Lab International Inc 4 Harvard Case Study Analysis

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Lab International Inc 4 Case Study Solution & Analysis


Historically, the company's core clients include the Original Equipment Manufacturers (OEMs), which used to sell Lab International Inc 4 Case Study Help items withtheir own brand name. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Corp items with their own brand name. He rearranged Business as a worldwide brand and informed his divisional managers to comprehend marketing and its significance.

Problem Statement

Enterprise's shift from a product 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 significant difficulty. Producing a consistent brand identity throughout the whole world and utilizing marketing strategies that finest fits the regional culture is no easy job. The M-net program analysis have been actually valuable in figuring out the high and less possible growth locations, but allocation of resources accordingly is not well gotten amongst the managers. There is no consensus among the hierarchy relating to the best fit future strategy.
Executive Summary
Situational Analysis

Lab International Inc 4 Case Study Analysis efforts for constructing its brand throughout the world was begun after introducing the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Business from a low-cost OEM to a high value-added product company. To make the vision of Business a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Corporation can transform from a low end to a high end product supplier. He knew that transformation can only be done through placing Corp as a company offering high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to develop Enterprise brand, with a possible assistance of its executives, Yun faced numerous marketing obstacles in early years of its efforts.

Among the marketing challenges 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 needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the current marketing requirement was excessive high, the gap was too wider and to fill this gap with wrong understandings about marketing was rather challenging for Yun.

Along with it the product variety of the business was increasing with the ripening of new product concepts by the R&D sector of Corporation. Yun had a difficulty to perform marketing planning and to produce marketing budgets for existing as well as for new products from the very start, and this would take a substantial time.

A huge shift would be required in current marketing expenses to construct the Lab International Inc 4 Case Study Solution brand. This would lead to increased marketing expenditures for Company and could interrupt the administration concerning increased costs, as they hesitated to marketing expenditures previously and a sudden big shiftwould make them disrupt. This could result in declining executive support for worldwide marketing. In this circumstance, Yun faces an obstacle for validating increased marketing expenses by showing the long term worth of huge marketing expenses.

Internal Analysis
SWOT Analysis

Org strengths depend on its substantial item portfolio. Org has largest variety of patents in the market with overall number of 15499 patents granted in US( USP). Big quantity of R&D spending has actually made it possible for the company to grow its product portfolio at a greater rate than its rivals. Lab International Inc 4 Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Lab International Inc 4 Case Study Help is its capability to establish ingenious items at a constant rate. It major shows for the innovation and item designing of Enterprise is that the company has gotten numerous awards for its development and item style.

Unlike Apple and other rivals, Corp is concentrated on producing devices which can be easily integrated with any type of open source Operating System (OS) and software. This offers Corp an edge over Apple devices.
Porter's 5 Forces Analysis
Org's capability to produce high end products at low cost of production is also one of the major strength of Company as it enables the company to record more market by supplying quality items with cost control.

Weak points

Lab International Inc 4 Case Study Help weak points are concealed in the company's dependence on outsourcing software application for its devices due to company's inability in developing software application, unlike Sony. Company also has low earnings margins as compare to Apple due to huge distinction in the prices of Apple and Corporation with a much lower distinction in quality. The diverse focus of the company due to a great deal of products in its portfolio, result in the less effective production and make the company unable to charge higher prices like Apple. The business is likewise ineffective in managing its patents and frequently deals with the issue of patent violation.


Opportunities for Organization depend on the growing Smart device market and the company's performance in the market. It can increase its market share and incomes from mobile phone as the company is rather efficient in cellular phone market. Organization presently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Enterprise can move towards acquisitions to obtain patents. It would make it possible for the company to increase its product portfolio with an increase in its wealth.


The dynamic market environment of innovation industry pose a severe threat on Organization's survival and require the business to invest much of its profits share on R&D in order to make it through in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is likewise a huge hazard for the company's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Venture uses quality products and has a rather abundant portfolio which caters to different sections. LCD and mobile phones are the most significant items of Organization, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Cellphone.
• Air conditioning system.
• Personal computers.
• Disk drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lab International Inc 4 Case Study Help uses both market competitive and market skimming pricing strategies for its wide range of products. In competitive rates it adjusts the cost according to the competitors in order to get benefit, whereas, it utilizes market skimming technique where the product has actually an added value and by offering a couple of items it can reach break-even.


It has among the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon etc. All its products are prompt provided to the selling location/ delivered to the consumers straight in case of online order.

Vrio Analysis
It uses both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital advertisements are utilizes to develop awareness about Business items.

Value Chain Analysis.

It's an analytical structure for determining business activities that add worth or competitive advantage for the business.

Incoming Logistics.

It has one of the most efficient and efficient supply chain network and has over 2700 providers throughout various markets around the globe. Nearly 80% of which is based in Asia and the staying all over the world. For its inbound logistics it owns different logistics firms as it subsidiaries. It looks after its providers and produces an unified relationship with them and even reduced their payment cycles to boost this relationship even more which adds value to their chain network.


Corp's core competency is its mass manufacturing it produces 90% of its products in-house. Divided into 3 different divisions its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is keeping operation centers worldwide to further include worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Lab International Inc 4 Case Study Analysis has the ability to take on Apple. Org's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Organization.

Marketing and Sales.

Drawing in target client attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the item offers. Lab International Inc 4 Case Study Analysis marketing spending plan is continuously on the rise because they started their repositioning worldwide and will continue to do so as they are continually wanting to invest and expand in high possible development markets. The budget plan is spent on occasions, print and media ads, public relations etc.

Organization Service. Enterprise put their consumers at the top and constantly make every effort to provide unmatchable customer support requirements. As after sales service is ending up being incredibly important to keep consumers pleased and engaged, they even perform surveys through 3rd parties to learn their client's feedback and execute it in the positive way to minimize or if possible totally eliminate their customer concerns. By adding a direct assistance line to contact them 24 hours they have actually further increased the added value of Lab International Inc 4 Case Study Help service.


Lab International Inc 4 Case Study Solution has actually diversified market division, based upon its provision of wide variety of items to a great deal of customers. Organization target customer segments can be divided into 3 classifications i.e. Lab International Inc 4 Case Study Help IT and Mobile Communications, Business Consumer Electronic Devices and Company Device solutions.


Lab International Inc 4 Case Study Solution geographical division is based upon two requirements i.e. area and density. Business serves about 80 nations worldwide with its items offered to Urban in addition to Rural areas of the country. The Organization is likewise growing its worldwide presence and the company's flexibility in locating its plants encourages global expansion of Company.


Business produces items that can be utilized by both males and females. The target consumers for Corporation IT and mobile interaction items have an age range of 18-65 with majority at a young or newly wed life cycle stage. Apart from it, Org Consumer Electronics are targeted to a client section with an age range of 25-65.


The psychographic division of Lab International Inc 4 Case Study Help s based upon the social class and the lifestyle of the consumer. Corp target clients on the basis of social class are mainly upper middle, middle and working class consumers, as Business offer items like cell phones very little more affordable i.e. Motorola along with very little costly i.e. Apple. It offers quality products to middle level customers at a somewhat high price than others targeting the very same sector.


Lab International Inc 4 Case Study Analysis majority target customers have unique behavioural attributes. They are brought in towards Org since of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Lab International Inc 4 Case Study Solution has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling category of Org 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 presently manufacturing but long gone are those days when great products were selling themselves. Kim has currently begun to enhance the marketing activities of Business and extremely soon it will become one of its core strength like making if not much better.



Corporation runs designs, produces 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 items. The answer is yes.


As, said earlier that Lab International Inc 4 Case Study Help runs in an extremely competitive environment, which suggests all the companies have similar items. So, the response for rarity is no.


Due to the nature of the market, it is very easy for competitors to comprehend the performance of the items and easily make their own designs. Yes, Corp is only behind IBM in registering new patents each year, but the advantage is very short-term in this industry.


Chairman Lee has totally turnaround Enterprise, from going nearly insolvent during the Asian financial crisis of 1997 to the top 25 company in the world. Definitely yes there is proper company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread nearly in every country worldwide, majority of the environments like U.S.A., Europe, China etc., are very conductive for its operations. Nevertheless, it faces some political pressures in less developed countries where law and order situation is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Lab International Inc 4 Case Study Help operations.


Buying power of customers is essential for business like Enterprise to grow and succeed. Emerging markets like India, middle-eastern nations etc. supply growth chances, whereas, due to recession even the customers of developed nations suffer terribly. Thus it is very essential for the business to keep an eye on the ongoing economic scenario of the country before entering the market.


International business have to deal with different social and cultural problems during its operations in a foreign country. Venture has also dealt with lots of problems but have actually embraced to the regional environments of most of the nations incredibly well. It has actually tailored its items, practices, policies and so on appropriately in order to be successful.


With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with consistent innovative product launches, Lab International Inc 4 Case Study Help is one of the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it concerns technological developments, Venture 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 Enterprise need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal repercussions. It has to study or work with a local law expert prior to starting its operations in a particular country.


With the increasing awareness among consumers about the ethical & environmental offenses of companies, Org has to guarantee that it follows all the security guidelines. Environmental damages, ethical misconducts are not acceptable and in some nations the effects can be very severe. On the other hand it needs to do some Business Social Responsibility practices to show the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Threat of substitution for Organization's each product classification is rather substantial. Factors for high hazard of alternative for Lab International Inc 4 Case Study Analysis Smart device include the presence of high number of providers and Market saturation in industrialized countries, which make the expense of changing for consumers practically absolutely no. Along with it, Corp printing options items are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly among Business and its close rivals is extreme. The major reason behind this is the approach of market saturation in numerous number of item categories, requiring Company to present more ingenious functions in existing products and brand-new ingenious items to preserve its growth. Other factor for the intense competition amongst the rivals is the little product distinction among the products. The prominent players in the technology industry are quite familiar with the value of R&D spending for their survival and are encountering a race of marketing and R&D spending, to catch the marketplace. The significant rivals for Lab International Inc 4 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the fluctuating market shares which can be seen in Display F.

Bargaining Power of Suppliers:

( Company Sustainability Report, 2016) Supplier's bargaining power for Corp is low as Organization runs economies of scale and its orders are of potential size and worth. Due to incapability of Lab International Inc 4 Case Study Help to build its own software application, it has to outsource its software application advancement to Google, which becomes a potential provider of software for Corp, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Haggling power of purchasers for different variety of item classifications of Enterprise is intense. One of the factor causing the intense bargaining power is the accessibility of large number of rivals in practically each item category i.e. competitors of Corporation Smart device, with a very little distinction. The high accessibility of providers of Smartphones with minimum distinction, make the changing cost for buyers practically absolutely no, for this reason increasing the bargaining power of buyers. Market saturation in most of the item categories also make the bargaining power of buyers more intense in for Lab International Inc 4 Case Study Analysis. In spite of igh bargaining power Enterprise is rather efficient in selling its items at a greater cost than much of its rivals, due to luxury quality item and a fair brand image.

Hazard of New Entrants:

Hazard of brand-new entrants for Lab International Inc 4 Case Study Analysis is quite low. Along with it, requirement of substantial knowledge and research and development expenditures for survival in the industry likewise make brand-new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Company's high product diversity supplies it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Lab International Inc 4 Case Study Analysis had a substantial R&D costs 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.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in terms of global market share, among 8 different item classifications. Org was the global leader in producing DRAM, SRAM and NAND flash chips. Although, Business revenues from chips was less than Intel however its profits from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given up the case Exhibition 2.

In addition to the chips Company mobile market was likewise growing at a high rate than its competitors i.e. Motorola and Nokia. Org's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The major reson behind Company's high growth despite of greater rates than Nokia and Motorola was the business's high-end quality cell phones.

Org was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 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 most significant competitor for Lab International Inc 4 Case Study Analysis in LCD market, nevertheless, it had likewise started joint endeavor with Organization in 2003 for LCD manufacturing, minimizing the competition for Corporation.

Porter's Competitive Strategy

Low Expense Leadership strategy of porter is fully implemented by Venture the method they attain economies of scale by reinforcing their core proficiencies of production. Even to the point that their rival SONY chose to form an alliance with them to produce for them, since they were unable to compete with them on low expense. Differentiation is another method well carried out by Company by constant financial investment in the R&D and staying ahead of the competitors. They constantly bring something new and innovative whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lab International Inc 4 Case Study Solution would create a new brand image by targeting the more youthful generation of the particular country. As, particularly cellphones of Venture are incredibly popular amongst the more youthful market.


1. It is the best method to develop Consumer Lifetime Worth (CLV) by creating a long-term relationship with consumers. Construct commitment through delivering worth and reap the benefits for long-lasting, as research has showed it is more affordable to retain present clients than to attract new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among more youthful people and which in turn will generate new customers for my products.


1. Old consumers who were associated with Org before might not like this brand-new image the business is trying to portray.
2 It will sustain more expenses to rearrange some items and it might not even bring success as the patterns change extremely rapidly among the more youthful market.

Alternative option 2.

Business has made producing its core proficiency for the many part of their service and due to which its supervisors are not afraid to totally get out of their comfort zone. It would be done by arranging training workshops throughout which significance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get benched. Marketing environment should be created internally initially as real marketing begins inside the corporation.


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


2. Its con can produce a really unhealthy environment in the work environment, as people typically withstand change since they fear it.

Determine the very best alternative

Very first option is the best as it clearly has more pros because once a Client Lifetime Value is constructed the business will make money from it till that consumer lives and has acquiring power too. Plus, our target clients are the younger generation which are bound to live longer than the present aging people. Organization's primary objective is to produce loyalty amongst its customers and make them repurchase it from them and even buy their different products.

Implementation Plan

• Targeting younger generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations practical and attainable.
• A team including finest marketing and sales professionals need to be assemble, and both views need to be considered prior to securing the resources needed to carry out the strategy.
• Thorough interaction of the strategy ought to be done as it is very essential for everyone to be on the exact same page to make it work.
• Tasks and timelines ought to be develop and interacted accordingly to each individual accountable.
• The supervisor must use a dashboard which shows the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a consistent examine the specific and overall efficiency.
• Everybody need to want to adapt midway because any brand-new pattern or policy may come in due to which all the important things currently planned need to be adjusted. It's much better to have contingency strategies already prepared.
• At the end of the campaign the manager should interact the results and if effective must celebrate with the team.

Spending plan

The M-net program exposed compelling analysis about the low and high growth possible areas and just how much marketing budget ought to be allocated accordingly. This modification the budget plan allotment of numerous supervisors and different countries were dissatisfied and argued however the analysis done by the program was precise and showed figures like The United States and Canada and Russia growth potential warranted a 35% allowance while they were getting 45%. Whereas, China and Europe ought to be getting 42% but were instead given 31%. It actually assisted to fairly distribute the resources and capture more clients by investing more on advertisements on the high development capacity regions of the world.

Lab International Inc 4 Case Study Help is a leading 25 business worldwide now and plans to get ahead of Sony who sits presently at no. 20. Its continuous financial investment in R&D and ingenious practices have moved them to new heights but for them its' just the start and they wish to be among the top 3 brands worldwide. They completely turnaround from nearly declaring bankruptcy during the Asian Financial Crisis to a world prominent brand name, known for quality and innovation. Their worth chain and their core proficiency their manufacturing capability, along-with worldwide 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 further in the future. Their marketing efforts ought to be directed towards younger market amidst the internal arguments about marketing and need to create Client Life time Worth as it will not only provide benefits now but will continue to gain it till the consumer life time. As the expense of keeping the customer is much cheaper than drawing in a brand-new one.