Los Grobo Farmings Future 2 Harvard Case Study Analysis

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Los Grobo Farmings Future 2 Case Study Solution and Analysis


Los Grobo Farmings Future 2 Case Study Solution is a popular international brand name in technology industry, established in 1938 by Lee Byung Chul, in South Korea. Los Grobo Farmings Future 2 handle a great deal of item categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the company's core clients consist of the Original Equipment Manufacturers (OEMs), which used to sell Venture items withtheir own brand name. Till early 1990s, the core competency of Enterprise lie in its low rate offerings than its competitors by manufacturing existing products at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who utilized to offer Los Grobo Farmings Future 2 Case Study Solution products with their own brand name. Org was not merely understood outside Korea. There were likewise no or little interest in developing the brand globally. Marketing spending plan was controlled by production department with a prime focus on providing inexpensive products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most valuable business in the world. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Company as a global brand and informed his divisional supervisors to comprehend marketing and its importance. Now their goal is to arrive 10 by 2005.

Problem Statement

Business's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to integrate marketing effectively is still a major challenge. Developing a consistent brand identity throughout the whole world and employing marketing strategies that best fits the regional culture is no simple task.
Executive Summary
Situational Analysis

Yun had a rather clear picture in his mind about how Los Grobo Farmings Future 2 Case Study Analysis can transform from a low end to a high end product company. He understood that improvement can just be done through placing Enterprise as a company offering high-end items and this might only be done through high level of marketing.

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

Among the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was excessive high, the gap was too broader and to fill this gap with wrong perceptions about marketing was quite tough for Yun.

Along with it the product range of the business was increasing with the ripening of new item concepts by the R&D sector of Corporation. Yun had a difficulty to carry out marketing planning and to produce marketing spending plans for existing as well as for new items from the very start, and this would take a huge time.

A huge shift would be needed in current marketing expenses to construct the Los Grobo Farmings Future 2 Case Study Solution brand. This would lead to increased marketing expenses for Enterprise and could disturb the administration relating to increased expenditures, as they hesitated to marketing expenses formerly and an unexpected big shiftwould make them disturb. This might lead to declining executive support for international marketing. In this scenario, Yun faces a difficulty for validating increased marketing costs by demonstrating the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Los Grobo Farmings Future 2 Case Study Analysis strengths lie in its big product portfolio. Enterprise has largest number of patents in the market with total number of 15499 patents approved in US( USP).

Another strength of Los Grobo Farmings Future 2 Case Study Help is its ability to develop innovative products at a constant rate. It major shows for the innovation and item designing of Enterprise is that the business has actually gotten many awards for its innovation and product style.

Unlike Apple and other rivals, Org is concentrated on producing devices which can be quickly incorporated with any type of open source Operating System (OS) and software application. This provides Venture an edge over Apple gadgets.
Porter's 5 Forces Analysis
Enterprise's capability to produce luxury products at low expense of production is also one of the significant strength of Business as it enables the company to catch more market by offering quality items with expense control.

Weak points

Org's weaknesses are concealed in the business's reliance on outsourcing software for its gadgets due to business's failure in developing software, unlike Sony. Los Grobo Farmings Future 2 Case Study Help also has low profit margins as compare to Apple due to substantial difference in the rates of Apple and Enterprise with a much lesser distinction in quality.


Opportunities for Company depend on the growing Smartphone market and the business's efficiency in the market. It can increase its market share and incomes from mobile phone as the business is rather effective in mobile phone market. Corporation currently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to acquire patents. It would allow the company to increase its item portfolio with a boost in its wealth.


The dynamic industry environment of innovation market posture a severe threat on Organization's survival and require the company to spend much of its earnings share on R&D in order to endure in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a huge danger for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Los Grobo Farmings Future 2 Case Study Solution provides quality items and has a rather abundant portfolio which caters to various sectors. The majority of the products remain in the leading three of their respective markets. LCD and mobile phones are the biggest items of Company, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Business:

• Laptops.
• Smart phone.
• A/c.
• Desktop computer.
• Disk drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Los Grobo Farmings Future 2 Case Study Solution utilizes both market competitive and market skimming rates strategies for its wide array of items. In competitive rates it changes the price according to the competitors in order to gain benefit, whereas, it utilizes market skimming method where the product has an included worth and by selling a couple of products 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 prompt provided to the selling place/ delivered to the consumers straight in case of online order.

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

Worth Chain Analysis.

It's an analytical structure for determining business activities that include value or competitive benefit for the company.

Inbound Logistics.

It has among the most effective and effective supply chain network and has more than 2700 providers across numerous markets around the world. Almost 80% of which is based in Asia and the remaining all over the world. For its incoming logistics it owns different logistics firms as it subsidiaries. It looks after its providers and creates an unified relationship with them and even decreased their payment cycles to increase this relationship further which adds value to their chain network.


Enterprise's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three various departments its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronics. It is keeping operation centers worldwide to further add value to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Los Grobo Farmings Future 2 Case Study Analysis is able to compete with Apple. Org's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Venture.

Marketing and Sales.

Bring in target client attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the product provides. Los Grobo Farmings Future 2 Case Study Analysis marketing budget is constantly on the rise given that they started their repositioning internationally and will continue to do so as they are continuously wanting to broaden and invest in high possible development markets. The budget is invested in occasions, print and media advertisements, public relations and so on.

Venture Service. Org put their consumers at the top and constantly make every effort to provide unmatchable customer care standards. As after sales service is ending up being exceptionally important to keep consumers pleased and engaged, they even carry out studies through 3rd parties to learn their consumer's feedback and execute it in the positive method to minimize or if possible totally eliminate their consumer concerns. By adding a direct assistance line to contact them 24 hr they have actually even more increased the added value of Los Grobo Farmings Future 2 Case Study Analysis service.


Los Grobo Farmings Future 2 Case Study Solution has diversified market division, based upon its provision of vast array of products to a great deal of customers. Org target client sectors can be divided into 3 categories i.e. Los Grobo Farmings Future 2 Case Study Help IT and Mobile Communications, Business Consumer Electronics and Company Device options.


Los Grobo Farmings Future 2 Case Study Solution geographical segmentation is based upon 2 requirements i.e. region and density. Company serves about 80 nations worldwide with its products offered to Urban along with Rural areas of the nation. The Organization is likewise growing its global existence and the business's versatility in finding its plants encourages worldwide expansion of Enterprise.


The group division of Los Grobo Farmings Future 2 Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Enterprise produces products that can be utilized by both males and females. The target clients for Corp IT and mobile interaction products have an age range of 18-65 with majority at a young or newly wed life process stage. They are primarily experts, students and employees. Apart from it, Venture Customer Electronics are targeted to a client sector with an age series of 25-65. They are mainly experts and workers. Business Device Solutions are targeted at trainees, workers and professionals with an age variety of 25-65.


The psychographic division of Los Grobo Farmings Future 2 Case Study Solution s based upon the social class and the lifestyle of the consumer. Venture target customers on the basis of social class are generally upper middle, middle and working class consumers, as Business offer items like cellular phone very little more affordable i.e. Motorola in addition to very little expensive i.e. Apple. It supplies quality items to middle level consumers at a slightly high price than others targeting the exact same sector.


Los Grobo Farmings Future 2 Case Study Solution majority target consumers have special behavioural characteristics. It has customers with an ambitious, fashionable and figured out personality with moderate level of loyalty towards the brand name. Its customers have some degree of shift towards other popular brands i.e. Apple. The majority of Corp consumers want quality in addition to expense control. They are brought in towards Enterprise since of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Los Grobo Farmings Future 2 Case Study Analysis has increased astonishingly 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 largest selling classification of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based on the mission of Kim to target the younger audience and develop an international brand image of the company. Whereas, the core strength of the business is presently making however long gone are those days when excellent items were offering themselves. In the existing age marketing is really crucial and business can not prosper without it. Kim has actually already started to strengthen the marketing activities of Enterprise and soon it will become one of its core strength like producing if not better.



Venture operates styles, produces and offer a huge portfolio of customer electronics. It operates in an incredibly competitive environment and has effectively placed itself as the maker of quality items. The response is yes.


As, stated previously that Los Grobo Farmings Future 2 Case Study Help operates in an extremely competitive environment, which implies all the business have similar products. So, the response for rarity is no.


Due to the nature of the market, it is very easy for competitors to understand the functionality of the products and quickly make their own designs. Yes, Organization is only behind IBM in registering brand-new patents every year, but the advantage is very short-term in this market.


Chairman Lee has completely turnaround Organization, from going practically bankrupt during the Asian monetary crisis of 1997 to the leading 25 business in the world. Absolutely yes there is proper company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread practically in every country worldwide, majority of the environments like USA, Europe, China and so on, are very conductive for its operations. It faces some political pressures in less developed nations where law and order circumstance is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Los Grobo Farmings Future 2 Case Study Help operations.


Purchasing power of clients is crucial for companies like Organization to grow and be successful. Emerging markets like India, middle-eastern countries and so on provide development opportunities, whereas, due to recession even the customers of developed countries suffer badly. It is really essential for the company to keep an eye on the continuous economic scenario of the country before entering the market.


Multinational companies need to deal with numerous social and cultural issues during its operations in a foreign nation. Enterprise has actually also faced many issues but have adopted to the local environments of the majority of the nations extremely well. It has customized its items, practices, policies and so on appropriately in order to be successful.


With an annual expenditure of 2.4 billion dollars in Research & Development, and with constant innovative item launches, Los Grobo Farmings Future 2 Case Study Analysis is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Organization has increased to the no 25 of the top effective business of the world.


Each country has their own laws and policies, being a multinational business Corp have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. So, it has to study or work with a local law professional before starting its operations in a particular country.


With the rising awareness amongst consumers about the ethical & ecological violations of business, Corp has to guarantee that it follows all the security guidelines. Ecological damages, ethical misbehaviors are not appropriate and in some countries the repercussions can be very severe. On the other hand it has to do some Corporate Social Obligation practices to show the residents that it cares about their environment and people.

Porter's 5 Forces

Risk of Alternative

Hazard of substitution for Enterprise's each product category is quite substantial. Running in an incredibly vibrant market lead the business to face a high danger of replacement. Elements for high threat of replacement for Los Grobo Farmings Future 2 Case Study Analysis Smartphone include the presence of high number of suppliers and Market saturation in industrialized countries, which make the expense of changing for customers almost absolutely no. Replacement dangers for Enterprise visual screen depend on the altering life style of consumers. Clients can change to seeing visuals in your home towards outdoor activities. Together with it, Business printing options products are threatened by the increasing attraction of customers towards cloud storage.

Competition Amongst Existing Firms:

The rivaly amongst Venture and its close competitors is extreme. The major factor behind this is the method of market saturation in numerous number of product categories, requiring Venture to present more ingenious features in existing products and new ingenious items to keep its development. The major rivals for Los Grobo Farmings Future 2 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Los Grobo Farmings Future 2 Case Study Analysis has a large supply chain including about 2700 providers throughout the world.( Corporation Sustainability Report, 2016) Provider's bargaining power for Corporation is low as Venture runs economies of scale and its orders are of prospective size and worth. These big orders make it possible for Organization to work out prices with its providers. However, due to incapability of Los Grobo Farmings Future 2 Case Study Help to develop its own software, it has to outsource its software advancement to Google, which becomes a possible supplier of software for Corp, resulting in high bargaining power of Google. In most of Los Grobo Farmings Future 2 Case Study Solution has a power to work out rates, but it offer significant prices to its providers to develop 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 categories of Business is extreme. One of the factor resulting in the extreme bargaining power is the availability of a great deal of rivals in practically each item classification i.e. competitors of Enterprise Smart device, with a very little differentiation. The high availability of suppliers of Mobile phones with minimum distinction, make the switching cost for purchasers nearly no, hence increasing the bargaining power of purchasers. Market saturation in most of the product classifications also make the bargaining power of purchasers more intense in for Los Grobo Farmings Future 2 Case Study Solution. In spite of igh bargaining power Enterprise is quite efficient in offering its items at a higher price than much of its competitors, due to high end quality product and a reasonable brand name image.

Risk of New Entrants:

Danger of brand-new entrants for Los Grobo Farmings Future 2 Case Study Analysis is quite low. Along with it, requirement of substantial proficiency and research study and advancement expenditures for survival in the market likewise make new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Venture's high product diversity provides it differentiation from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Los Grobo Farmings Future 2 Case Study Solution had a big R&D spending on all of its product classifications which make it possible for the company to make potential profits from sales of practically all of its products.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in terms of international market share, among 8 different product classifications. Company was the global leader in making DRAM, SRAM and NAND flash chips. Org incomes from chips was less than Intel but its profits from chips was growing quicker than Intel and has actually grown close to the revenue levels of Intel, as provided in the case Exhibition 2.

Along with the chips Corp 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 just 4% and Nokia with absolutely no sales development. The significant reson behind Company's high growth despite of higher rates than Nokia and Motorola was the business's high-end quality mobile phone.

Venture 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 avail the chance is its mass production at low cost. Sony was the greatest competitor for Los Grobo Farmings Future 2 Case Study Help in LCD market, however, it had actually also started joint endeavor with Organization in 2003 for LCD producing, minimizing the competition for Enterprise.

Porter's Competitive Technique

Low Expense Leadership method of porter is fully carried out by Business the way they achieve economies of scale by reinforcing their core proficiencies of production. They always bring something new and innovative whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Los Grobo Farmings Future 2 Case Study Help would create a new brand name image by targeting the younger generation of the particular nation. As, especially smart phones of Business are popular among the more youthful group.


1. It is the best strategy to construct Consumer Life time Value (CLV) by creating a long-lasting relationship with consumers. Develop commitment through delivering worth and profit for long-term, as research study has actually showed it is much cheaper to keep current consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will generate brand-new consumers for my items.


1. Old consumers who were associated with Company prior to might not like this brand-new image the company is attempting to represent.
2 It will sustain further expenditures to reposition some products and it might not even bring success as the trends change very rapidly among the more youthful group.

Alternative solution 2.

Corp has actually made manufacturing its core proficiency for the most part of their company and due to which its supervisors are not scared to completely step out of their convenience zone. It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment ought to be developed internally initially as genuine marketing starts 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 develop a very unhealthy environment in the work environment, as people often resist change since they fear it.

Determine the very best option

First option is the best as it clearly has more pros since as soon as a Consumer Life time Value is constructed the business will benefit from it till that client is alive and has buying power as well. Plus, our target customers are the more youthful generation which are bound to live longer than the existing aging people. However, Corp's main goal is to create commitment amongst its customers and make them repurchase it from them and even purchase their different products too.

Application Strategy

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations attainable and practical.
• A group consisting of best marketing and sales professionals ought to be put together, and both views should be taken into account before securing the resources needed to carry out the plan.
• Thorough interaction of the strategy need to be done as it is really essential 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 supervisor must use a control panel which shows the progress of all the jobs which have actually been done or about to be done and by whom.
• The supervisor must keep track of and keep a constant examine the specific and overall efficiency.
Due to the fact that any brand-new trend or policy may come in due to which all the things currently prepared have actually to be adjusted, • Everybody should be prepared to adjust midway. It's much better to have contingency strategies already prepared.
• At the end of the campaign the supervisor must interact the results and if successful should celebrate with the group.


This modification the spending plan allowance of different countries and lots of supervisors were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia development potential merited a 35% allotment while they were receiving 45%. It really assisted to fairly disperse the resources and catch more customers by investing more on ads on the high growth potential areas of the world.

Its constant investment in R&D and innovative practices have moved them to new heights but for them its' just the start and they desire to be amongst the leading 3 brands in the world. Their marketing efforts must be directed towards younger market amid the internal arguments about marketing and must develop Consumer Lifetime Worth as it will not just give them advantages now but will continue to gain it till the consumer life time. As the expense of maintaining the client is much more affordable than attracting a new one.