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

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


Lotz Of Food The Perishable Team B 2 Case Study Solution is a widely known worldwide brand in technology market, founded in 1938 by Lee Byung Chul, in South Korea. Lotz Of Food The Perishable Team B 2 deals in large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which used to offer Venture products withtheir own trademark name. Till early 1990s, the core competency of Venture depend on its low price offerings than its rivals by making existing items at economies of scale. Its customer circle includes Original Devices Manufacturers (OEMs), who utilized to offer Lotz Of Food The Perishable Team B 2 Case Study Help products with their own brand. Corporation was not simply known outside Korea. There were also no or little interest in developing the trademark name internationally. Marketing budget plan was managed by production department with a prime focus on providing cheap products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most important company on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Business as a worldwide brand name and informed his divisional supervisors to comprehend marketing and its significance. Now their goal is to reach the top 10 by 2005.

Problem Statement

Company's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to include marketing successfully is still a significant challenge. Developing a constant brand name identity across the entire world and using marketing methods that best fits the regional culture is no easy task. The M-net program analysis have actually been actually helpful in determining the high and less prospective growth locations, but allowance of resources appropriately is not well received among the managers. There is no consensus amongst the hierarchy regarding the best fit future method.
Executive Summary
Situational Analysis

Lotz Of Food The Perishable Team B 2 Case Study Solution efforts for developing its brand name across the world was begun after introducing the "brand-new management initiative" by Chairman Lee in 1993. The goal was to change Business from a cheap OEM to a high value-added product company. To make the vision of Venture a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Company can transform from a low end to a high-end item supplier. He knew that improvement can only be done through placing Enterprise as a company 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 build Org brand, with a prospective support of its executives, Yun faced numerous marketing obstacles in early years of its efforts.

Among the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as exact same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was excessive high, the space was too larger and to fill this space with wrong perceptions about marketing was rather difficult for Yun.

As mentioned above, marketing focus was extremely low in previous practices, for that reason there were no appropriate marketing spending plans for each of the item on the portfolio. There was no marketing planning provided for the existing items. Along with it the item range of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Org. Yun had an obstacle to carry out marketing preparation and to produce marketing spending plans for existing in addition to for new items from the very start, and this would take a substantial time.

A huge shift would be needed in current marketing expenses to construct the Lotz Of Food The Perishable Team B 2 Case Study Solution brand name. This would lead to increased marketing expenditures for Corporation and could interrupt the administration regarding increased expenditures, as they were reluctant to marketing expenditures formerly and an abrupt huge shiftwould make them interrupt. This might lead to decreasing executive assistance for international marketing. In this circumstance, Yun deals with a difficulty for validating increased marketing expenses by demonstrating the long term value of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Organization strengths depend on its huge item portfolio. Organization has largest variety of patents in the market with total variety of 15499 patents granted in United States( USP). Big amount of R&D spending has actually enabled the business to grow its product 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 Solution is its capability to develop innovative items at a continuous rate. It significant shows for the innovation and product developing of Organization is that the business has actually gotten numerous awards for its development and item design.

Unlike Apple and other competitors, Business is concentrated on producing devices which can be easily incorporated with any type of open source Operating System (OS) and software. This provides Org an edge over Apple devices.
Porter's 5 Forces Analysis
Business's capability to produce luxury items at low expense of production is likewise one of the significant strength of Organization as it makes it possible for the business to record more market by providing quality items with cost control.


Lotz Of Food The Perishable Team B 2 Case Study Solution weak points are hidden in the business's dependence on outsourcing software for its devices due to business's inability in establishing software application, unlike Sony. Venture likewise has low revenue margins as compare to Apple due to huge difference in the prices of Apple and Corporation with a much lesser difference in quality. The diverse focus of the business due to a great deal of items in its portfolio, result in the less efficient production and make the company unable to charge higher prices like Apple. The company is also ineffective in handling its patents and often faces the issue of patent offense.


Opportunities for Lotz Of Food The Perishable Team B 2 Case Study Analysis lie in the growing Smartphone market and the company's efficiency in the market. Venture currently 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 dynamic market environment of innovation industry pose a serious danger on Org's survival and require the company to invest much of its profits share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a huge hazard for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Business offers quality items and has a quite abundant portfolio which caters to various segments. LCD and mobile phones are the most significant products of Company, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Cellphone.
• A/c unit.
• 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 prices strategies for its variety of products. In competitive prices it changes the price according to the competitors in order to gain benefit, whereas, it uses market skimming technique where the product has an added value and by selling a few items it can reach break-even.


It has among the very best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon etc. All its products are timely provided to the selling place/ provided to the clients directly in case of online order.

Vrio Analysis
It wasn't a well-known business beyond Korea till 1993. The management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has actually gotten in the league of leading 25 business in the world in just 9 years. This is an exceptional achievement in spite of the continuous arguments among the supervisors about embracing marketing practices. It uses both offline & online channels of promotion to market their items. Paid product ads, social promo and digital ads are uses to produce awareness about Corporation items.

Worth Chain Analysis.

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

Inbound Logistics.

It has one of the most reliable and effective supply chain network and has over 2700 providers throughout various industries around the globe. Practically 80% of which is based in Asia and the remaining around the world. For its incoming logistics it owns different logistics firms as it subsidiaries. It cares for its providers and develops an unified relationship with them and even minimized their payment cycles to increase this relationship even more which includes worth to their chain network.


Corp's core competency is its mass making it produces 90% of its items in-house. Divided into 3 various divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is maintaining operation centers worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main reasons Lotz Of Food The Perishable Team B 2 Case Study Help has the ability to compete with Apple. Corporation's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Organization.

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 offers. Lotz Of Food The Perishable Team B 2 Case Study Solution advertising budget is continually on the rise given that they began their rearranging worldwide and will continue to do so as they are continually wanting to broaden and invest in high potential development markets. The budget is invested in occasions, print and media ads, public relations etc.

Business put their clients at the top and continually aim to deliver unmatchable customer service requirements. By adding a direct support line to contact them 24 hours they have even more increased the included value of Corp service.


Lotz Of Food The Perishable Team B 2 Case Study Solution has diversified market segmentation, based upon its provision of wide range of items to a great deal of customers. Organization 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, Business Consumer Electronic Devices and Company Device options.


Lotz Of Food The Perishable Team B 2 Case Study Help geographic division is based upon two criteria i.e. area and density. Org serves about 80 countries worldwide with its items supplied to Urban in addition to Rural areas of the nation. The Corporation is likewise growing its global existence and the company's flexibility in locating its plants encourages international growth of Corp.


Corp produces items that can be used by both women and males. The target customers for Corporation IT and mobile communication items have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. Apart from it, Organization Consumer Electronic devices are targeted to a consumer sector with an age variety of 25-65.


The psychographic division of Lotz Of Food The Perishable Team B 2 Case Study Analysis s based upon the social class and the lifestyle of the customer. Company target clients on the basis of social class are mainly upper middle, middle and working class consumers, as Corp sell products like mobile phone not much less expensive i.e. Motorola as well as very little pricey i.e. Apple. It provides quality items to middle level consumers at a somewhat high cost than others targeting the exact same segment.


Lotz Of Food The Perishable Team B 2 Case Study Help majority target consumers have special behavioural qualities. It has clients with an enthusiastic, stylish and figured out personality with moderate level of commitment towards the brand name. Its customers have some degree of shift towards other popular brands i.e. Apple. Most of Venture clients want quality in addition to expense control. They are attracted towards Corp because of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Corp has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise minimized its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Profits/ sales are increasing but net profit is not increasing accordingly since of the high overhead cost. New expansions and working with's were the main factor of the increase in the overhead expenses, with china currently not supplying any earnings to Venture, but there is so much capacity in the current market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based upon 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 good items were offering themselves. In the existing age marketing is really important and business can not be successful without it. Kim has already begun to strengthen the marketing activities of Corporation and very soon it will turn into one of its core strength like manufacturing if not better.



Organization runs designs, manufactures and sell a large portfolio of consumer electronics. It runs in an exceptionally competitive environment and has effectively placed itself as the maker of quality products. The response is yes.


As, stated previously that Lotz Of Food The Perishable Team B 2 Case Study Help runs in a highly competitive environment, which suggests all the business have similar items. So, the answer for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to comprehend the functionality of the items and easily make their own models. Yes, Enterprise is only behind IBM in signing up brand-new patents yearly, but the benefit is extremely short-term in this industry.


Chairman Lee has completely turnaround Enterprise, from going almost insolvent during the Asian financial crisis of 1997 to the leading 25 company on the planet. Definitely yes there is proper company in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


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


Buying power of customers is crucial for business like Business to grow and succeed. Emerging markets like India, middle-eastern countries and so on provide development chances, whereas, due to recession even the customers of industrialized countries suffer severely. Hence it is extremely essential for the business to watch on the ongoing financial scenario of the nation before entering the market.


Multinational companies have to deal with numerous social and cultural concerns during its operations in a foreign nation. Organization has likewise faced many concerns but have adopted to the regional environments of the majority of the nations exceptionally well. It has tailored its products, practices, policies etc. appropriately in order to be successful.


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


Each country has their own laws and policies, being a multinational business Venture have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal repercussions. So, it needs to study or hire a regional law specialist before starting its operations in a specific nation.


With the rising awareness among customers about the environmental & ethical violations of companies, Company has to make sure that it follows all the security standards. Environmental damages, ethical misconducts are not acceptable and in some countries the consequences can be very severe. On the other hand it has to do some Business Social Obligation practices to show the residents that it appreciates their environment and people.

Porter's Five Forces

Risk of Alternative

Danger of substitution for Corp's each product classification is rather considerable. Elements for high danger of alternative for Lotz Of Food The Perishable Team B 2 Case Study Help Smartphone consist of the presence of high number of providers and Market saturation in developed countries, which make the expense of changing for customers practically absolutely no. Along with it, Corp printing services items are threatened by the increasing destination of clients towards cloud storage.

Competition Among Existing Firms:

The rivaly among Venture and its close competitors is extreme. The significant factor behind this is the method of market saturation in numerous variety of product categories, forcing Org to present more innovative features in existing products and new ingenious products to maintain its development. Other factor for the intense rivalry among the rivals is the little product differentiation among the items. The popular players in the innovation industry are quite familiar with the significance of R&D costs for their survival and are facing a race of marketing and R&D costs, to capture the marketplace. The significant rivals for Lotz Of Food The Perishable Team B 2 Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry results in the varying market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

Lotz Of Food The Perishable Team B 2 Case Study Help has a vast supply chain consisting of about 2700 providers throughout the world.( Company Sustainability Report, 2016) Supplier's bargaining power for Corp is low as Org runs economies of scale and its orders are of prospective size and worth. These substantial orders make it possible for Business to negotiate prices with its providers. Due to incapability of Venture to develop its own software, it has to outsource its software development to Google, which ends up being a possible provider of software for Company, resulting in high bargaining power of Google. Although, in the majority of cases Enterprise has a power to work out prices, however it provide considerable rates to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in most of the product categories likewise make the bargaining power of buyers more extreme in for Business. In spite of igh bargaining power Corporation is quite capable of offering its items at a greater rate than much of its rivals, due to high end quality product and a reasonable brand name image.

Danger of New Entrants:

Hazard of brand-new entrants for Lotz Of Food The Perishable Team B 2 Case Study Help is rather low. Along with it, requirement of big competence and research study and development expenditures for survival in the industry likewise make brand-new entrants hesitant to enter in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Organization's high item diversification supplies it distinction from its rivals. It is one of the three top brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony concentrating on customer electronic devices, Nokia on cellular phone and Intel on chips, Venture had a huge R&D costs on all of its item classifications which make it possible for the business to make possible revenue from sales of practically all of its items. (See Exhibition) However, due to the wide product range the business faces high variety of rivals.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to global market share, amongst 8 various product classifications. Organization was the international leader in producing DRAM, SRAM and NAND flash chips. Organization profits from chips was less than Intel but its earnings from chips was growing quicker than Intel and has actually grown close to the income levels of Intel, as offered in the case Exhibit 2.

In addition to the chips Org mobile market was likewise flourishing at a high rate than its rivals i.e. Motorola and Nokia. Corporation's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Org's high growth despite of greater costs than Nokia and Motorola was the business's high-end quality mobile phone.

Corporation was likewise reaping the benefits from increasing market share of high end LCDs as given up case Exhibition 3. The significant factor, making the business 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 actually also begun joint venture with Org in 2003 for LCD manufacturing, reducing the competition for Enterprise.

Porter's Competitive Method

Low Expense Leadership method of porter is completely carried out by Enterprise the method they attain economies of scale by enhancing their core competencies of manufacturing. They always bring something ingenious and new whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lotz Of Food The Perishable Team B 2 Case Study Analysis would produce a new brand image by targeting the more youthful generation of the specific nation. As, especially mobile phones of Venture are popular amongst the younger market.


1. It is the best strategy to build Consumer Lifetime Value (CLV) by creating a long-lasting relationship with customers. Construct loyalty through delivering value and profit for long-lasting, as research has actually showed it is much cheaper to keep existing consumers than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among more youthful people and which in turn will bring in new consumers for my items.


1. Old customers who were connected with Business prior to might not like this brand-new image the business is attempting to represent.
2 It will incur further expenditures to reposition some products and it may not even bring success as the trends alter very quickly among the more youthful market.

Alternative service 2.

It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be given. Marketing environment ought to be developed internally first as genuine marketing begins inside the corporation.


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


2. Its con can create a very unhealthy environment in the workplace, as individuals often withstand modification because they fear it.

Recognize the very best option

First alternative is the very best as it plainly has more pros since when a Client Life time Value is built the company will benefit from it till that customer lives and has buying power also. Plus, our target consumers are the more youthful generation which are bound to live longer than the current old age individuals. Organization's main goal is to develop loyalty among its customers and make them redeemed it from them and even purchase their different products.

Implementation Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations possible and practical.
• A group consisting of finest marketing and sales professionals ought to be assemble, and both views must be considered before protecting the resources needed to execute the plan.
• Thorough interaction of the plan ought to be done as it is extremely important for everyone to be on the exact same page to make it work.
• Tasks and timelines ought to be build and interacted accordingly to each individual responsible.
• The manager should use 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 monitor and keep a consistent look at the private and overall performance.
Because any brand-new pattern or policy might come in due to which all the things currently prepared have to be changed, • Everyone must be prepared to adjust midway. It's better to have contingency strategies currently prepared.
• At the end of the project the manager should interact the results and if effective must commemorate with the group.

Budget plan

The M-net program revealed compelling analysis about the high and low development prospective areas and how much marketing budget plan need to be assigned appropriately. This modification the budget allocation of different countries and numerous managers were unhappy and argued but the analysis done by the program was precise and revealed figures like The United States and Canada and Russia growth possible warranted a 35% allotment while they were receiving 45%. Whereas, China and Europe should be receiving 42% however were rather provided 31%. It really helped to fairly disperse the resources and capture more consumers by spending more on ads on the high development potential areas of the world.

Lotz Of Food The Perishable Team B 2 Case Study Analysis is a top 25 business on the planet now and prepares to get ahead of Sony who sits presently at no. 20. Its constant investment in R&D and innovative practices have moved them to new heights however for them its' just the start and they want to be amongst the top 3 brand names in the world. They totally turn-around from nearly going bankrupt during the Asian Financial Crisis to a world distinguished brand name, known for quality and innovation. Their value chain and their core proficiency their production ability, along-with worldwide brand image building have 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 further in the future. Their marketing efforts ought to be directed towards younger demographic amidst the internal arguments about marketing and ought to create Customer Lifetime Value as it will not just provide advantages now however will continue to reap it till the consumer life time. As the expense of retaining the client is more affordable than attracting a brand-new one.