Loyal3 Own What You Love Harvard Case Study Solution

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Loyal3 Own What You Love Case Study Solution and Analysis


Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which used to offer Loyal3 Own What You Love Case Study Help products withtheir own brand name. Its consumer circle consists of Original Devices Manufacturers (OEMs), who used to offer Corporation products with their own brand name. He rearranged Corporation as a global brand and informed his divisional managers to understand marketing and its significance.

Issue Statement

Organization's transition from a product based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing efficiently is still a major challenge. Creating a consistent brand name identity throughout the whole world and employing marketing techniques that finest fits the local culture is no simple task.
Executive Summary
Situational Analysis

Loyal3 Own What You Love Case Study Analysis efforts for developing its trademark name across the world was begun after presenting the "new management initiative" by Chairman Lee in 1993. The objective was to change Corporation from an inexpensive OEM to a high value-added product supplier. To make the vision of Company a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Venture can transform from a low end to a high end product service provider. He knew that transformation can only be done through positioning Enterprise as a business providing 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 Corporation brand name, with a prospective assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

One of the marketing difficulties for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as very same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the present marketing requirement was too much high, the space was too larger and to fill this space with wrong perceptions about marketing was rather challenging for Yun.

As stated above, marketing focus was really low in previous practices, for that reason there were no appropriate marketing budget plans for each of the product on the portfolio. There was no marketing preparation provided for the existing items. Together with it the item range of the company was increasing with the ripening of new product concepts by the R&D sector of Organization. Yun had a challenge to perform marketing planning and to produce marketing spending plans for existing along with for brand-new products from the very start, and this would take a substantial time.

A huge shift would be needed in present marketing expenditures to construct the Loyal3 Own What You Love Case Study Analysis brand. This would result in increased marketing expenses for Organization and could disturb the administration relating to increased expenditures, as they hesitated to marketing expenditures formerly and a sudden big shiftwould make them disturb. This might lead to declining executive assistance for worldwide marketing. In this scenario, Yun deals with an obstacle for justifying increased marketing costs by demonstrating the long term value of big marketing expenditures.

Internal Analysis
SWOT Analysis

Loyal3 Own What You Love Case Study Solution strengths lie in its substantial item portfolio. Company has largest number of patents in the market with overall number of 15499 patents given in United States( USP).

Another strength of Loyal3 Own What You Love Case Study Analysis is its ability to develop innovative items at a constant rate. It major proves for the development and item designing of Organization is that the business has gotten numerous awards for its development and item design.

Unlike Apple and other competitors, Org is concentrated on producing gadgets which can be easily integrated with any type of open source Os (OS) and software application. This offers Business an edge over Apple devices.
Porter's 5 Forces Analysis
Org's ability to produce high-end products at low cost of production is likewise among the major strength of Company as it enables the business to capture more market by offering quality items with cost control.


Loyal3 Own What You Love Case Study Help weak points are concealed in the company's dependence on outsourcing software for its gadgets due to company's inability in developing software, unlike Sony. Organization likewise has low revenue margins as compare to Apple due to substantial distinction in the prices of Apple and Business with a much lower difference in quality. The varied focus of the business due to a great deal of items in its portfolio, result in the less efficient production and make the company not able to charge greater costs like Apple. The company is also ineffective in managing its patents and regularly deals with the issue of patent offense.


Opportunities for Enterprise lie in the growing Smartphone market and the company's effectiveness in the market. It can increase its market share and incomes from mobile phone as the business is quite efficient in cellular phone market. Business currently runs in about 80 nations and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Business can move towards acquisitions to acquire patents. It would enable the business to increase its item portfolio with an increase in its wealth.


The vibrant industry environment of technology market position a severe risk on Company's survival and require the business to spend much of its profits share on R&D in order to survive in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is likewise a huge threat for the business's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Enterprise provides quality items and has a rather rich portfolio which caters to different segments. LCD and mobile phones are the most significant items of Corp, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Cellphone.
• Air conditioner.
• Computer.
• Hard drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Loyal3 Own What You Love Case Study Solution utilizes both market competitive and market skimming prices methods for its variety of items. In competitive pricing it changes the cost according to the competitors in order to acquire advantage, whereas, it utilizes market skimming strategy where the product has actually an included value and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a widely known business beyond Korea till 1993. The management initiative taken by their CEO has pushed them to market more efficiently outside the borders and now it has actually gone into the league of top 25 business in the world in simply 9 years. This is an exceptional accomplishment regardless of the ongoing arguments among the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital advertisements are utilizes to produce awareness about Corp items.

Value Chain Analysis.

It's an analytical structure for recognizing business activities that add worth or competitive advantage for the business.

Incoming Logistics.

It has one of the most reliable and effective supply chain network and has over 2700 suppliers across different industries around the world. Nearly 80% of which is based in Asia and the staying all over the world. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It cares for its suppliers and produces an unified relationship with them and even lowered their payment cycles to boost this relationship even more which includes value to their chain network.


Enterprise's core competency is its mass making it produces 90% of its items internal. Divided into three different divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation hubs worldwide to further add value to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the main factors Loyal3 Own What You Love Case Study Help is able to compete with Apple. Organization'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 claims, etc. on behalf of Corp.

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 uses. Loyal3 Own What You Love Case Study Analysis advertising spending plan is continuously rising because they started their repositioning globally and will continue to do so as they are constantly looking to invest and broaden in high possible development markets. The budget is invested in events, print and media ads, public relations etc.

Org Service. Organization put their customers at the top and continuously make every effort to provide unmatchable client service standards. As after sales service is ending up being incredibly important to keep clients delighted and engaged, they even conduct studies through 3rd parties to find out their client's feedback and execute it in the favorable method to reduce or if possible completely remove their customer problems. By adding a direct assistance line to call them 24 hr they have actually even more increased the added value of Loyal3 Own What You Love Case Study Solution service.


Loyal3 Own What You Love Case Study Solution has diversified market segmentation, based upon its arrangement of large range of items to a great deal of consumers. Venture target client segments can be divided into 3 categories i.e. Loyal3 Own What You Love Case Study Analysis IT and Mobile Communications, Company Consumer Electronic Devices and Org Device services.


Loyal3 Own What You Love Case Study Analysis geographic division is based upon 2 criteria i.e. area and density. Enterprise serves about 80 nations worldwide with its items provided to Urban as well as Backwoods of the nation. The Venture is also growing its worldwide existence and the business's versatility in locating its plants encourages global growth of Corp.


The market division of Loyal3 Own What You Love Case Study Help is based upon gender, age, life-cycle stage and profession. Corporation produces products that can be used by both males and women. The target customers for Company IT and mobile communication items have an age range of 18-65 with majority at a young or recently wed life cycle phase. They are mostly students, professionals and employees. Apart from it, Venture Consumer Electronic devices are targeted to a consumer segment with an age variety of 25-65. They are primarily staff members and professionals. However Loyal3 Own What You Love Case Study Solution Gadget Solutions are targeted at students, workers and professionals with an age range of 25-65.


The psychographic segmentation of Loyal3 Own What You Love Case Study Analysis s based upon the social class and the lifestyle of the customer. Business target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Venture offer products like cellular phone very little less expensive i.e. Motorola as well as very little pricey i.e. Apple. It offers quality items to middle level consumers at a somewhat high price than others targeting the very same section.


Loyal3 Own What You Love Case Study Analysis bulk target clients have distinct behavioural characteristics. They are attracted towards Company due to the fact that of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Venture has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has likewise lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Corporation with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Profits/ sales are increasing however net revenue is not increasing appropriately due to the fact that of the high overhead expense. New growths and employing's were the primary factor of the boost in the overhead expenses, with china presently not offering any revenue to Org, but there is so much capacity in the existing market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently manufacturing but long gone are those days when excellent products were offering themselves. Kim has actually already started to strengthen the marketing activities of Company and extremely quickly it will end up being one of its core strength like manufacturing if not better.



Org runs designs, makes and sell a huge portfolio of consumer electronic devices. It runs in an exceptionally competitive environment and has effectively placed itself as the maker of quality items. So, the answer is yes.


As, stated previously that Loyal3 Own What You Love Case Study Help operates in a highly competitive environment, which means all the business have similar items. The answer for rarity is no.


Due to the nature of the market, it is very simple for rivals to comprehend the functionality of the products and easily make their own models. Yes, Org is just behind IBM in signing up brand-new patents each year, but the benefit is extremely short-term in this industry.


Chairman Lee has entirely turnaround Venture, from going almost bankrupt during the Asian financial crisis of 1997 to the top 25 company on the planet. Absolutely yes there appertains organization in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. It deals with some political pressures in less developed nations where law and order scenario is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Loyal3 Own What You Love Case Study Help operations.


Purchasing power of consumers is crucial for companies like Business to grow and prosper. Emerging markets like India, middle-eastern nations and so on supply growth opportunities, whereas, due to recession even the clients of industrialized countries suffer terribly. It is really important for the business to keep an eye on the ongoing financial scenario of the country before going into the market.


Multinational business have to deal with numerous social and cultural concerns throughout its operations in a foreign nation. Corp has actually likewise dealt with many concerns however have embraced to the local environments of most of the countries incredibly well. It has tailored its items, practices, policies etc. appropriately in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with constant ingenious product launches, Loyal3 Own What You Love Case Study Help is one of the top innovative companies of the world. With a clear mission to be ahead of the rest when it pertains to technological advancements, Company has risen to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being a multinational company Business have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal repercussions. It has to study or employ a regional law specialist prior to starting its operations in a specific country.


With the rising awareness among consumers about the environmental & ethical violations of business, Company has to make sure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some nations the repercussions can be extremely severe. On the other hand it has to do some Business Social Duty practices to show the residents that it cares about their environment and individuals.

Porter's Five Forces

Hazard of Alternative

Hazard of replacement for Org's each item category is quite considerable. Elements for high risk of replacement for Loyal3 Own What You Love Case Study Analysis Smart device consist of the existence of high number of providers and Market saturation in industrialized countries, which make the cost of changing for consumers almost no. Along with it, Corp printing solutions products are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Business and its close rivals is extreme. The major factor behind this is the approach of market saturation in various number of item categories, requiring Corporation to introduce more innovative functions in existing items and brand-new innovative products to maintain its development. The significant rivals for Loyal3 Own What You Love Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Loyal3 Own What You Love Case Study Analysis has a vast supply chain including about 2700 suppliers across the world.( Corp Sustainability Report, 2016) Supplier's bargaining power for Org is low as Enterprise runs economies of scale and its orders are of potential size and worth. These big orders allow Venture to negotiate rates with its suppliers. However, due to incapability of Loyal3 Own What You Love Case Study Analysis 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 Corporation, leading to high bargaining power of Google. In many of Loyal3 Own What You Love Case Study Solution has a power to negotiate prices, but it offer substantial prices to its suppliers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Haggling power of buyers for various variety of item categories of Business is intense. Among the aspect causing the extreme bargaining power is the schedule of a great deal of competitors in practically each item classification i.e. competitors of Organization Smartphone, with an extremely little distinction. The high accessibility of suppliers of Smartphones with minimum distinction, make the changing cost for buyers nearly absolutely no, hence increasing the bargaining power of purchasers. Market saturation in most of the product classifications also make the bargaining power of buyers more intense in for Loyal3 Own What You Love Case Study Solution. In spite of igh bargaining power Organization is quite efficient in offering its products at a higher price than much of its rivals, due to high-end quality item and a reasonable brand name image.

Danger of New Entrants:

Threat of brand-new entrants for Loyal3 Own What You Love Case Study Help is rather low. Along with it, requirement of huge know-how and research and advancement expenditures for survival in the market also make new entrants hesitant to enter in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Org's high product diversification provides it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Loyal3 Own What You Love Case Study Analysis had a huge R&D costs on all of its item classifications which enable the business to make possible income from sales of practically all of its products.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to global market share, amongst 8 different item classifications. Corporation was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Venture profits from chips was less than Intel however its earnings from chips was growing quicker than Intel and has actually grown close to the earnings levels of Intel, as given in the case Exhibition 2.

Along with the chips Enterprise mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Company's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The significant reson behind Org's high growth despite of greater costs than Nokia and Motorola was the company's high-end quality cell phones.

Enterprise was also profiting from increasing market share of high-end LCDs as given in case Display 3. The significant factor, making the company make it possible for to get the chance is its mass production at low cost. Sony was the greatest rival for Loyal3 Own What You Love Case Study Analysis in LCD market, however, it had actually likewise started joint endeavor with Enterprise in 2003 for LCD manufacturing, reducing the competition for Corporation.

Porter's Competitive Method

Low Cost Leadership technique of porter is completely implemented by Corporation the way they achieve economies of scale by strengthening their core competencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to make for them, due to the fact that they were unable to compete with them on low expense. Distinction is another strategy well implemented by Venture by continuous financial investment in the R&D and staying ahead of the competitors. They constantly bring something ingenious and new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Loyal3 Own What You Love Case Study Analysis would develop a new brand image by targeting the more youthful generation of the specific nation. As, particularly cellphones of Corporation are very popular among the more youthful market.


1. It is the very best method to build Customer Lifetime Value (CLV) by developing a long-term relationship with customers. Develop loyalty through providing worth and profit for long-lasting, as research has actually showed it is much cheaper to retain existing customers than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among more youthful people and which in turn will generate brand-new consumers for my products.


1. Old clients who were associated with Venture before may not like this brand-new image the business is attempting to depict.
2 It will incur additional expenditures to reposition some items and it might not even bring success as the patterns change really rapidly among the younger group.

Alternative option 2.

Company has actually made making its core proficiency for the a lot of part of their company and due to which its managers are not afraid to totally get out of their convenience zone. It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get benched. Marketing environment ought to be developed internally first as real marketing starts inside the corporation.


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


2. Its con can create a very unhealthy environment in the office, as individuals frequently resist change due to the fact that they fear it.

Determine the best option

Alternative is the best as it plainly has more pros since once a Customer Lifetime Worth is constructed the business will benefit from it till that client is alive and has buying power. Plus, our target customers are the younger generation which are bound to live longer than the present old age individuals. Organization's primary goal is to produce loyalty amongst its consumers and make them bought it from them and even purchase their different items.

Implementation Plan

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations achievable and practical.
• A group consisting of best marketing and sales experts should be assemble, and both views must be taken into account prior to securing the resources required to carry out the strategy.
• Thorough communication of the strategy must be done as it is really essential for everyone to be on the exact same page to make it work.
• Tasks and timelines ought to be construct and interacted appropriately to each person responsible.
• The manager ought to utilize a dashboard which reveals the development of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a consistent examine the overall and individual performance.
• Everybody must be willing to adapt midway due to the fact that any brand-new trend or policy may be available in due to which all the important things currently prepared need to be adjusted. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor should interact the results and if successful need to celebrate with the team.

Budget plan

This modification the budget plan allowance of various 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 growth potential warranted a 35% allocation while they were getting 45%. It actually assisted to fairly disperse the resources and catch more customers by spending more on ads on the high development capacity areas of the world.

Loyal3 Own What You Love Case Study Solution is a leading 25 company in the world now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous financial investment in R&D and ingenious practices have moved them to brand-new heights however for them its' just the start and they wish to be among the top 3 brand names on the planet. They entirely turn-around from nearly going bankrupt throughout the Asian Financial Crisis to a world distinguished brand, 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 further expansion in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts need to be directed towards more youthful group amid the internal arguments about marketing and should develop Client Lifetime Value as it will not only provide benefits now however will continue to reap it till the client lifetime. As the expense of keeping the customer is much cheaper than bring in a brand-new one.