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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 Solution is a well-known worldwide brand in innovation market, founded in 1938 by Lee Byung Chul, in South Korea. Lotz Of Food The Perishable Team B 2 deals in large number of item classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the business's core clients include the Original Equipment Manufacturers (OEMs), which used to sell Corp items withtheir own brand. Till early 1990s, the core competency of Company depend on its low cost offerings than its competitors by producing existing items at economies of scale. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to sell Lotz Of Food The Perishable Team B 2 Case Study Analysis items with their own trademark name. Venture was not merely known outside Korea. There were also no or little interest in building the trademark name globally. Marketing budget was controlled by production department with a focal point on offering cheap products.During the 1997 Asian Financial Crisis the company almost got bankrupt, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most valuable company on the planet. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Corporation as a global brand name and informed his divisional managers to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Statement

Organization's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional managers to incorporate marketing efficiently is still a major challenge. Producing a constant brand name identity across the whole world and employing marketing techniques that best fits the regional culture is no simple task.
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 transform from a low end to a high end product supplier. He knew that improvement can only be done through placing Organization as a company offering high-end products and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Company brand name, with a prospective support of its executives, Yun dealt with numerous marketing obstacles in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as very same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the existing marketing requirement was excessive high, the space was too larger and to fill this space with wrong perceptions about marketing was quite tough for Yun.

Along with it the product variety of the company was increasing with the ripening of new item concepts by the R&D sector of Enterprise. Yun had a challenge to carry out marketing planning and to develop marketing budgets for existing as well as for new products from the very beginning, and this would take a substantial time.

A huge shift would be needed in current marketing expenses to develop the Lotz Of Food The Perishable Team B 2 Case Study Help brand name. This would lead to increased marketing expenditures for Corporation and might disturb the administration relating to increased expenditures, as they hesitated to marketing expenditures formerly and an unexpected huge shiftwould make them disturb. This might result in decreasing executive assistance for worldwide marketing. In this situation, Yun deals with an obstacle for justifying increased marketing expenses by showing the long term value of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Organization strengths depend on its substantial product portfolio. Corporation has largest variety of patents in the market with total number of 15499 patents approved in United States( USP). Big amount of R&D costs has enabled the business to grow its item portfolio at a greater 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 overall profits.

Another strength of Lotz Of Food The Perishable Team B 2 Case Study Help is its ability to establish innovative items at a constant rate. It major proves for the development and item developing of Corp is that the company has actually received numerous awards for its innovation and product design.

Unlike Apple and other rivals, Company is focused on producing devices which can be quickly incorporated with any type of open source Operating System (OS) and software. This provides Company an edge over Apple devices.
Porter's 5 Forces Analysis
Corp's capability to produce high-end items at low expense of production is also one of the significant strength of Business as it allows the business to catch more market by supplying quality items with expense control.

Weak points

Lotz Of Food The Perishable Team B 2 Case Study Analysis weak points are concealed in the company's reliance on outsourcing software for its gadgets due to company's failure in developing software, unlike Sony. Venture also has low revenue margins as compare to Apple due to substantial distinction in the rates of Apple and Business with a much lower distinction in quality. The varied focus of the business due to large number of items in its portfolio, lead to the less effective production and make the company not able to charge greater prices like Apple. The company is also ineffective in managing its patents and frequently faces the problem of patent offense.


Opportunities for Lotz Of Food The Perishable Team B 2 Case Study Solution lie in the growing Smartphone market and the company's performance in the market. Company currently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The vibrant market environment of innovation industry position a serious threat on Company's survival and require the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile company is also a huge danger for the company's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Business provides quality items and has a rather abundant portfolio which caters to different sectors. LCD and mobile phones are the most significant products of Business, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Smart phone.
• Air conditioner.
• Personal computers.
• Disk drives.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Lotz Of Food The Perishable Team B 2 Case Study Help utilizes both market competitive and market skimming rates methods for its wide variety of products. In competitive rates it changes the price according to the competition in order to gain benefit, whereas, it utilizes market skimming strategy where the product has actually an included 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 suppliers, E commerce channels like Amazon etc. All its items are prompt supplied to the selling place/ provided to the consumers straight in case of online order.

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

Worth Chain Analysis.

It's an analytical framework for determining business activities that include worth or competitive advantage for the business.

Inbound Logistics.

It has one of the most efficient and effective supply chain network and has over 2700 suppliers throughout numerous markets all over the world. Almost 80% of which is based in Asia and the remaining all over the world. For its inbound logistics it owns various logistics firms as it subsidiaries. It cares for its suppliers and creates an unified relationship with them and even decreased their payment cycles to increase this relationship even more which includes value to their chain network.


Corporation's core proficiency is its mass manufacturing it produces 90% of its products in-house. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is keeping operation hubs worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the main factors Lotz Of Food The Perishable Team B 2 Case Study Analysis has the ability to take on Apple. Enterprise's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Company.

Marketing and Sales.

Attracting target customer attention towards the product is done through marketing and sales to interact with them the value and competitive benefit the item provides. Lotz Of Food The Perishable Team B 2 Case Study Solution advertising spending plan is continuously increasing given that they began their rearranging globally and will continue to do so as they are constantly aiming 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.

Org Service. Organization put their customers on top and constantly make every effort to provide unmatchable customer care standards. As after sales service is becoming exceptionally important to keep clients pleased and engaged, they even carry out studies through 3rd parties to find out their client's feedback and implement it in the favorable way to minimize or if possible entirely remove their consumer problems. By including a direct support line to contact them 24 hr they have further 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 Analysis has diversified market division, based upon its arrangement of wide variety of products to large number of consumers. Business target customer sectors can be divided into 3 categories i.e. Lotz Of Food The Perishable Team B 2 Case Study Analysis IT and Mobile Communications, Corporation Consumer Electronic Devices and Venture Gadget services.


Lotz Of Food The Perishable Team B 2 Case Study Solution geographic division is based upon 2 criteria i.e. area and density. Enterprise serves about 80 countries worldwide with its products provided to Urban along with Rural areas of the country. The Organization is likewise growing its worldwide presence and the business's flexibility in finding its plants motivates global growth of Organization.


Organization produces items that can be used by both females and males. The target customers for Organization IT and mobile interaction products have an age variety of 18-65 with majority at a young or recently married life cycle stage. Apart from it, Organization Consumer Electronic devices are targeted to a customer sector with an age range of 25-65.


The psychographic division of Lotz Of Food The Perishable Team B 2 Case Study Solution s based upon the social class and the lifestyle of the consumer. Corp target customers on the basis of social class are generally upper middle, middle and working class consumers, as Corporation sell items like cellular phone very little cheaper i.e. Motorola along with not much costly i.e. Apple. It provides quality items to middle level customers at a slightly high rate than others targeting the same section.


Lotz Of Food The Perishable Team B 2 Case Study Help bulk target customers have special behavioural attributes. It has customers with an ambitious, fashionable and determined character with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other distinguished brand names i.e. Apple. Most of Business clients desire quality in addition to cost control. They are attracted towards Enterprise since of its moderate rates with an extent of quality.

Quantitative analysis.

Sales of Organization 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 also reduced its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Due to the fact that of the high overhead cost, profits/ sales are increasing but net profit is not increasing accordingly. New expansions and hiring's were the primary factor of the increase in the overhead expenses, with china presently not providing any earnings to Corporation, however there is so much potential in the present market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently producing however long gone are those days when good items were offering themselves. Kim has actually currently started to strengthen the marketing activities of Corp and very soon it will become one of its core strength like producing if not much better.



Company operates styles, manufactures and sell a vast portfolio of consumer electronics. It runs in a very competitive environment and has effectively positioned itself as the maker of quality items. So, the response is yes.


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


Due to the nature of the industry, it is very simple for rivals to understand the functionality of the products and quickly make their own designs. Yes, Corp is only behind IBM in signing up new patents annually, but the benefit is very short term in this industry.


Chairman Lee has completely turnaround Company, from going nearly insolvent during the Asian financial crisis of 1997 to the top 25 company in the world. Absolutely yes there is proper company in the business and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread practically in every country worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. However, it deals with some political pressures in less developed nations where order circumstance is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Lotz Of Food The Perishable Team B 2 Case Study Help operations.


Purchasing power of consumers is essential for companies like Business to prosper and grow. Emerging markets like India, middle-eastern nations and so on provide growth chances, whereas, due to economic crisis even the customers of industrialized nations suffer severely. It is very crucial for the company to keep an eye on the ongoing economic situation of the nation prior to getting in the market.


International business need to deal with different social and cultural concerns throughout its operations in a foreign nation. Org has also dealt with numerous issues but have actually embraced to the local environments of most of the countries remarkably well. It has tailored its products, practices, policies etc. appropriately in order to achieve success.


With an annual expense of 2.4 billion dollars in Research study & Advancement, and with constant innovative product launches, Lotz Of Food The Perishable Team B 2 Case Study Solution is among the top ingenious business of the world. With a clear objective to be ahead of the rest when it comes to technological developments, Corp has risen to the no 25 of the top effective companies of the world.


Each nation 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 lead to serious legal repercussions. So, it has to study or work with a regional law professional before starting its operations in a specific country.


With the rising awareness amongst consumers about the ecological & ethical infractions of business, Org needs to guarantee that it follows all the safety standards. Ecological damages, ethical misbehaviors are not acceptable and in some countries the consequences can be very severe. On the other hand it has to do some Corporate Social Duty practices to show the residents that it cares about their environment and people.

Porter's Five Forces

Danger of Replacement

Threat of replacement for Company's each product classification is quite considerable. Running in an exceptionally vibrant industry lead the company to face a high threat of replacement. Aspects for high risk of substitution for Lotz Of Food The Perishable Team B 2 Case Study Help Smart device include the presence of high variety of suppliers and Market saturation in industrialized nations, that make the cost of switching for consumers nearly no. Substitution dangers for Business visual display lie in the altering lifestyle of clients. Consumers can switch to viewing visuals in your home towards outdoor activities. Together with it, Enterprise printing solutions items are threatened by the increasing tourist attraction of clients towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Venture and its close competitors is intense. The significant factor behind this is the technique of market saturation in different number of product classifications, requiring Company to present more ingenious features in existing items and brand-new ingenious items to preserve its growth. The significant rivals for Lotz Of Food The Perishable Team B 2 Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Lotz Of Food The Perishable Team B 2 Case Study Analysis has a vast supply chain including about 2700 providers across the world.( Corp Sustainability Report, 2016) Supplier's bargaining power for Corporation is low as Venture runs economies of scale and its orders are of possible size and worth. These substantial orders make it possible for Org to work out costs with its suppliers. Due to incapability of Company to build its own software application, it has to outsource its software application advancement to Google, which ends up being a possible provider of software application for Org, resulting in high bargaining power of Google. In most of Lotz Of Food The Perishable Team B 2 Case Study Solution has a power to negotiate costs, however it provide substantial prices to its suppliers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Negotiating power of purchasers for different variety of product categories of Venture is intense. One of the aspect causing the intense bargaining power is the schedule of a great deal of rivals in nearly each item category i.e. competitors of Organization Mobile phone, with an extremely little distinction. The high accessibility of providers of Smart devices with minimum distinction, make the changing expense for buyers practically zero, for this reason increasing the bargaining power of purchasers. Market saturation in most of the item classifications likewise make the bargaining power of purchasers more intense in for Lotz Of Food The Perishable Team B 2 Case Study Analysis. In spite of igh bargaining power Corp is quite capable of selling its products at a greater price than much of its rivals, due to high end quality item and a reasonable brand name image.

Threat 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 substantial know-how and research and development expenses for survival in the industry likewise make new entrants unwilling to enter in the market. Market saturation is also one of the barrier of entry in technology market.

Competitive Analysis

Corp's high product diversity offers it distinction from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Lotz Of Food The Perishable Team B 2 Case Study Analysis had a substantial R&D spending on all of its product categories which allow the company to earn prospective earnings from sales of practically all of its products.

The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of worldwide market share, among 8 various product classifications. Organization was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Although, Org incomes from chips was less than Intel but its revenues from chips was growing quicker than Intel and has actually grown near the revenue levels of Intel, as given in the case Exhibition 2.

Along with the chips Enterprise mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Corp's mobile phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Venture's high growth despite of greater rates than Nokia and Motorola was the company's high-end quality cellular phone.

Org was likewise reaping the benefits from increasing market share of high end LCDs as given in case Exhibition 3. The major reason, making the business allow to obtain the opportunity is its mass production at low cost. Sony was the most significant competitor for Lotz Of Food The Perishable Team B 2 Case Study Solution in LCD market, however, it had actually also begun joint venture with Venture in 2003 for LCD making, decreasing the competition for Business.

Porter's Competitive Method

Low Cost Management technique of porter is totally implemented by Venture the way they accomplish economies of scale by strengthening their core proficiencies of production. They always bring something new and innovative whether it's a product or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lotz Of Food The Perishable Team B 2 Case Study Solution would develop a new brand image by targeting the younger generation of the particular country. As, specifically cellphones of Venture are popular among the younger group.


1. It is the very best technique to construct Customer Lifetime Worth (CLV) by creating a long-term relationship with consumers. Develop loyalty through delivering value and reap the benefits for long-lasting, as research study has showed it is much cheaper to retain current customers than to bring in new ones.
2. Another pro of this option is that word of mouth spread quicker amongst younger individuals and which in turn will bring in brand-new consumers for my products.


1. Old consumers who were associated with Corp prior to might not like this new image the business is trying to represent.
2 It will incur further costs to rearrange some items and it may not even bring success as the patterns change really rapidly amongst the younger market.

Alternative option 2.

Corp has made making its core proficiency for the many part of their business and due to which its supervisors are not scared to completely step out of their comfort zone. It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment ought to be produced internally first as real marketing begins 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 create a very unhealthy environment in the workplace, as individuals often withstand modification due to the fact that they fear it.

Recognize the best alternative

Alternative is the finest as it plainly has more pros because as soon as a Consumer Life time Worth is developed the company will profit from it till that client is alive and has acquiring power. Plus, our target consumers are the younger generation which are bound to live longer than the present aging people. However, Organization's main goal is to produce loyalty among its customers and make them redeemed it from them and even purchase their various products too.

Implementation Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations practical and achievable.
• A group consisting of finest marketing and sales specialists ought to be assemble, and both views need to be taken into account before protecting the resources required to carry out the plan.
• Thorough interaction of the plan ought to be done as it is really important for everybody to be on the exact same page to make it work.
• Jobs and timelines must be develop and communicated appropriately to each individual responsible.
• The manager need to utilize a control panel which shows the development of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to keep track of and keep a continuous look at the specific and total efficiency.
Since any brand-new trend or policy may come in due to which all the things already planned have actually to be adjusted, • Everyone must be willing to adjust midway. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor ought to communicate the outcomes and if effective should commemorate with the group.

Budget plan

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

Lotz Of Food The Perishable Team B 2 Case Study Analysis is a top 25 company on the planet now and prepares to get ahead of Sony who sits currently at no. 20. Its constant financial investment in R&D and innovative practices have actually propelled them to new heights but for them its' just the start and they wish to be amongst the top 3 brands worldwide. They completely turnaround from nearly going bankrupt throughout the Asian Financial Crisis to a world renowned brand, understood for quality and innovation. Their worth chain and their core competency their manufacturing ability, along-with worldwide brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts ought to be directed towards more youthful group in the middle of the internal arguments about marketing and ought to develop Client Life time Value as it will not just provide benefits now but will continue to gain it till the customer lifetime. As the expense of maintaining the customer is much cheaper than attracting a new one.