Lab International Inc 4 Harvard Case Study Solution

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Lab International Inc 4 Case Study Solution & Analysis


Lab International Inc 4 Case Study Solution is a widely known international brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Lab International Inc 4 handle large number of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core customers include the Original Devices Manufacturers (OEMs), which utilized to offer Samsung items withtheir own brand name. Till early 1990s, the core competency of Samsung depend on its low cost offerings than its competitors by making existing items at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who used to offer Lab International Inc 4 Case Study Help items with their own trademark name. Samsung was not simply known outside Korea. There were likewise no or little interest in constructing the brand name worldwide. Marketing budget plan was controlled by production department with a focal point on offering low-cost products.During the 1997 Asian Financial Crisis the company almost got insolvent, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most valuable company worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Samsung as a worldwide brand name and educated his divisional supervisors to comprehend marketing and its importance. Now their objective is to arrive 10 by 2005.

Problem Declaration

Samsung's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to include marketing efficiently is still a major challenge. Producing a consistent brand name identity across the entire world and employing marketing methods that best fits the regional culture is no easy job. The M-net program analysis have been actually handy in determining the high and less possible development locations, however allocation of resources appropriately is not well received amongst the supervisors. There is no agreement among the hierarchy relating to the best fit future strategy.

Situational Analysis

Lab International Inc 4 Case Study Analysis efforts for building its brand across the world was started after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to transform Samsung from a low-cost OEM to a high value-added item supplier. To make the vision of Samsung a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can transform from a low end to a high-end product company. He understood that improvement can only be done through positioning Samsung as a company providing high-end products and this could just be done through high level of marketing.

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

Among the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as very 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 organisation practices, and the present marketing requirement was too much high, the gap was too wider and to fill this gap with wrong perceptions about marketing was rather tough for Yun.

As stated above, marketing focus was extremely low in previous practices, for that reason there were no correct marketing spending plans for each of the item on the portfolio. There was no marketing planning done for the existing items. Together with it the product range of the company was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to develop marketing budget plans for existing along with for new products from the very beginning, and this would take a substantial time.

A substantial shift would be needed in present marketing expenditures to build the Lab International Inc 4 Case Study Solution brand name. This would lead to increased marketing expenditures for Samsung and might disrupt the administration regarding increased expenses, as they hesitated to marketing expenses previously and an unexpected huge shiftwould make them disrupt. This could lead to declining executive assistance for worldwide marketing. In this situation, Yun deals with an obstacle for validating increased marketing expenditures by showing the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Lab International Inc 4 Case Study Analysis strengths lie in its substantial product portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents granted in US( USP).

Another strength of Lab International Inc 4 Case Study Help is its capability to establish ingenious items at a constant rate. It major proves for the innovation and item creating of Samsung is that the company has actually gotten many awards for its innovation and item design.

Unlike Apple and other rivals, Samsung is focused on producing devices which can be easily incorporated with any kind of open source Os (OS) and software application. This offers Samsung an edge over Apple gadgets.

Samsung's ability to produce high-end products at low expense of production is likewise among the significant strength of Samsung as it allows the company to record more market by providing quality products with cost control.


Samsung's weaknesses are concealed in the company's dependence on outsourcing software application for its gadgets due to business's inability in establishing software application, unlike Sony. Lab International Inc 4 Case Study Help likewise has low revenue margins as compare to Apple due to huge difference in the prices of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Lab International Inc 4 Case Study Solution lie in the growing Smart device market and the business's efficiency in the market. Samsung presently runs in about 80 nations and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology industry posture a serious hazard on Samsung's survival and force the business 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 business is likewise a big danger for the business's growth in the existence of strong rivals like Apple.

4 P's of Marketing


Lab International Inc 4 Case Study Analysis offers quality items and has a rather rich portfolio which deals with various sections. The majority of the products remain in the leading 3 of their particular markets. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the line of product of Samsung:

• Laptops.
• Cellphone.
• Air conditioning system.
• Personal computers.
• Hard disks.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Lab International Inc 4 Case Study Analysis utilizes both market competitive and market skimming rates techniques for its wide array of items. In competitive rates it changes the price according to the competition in order to get benefit, whereas, it utilizes market skimming strategy where the product has an included value and by selling a few items it can reach break-even.


It has among the best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon etc. All its items are prompt supplied to the selling place/ provided to the customers directly in case of online order.


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

Value Chain Analysis.

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

Incoming Logistics.

It has one of the most effective and effective supply chain network and has more than 2700 providers across different industries all over the world. Practically 80% of which is based in Asia and the staying around the globe. For its incoming logistics it owns numerous logistics firms as it subsidiaries. It cares for its suppliers and creates an unified relationship with them and even reduced their payment cycles to enhance this relationship further which adds worth to their chain network.


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

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Lab International Inc 4 Case Study Solution 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 tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target client attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the product uses. Lab International Inc 4 Case Study Solution marketing spending plan is constantly rising because they started their repositioning internationally and will continue to do so as they are continually seeking to broaden and invest in high prospective growth markets. The budget plan is invested in occasions, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their customers at the top and constantly strive to provide unmatchable customer support standards. As after sales service is ending up being very crucial to keep clients happy and engaged, they even carry out surveys through third parties to find out their consumer's feedback and execute it in the favorable way to reduce or if possible entirely eliminate their customer issues. By including a direct assistance line to call them 24 hr they have even more increased the included value of Lab International Inc 4 Case Study Solution service.


Lab International Inc 4 Case Study Analysis has diversified market segmentation, based upon its provision of vast array of items to a great deal of customers. Samsung target client sectors can be divided into 3 classifications i.e. Lab International Inc 4 Case Study Help IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget options.


Lab International Inc 4 Case Study Analysis geographic division is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its products offered to Urban in addition to Rural areas of the country. The Samsung is also growing its international presence and the company's flexibility in locating its plants encourages global expansion of Samsung.


Samsung produces items that can be used by both females and males. The target customers for Samsung IT and mobile communication items have an age range of 18-65 with majority at a young or recently wed life cycle stage. Apart from it, Samsung Customer Electronic devices are targeted to a customer 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. Samsung target consumers on the basis of social class are generally upper middle, middle and working class customers, as Samsung sell products like cellular phone not much less expensive i.e. Motorola in addition to very little expensive i.e. Apple. It provides quality products to middle level customers at a slightly high price than others targeting the very same section.


Lab International Inc 4 Case Study Help majority target clients have special behavioural attributes. They are attracted towards Samsung because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Lab International Inc 4 Case Study Solution has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the biggest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based upon the mission of Kim to target the more youthful audience and develop an international brand name picture of the company. Whereas, the core strength of the business is presently making but long gone are those days when good products were offering themselves. In the existing age marketing is very crucial and business can not succeed without it. Kim has already started to reinforce the marketing activities of Samsung and very soon it will turn into one of its core strength like making if not much better.



Samsung runs designs, makes and sell a vast portfolio of customer electronics. It runs in an exceptionally competitive environment and has successfully placed itself as the maker of quality items. The response is yes.


As, stated earlier that Lab International Inc 4 Case Study Help operates in a highly competitive environment, which means all the companies have comparable items. The response for rarity is no.


Due to the nature of the industry, it is extremely easy for rivals to understand the performance of the products and easily make their own models. Yes, Samsung is only behind IBM in signing up new patents yearly, but the benefit is really short term in this market.


Chairman Lee has totally turnaround Samsung, from going nearly bankrupt throughout the Asian financial crisis of 1997 to the top 25 company in the world. Certainly yes there is proper organization in the company and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread practically in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are really conductive for its operations. It deals with some political pressures in less industrialized countries where law and order circumstance is not excellent. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Lab International Inc 4 Case Study Solution operations.


Purchasing power of consumers is vital for companies like Samsung to succeed and grow. Emerging markets like India, middle-eastern nations etc. supply growth chances, whereas, due to recession even the customers of developed nations suffer badly. It is extremely important for the business to keep an eye on the continuous financial situation of the nation before going into the market.


Multinational business need to deal with various social and cultural issues throughout its operations in a foreign country. Samsung has actually likewise faced numerous problems however have actually adopted to the local environments of the majority of the nations remarkably well. It has customized its products, practices, policies etc. accordingly in order to be successful.


With an annual expenditure of 2.4 billion dollars in Research study & Advancement, and with continuous ingenious item launches, Lab International Inc 4 Case Study Analysis is one of the top ingenious business of the world. With a clear mission to be ahead of the rest when it concerns technological improvements, Samsung has actually risen to the no 25 of the leading successful companies of the world.


Each nation 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 serious legal effects. So, it needs to study or work with a local law specialist prior to starting its operations in a specific nation.


With the increasing awareness amongst customers about the ethical & ecological violations of business, Samsung has to guarantee that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some nations the effects can be extremely severe. On the other hand it has to do some Corporate Social Duty practices to reveal the locals that it appreciates their environment and people.

Porter's 5 Forces

Danger of Substitution

Hazard of substitution for Samsung's each product category is quite considerable. Running in an exceptionally vibrant industry lead the business to face a high danger of substitution. Factors for high hazard of replacement for Lab International Inc 4 Case Study Help Mobile phone consist of the presence of high number of providers and Market saturation in developed countries, which make the expense of switching for consumers practically zero. Substitution hazards for Samsung visual display lie in the altering lifestyle of clients. Clients can switch to enjoying visuals in the house towards outside activities. Together with it, Samsung printing services products are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Samsung and its close rivals is extreme. The significant reason behind this is the technique of market saturation in numerous number of item classifications, forcing Samsung to present more ingenious features in existing products and brand-new ingenious items to preserve its development. Other aspect for the intense rivalry amongst the competitors is the little product distinction amongst the products. The popular gamers in the innovation industry are quite aware of the importance of R&D costs for their survival and are running into a race of marketing and R&D spending, to catch the marketplace. The major rivals for Lab International Inc 4 Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in 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 Lab International Inc 4 Case Study Solution to develop its own software, it has to outsource its software application advancement to Google, which ends up being a potential supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Negotiating power of purchasers for different variety of item categories of Samsung is intense. Among the factor leading to the extreme bargaining power is the accessibility of a great deal of competitors in nearly each product category i.e. competitors of Samsung Smart device, with an extremely little distinction. The high accessibility of suppliers of Smartphones with minimum differentiation, make the changing expense for buyers practically no, for this reason increasing the bargaining power of purchasers. Market saturation in the majority of the product categories also make the bargaining power of buyers more intense in for Lab International Inc 4 Case Study Help. In spite of igh bargaining power Samsung is rather efficient in offering its products at a higher cost than much of its rivals, due to high-end quality product and a fair brand image.

Risk of New Entrants:

Danger of new entrants for Samsung is quite low. Among the significant aspect for low threat of brand-new entrants is the high competition in the market. The requirement of huge quantity of capital to enter in the market is also among the prospective barrier to entry. Together with it, requirement of substantial knowledge and research and advancement expenditures for survival in the market also make new entrants unwilling to go into 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 efficiency. Brand-new firms, in majority cases, do not have the production efficiency, hence increasing the dangers for entrance in the technology market.

Competitive Analysis

Samsung's high item diversity offers it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Lab International Inc 4 Case Study Solution had a huge R&D spending on all of its item categories which make it possible for the business to make potential income from sales of almost all of its items.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in regards to international market share, among 8 various item classifications. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung earnings from chips was less than Intel but its earnings from chips was growing quicker than Intel and has actually grown close to the profits levels of Intel, as given 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 cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Samsung's high growth despite of higher prices than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The significant reason, making the company enable to obtain the chance is its mass production at low cost. Sony was the greatest competitor for Lab International Inc 4 Case Study Analysis in LCD market, nevertheless, it had actually also begun joint venture with Samsung in 2003 for LCD manufacturing, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Management technique of porter is totally executed by Samsung the way they accomplish economies of scale by strengthening their core proficiencies of production. They always bring something ingenious and new whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lab International Inc 4 Case Study Solution would create a brand-new brand image by targeting the younger generation of the particular country. As, particularly smart phones of Samsung are very popular among the more youthful group.


1. It is the very best method to develop Customer Life time Worth (CLV) by producing a long-lasting relationship with consumers. Construct commitment through providing value and profit for long-term, as research study has actually showed it is more affordable to maintain present consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst more youthful people and which in turn will generate brand-new clients for my items.


1. Old consumers who were related to Samsung prior to may not like this brand-new image the business is trying to portray.
2 It will sustain additional expenditures to rearrange some items and it may not even bring success as the trends alter extremely quickly amongst the more youthful group.

Alternative solution 2.

It would be done by setting up training workshops throughout which value of marketing will be taught and numbers will be given. Marketing environment ought to be produced internally initially as real marketing starts inside the corporation.


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


2. Its con can develop an extremely unhealthy environment in the workplace, as individuals typically resist modification because they fear it.

Recognize the very best alternative

First option is the very best as it clearly has more pros since when a Customer Lifetime Worth is built the company will profit from it till that customer lives and has purchasing power too. Plus, our target clients are the younger generation which are bound to live longer than the current old age people. Samsung's main objective is to develop commitment among its clients and make them redeemed it from them and even buy their different items.

Implementation Strategy

• Targeting younger generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations achievable and realistic.
• A group consisting of finest marketing and sales experts must be put together, and both views must be considered before protecting the resources required to implement the plan.
• Thorough interaction of the plan ought to be done as it is really essential for everyone to be on the same page to make it work.
• Tasks and timelines must be build and interacted appropriately to each individual accountable.
• The manager ought to utilize a dashboard which shows the progress of all the tasks which have been done or about to be done and by whom.
• The manager must keep an eye on and keep a consistent check on the overall and private efficiency.
• Everyone must want to adjust midway since any new pattern or policy might be available in due to which all the things currently prepared have to be adjusted. It's better to have contingency plans already prepared.
• At the end of the campaign the manager need to communicate the results and if effective ought to celebrate with the team.

Spending plan

This modification the spending plan allotment of various countries and many managers were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective merited a 35% allocation while they were receiving 45%. It really helped to fairly disperse the resources and catch more customers by investing more on advertisements on the high development potential regions of the world.


Its continuous investment in R&D and innovative practices have actually propelled them to brand-new heights however for them its' only the start and they desire to be amongst the leading 3 brand names in the world. Their marketing efforts ought to be directed towards more youthful market amid the internal arguments about marketing and need to develop Consumer Lifetime Value as it will not just offer them advantages now but will continue to reap it till the consumer lifetime. As the cost of maintaining the consumer is much more affordable than bring in a brand-new one.