study Analysis is its ability to establish innovative products at a continuous rate. It major shows for the development and product designing of Samsung is that the company has received many awards for its innovation and item design.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be quickly integrated with any type 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 likewise one of the major strength of Samsung as it makes it possible for the company to capture more market by offering quality products with cost control.

Weak points

Samsung's weaknesses are hidden in the business's reliance on outsourcing software application for its devices due to company's failure in developing software application, unlike Sony. Ism Analytics Case Study Help likewise has low revenue margins as compare to Apple due to substantial distinction in the rates of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Ism Analytics Case Study Help lie in the growing Smartphone market and the business's efficiency 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 dynamic industry environment of innovation market position an extreme danger on Samsung's survival and require the company to invest much of its profits share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile company is also a big threat for the business's development in the existence of strong rivals like Apple.

4 P's of Marketing


Samsung uses quality products and has a quite abundant portfolio which caters to various segments. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Smart phone.
• Air conditioning unit.
• Personal computers.
• Hard disk drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Ism Analytics Case Study Analysis utilizes both market competitive and market skimming rates methods for its wide range of items. In competitive prices it changes the price according to the competition in order to get benefit, whereas, it uses market skimming method where the item has actually an included value and by offering a few products it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its products are timely provided to the selling location/ delivered to the customers straight in case of online order.


It utilizes both offline & online channels of promo to market their items. Paid item advertisements, social promotion and digital ads are utilizes to create awareness about Samsung products.

Value Chain Analysis.

It's an analytical structure for recognizing service activities that add value or competitive benefit for the company.

Incoming Logistics.

It has among the most effective and effective supply chain network and has over 2700 suppliers across different industries all over the world. Practically 80% of which is based in Asia and the staying worldwide. For its incoming logistics it owns different logistics companies as it subsidiaries. It looks after its providers and creates a harmonious relationship with them and even decreased their payment cycles to enhance this relationship further which includes value to their chain network.


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

Outbound Logistics.

Its outbound logistics system performance is among the main reasons Ism Analytics Case Study Solution has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target customer attention towards the product is done through marketing and sales to interact with them the value and competitive advantage the product offers. Ism Analytics Case Study Help advertising budget plan is constantly increasing since they started their rearranging globally and will continue to do so as they are continually seeking to invest and broaden in high possible development markets. The budget is invested in occasions, print and media ads, public relations and so on.

Samsung put their consumers at the leading and constantly aim to deliver unmatchable consumer service standards. By including a direct support line to contact them 24 hours they have actually even more increased the added worth of Samsung service.


Ism Analytics Case Study Solution has actually diversified market division, based upon its provision of wide variety of items to a great deal of consumers. Samsung target customer sections can be divided into 3 categories i.e. Ism Analytics Case Study Analysis IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.


Ism Analytics Case Study Analysis geographic division is based upon two requirements i.e. area and density. Samsung serves about 80 nations worldwide with its items supplied to Urban as well as Rural areas of the nation. The Samsung is likewise growing its worldwide existence and the business's versatility in locating its plants encourages worldwide expansion of Samsung.


Samsung produces products that can be utilized by both females and males. The target customers for Samsung IT and mobile communication products have an age variety of 18-65 with majority at a young or newly wed life cycle stage. Apart from it, Samsung Customer Electronics are targeted to a customer section with an age variety of 25-65.


The psychographic segmentation of Ism Analytics Case Study Help 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 sell products like cellular phone very little more affordable i.e. Motorola along with very little expensive i.e. Apple. It provides quality products to middle level customers at a slightly high price than others targeting the same sector.


Ism Analytics Case Study Help majority target consumers have special behavioural qualities. They are brought in towards Samsung due to the fact that of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Samsung 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 $. It has also reduced its debt from 15 billion $ to 4.6 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. Due to the fact that of the high overhead cost, revenues/ sales are increasing however net revenue is not increasing accordingly. New growths and hiring's were the primary factor of the boost in the overhead costs, with china presently not supplying any earnings to Samsung, but there is a lot potential in the current market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the business is presently making but long gone are those days when excellent items were offering themselves. Kim has actually currently begun to strengthen the marketing activities of Samsung and really soon it will end up being one of its core strength like making if not better.



Samsung operates designs, manufactures and offer a huge portfolio of consumer electronic devices. It runs in an exceptionally competitive environment and has actually effectively placed itself as the maker of quality items. So, the response is yes.


As, stated previously that Ism Analytics Case Study Help runs in an extremely competitive environment, which means all the companies have similar items. The response for rarity is no.


Due to the nature of the industry, it is extremely easy for rivals to understand the functionality of the items and quickly make their own designs. Yes, Samsung is just behind IBM in registering brand-new patents each year, but the benefit is very short-term in this market.


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

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every country worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. Nevertheless, it faces some political pressures in less developed countries where law and order circumstance is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Ism Analytics Case Study Analysis operations.


Purchasing power of customers is essential for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern countries and so on provide development opportunities, whereas, due to recession even the clients of industrialized countries suffer severely. Thus it is very crucial for the business to watch on the ongoing economic scenario of the nation prior to going into the market.


Multinational business need to face various social and cultural problems during its operations in a foreign country. Samsung has actually also faced lots of problems however have embraced to the regional environments of most of the nations exceptionally well. It has actually tailored its products, practices, policies and so on appropriately in order to achieve success.


With an annual expense of 2.4 billion dollars in Research study & Development, and with constant innovative item launches, Ism Analytics Case Study Help is among the top ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has risen to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. So, it has to study or employ a regional law professional prior to beginning its operations in a specific nation.


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

Porter's Five Forces

Threat of Substitution

Risk of substitution for Samsung's each product category is rather significant. Factors for high threat of replacement for Ism Analytics Case Study Solution Smartphone consist of the presence of high number of providers and Market saturation in developed countries, which make the expense of switching for customers nearly absolutely no. Along with it, Samsung printing solutions items are threatened by the increasing destination of consumers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Samsung and its close rivals is intense. The significant reason behind this is the approach of market saturation in numerous number of item categories, requiring Samsung to introduce more ingenious functions in existing products and new innovative items to keep its growth. The significant rivals for Ism Analytics Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Ism Analytics Case Study Analysis has a huge supply chain consisting of about 2700 suppliers 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 possible size and worth. These huge orders make it possible for Samsung to work out prices with its providers. Due to incapability of Samsung to build its own software application, it has to outsource its software development to Google, which becomes a possible supplier of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to negotiate rates, however it supply significant costs to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Haggling power of purchasers for different number of product classifications of Samsung is intense. One of the factor causing the intense bargaining power is the schedule of large number of competitors in practically each item classification i.e. competitors of Samsung Smartphone, with an extremely little distinction. The high availability of suppliers of Mobile phones with minimum distinction, make the changing expense for buyers nearly no, hence increasing the bargaining power of buyers. Market saturation in most of the product categories likewise make the bargaining power of buyers more extreme in for Ism Analytics Case Study Help. In spite of igh bargaining power Samsung is rather capable of offering its items at a greater price than much of its competitors, due to high end quality item and a fair brand image.

Risk of New Entrants:

Danger of new entrants for Ism Analytics Case Study Solution is quite low. Along with it, requirement of huge competence and research study and development expenses for survival in the market likewise make brand-new entrants reluctant to go into in the market. Market saturation is likewise one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high product diversification offers it differentiation from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Ism Analytics Case Study Help had a huge R&D costs on all of its product classifications which make it possible for the business to make prospective income from sales of practically all of its products.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of international market share, amongst 8 various product categories. Samsung was the global 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 grown close to the profits levels of Intel, as offered in the case Display 2.

Together with the chips Samsung mobile market was also flourishing at a high rate than its rivals 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 greater costs than Nokia and Motorola was the business's high-end quality mobile phone.

Samsung was likewise profiting from increasing market share of luxury LCDs as given in case Exhibition 3. The significant reason, making the business allow to obtain the opportunity is its mass production at low expense. Sony was the biggest competitor for Ism Analytics Case Study Help in LCD market, nevertheless, it had actually also started joint venture with Samsung in 2003 for LCD making, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Leadership strategy of porter is fully executed by Samsung the method they achieve economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something ingenious and new whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Ism Analytics Case Study Solution would create a brand-new brand name image by targeting the younger generation of the particular nation. As, especially cellphones of Samsung are preferred among the more youthful market.


1. It is the best strategy to develop Client Life time Value (CLV) by producing a long-term relationship with consumers. Construct loyalty through providing value and profit for long-term, as research has revealed it is much cheaper to maintain present clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful individuals and which in turn will bring in new clients for my products.


1. Old clients who were connected with Samsung prior to may not like this brand-new image the company is trying to depict.
2 It will incur additional expenses to rearrange some items and it may not even bring success as the patterns alter extremely quickly among the younger group.

Alternative service 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 scared to completely step out of their convenience zone. It would be done by arranging training workshops during which importance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get benched. Marketing environment should be produced internally first as real marketing begins inside the corporation.


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


2. Its con can create a very unhealthy environment in the workplace, as people often withstand modification due to the fact that they fear it.

Identify the very best alternative

Alternative is the best as it plainly has more pros due to the fact that when a Consumer Life time Worth is developed the company will benefit from it till that customer is alive and has purchasing power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging individuals. However, Samsung's primary objective is to create loyalty amongst its customers and make them repurchase it from them and even purchase their various products as well.

Application Plan

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations possible and practical.
• A team consisting of finest marketing and sales specialists ought to be assemble, and both views ought to be considered before securing the resources required to implement the plan.
• Thorough communication of the strategy need to be done as it is really important for everyone to be on the exact same page to make it work.
• Tasks and timelines should be build and interacted appropriately to each individual responsible.
• The supervisor must use a control panel which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a constant look at the private and overall performance.
• Everyone should be willing to adjust midway because any brand-new trend or policy may be available in due to which all the important things already planned need to be adjusted. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor should interact the outcomes and if successful should commemorate with the team.


This change the budget allowance of numerous managers and various nations were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia development possible warranted a 35% allowance while they were receiving 45%. It truly assisted to relatively distribute the resources and catch more customers by spending more on advertisements on the high development potential areas of the world.


Ism Analytics Case Study Analysis is a leading 25 company on the planet now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous financial investment in R&D and innovative practices have actually moved them to brand-new heights however for them its' only the start and they want to be among the top 3 brand names on the planet. They totally turnaround from practically going bankrupt throughout the Asian Financial Crisis to a world distinguished brand, understood for quality and innovation. Their value chain and their core proficiency their production capability, along-with international brand name image building 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 just increase even more in the future. Their marketing efforts should be directed towards more youthful group amid the internal arguments about marketing and must develop Client Life time Worth as it will not only give them benefits now however will continue to reap it till the consumer lifetime. As the cost of retaining the customer is more affordable than bring in a brand-new one.