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Louis Vuitton In Japan 2 Case Study Solution and Analysis


Introduction

Louis Vuitton In Japan 2 Case Study Help is a well-known worldwide brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Louis Vuitton In Japan 2 handle large number of item classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic items. Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Samsung products withtheir own brand name. Till early 1990s, the core proficiency of Samsung depend on its low rate offerings than its competitors by producing existing products at economies of scale. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to offer Louis Vuitton In Japan 2 Case Study Analysis items with their own trademark name. Samsung was not simply understood outside Korea. There were also no or little interest in constructing the trademark 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 practically got insolvent, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the leading 25 most important company on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Samsung as a worldwide brand and informed his divisional managers to comprehend marketing and its significance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Samsung's shift from an item based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to integrate marketing efficiently is still a significant difficulty. Producing a constant brand name identity across the whole world and using marketing strategies that best fits the regional culture is no easy task. The M-net program analysis have been really helpful in figuring out the high and less prospective development areas, but allotment of resources accordingly is not well received amongst the supervisors. There is no agreement amongst the hierarchy regarding the best matched future strategy.
Executive Summary
Situational Analysis

Yun had a rather clear picture in his mind about how Louis Vuitton In Japan 2 Case Study Help can change from a low end to a high end item company. He understood that improvement can only be done through placing Samsung as a business using high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand name, with a prospective assistance of its executives, Yun dealt with several marketing difficulties in early years of its efforts.

Among 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 thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the current marketing requirement was excessive high, the gap was too wider and to fill this space with wrong understandings about marketing was quite challenging for Yun.

Along with it the product range of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to create marketing spending plans for existing as well as for new products from the very beginning, and this would take a big time.

A huge shift would be needed in current marketing expenditures to build the Samsung brand. This would result in increased marketing expenses for Samsung and might disrupt the administration concerning increased costs, as they were hesitant to marketing expenses previously and a sudden huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Samsung strengths lie in its huge item portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents given in United States( USP). Large amount of R&D costs has actually made it possible for the company to grow its item portfolio at a higher rate than its competitors. Louis Vuitton In Japan 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 Louis Vuitton In Japan 2 Case Study Analysis is its ability to establish ingenious items at a continuous rate. It significant proves for the innovation and item developing of Samsung is that the company has gotten numerous awards for its development and item design.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be quickly integrated with any kind of open source Os (OS) and software. This offers Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end products at low cost of production is also among the major strength of Samsung as it makes it possible for the company to record more market by supplying quality items with cost control.

Weak points

Louis Vuitton In Japan 2 Case Study Solution weaknesses are concealed in the business's dependence on outsourcing software for its devices due to business's failure in developing software application, unlike Sony. Samsung also has low profit margins as compare to Apple due to substantial distinction in the costs of Apple and Samsung with a much lower distinction in quality. The varied focus of the company due to large number of products in its portfolio, lead to the less effective production and make the business not able to charge greater prices like Apple. The company is likewise inefficient in handling its patents and often deals with the problem of patent offense.

Opportunities

Opportunities for Samsung depend on the growing Smartphone market and the business's performance in the market. It can increase its market share and revenues from cell phone as the company is rather efficient in cellular phone market. Samsung presently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would enable the business to increase its item portfolio with a boost in its wealth.

Threats

The dynamic industry environment of innovation market pose a serious risk on Samsung's survival and require the company to spend much of its revenues share on R&D in order to endure in the long run. The market saturation in industrialized countries i.e. saturation of mobile company is likewise a huge danger for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis
Product

Samsung provides quality products and has a rather rich portfolio which caters to various sections. LCD and mobile phones are the greatest items of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• LCD/ TV
• Laptops.
• Smart phone.
• Air conditioning system.
• Computer.
• Hard disk drives.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Cost.

Louis Vuitton In Japan 2 Case Study Help uses both market competitive and market skimming rates techniques for its wide range of products. In competitive pricing it changes the rate according to the competition in order to acquire advantage, whereas, it utilizes market skimming technique where the item has an included worth and by offering a couple of items it can reach break-even.

Place.

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 location/ provided to the customers directly in case of online order.

Promotion.
Vrio Analysis
It uses both offline & online channels of promo to market their items. Paid item advertisements, social promo and digital advertisements are uses to create awareness about Samsung products.

Worth Chain Analysis.

It's an analytical framework for identifying organisation activities that add worth or competitive advantage for the company.

Inbound Logistics.

For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even lowered their payment cycles to improve this relationship even more which includes value to their chain network.

Operations.

Samsung's core competency is its mass manufacturing it produces 90% of its items internal. Divided into 3 different departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation centers worldwide to even more include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main reasons Louis Vuitton In Japan 2 Case Study Solution has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a major 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 consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the product provides. Louis Vuitton In Japan 2 Case Study Solution marketing budget is constantly on the rise because they began their repositioning internationally and will continue to do so as they are continuously wanting to invest and broaden in high potential development markets. The budget is invested in occasions, print and media ads, public relations and so on.

Samsung Service. Samsung put their consumers on top and constantly make every effort to provide unmatchable customer care standards. As after sales service is becoming extremely crucial to keep consumers happy and engaged, they even carry out surveys through 3rd parties to discover their customer's feedback and execute it in the positive method to reduce or if possible totally eliminate their customer issues. By including a direct assistance line to contact them 24 hr they have actually even more increased the included worth of Louis Vuitton In Japan 2 Case Study Help service.

Division.

Louis Vuitton In Japan 2 Case Study Help has actually diversified market division, based upon its arrangement of large range of products to a great deal of customers. Samsung target consumer segments can be divided into 3 classifications i.e. Louis Vuitton In Japan 2 Case Study Help IT and Mobile Communications, Samsung Customer Electronics and Samsung Device solutions.

Geographical.

Louis Vuitton In Japan 2 Case Study Analysis geographical segmentation is based upon 2 criteria i.e. area and density. Samsung serves about 80 countries worldwide with its items offered to Urban in addition to Backwoods of the country. The Samsung is also growing its global existence and the company's flexibility in finding its plants encourages worldwide growth of Samsung.

Market.

The demographic division of Louis Vuitton In Japan 2 Case Study Help is based upon gender, age, life-cycle phase and profession. Samsung produces products that can be utilized by both females and males. The target clients for Samsung IT and mobile communication items have an age series of 18-65 with majority at a young or recently wed life cycle stage. They are mostly professionals, trainees and workers. Apart from it, Samsung Customer Electronic devices are targeted to a consumer segment with an age range of 25-65. They are mainly professionals and employees. Nevertheless Louis Vuitton In Japan 2 Case Study Analysis Device Solutions are targeted at trainees, staff members and experts with an age series of 25-65.

Psychographic.

The psychographic division of Louis Vuitton In Japan 2 Case Study Solution s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class consumers, as Samsung offer items like cell phones not much more affordable i.e. Motorola as well as very little pricey i.e. Apple. It offers quality products to middle level customers at a slightly high cost than others targeting the exact same section.

Behavioural.

Louis Vuitton In Japan 2 Case Study Solution majority target customers have unique behavioural attributes. It has consumers with an enthusiastic, fashionable and determined personality with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other distinguished brands i.e. Apple. The majority of Samsun consumers want quality as well as expense control. They are attracted towards Samsung due to the fact that of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Louis Vuitton In Japan 2 Case Study Analysis has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings 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 on the objective of Kim to target the more youthful audience and create an international brand name picture of the business. Whereas, the core strength of the company is presently manufacturing but long gone are those days when good products were offering themselves. In the existing age marketing is extremely important and business can not prosper without it. Kim has actually currently started to strengthen the marketing activities of Samsung and very soon it will turn into one of its core strength like producing if not much better.

VRIO.

Value.

Samsung runs styles, produces and sell a huge portfolio of consumer electronics. It operates in an incredibly competitive environment and has effectively placed itself as the maker of quality items. So, the response is yes.

Rarity.

As, stated earlier that Louis Vuitton In Japan 2 Case Study Solution operates in an extremely competitive environment, which suggests all the companies have similar products. The answer for rarity is no.

Imitability.

Due to the nature of the industry, it is very simple for rivals to understand the performance of the products and easily make their own designs. Yes, Samsung is only behind IBM in registering new patents each year, however the benefit is extremely short term in this market.

Organization.

Chairman Lee has totally turnaround Samsung, from going nearly insolvent throughout 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 outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand name spread practically in every country worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. Nevertheless, it faces some political pressures in less developed countries where law and order circumstance is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Louis Vuitton In Japan 2 Case Study Help operations.

Economic

Buying power of consumers is crucial for companies like Samsung to prosper and grow. Emerging markets like India, middle-eastern countries and so on provide growth opportunities, whereas, due to economic crisis even the customers of developed countries suffer terribly. Thus it is extremely important for the business to keep an eye on the ongoing economic scenario of the nation prior to going into the market.

Socio-Cultural

International business need to deal with different social and cultural issues during its operations in a foreign country. Samsung has actually also faced numerous issues however have adopted to the regional environments of most of the countries extremely well. It has customized its items, practices, policies and so on accordingly in order to succeed.

Technological

With a yearly expense of 2.4 billion dollars in Research & Advancement, and with consistent ingenious product launches, Louis Vuitton In Japan 2 Case Study Analysis is among the top ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has risen to the no 25 of the leading effective business of the world.

Legal

Each country 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 lead to major legal repercussions. So, it needs to study or employ a regional law specialist before beginning its operations in a particular country.

Environmental

With the rising awareness among customers about the ethical & environmental violations of business, Samsung has to ensure that it follows all the safety standards. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be really severe. On the other hand it needs to do some Corporate Social Obligation practices to reveal the locals that it appreciates their environment and individuals.

Porter's 5 Forces

Risk of Alternative

Danger of alternative for Samsung's each item classification is rather considerable. Factors for high risk of substitution for Louis Vuitton In Japan 2 Case Study Solution Mobile phone consist of the existence of high number of providers and Market saturation in industrialized countries, which make the cost of changing for customers almost no. Along with it, Samsung printing options products are threatened by the increasing tourist attraction of clients towards cloud storage.

Competition Amongst Existing Firms:

The rivaly among Samsung and its close competitors is extreme. The significant factor behind this is the approach of market saturation in numerous number of item classifications, forcing Samsung to introduce more ingenious features in existing products and brand-new ingenious items to preserve its growth. Other aspect for the intense rivalry amongst the competitors is the little product differentiation among the items. The prominent gamers 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 spending, to record the marketplace. The major rivals for Louis Vuitton In Japan 2 Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the fluctuating market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

Louis Vuitton In Japan 2 Case Study Solution has a large supply chain consisting of about 2700 suppliers throughout the world.( 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. These big orders make it possible for Samsung to work out rates with its suppliers. However, due to incapability of Louis Vuitton In Japan 2 Case Study Solution to construct its own software application, it has to outsource its software application development to Google, which ends up being a prospective supplier of software application for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out prices, however it supply considerable rates to its suppliers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Bargaining power of buyers for various variety of product categories of Samsung is intense. One of the aspect resulting in the intense bargaining power is the accessibility of a great deal of rivals in practically each product classification i.e. competitors of Samsung Smartphone, with a very little differentiation. The high accessibility of providers of Mobile phones with minimum distinction, make the switching expense for purchasers practically no, thus increasing the bargaining power of purchasers. Market saturation in most of the item categories likewise make the bargaining power of purchasers more extreme in for Louis Vuitton In Japan 2 Case Study Solution. In spite of igh bargaining power Samsung is quite efficient in selling its products at a higher rate than much of its rivals, due to high end quality product and a reasonable brand image.

Hazard of New Entrants:

Hazard of new entrants for Samsung is quite low. Among the major factor for low threat of new entrants is the high competition in the industry. The requirement of substantial amount of capital to go into in the market is also among the potential barrier to entry. Along with it, requirement of substantial know-how and research and advancement expenses for survival in the industry 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 gamers in the market to charge as low costs as possible and this can only be achieved by production performance. New companies, in bulk cases, lack the production effectiveness, for this reason increasing the risks for entrance in the innovation industry.

Competitive Analysis

Samsung's high product diversification offers it distinction from its rivals. It is one of the 3 top brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on consumer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a huge R&D costs on all of its item classifications which allow the company to make potential income from sales of practically all of its items. (See Exhibition) However, due to the wide product range the business deals with high variety of rivals.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in terms of worldwide market share, among 8 various item classifications. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its earnings from chips was growing quicker than Intel and has grown near to the profits 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 cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The major reson behind Samsung's high growth despite of higher rates than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of high-end LCDs as given up case Exhibition 3. The major factor, making the company enable to obtain the chance is its mass production at low cost. Sony was the most significant rival for Louis Vuitton In Japan 2 Case Study Analysis in LCD market, however, it had also begun joint endeavor with Samsung in 2003 for LCD manufacturing, decreasing the competitors for Samsung.

Porter's Competitive Method

Low Expense Management method of porter is completely executed by Samsung the way they accomplish economies of scale by enhancing their core proficiencies of production. Even to the point that their competitor SONY decided to form an alliance with them to produce for them, since they were unable to take on them on low cost. Distinction is another strategy well executed by Samsung by constant investment in the R&D and staying ahead of the competitors. They constantly bring something brand-new and innovative whether it's an item or a service.

Alternatives

Alternative Option 1

The Chief Marketing Officer (CMO) of Louis Vuitton In Japan 2 Case Study Analysis would produce a brand-new brand name image by targeting the more youthful generation of the specific nation. As, particularly mobile phones of Samsung are very popular amongst the more youthful group.

Pros

1. It is the best method to construct Consumer Lifetime Value (CLV) by producing a long-lasting relationship with customers. Build commitment through providing worth and reap the benefits for long-lasting, as research study has showed it is much cheaper to keep present clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will bring in brand-new consumers for my items.

Cons

1. Old consumers who were related to Samsung before might not like this new image the company is trying to portray.
2 It will incur more expenses to rearrange some products and it might not even bring success as the trends alter very quickly amongst the more youthful group.

Alternative service 2.

Samsung has made manufacturing its core competency for the most part of their organisation and due to which its managers are not afraid to fully step out of their comfort zone. It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment ought to be produced internally first as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can create an extremely unhealthy environment in the work environment, as people frequently resist change since they fear it.

Recognize the best alternative

First alternative is the very best as it plainly has more pros due to the fact that when a Customer Lifetime Worth is constructed the company will benefit from it till that customer lives and has acquiring power also. Plus, our target clients are the younger generation which are bound to live longer than the present old age people. Nonetheless, Samsung's main goal is to create commitment amongst its clients and make them bought it from them and even purchase their various products also.

Application Plan

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations achievable and realistic.
• A group including finest marketing and sales professionals should be assemble, and both views should be taken into consideration before securing the resources required to implement the strategy.
• Thorough interaction of the strategy need to be done as it is really important for everybody to be on the exact same page to make it work.
• Tasks and timelines ought to be build and interacted accordingly to each person responsible.
• The manager need to use a control panel which reveals the development of all the jobs which have been done or about to be done and by whom.
• The manager need to keep an eye on and keep a consistent look at the individual and overall efficiency.
• Everybody must want to adapt midway due to the fact that any brand-new trend or policy may can be found in due to which all the things currently prepared need to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor should interact the outcomes and if effective ought to commemorate with the group.

Spending plan

This change the spending plan allowance of various nations and lots of managers were unhappy and argued however the analysis done by the program was precise and showed figures like North America and Russia development possible warranted a 35% allotment while they were receiving 45%. It really assisted to fairly disperse the resources and record more consumers by investing more on ads on the high development potential areas of the world.
Recommendations
Conclusion

Louis Vuitton In Japan 2 Case Study Help is a top 25 business on the planet now and plans to get ahead of Sony who sits currently at no. 20. Its continuous investment in R&D and innovative practices have propelled them to brand-new heights however for them its' only the start and they want to be amongst the leading 3 brand names in the world. They completely turnaround from practically declaring bankruptcy throughout the Asian Financial Crisis to a world distinguished brand name, understood for quality and innovation. Their worth chain and their core proficiency 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 more growth in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts should be directed towards younger group amid the internal arguments about marketing and need to produce Customer Life time Worth as it will not just provide benefits now however will continue to gain it till the customer life time. As the cost of retaining the consumer is much cheaper than attracting a new one.