Lotz Of Food The Perishable Team B 2 Harvard Case Study Help

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Lotz Of Food The Perishable Team B 2 Case Study Solution and Analysis


Lotz Of Food The Perishable Team B 2 Case Study Help is a widely known worldwide brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Lotz Of Food The Perishable Team B 2 handle large number of item categories including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which utilized to sell Samsung products withtheir own brand. 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 Equipment Manufacturers (OEMs), who utilized to offer Lotz Of Food The Perishable Team B 2 Case Study Analysis items with their own brand. Samsung was not simply known outside Korea. There were likewise no or little interest in building the trademark name internationally. Marketing budget plan was managed by production department with a focal point on offering low-cost products.During the 1997 Asian Financial Crisis the business nearly got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the top 25 most important company worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as a worldwide brand name and informed his divisional supervisors to understand marketing and its importance. Now their goal is to reach the top 10 by 2005.

Problem Declaration

Samsung's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to include marketing successfully is still a major difficulty. Producing a consistent brand identity throughout the whole world and employing marketing strategies that finest fits the local culture is no simple task. The M-net program analysis have been really helpful in figuring out the high and less potential growth areas, however allocation of resources appropriately is not well gotten amongst the managers. There is no agreement amongst the hierarchy regarding the best suited future method.

Situational Analysis

Yun had a quite clear image in his mind about how Lotz Of Food The Perishable Team B 2 Case Study Help can change from a low end to a high end item service provider. He understood that change can only be done through positioning Samsung as a business 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 construct Samsung brand, with a possible assistance of its executives, Yun dealt with numerous marketing difficulties in early years of its efforts.

One of 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 required marketing for increasing sales. As their focus towards marketing was quite low in their previous service practices, and the present marketing requirement was too much high, the space was too larger and to fill this space with incorrect perceptions about marketing was rather difficult for Yun.

Along with it the product variety of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had a difficulty to perform marketing planning and to develop marketing spending plans for existing as well as for brand-new items from the very start, and this would take a substantial time.

A substantial shift would be needed in existing marketing expenses to build the Samsung brand name. This would result in increased marketing expenses for Samsung and could disturb the administration regarding increased expenses, as they were unwilling to marketing expenditures formerly and a sudden big shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its huge product portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents approved in United States( USP). Large quantity of R&D spending has allowed the company to grow its item portfolio at a higher rate than its competitors. Lotz Of Food The Perishable Team B 2 Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total profits.

Another strength of Lotz Of Food The Perishable Team B 2 Case Study Analysis is its capability to establish ingenious items at a continuous rate. It significant proves for the development and product creating of Samsung is that the business has gotten a lot of awards for its development and product style.

Unlike Apple and other rivals, Samsung is focused on producing devices which can be quickly integrated with any type of open source Os (OS) and software application. This supplies Samsung an edge over Apple devices.

Samsung's capability to produce high-end products at low cost of production is also one of the major strength of Samsung as it makes it possible for the company to record more market by providing quality products with expense control.


Lotz Of Food The Perishable Team B 2 Case Study Help weak points are hidden in the company's dependence on outsourcing software for its gadgets due to company's inability in developing software, unlike Sony. Samsung also has low revenue margins as compare to Apple due to huge distinction in the rates of Apple and Samsung with a much lesser distinction in quality. The varied focus of the company due to large number of products in its portfolio, result in the less effective production and make the company unable to charge greater rates like Apple. The business is also inefficient in handling its patents and often deals with the issue of patent offense.


Opportunities for Samsung depend on the growing Smartphone market and the business's performance in the market. It can increase its market share and incomes from mobile phone as the company is rather efficient in smart phone market. Samsung presently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would allow the company to increase its item portfolio with an increase in its wealth.


The dynamic industry environment of innovation market position an extreme threat on Samsung's survival and force the company to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is also a huge threat for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing


Samsung offers quality items and has a rather abundant portfolio which caters to different sections. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Smart phone.
• Air conditioning system.
• Computer.
• Hard drives.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Lotz Of Food The Perishable Team B 2 Case Study Analysis utilizes both market competitive and market skimming rates methods for its wide range of products. In competitive pricing it adjusts the rate according to the competitors in order to acquire advantage, whereas, it utilizes market skimming method where the product has an added worth and by offering a couple of products it can reach break-even.


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


It wasn't a well-known company beyond Korea up until 1993. However the management initiative taken by their CEO has pressed them to market more effectively outside the borders and now it has actually entered the league of top 25 companies in the world in just 9 years. This is a remarkable accomplishment in spite of the ongoing arguments amongst the managers about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid item advertisements, social promo and digital ads are uses to create awareness about Samsung products.

Value Chain Analysis.

It's an analytical structure for identifying organisation activities that include worth or competitive advantage for the business.

Inbound Logistics.

For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its suppliers and produces a harmonious relationship with them and even decreased their payment cycles to boost this relationship further which adds worth to their chain network.


Samsung's core competency is its mass producing it produces 90% of its products internal. Divided into three various departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to even more add worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the primary factors Lotz Of Food The Perishable Team B 2 Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major 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 customer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the product uses. Lotz Of Food The Perishable Team B 2 Case Study Help advertising spending plan is continuously growing given that they began their rearranging internationally and will continue to do so as they are constantly aiming to expand and invest in high prospective development markets. The spending plan is spent on occasions, print and media advertisements, public relations etc.

Samsung put their clients at the leading and continually make every effort to deliver unmatchable consumer service requirements. By including a direct support line to call them 24 hours they have actually even more increased the included worth of Samsung service.


Lotz Of Food The Perishable Team B 2 Case Study Analysis has actually diversified market segmentation, based upon its provision of vast array of products to a great deal of customers. Samsung target consumer sections can be divided into 3 classifications i.e. Lotz Of Food The Perishable Team B 2 Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget services.


Lotz Of Food The Perishable Team B 2 Case Study Analysis geographical division is based upon two requirements i.e. area and density. Samsung serves about 80 countries worldwide with its items supplied to Urban in addition to Backwoods of the country. The Samsung is also growing its global presence and the company's flexibility in locating its plants motivates global expansion of Samsung.


The market division of Lotz Of Food The Perishable Team B 2 Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Samsung produces items that can be utilized by both females and males. The target consumers for Samsung IT and mobile communication products have an age range of 18-65 with bulk at a young or recently married life process phase. They are mainly experts, trainees and employees. Apart from it, Samsung Customer Electronic devices are targeted to a consumer sector with an age variety of 25-65. They are mainly employees and experts. Samsung Gadget Solutions are targeted at students, workers and professionals with an age range of 25-65.


The psychographic division of Lotz Of Food The Perishable Team B 2 Case Study Help s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are primarily 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 costly i.e. Apple. It offers quality products to middle level customers at a somewhat high rate than others targeting the same section.


Lotz Of Food The Perishable Team B 2 Case Study Solution bulk target customers have unique behavioural characteristics. It has consumers with an ambitious, stylish and figured out character with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other renowned brands i.e. Apple. Most of Samsun consumers want quality as well as expense control. They are brought in towards Samsung due to the fact that of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Lotz Of Food The Perishable Team B 2 Case Study Help has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the largest 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 objective of Kim to target the younger audience and produce a global brand name image of the company. Whereas, the core strength of the company is presently producing but long gone are those days when good items were selling themselves. In the current age marketing is extremely essential and companies can not be successful without it. Kim has actually currently started to enhance the marketing activities of Samsung and soon it will turn into one of its core strength like producing if not better.



Samsung runs designs, produces and sell a huge portfolio of customer electronic devices. It runs in an extremely competitive environment and has actually effectively placed itself as the maker of quality items. So, the answer is yes.


As, stated previously that Lotz Of Food The Perishable Team B 2 Case Study Analysis runs in a highly competitive environment, which implies all the business have comparable items. The response for rarity is no.


Due to the nature of the market, it is extremely easy for rivals to understand the functionality of the products and quickly make their own designs. Yes, Samsung is only behind IBM in signing up new patents every year, however the advantage is extremely short-term in this industry.


Chairman Lee has entirely turn-around Samsung, from going nearly insolvent during the Asian monetary crisis of 1997 to the top 25 business on the planet. Absolutely yes there appertains company in the business and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are really conductive for its operations. Nevertheless, it faces some political pressures in less industrialized countries where order circumstance is bad. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Lotz Of Food The Perishable Team B 2 Case Study Solution operations.


Buying power of customers is essential for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries etc. provide development chances, whereas, due to economic crisis even the customers of developed nations suffer severely. It is very crucial for the business to keep an eye on the ongoing financial circumstance of the country prior to entering the market.


Multinational business need to face numerous social and cultural problems during its operations in a foreign country. Samsung has actually also dealt with many issues but have actually adopted to the regional environments of the majority of the countries extremely well. It has actually tailored its items, practices, policies and so on accordingly in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with continuous innovative item launches, Lotz Of Food The Perishable Team B 2 Case Study Solution is among the top innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Samsung has actually risen to the no 25 of the top successful business of the world.


Each country 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 major legal consequences. So, it has to study or employ a local law professional before beginning its operations in a particular nation.


With the increasing awareness amongst customers about the environmental & ethical infractions of business, Samsung needs to make sure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not appropriate and in some nations the repercussions can be very extreme. On the other hand it needs to do some Business Social Duty practices to reveal the residents that it appreciates their environment and individuals.

Porter's Five Forces

Hazard of Substitution

Danger of replacement for Samsung's each product classification is quite substantial. Running in an extremely vibrant industry lead the company to deal with a high hazard of replacement. Factors for high threat of substitution for Lotz Of Food The Perishable Team B 2 Case Study Analysis Smart device consist of the presence of high variety of suppliers and Market saturation in industrialized nations, which make the cost of changing for customers nearly zero. Substitution hazards for Samsung visual display screen depend on the changing lifestyle of clients. Consumers can change to viewing visuals in the house towards outdoor activities. In addition to it, Samsung printing options products are threatened by the increasing destination of clients towards cloud storage.

Competition Among Existing Firms:

The rivaly among Samsung and its close competitors is intense. The significant reason behind this is the approach of market saturation in different variety of product categories, forcing Samsung to introduce more ingenious features in existing products and new ingenious items to preserve its growth. Other element for the extreme rivalry among the rivals is the little product differentiation among the items. The prominent players in the innovation market are rather familiar with the importance of R&D costs for their survival and are facing a race of marketing and R&D costs, to record the market. The major competitors for Lotz Of Food The Perishable Team B 2 Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry leads to the varying market shares which can be seen in Display F.

Bargaining Power of Suppliers:

Lotz Of Food The Perishable Team B 2 Case Study Help has a huge supply chain consisting of about 2700 providers throughout the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. These substantial orders enable Samsung to work out costs with its providers. However, due to incapability of Lotz Of Food The Perishable Team B 2 Case Study Analysis to construct its own software application, it has to outsource its software application development to Google, which becomes a possible supplier of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to negotiate rates, but it supply significant rates to its providers to build a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Haggling power of buyers for various number of product categories of Samsung is intense. One of the factor resulting in the intense bargaining power is the availability of a great deal of competitors in nearly each product classification i.e. rivals of Samsung Smartphone, with an extremely little differentiation. The high availability of providers of Smartphones with minimum differentiation, make the switching expense for buyers nearly absolutely no, thus increasing the bargaining power of buyers. Market saturation in the majority of the item classifications also make the bargaining power of buyers more intense in for Lotz Of Food The Perishable Team B 2 Case Study Solution. In spite of igh bargaining power Samsung is rather efficient in selling its products at a higher rate than much of its rivals, due to high end quality item and a reasonable brand name image.

Risk of New Entrants:

Danger of brand-new entrants for Samsung is quite low. One of the significant aspect for low risk of brand-new entrants is the high competitors in the market. The requirement of substantial quantity of capital to go into in the marketplace is likewise one of the potential barrier to entry. Together with it, requirement of big knowledge and research and development expenditures for survival in the market also make brand-new entrants reluctant to go into in the market. Market saturation is likewise among the barrier of entry in innovation industry. High bargaining power of providers force the players in the industry to charge as low costs as possible and this can just be accomplished by production effectiveness. Brand-new companies, in bulk cases, lack the production performance, hence increasing the dangers for entrance in the technology market.

Competitive Analysis

Samsung's high item diversity offers it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Lotz Of Food The Perishable Team B 2 Case Study Analysis had a substantial R&D costs on all of its product categories which enable the company to earn prospective income from sales of practically all of its items.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to worldwide market share, amongst 8 various item classifications. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel but its revenues from chips was growing faster than Intel and has actually grown close to the revenue levels of Intel, as offered in the case Display 2.

In addition to the chips Samsung mobile market was likewise growing 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 absolutely no sales growth. The significant reson behind Samsung's high growth despite of higher costs than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given up case Exhibition 3. The major reason, making the business enable to obtain the opportunity is its mass production at low cost. Sony was the greatest rival for Lotz Of Food The Perishable Team B 2 Case Study Solution in LCD market, nevertheless, it had also begun joint venture with Samsung in 2003 for LCD manufacturing, decreasing the competition for Samsung.

Porter's Competitive Technique

Low Cost Leadership technique of porter is fully implemented by Samsung the way they accomplish economies of scale by enhancing their core proficiencies of manufacturing. They constantly bring something ingenious and new whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Lotz Of Food The Perishable Team B 2 Case Study Analysis would develop a new brand image by targeting the younger generation of the particular nation. As, particularly smart phones of Samsung are incredibly popular among the more youthful demographic.


1. It is the best strategy to construct Consumer Life time Value (CLV) by developing a long-lasting relationship with consumers. Build commitment through delivering value and profit for long-lasting, as research has actually showed it is more affordable to keep present consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst younger individuals and which in turn will bring in new customers for my products.


1. Old consumers who were related to Samsung before might not like this brand-new image the company is trying to depict.
2 It will incur further costs to reposition some items and it may not even bring success as the trends change very quickly among the younger market.

Alternative service 2.

It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be offered. Marketing environment need 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 produce an extremely unhealthy environment in the work environment, as individuals typically resist modification due to the fact that they fear it.

Determine the very best option

Alternative is the finest as it plainly has more pros due to the fact that as soon as a Consumer Life time Worth is built the company will benefit from it till that consumer is alive and has purchasing power. Plus, our target clients are the more youthful generation which are bound to live longer than the current aging people. Nevertheless, Samsung's primary objective is to create loyalty amongst its clients and make them repurchase it from them and even purchase their different items also.

Implementation Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations achievable and practical.
• A team consisting of best marketing and sales experts must be assemble, and both views should be taken into consideration prior to protecting the resources required to carry out the strategy.
• Thorough interaction of the plan ought to be done as it is extremely essential for everyone to be on the very same page to make it work.
• Tasks and timelines need to be develop and interacted accordingly to each individual responsible.
• The supervisor ought to use a dashboard which reveals the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor ought to monitor and keep a continuous examine the individual and general performance.
• Everybody ought to want to adapt midway due to the fact that any brand-new pattern or policy might can be found in due to which all the important things currently prepared have to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor must interact the results and if successful should commemorate with the group.

Budget plan

This modification the budget plan allowance of various countries and many supervisors were dissatisfied and argued but the analysis done by the program was accurate and revealed figures like North America and Russia development prospective merited a 35% allowance while they were receiving 45%. It really helped to fairly distribute the resources and capture more clients by investing more on advertisements on the high growth potential areas of the world.


Lotz Of Food The Perishable Team B 2 Case Study Solution is a leading 25 company in the world now and prepares to get ahead of Sony who sits currently at no. 20. Its consistent investment in R&D and innovative practices have propelled them to brand-new heights however for them its' just the start and they want to be among the leading 3 brands on the planet. They completely turn-around from practically declaring bankruptcy during the Asian Financial Crisis to a world renowned brand, known for quality and development. Their value chain and their core competency their manufacturing ability, along-with international brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts ought to be directed towards younger market amid the internal arguments about marketing and must produce Client Life time Worth as it will not just provide advantages now however will continue to reap it till the customer life time. As the cost of maintaining the consumer is more affordable than bring in a brand-new one.