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

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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 Analysis is a widely known global brand name in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Lotz Of Food The Perishable Team B 2 handle large number of product categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core clients include the Original Equipment Manufacturers (OEMs), which used to offer Samsung products withtheir own brand name. Till early 1990s, the core competency of Samsung depend on its low price offerings than its rivals by producing existing products at economies of scale. Its consumer circle consists of Original Devices Manufacturers (OEMs), who utilized to sell Lotz Of Food The Perishable Team B 2 Case Study Analysis products with their own brand name. Samsung was not simply understood outside Korea. There were likewise no or little interest in constructing the brand name globally. Marketing spending plan was controlled by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the company almost got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most important business in the world. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as a worldwide brand and educated his divisional supervisors to understand marketing and its significance. Now their goal is to arrive 10 by 2005.

Issue Statement

Samsung's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to incorporate marketing successfully is still a significant challenge. Developing a constant brand identity across the entire world and utilizing marketing methods that finest fits the local culture is no easy task. The M-net program analysis have been truly handy in determining the high and less prospective growth areas, but allocation 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 rather clear image in his mind about how Lotz Of Food The Perishable Team B 2 Case Study Analysis can change from a low end to a high end item provider. He knew that transformation can just be done through positioning Samsung as a business using 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, with a possible support of its executives, Yun dealt with a number of marketing challenges in early years of its efforts.

Among the marketing obstacles 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 business practices, and the current marketing requirement was excessive high, the space was too wider and to fill this space with wrong understandings about marketing was rather challenging for Yun.

As specified above, marketing focus was very low in previous practices, for that reason there were no correct marketing budget plans for each of the item on the portfolio. There was no marketing planning done for the existing products. Together with it the product variety of the business was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had an obstacle to carry out marketing preparation and to produce marketing spending plans for existing as well as for new products from the very start, and this would take a substantial time.

A huge shift would be required in present marketing expenses to construct the Samsung brand name. This would result in increased marketing expenditures for Samsung and could disturb the administration concerning increased expenses, as they were reluctant to marketing expenditures formerly and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its huge product portfolio. Samsung has biggest number of patents in the market with total variety of 15499 patents given in US( USP). Large amount of R&D spending has actually made it possible for the business to grow its item portfolio at a greater rate than its competitors. Lotz Of Food The Perishable Team B 2 Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total revenues.

Another strength of Lotz Of Food The Perishable Team B 2 Case Study Help is its ability to establish innovative products at a constant rate. It significant proves for the development and item creating of Samsung is that the company has actually gotten so many awards for its development and item style.

Unlike Apple and other competitors, Samsung is concentrated on producing devices which can be quickly integrated with any type of open source Operating System (OS) and software application. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury products at low cost of production is likewise among the major strength of Samsung as it enables the company to record more market by offering quality items with expense control.


Samsung's weaknesses are hidden in the business's dependence on outsourcing software application for its devices due to company's failure in developing software application, unlike Sony. Lotz Of Food The Perishable Team B 2 Case Study Help also has low profit margins as compare to Apple due to big distinction in the prices of Apple and Samsung with a much lesser difference in quality.


Opportunities for Lotz Of Food The Perishable Team B 2 Case Study Solution lie in the growing Mobile phone market and the business's efficiency in the market. Samsung presently runs in about 80 countries and the company has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of innovation market present a severe threat on Samsung's survival and require the company to spend much of its revenues share on R&D in order to make it through in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a huge threat for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Lotz Of Food The Perishable Team B 2 Case Study Analysis offers quality items and has a rather rich portfolio which deals with different sections. The majority of the products remain in the leading three of their particular industries. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Samsung:

• Laptops.
• Cellphone.
• Air conditioning unit.
• Desktop computer.
• Hard disk drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lotz Of Food The Perishable Team B 2 Case Study Analysis uses both market competitive and market skimming pricing techniques for its wide variety of products. In competitive rates it changes the cost according to the competition in order to acquire advantage, whereas, it utilizes market skimming technique where the product has an added worth and by selling a few items it can reach break-even.


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

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

Value Chain Analysis.

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

Incoming Logistics.

For its inbound logistics it owns different logistics firms as it subsidiaries. It looks after its suppliers and develops a harmonious relationship with them and even decreased their payment cycles to enhance this relationship even more which includes worth to their chain network.


Samsung's core competency is its mass manufacturing it produces 90% of its items internal. Divided into 3 different divisions its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main reasons Lotz Of Food The Perishable Team B 2 Case Study Analysis has the ability to take on Apple. Samsung's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage 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 value and competitive advantage the product uses. Lotz Of Food The Perishable Team B 2 Case Study Solution advertising spending plan is continually rising considering that they started their rearranging globally and will continue to do so as they are continually looking to invest and expand in high potential development markets. The spending plan is invested in occasions, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their clients on top and constantly aim to provide unmatchable client service requirements. As after sales service is ending up being exceptionally crucial to keep consumers happy and engaged, they even perform surveys through 3rd parties to learn their customer's feedback and execute it in the positive way to reduce or if possible completely remove their consumer problems. By including a direct assistance line to call them 24 hr they have actually even more increased the added value of Lotz Of Food The Perishable Team B 2 Case Study Help service.


Lotz Of Food The Perishable Team B 2 Case Study Solution has diversified market division, based upon its arrangement of vast array of items to large number of customers. Samsung target client sections can be divided into 3 categories i.e. Lotz Of Food The Perishable Team B 2 Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget solutions.


Lotz Of Food The Perishable Team B 2 Case Study Help geographical segmentation is based upon 2 requirements i.e. area and density. Samsung serves about 80 nations worldwide with its products supplied to Urban in addition to Rural areas of the country. The Samsung is likewise growing its international existence and the business's flexibility in locating its plants motivates global expansion of Samsung.


The group segmentation of Lotz Of Food The Perishable Team B 2 Case Study Analysis is based upon gender, age, life-cycle stage and profession. Samsung produces items that can be used by both females and males. The target consumers for Samsung IT and mobile interaction items have an age series of 18-65 with majority at a young or newly wed life cycle phase. They are mainly workers, experts and trainees. Apart from it, Samsung Customer Electronic devices are targeted to a consumer segment with an age variety of 25-65. They are primarily professionals and staff members. Nevertheless Lotz Of Food The Perishable Team B 2 Case Study Analysis Gadget Solutions are targeted at students, staff members and experts with an age series of 25-65.


The psychographic segmentation 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 customers on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell items like cellular phone very little more affordable i.e. Motorola along with very little expensive i.e. Apple. It offers quality items to middle level customers at a slightly high rate than others targeting the very same section.


Lotz Of Food The Perishable Team B 2 Case Study Analysis bulk target customers have unique behavioural attributes. They are brought in towards Samsung due to the fact that of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Samsung has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually likewise decreased its financial obligation from 15 billion $ to 4.6 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. Revenues/ sales are increasing however net revenue is not increasing appropriately because of the high overhead cost. New expansions and working with's were the main factor of the boost in the overhead costs, with china currently not supplying any revenue to Samsung, however there is a lot capacity in the present market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the more youthful audience and produce a global brand name picture of the company. Whereas, the core strength of the company is currently producing however long gone are those days when great products were offering themselves. In the current age marketing is very crucial and business can not succeed without it. Kim has actually currently begun to strengthen the marketing activities of Samsung and soon it will become one of its core strength like making if not much better.



Samsung operates styles, produces and offer a vast portfolio of customer electronics. It runs in an exceptionally competitive environment and has actually effectively placed itself as the maker of quality items. The answer is yes.


As, stated earlier that Lotz Of Food The Perishable Team B 2 Case Study Help operates in an extremely competitive environment, which implies all the business have comparable products. The response for rarity is no.


Due to the nature of the market, it is really simple for competitors to understand the functionality of the products and easily make their own models. Yes, Samsung is only behind IBM in registering new patents yearly, however the benefit is extremely short-term in this industry.


Chairman Lee has entirely turnaround Samsung, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 company on the planet. Definitely yes there appertains company in the business and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread practically in every country worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. It deals with some political pressures in less developed nations where law and order situation is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Lotz Of Food The Perishable Team B 2 Case Study Solution operations.


Purchasing power of clients is vital for business like Samsung to grow and be successful. Emerging markets like India, middle-eastern nations and so on provide development chances, whereas, due to recession even the consumers of developed nations suffer badly. Hence it is really important for the company to watch on the ongoing financial situation of the country before getting in the market.


Multinational business need to deal with different social and cultural concerns throughout its operations in a foreign nation. Samsung has likewise dealt with numerous issues but have adopted to the regional environments of most of the countries incredibly well. It has customized its products, practices, policies etc. appropriately in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with consistent ingenious item launches, Lotz Of Food The Perishable Team B 2 Case Study Analysis is among the leading innovative business of the world. With a clear mission to be ahead of the rest when it concerns technological improvements, Samsung has actually increased to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. So, it needs to study or work with a regional law professional prior to beginning its operations in a particular nation.


With the increasing awareness amongst consumers about the ethical & environmental offenses of business, Samsung has to guarantee that it follows all the security standards. Ecological damages, ethical misbehaviors are not acceptable and in some nations the effects can be extremely severe. On the other hand it needs to do some Business Social Obligation practices to reveal the locals that it appreciates their environment and people.

Porter's 5 Forces

Danger of Alternative

Hazard of alternative for Samsung's each item category is quite significant. Aspects for high danger of alternative for Lotz Of Food The Perishable Team B 2 Case Study Help Mobile phone include the existence of high number of providers and Market saturation in industrialized nations, which make the cost of changing for consumers practically zero. Along with it, Samsung printing services products are threatened by the increasing attraction of consumers towards cloud storage.

Competition Among Existing Firms:

The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the approach of market saturation in numerous number of item classifications, requiring Samsung to present more ingenious functions in existing items and new ingenious items to keep its growth. Other element for the intense competition amongst the competitors is the little item differentiation amongst the products. The prominent players in the innovation market are rather familiar with the value of R&D costs for their survival and are running into a race of marketing and R&D costs, to capture the market. The significant competitors for Lotz Of Food The Perishable Team B 2 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 Exhibit F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. Due to incapability of Lotz Of Food The Perishable Team B 2 Case Study Analysis to build its own software, it has to outsource its software advancement to Google, which becomes a potential supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Haggling power of buyers for different number of item categories of Samsung is intense. One of the element resulting in the intense bargaining power is the accessibility of large number of rivals in practically each item classification i.e. competitors of Samsung Smartphone, with a very little differentiation. The high schedule of suppliers of Smart devices with minimum differentiation, make the changing cost for buyers almost absolutely no, for this reason increasing the bargaining power of purchasers. Market saturation in most of the item classifications also make the bargaining power of purchasers more extreme in for Lotz Of Food The Perishable Team B 2 Case Study Solution. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher price than much of its competitors, due to high end quality item and a fair brand name image.

Risk of New Entrants:

Threat of brand-new entrants for Lotz Of Food The Perishable Team B 2 Case Study Help is quite low. Along with it, requirement of huge competence and research and development expenditures for survival in the industry likewise make new entrants reluctant to go into in the market. Market saturation is likewise one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high product diversity supplies it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Lotz Of Food The Perishable Team B 2 Case Study Analysis had a big R&D spending on all of its product classifications which allow the company to earn potential income from sales of practically all of its products.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in terms of global market share, amongst 8 different item categories. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel however its earnings from chips was growing faster than Intel and has actually grown near to the income levels of Intel, as given up the case Exhibit 2.

Together with the chips Samsung mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The significant reson behind Samsung's high growth despite of higher rates than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise profiting from increasing market share of high end LCDs as given up case Exhibition 3. The major factor, making the company allow to avail the chance is its mass production at low expense. Sony was the most significant competitor for Lotz Of Food The Perishable Team B 2 Case Study Analysis in LCD market, however, it had also begun joint endeavor with Samsung in 2003 for LCD making, minimizing the competitors for Samsung.

Porter's Competitive Technique

Low Cost Management method of porter is fully executed by Samsung the method they attain economies of scale by strengthening their core competencies of manufacturing. They always bring something new and ingenious whether it's a service or an item.


Alternative Solution 1

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


1. It is the best strategy to build Consumer Life time Worth (CLV) by creating a long-lasting relationship with customers. Build loyalty through delivering worth and profit for long-term, as research study has actually revealed it is more affordable to keep current clients than to attract new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger people and which in turn will generate brand-new consumers for my products.


1. Old consumers who were associated with Samsung prior to might not like this new image the company is trying to portray.
2 It will incur additional expenditures to reposition some products and it may not even bring success as the trends change very quickly amongst the more youthful demographic.

Alternative solution 2.

Samsung has made manufacturing its core proficiency for the many part of their company and due to which its managers are not afraid to completely get out of their convenience zone. It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get benched. Marketing environment need to be developed internally initially as real marketing begins inside the corporation.


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


2. Its con can develop an extremely unhealthy environment in the work environment, as people frequently withstand change because they fear it.

Determine the very best option

Option is the finest as it clearly has more pros due to the fact that when a Customer Lifetime Worth is constructed the company will benefit from it till that consumer is alive and has purchasing power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging people. Nevertheless, Samsung's primary objective is to produce commitment amongst its consumers and make them bought it from them and even buy their different items also.

Implementation Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations attainable and reasonable.
• A team consisting of best marketing and sales specialists must be assemble, and both views must be considered before securing the resources required to execute the plan.
• Thorough communication of the strategy should be done as it is very essential for everybody to be on the exact same page to make it work.
• Tasks and timelines need to be build and communicated appropriately to each person responsible.
• The supervisor need to utilize a control panel which reveals the development of all the tasks which have been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a continuous check on the private and general performance.
Due to the fact that any brand-new trend or policy may come in due to which all the things already planned have to be adjusted, • Everybody ought to be prepared to adapt midway. It's much better to have contingency plans currently prepared.
• At the end of the campaign the manager need to communicate the outcomes and if successful must commemorate with the group.


This change the spending plan allowance of numerous managers and different countries were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia growth potential warranted a 35% allotment while they were getting 45%. It truly helped to fairly disperse the resources and capture more customers by investing more on advertisements on the high development capacity areas of the world.

Its continuous investment in R&D and innovative practices have actually moved them to new heights however for them its' only the start and they want to be amongst the top 3 brands in the world. Their marketing efforts should be directed towards younger market amidst the internal arguments about marketing and should develop Customer Life time Value as it will not only give them advantages now however will continue to gain it till the client lifetime. As the cost of retaining the customer is much cheaper than bring in a brand-new one.