Lab International Inc 4 Harvard Case Study Solution

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Lab International Inc 4 Case Study Solution & Analysis


Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Lab International Inc 4 Case Study Solution items withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Samsung products with their own brand name. He rearranged Samsung as a worldwide brand name and educated his divisional managers to comprehend marketing and its significance.

Problem Statement

Samsung's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional managers to incorporate marketing effectively is still a major difficulty. Producing a constant brand identity across the entire world and using marketing techniques that finest fits the local culture is no easy job. The M-net program analysis have been truly helpful in determining the high and less potential development locations, however allowance of resources accordingly is not well received amongst the managers. There is no consensus among the hierarchy relating to the very best matched future strategy.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Lab International Inc 4 Case Study Solution can change from a low end to a high end product company. He understood that change can just be done through placing Samsung as a company offering high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand name, with a potential support of its executives, Yun dealt with several marketing challenges in early years of its efforts.

Among the marketing obstacles for Yun was the understandings of executives about the worth 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 incorrect understandings about marketing was quite difficult for Yun.

As specified above, marketing focus was really low in previous practices, for that reason there were no appropriate marketing budgets for each of the item on the portfolio. There was no marketing preparation done for the existing items. Together with it the item series 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 create marketing spending plans for existing in addition to for new items from the very beginning, and this would take a big time.

A huge shift would be required in present marketing expenses to build the Lab International Inc 4 Case Study Help brand. This would lead to increased marketing expenditures for Samsung and might interrupt the administration concerning increased expenses, as they hesitated to marketing expenses previously and a sudden big shiftwould make them disturb. This might result in declining executive support for international marketing. In this circumstance, Yun faces a challenge for validating increased marketing expenses by demonstrating the long term worth of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Lab International Inc 4 Case Study Solution strengths lie in its huge item portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents given in United States( USP).

Another strength of Lab International Inc 4 Case Study Solution is its capability to establish ingenious products at a continuous rate. It significant proves for the innovation and product developing of Samsung is that the company has actually received numerous awards for its development and product design.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be easily integrated with any kind of open source Os (OS) and software. This supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's ability to produce high-end items at low cost of production is also one of the significant strength of Samsung as it allows the business to catch more market by offering quality products with cost control.


Lab International Inc 4 Case Study Solution weak points are concealed in the business's reliance on outsourcing software for its gadgets due to business's failure in developing software, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to huge difference in the prices of Apple and Samsung with a much lesser distinction in quality. The varied focus of the business due to large number of products in its portfolio, result in the less efficient production and make the company not able to charge greater prices like Apple. The company is likewise ineffective in managing its patents and often deals with the problem of patent violation.


Opportunities for Samsung lie in the growing Mobile phone market and the business's effectiveness in the market. It can increase its market share and revenues from cell phone as the company is quite effective in smart phone market. Samsung currently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would enable the company to increase its product portfolio with an increase in its wealth.


The vibrant industry environment of technology industry position a serious danger on Samsung's survival and require the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is likewise a huge risk for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Lab International Inc 4 Case Study Solution offers quality items and has a rather rich portfolio which caters to different sections. Most of the products remain in the leading three of their particular industries. LCD and cellphones are the most significant products of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Hard disks.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Lab International Inc 4 Case Study Solution uses both market competitive and market skimming rates methods for its wide variety of products. In competitive pricing it adjusts the cost according to the competitors in order to acquire benefit, whereas, it uses market skimming technique where the product has actually an included worth and by offering a couple of 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 and so on. All its items are timely supplied to the selling place/ provided to the customers directly in case of online order.

Vrio Analysis
It uses both offline & online channels of promo to market their items. Paid product ads, social promo and digital advertisements are uses to produce awareness about Samsung products.

Worth Chain Analysis.

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

Inbound Logistics.

For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its suppliers and creates a harmonious relationship with them and even reduced their payment cycles to increase this relationship even more which includes worth to their chain network.


Samsung's core competency 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 Electronics. It is maintaining operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main reasons Lab International Inc 4 Case Study Analysis has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product uses. Lab International Inc 4 Case Study Solution advertising budget is continually on the rise since they began their repositioning worldwide and will continue to do so as they are constantly wanting to invest and broaden in high possible growth markets. The budget plan is spent on occasions, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their clients on top and continuously strive to deliver unmatchable customer care requirements. As after sales service is becoming extremely important to keep consumers delighted and engaged, they even conduct surveys through third parties to discover their client's feedback and execute it in the positive method to decrease or if possible entirely remove their customer issues. By including a direct assistance line to contact them 24 hr they have actually further increased the added worth of Lab International Inc 4 Case Study Analysis service.


Lab International Inc 4 Case Study Help has diversified market division, based upon its provision of wide variety of items to a great deal of consumers. Samsung target consumer 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 Device services.


Lab International Inc 4 Case Study Analysis geographical division is based upon two criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items provided to Urban in addition to Backwoods of the nation. The Samsung is also growing its worldwide presence and the business's versatility in locating its plants encourages international growth of Samsung.


Samsung produces items that can be utilized by both women and males. The target consumers for Samsung IT and mobile communication items have an age variety of 18-65 with bulk at a young or recently wed life cycle stage. Apart from it, Samsung Customer Electronic devices are targeted to a customer segment with an age range of 25-65.


The psychographic segmentation of Lab International Inc 4 Case Study Help s based upon the social class and the lifestyle of the customer. Samsung target customers on the basis of social class are generally upper middle, middle and working class consumers, as Samsung sell items like cellular phone very little more affordable i.e. Motorola as well as very little expensive i.e. Apple. It offers quality products to middle level customers at a somewhat high rate than others targeting the very same section.


Lab International Inc 4 Case Study Solution bulk target clients have distinct behavioural attributes. They are attracted towards Samsung due to the fact that of its moderate rates with a degree of quality.

Quantitative analysis.

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

Qualitative analysis.

Yes, this decision is based upon the mission of Kim to target the more youthful audience and develop a global brand name image of the company. Whereas, the core strength of the business is presently producing however long gone are those days when excellent products were selling themselves. In the present age marketing is really important and companies can not be successful without it. Kim has actually currently begun to strengthen the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not much better.



Samsung runs styles, manufactures and sell a large portfolio of consumer electronic devices. It runs in an incredibly competitive environment and has actually successfully positioned itself as the maker of quality products. So, the response is yes.


As, said previously that Lab International Inc 4 Case Study Solution runs in an extremely competitive environment, which implies all the companies have similar products. So, the response for rarity is no.


Due to the nature of the industry, it is extremely simple for competitors to comprehend the performance of the items and quickly make their own designs. Yes, Samsung is only behind IBM in registering new patents every year, but the advantage is very short term in this industry.


Chairman Lee has totally turnaround Samsung, from going nearly insolvent during the Asian monetary crisis of 1997 to the leading 25 business in the world. Definitely yes there is proper organization in the company and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Lab International Inc 4 Case Study Solution operations.


Purchasing power of consumers is crucial for companies like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations etc. provide growth chances, whereas, due to recession even the consumers of developed nations suffer badly. Hence it is very important for the business to watch on the continuous financial scenario of the country prior to entering the marketplace.


Multinational business need to deal with numerous social and cultural concerns throughout its operations in a foreign country. Samsung has likewise dealt with lots of issues but have embraced to the regional environments of most of the countries remarkably well. It has actually tailored its items, practices, policies etc. accordingly in order to achieve success.


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


Each nation has their own laws and policies, being an international company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal effects. So, it needs to study or work with a regional law expert before beginning its operations in a specific nation.


With the rising awareness amongst consumers about the ethical & ecological offenses of companies, Samsung has to make sure that it follows all the safety guidelines. Environmental damages, ethical misconducts are not appropriate and in some nations the consequences can be really severe. 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

Hazard of Alternative

Danger of replacement for Samsung's each item classification is rather significant. Factors for high threat of replacement for Lab International Inc 4 Case Study Solution Smart device include the presence of high number of providers and Market saturation in industrialized nations, which make the cost of switching for consumers almost zero. Along with it, Samsung printing services items are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Among Existing Firms:

The rivaly amongst Samsung and its close competitors is extreme. The major reason behind this is the technique of market saturation in numerous variety of product classifications, requiring Samsung to introduce more ingenious features in existing products and brand-new ingenious products to keep its development. Other element for the intense rivalry among the rivals is the little item distinction amongst the items. The popular gamers in the technology market are quite familiar with the value of R&D spending for their survival and are running into a race of marketing and R&D costs, to record the market. The significant rivals for Lab International Inc 4 Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the changing market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

( 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. Due to incapability of Lab International Inc 4 Case Study Solution to construct its own software, it has to outsource its software application development to Google, which ends up being a prospective supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Negotiating power of buyers for numerous number of product classifications of Samsung is extreme. One of the aspect leading to the extreme bargaining power is the schedule of a great deal of competitors in nearly each product category i.e. competitors of Samsung Mobile phone, with a very little distinction. The high schedule of suppliers of Mobile phones with minimum distinction, make the changing expense for purchasers nearly zero, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product classifications likewise make the bargaining power of purchasers more intense in for Lab International Inc 4 Case Study Help. In spite of igh bargaining power Samsung is rather efficient in selling its items at a higher rate than much of its rivals, due to luxury quality item and a fair brand image.

Risk of New Entrants:

Danger of brand-new entrants for Samsung is quite low. Among the significant element for low threat of brand-new entrants is the high competition in the market. The requirement of huge amount of capital to go into in the market is likewise one of the prospective barrier to entry. Together with it, requirement of substantial proficiency and research study and advancement expenditures for survival in the industry likewise make brand-new entrants reluctant to go into in the marketplace. Market saturation is likewise one of the barrier of entry in innovation market. High bargaining power of suppliers require the players in the industry to charge as low rates as possible and this can only be achieved by production performance. Brand-new companies, in majority cases, lack the production efficiency, thus increasing the dangers for entrance in the innovation industry.

Competitive Analysis

Samsung's high product diversity supplies it distinction from its competitors. It is among the three top brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Samsung had a substantial R&D spending on all of its product classifications which allow the business to make potential income from sales of nearly all of its items. (See Display) However, due to the broad product variety the business deals with high number of competitors.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to worldwide market share, amongst 8 different product classifications. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Samsung profits from chips was less than Intel however its earnings from chips was growing faster than Intel and has actually grown close to the income levels of Intel, as provided in the case Exhibit 2.

Together with the chips Samsung mobile market was likewise 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 no sales growth. The major reson behind Samsung's high development despite of higher rates than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibit 3. The major factor, making the company allow to avail the chance is its mass production at low cost. Sony was the biggest competitor for Lab International Inc 4 Case Study Analysis in LCD market, however, it had actually likewise started joint venture with Samsung in 2003 for LCD manufacturing, decreasing the competitors for Samsung.

Porter's Competitive Strategy

Low Cost Leadership strategy of porter is totally carried out by Samsung the method they achieve economies of scale by reinforcing their core proficiencies of production. They constantly bring something new and innovative whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lab International Inc 4 Case Study Help would create a new brand image by targeting the more youthful generation of the specific country. As, specifically mobile phones of Samsung are popular amongst the younger market.


1. It is the best strategy to construct Customer Lifetime Worth (CLV) by creating a long-lasting relationship with consumers. Construct commitment through providing worth and profit for long-lasting, as research study has showed it is more affordable to maintain present clients than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful individuals and which in turn will generate new customers for my products.


1. Old customers who were associated with Samsung prior to may not like this new image the company is attempting to depict.
2 It will sustain additional expenditures to rearrange some products and it might not even bring success as the trends change extremely rapidly among the younger market.

Alternative option 2.

It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be provided. Marketing environment ought to be created internally initially as genuine marketing begins inside the corporation.


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


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

Identify the very best option

Very first option is the best as it clearly has more pros due to the fact that as soon as a Customer Life time Worth is constructed the business will benefit from it till that consumer lives and has purchasing power also. Plus, our target clients are the younger generation which are bound to live longer than the present old age people. However, Samsung's main goal is to create loyalty amongst its clients and make them redeemed it from them and even buy their various items as well.

Application Strategy

• Targeting more youthful generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations practical and achievable.
• A group consisting of best marketing and sales professionals should be put together, and both views ought to be considered prior to protecting the resources needed to execute the plan.
• Thorough interaction of the strategy should be done as it is very crucial for everybody to be on the same page to make it work.
• Jobs and timelines must be build and interacted accordingly to each individual responsible.
• The manager ought to utilize a control panel which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor need to keep track of and keep a constant look at the total and specific efficiency.
• Everyone ought to be willing to adjust midway due to the fact that any new pattern or policy might come in due to which all the important things currently planned have to be changed. It's better to have contingency plans currently prepared.
• At the end of the project the supervisor should communicate the results and if successful should celebrate with the group.


The M-net program exposed compelling analysis about the low and high development potential locations and how much marketing spending plan must be assigned accordingly. This modification the budget plan allocation of various countries and many managers were unhappy and argued but the analysis done by the program was accurate and showed figures like The United States and Canada and Russia development potential warranted a 35% allotment while they were getting 45%. Whereas, China and Europe ought to be getting 42% however were instead given 31%. It really assisted to fairly distribute the resources and catch more clients by investing more on ads on the high development potential regions of the world.

Lab International Inc 4 Case Study Solution is a top 25 business on the planet now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent financial investment in R&D and innovative practices have propelled them to new heights but for them its' just the start and they want to be amongst the top 3 brand names on the planet. They completely turn-around from almost going bankrupt throughout the Asian Financial Crisis to a world popular brand name, understood for quality and innovation. Their value chain and their core proficiency their manufacturing capability, along-with worldwide brand 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 only increase even more in the future. Their marketing efforts ought to be directed towards younger demographic amidst the internal arguments about marketing and should develop Client Lifetime Worth as it will not just provide benefits now however will continue to enjoy it till the consumer life time. As the cost of keeping the consumer is much cheaper than bring in a new one.