Lab International Inc 4 Harvard Case Study Help

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Lab International Inc 4 Case Study Solution and Analysis


Lab International Inc 4 Case Study Help is a widely known worldwide brand in technology industry, established in 1938 by Lee Byung Chul, in South Korea. Lab International Inc 4 deals in large number of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Business items withtheir own brand name. Till early 1990s, the core competency of Organization depend on its low cost offerings than its rivals by making existing products at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Lab International Inc 4 Case Study Analysis products with their own trademark name. Corporation was not merely understood outside Korea. There were likewise no or little interest in constructing the brand worldwide. Marketing budget plan was controlled by production department with a focal point on providing low-cost products.During the 1997 Asian Financial Crisis the business almost got bankrupt, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most valuable business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He repositioned Corp as a global brand name and educated his divisional managers to understand marketing and its importance. Now their goal is to arrive 10 by 2005.

Problem Declaration

Venture's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to include marketing effectively is still a major difficulty. Creating a consistent brand name identity throughout the whole world and utilizing marketing techniques that best fits the local culture is no simple job. The M-net program analysis have actually been actually useful in figuring out the high and less potential growth locations, however allocation of resources appropriately is not well received among the managers. There is no agreement among the hierarchy relating to the very best matched future method.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Lab International Inc 4 Case Study Solution can change from a low end to a high end item service provider. He understood that improvement can just be done through placing Corporation 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 Org brand, with a potential support of its executives, Yun faced numerous marketing difficulties in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as exact same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the existing marketing requirement was excessive 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 variety of the business was increasing with the ripening of new item concepts by the R&D sector of Organization. Yun had a difficulty to carry out marketing preparation and to produce 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 expenses to build the Lab International Inc 4 Case Study Analysis brand name. This would result in increased marketing expenditures for Corp and could disturb the administration regarding increased costs, as they were reluctant to marketing expenditures previously and a sudden huge shiftwould make them disrupt. This could result in declining executive support for global marketing. In this scenario, Yun faces a difficulty for validating increased marketing expenses by showing the long term worth of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Lab International Inc 4 Case Study Solution strengths lie in its huge product portfolio. Organization has biggest number of patents in the market with overall number of 15499 patents approved in US( USP).

Another strength of Lab International Inc 4 Case Study Solution is its capability to develop innovative items at a constant rate. It significant shows for the innovation and product designing of Corporation is that the business has gotten numerous awards for its development and product design.

Unlike Apple and other rivals, Enterprise is focused on producing gadgets which can be quickly integrated with any kind of open source Operating System (OS) and software. This supplies Company an edge over Apple gadgets.
Porter's 5 Forces Analysis
Company's capability to produce luxury items at low cost of production is likewise among the significant strength of Enterprise as it makes it possible for the business to record more market by supplying quality products with expense control.


Lab International Inc 4 Case Study Analysis weaknesses are concealed in the company's dependence on outsourcing software for its gadgets due to company's failure in establishing software, unlike Sony. Organization also has low profit margins as compare to Apple due to substantial distinction in the costs of Apple and Company 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 effective production and make the company unable to charge higher costs like Apple. The company is likewise inefficient in handling its patents and often deals with the problem of patent violation.


Opportunities for Lab International Inc 4 Case Study Analysis lie in the growing Smart device market and the company's effectiveness in the market. Organization presently runs in about 80 countries and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of innovation industry posture a serious risk on Enterprise's survival and require the company to invest much of its profits share on R&D in order to endure in the long run. The market saturation in industrialized nations i.e. saturation of mobile company is likewise a big hazard for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Company provides quality items and has a rather abundant portfolio which caters to different sections. LCD and mobile phones are the biggest items of Corp, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lab International Inc 4 Case Study Solution utilizes both market competitive and market skimming rates strategies for its variety of items. In competitive prices it changes the price according to the competitors in order to get benefit, whereas, it utilizes market skimming technique where the item has actually an included worth and by offering a couple of items it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon and so on. All its items are prompt supplied to the selling location/ provided to the consumers directly in case of online order.

Vrio Analysis
It wasn't a well-known business outside of Korea until 1993. The management effort taken by their CEO has actually pressed them to market more effectively outside the borders and now it has gone into the league of top 25 companies in the world in just 9 years. This is a remarkable accomplishment despite the continuous arguments among the managers about adopting marketing practices. It utilizes both offline & online channels of promo to market their items. Paid item ads, social promotion and digital advertisements are utilizes to develop awareness about Corp items.

Value Chain Analysis.

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

Incoming Logistics.

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 lowered their payment cycles to improve this relationship further which adds worth to their chain network.


Org'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 Consumer Electronics. It is keeping operation centers worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the main factors Lab International Inc 4 Case Study Analysis is able to take on Apple. Organization's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Venture.

Marketing and Sales.

Attracting target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product provides. Lab International Inc 4 Case Study Solution advertising spending plan is constantly increasing given that they began their repositioning internationally and will continue to do so as they are continually seeking to invest and broaden in high prospective development markets. The spending plan is invested in events, print and media advertisements, public relations and so on.

Company put their clients at the top and continually aim to provide unmatchable customer service requirements. By adding a direct support line to call them 24 hours they have further increased the added worth of Organization service.


Lab International Inc 4 Case Study Solution has actually diversified market segmentation, based upon its arrangement of wide range of items to a great deal of consumers. Venture target client segments can be divided into 3 categories i.e. Lab International Inc 4 Case Study Solution IT and Mobile Communications, Venture Consumer Electronic Devices and Organization Gadget options.


Lab International Inc 4 Case Study Solution geographical division is based upon 2 criteria i.e. area and density. Corporation serves about 80 countries worldwide with its products offered to Urban as well as Backwoods of the nation. The Corp is likewise growing its international existence and the business's flexibility in finding its plants motivates international growth of Organization.


The group segmentation of Lab International Inc 4 Case Study Solution is based upon gender, age, life-cycle stage and profession. Org produces items that can be used by both women and males. The target consumers for Company IT and mobile interaction items have an age variety of 18-65 with majority at a young or newly wed life cycle stage. They are mainly experts, trainees and employees. Apart from it, Company Customer Electronics are targeted to a client section with an age series of 25-65. They are mainly professionals and employees. Venture Gadget Solutions are targeted at students, staff members and specialists 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 customer. Organization target clients on the basis of social class are mainly upper middle, middle and working class customers, as Org offer items like cell phones very little less expensive i.e. Motorola as well as very little costly i.e. Apple. It supplies quality products to middle level consumers at a somewhat high rate than others targeting the very same sector.


Lab International Inc 4 Case Study Analysis bulk target consumers have special behavioural attributes. It has clients with an ambitious, trendy and identified personality with moderate level of commitment towards the brand name. Its clients have some degree of shift towards other popular brands i.e. Apple. Most of Company clients want quality in addition to expense control. They are attracted towards Organization because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Lab International Inc 4 Case Study Solution has 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 classification of Organization 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 excellent items were offering themselves. Kim has actually already begun to reinforce the marketing activities of Venture and extremely quickly it will become one of its core strength like making if not better.



Business runs styles, produces and offer a huge portfolio of customer electronic devices. It runs in an extremely competitive environment and has actually successfully positioned itself as the maker of quality products. The response is yes.


As, stated earlier that Lab International Inc 4 Case Study Analysis 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 simple for competitors to understand the performance of the items and quickly make their own designs. Yes, Organization is only behind IBM in registering brand-new patents each year, however the advantage is really short-term in this market.


Chairman Lee has completely turn-around Enterprise, from going almost insolvent throughout the Asian financial 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


Being a multinational brand name spread nearly in every nation worldwide, majority of the environments like USA, Europe, China and so on, are very conductive for its operations. However, it deals with some political pressures in less developed nations where order scenario is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Lab International Inc 4 Case Study Help operations.


Buying power of consumers is crucial for companies like Corporation to grow and prosper. Emerging markets like India, middle-eastern countries etc. supply development chances, whereas, due to economic crisis even the clients of industrialized nations suffer badly. It is really crucial for the business to keep an eye on the continuous economic situation of the country before entering the market.


International companies have to face different social and cultural concerns during its operations in a foreign nation. Organization has also faced lots of concerns but have adopted to the regional environments of the majority of the nations remarkably well. It has customized its items, practices, policies and so on accordingly in order to achieve success.


With an annual expense of 2.4 billion dollars in Research & Advancement, and with consistent ingenious item launches, Lab International Inc 4 Case Study Solution is one of the leading ingenious business of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Company has risen to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational company Org need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal repercussions. It has to study or employ a local law expert before starting its operations in a particular nation.


With the increasing awareness among customers about the ethical & ecological offenses of business, Corp has to guarantee that it follows all the security guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some nations the repercussions can be really serious. On the other hand it needs to do some Corporate Social Obligation practices to show the locals that it appreciates their environment and individuals.

Porter's Five Forces

Danger of Alternative

Danger of alternative for Org's each product category is quite significant. Factors for high risk of substitution for Lab International Inc 4 Case Study Solution Mobile phone consist of the presence of high number of suppliers and Market saturation in developed countries, which make the cost of changing for consumers almost zero. Along with it, Company printing options products are threatened by the increasing attraction of customers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Company and its close competitors is extreme. The significant factor behind this is the technique of market saturation in different variety of item classifications, forcing Organization to present more innovative features in existing products and new ingenious products to preserve its development. Other factor for the intense competition among the rivals is the little item differentiation among the items. The popular players in the innovation industry are rather familiar with the value of R&D spending for their survival and are facing a race of marketing and R&D spending, to capture the marketplace. The significant rivals for Lab International Inc 4 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry results in the fluctuating market shares which can be seen in Display F.

Bargaining Power of Providers:

Lab International Inc 4 Case Study Help has a vast supply chain including about 2700 providers throughout the world.( Org Sustainability Report, 2016) Supplier's bargaining power for Company is low as Corp runs economies of scale and its orders are of potential size and worth. These huge orders allow Corp to work out rates with its providers. However, due to incapability of Lab International Inc 4 Case Study Solution to construct its own software, it has to outsource its software application advancement to Google, which becomes a prospective provider of software for Business, leading to high bargaining power of Google. In many of Lab International Inc 4 Case Study Analysis has a power to work out prices, however it provide substantial costs to its suppliers to build a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Negotiating power of purchasers for various number of item classifications of Business is extreme. Among the element leading to the intense bargaining power is the availability of large number of rivals in nearly each item category i.e. competitors of Corporation Smart device, with an extremely little distinction. The high schedule of suppliers of Mobile phones with minimum differentiation, make the changing cost for buyers almost absolutely no, thus increasing the bargaining power of buyers. Market saturation in most of the product categories also make the bargaining power of purchasers more extreme in for Lab International Inc 4 Case Study Solution. In spite of igh bargaining power Organization is quite efficient in selling its products at a higher price than much of its rivals, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Threat of brand-new entrants for Corp is rather low. Among the major element for low risk of brand-new entrants is the high competitors in the industry. The requirement of big amount of capital to go into in the marketplace is also among the prospective barrier to entry. In addition to it, requirement of big competence and research study and advancement expenditures for survival in the market likewise make brand-new entrants unwilling to go into in the marketplace. Market saturation is also among the barrier of entry in innovation market. High bargaining power of suppliers force the players in the market to charge as low costs as possible and this can only be achieved by production efficiency. New companies, in bulk cases, do not have the production efficiency, thus increasing the risks for entryway in the innovation industry.

Competitive Analysis

Org's high product diversity offers it differentiation from its competitors. It is among the three top brands by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single item classification with Sony concentrating on consumer electronic devices, Nokia on cellular phone and Intel on chips, Organization had a huge R&D costs on all of its product classifications which enable the company to earn possible revenue from sales of practically all of its products. (See Exhibition) However, due to the broad item variety the company faces high variety of rivals.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of international market share, among 8 different product categories. Corporation was the global leader in making DRAM, SRAM and NAND flash chips. Corp profits from chips was less than Intel however its revenues from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given in the case Exhibition 2.

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

Organization was also profiting from increasing market share of high end LCDs as given in case Display 3. The significant factor, making the company make it possible for to get the chance is its mass production at low cost. Sony was the most significant rival for Lab International Inc 4 Case Study Analysis in LCD market, nevertheless, it had actually likewise begun joint endeavor with Corp in 2003 for LCD manufacturing, minimizing the competitors for Venture.

Porter's Competitive Technique

Low Expense Leadership strategy of porter is totally executed by Venture the way they attain economies of scale by strengthening their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to make for them, because they were not able to take on them on low cost. Differentiation is another strategy well implemented by Venture by constant financial investment in the R&D and staying ahead of the competitors. They always bring something innovative and brand-new whether it's an item or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lab International Inc 4 Case Study Analysis would develop a new brand image by targeting the more youthful generation of the specific country. As, especially mobile phones of Corporation are very popular among the younger market.


1. It is the best strategy to build Consumer Lifetime Worth (CLV) by developing a long-lasting relationship with customers. Build commitment through delivering worth and reap the benefits for long-lasting, as research has actually revealed it is more affordable to retain current clients than to bring in new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger people and which in turn will bring in brand-new consumers for my products.


1. Old customers who were connected with Company prior to might not like this new image the company is trying to depict.
2 It will incur more expenditures to reposition some items and it may not even bring success as the trends change extremely quickly amongst the more youthful demographic.

Alternative option 2.

Enterprise has made producing its core competency for the most part of their service and due to which its supervisors are not scared to completely step out of their convenience zone. It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be created internally initially as genuine marketing starts inside the corporation.


1. Its pro will be that all the marketing technique 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 change since they fear it.

Identify the best option

Alternative is the finest as it clearly has more pros due to the fact that once a Client Life time Worth is built the business will profit from it till that consumer is alive and has acquiring power. Plus, our target clients are the younger generation which are bound to live longer than the current old age people. Company's main goal is to produce commitment amongst its customers and make them bought it from them and even buy their various products.

Application Plan

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations attainable and realistic.
• A group consisting of best marketing and sales specialists need to be assemble, and both views should be taken into account before protecting the resources needed to implement the plan.
• Thorough communication of the strategy should be done as it is really crucial for everyone to be on the exact same page to make it work.
• Tasks and timelines must be develop and interacted accordingly to each individual accountable.
• The supervisor should use a control panel which reveals the development of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to keep track of and keep a consistent check on the individual and general performance.
Because any new trend or policy may come in due to which all the things currently prepared have actually to be adjusted, • Everyone ought to be ready to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the project the manager must interact the outcomes and if effective must commemorate with the team.


This modification the budget plan allotment of lots of supervisors and various nations were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth possible merited a 35% allocation while they were getting 45%. It really assisted to relatively distribute the resources and record more customers by spending more on ads on the high growth potential areas of the world.

Its consistent financial investment in R&D and innovative practices have actually moved them to brand-new heights however for them its' just the start and they want to be among the top 3 brands in the world. Their marketing efforts must be directed towards more youthful demographic in the middle of the internal arguments about marketing and should develop Customer Lifetime Worth as it will not only provide them benefits now but will continue to gain it till the customer lifetime. As the expense of keeping the consumer is much more affordable than drawing in a new one.