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Loyal3 Own What You Love Case Study Solution and Analysis


Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Loyal3 Own What You Love Case Study Solution items withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who used to offer Venture products with their own brand name. He repositioned Corp as a worldwide brand and informed his divisional supervisors to comprehend marketing and its importance.

Problem Declaration

Corp's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to include marketing successfully is still a major difficulty. Developing a consistent brand identity across the whole world and utilizing marketing techniques that finest fits the regional culture is no easy job. The M-net program analysis have been truly practical in figuring out the high and less potential growth areas, however allowance of resources appropriately is not well received amongst the managers. There is no consensus among the hierarchy regarding the very best fit future technique.
Executive Summary
Situational Analysis

Loyal3 Own What You Love Case Study Help efforts for constructing its brand across the world was begun after presenting the "new management effort" by Chairman Lee in 1993. The objective was to transform Business from an inexpensive OEM to a high value-added product service provider. To make the vision of Business a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Company can transform from a low end to a high end product service provider. He understood that change can only be done through positioning Venture as a business offering high-end products and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Enterprise brand, with a prospective assistance of its executives, Yun faced several marketing obstacles in early years of its efforts.

One of the marketing challenges for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as same tools and thought that quality products 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 too much high, the space was too larger and to fill this gap with wrong perceptions about marketing was quite difficult for Yun.

Along with it the item variety of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Venture. Yun had a difficulty to carry out marketing planning and to develop marketing budget plans for existing as well as for brand-new items from the very start, and this would take a substantial time.

A substantial shift would be needed in present marketing expenses to build the Enterprise brand name. This would result in increased marketing expenses for Corporation and might disrupt the administration regarding increased expenses, as they were unwilling to marketing expenditures previously and an unexpected big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Loyal3 Own What You Love Case Study Analysis strengths lie in its huge item portfolio. Enterprise has biggest number of patents in the market with overall number of 15499 patents given in US( USP).

Another strength of Loyal3 Own What You Love Case Study Analysis is its ability to establish innovative products at a continuous rate. It major shows for the innovation and product designing of Business is that the business has gotten many awards for its development and item style.

Unlike Apple and other competitors, Org is focused on producing gadgets which can be easily integrated with any type of open source Os (OS) and software. This supplies Company an edge over Apple devices.
Porter's 5 Forces Analysis
Venture's capability to produce luxury items at low cost of production is likewise one of the major strength of Organization as it makes it possible for the business to catch more market by supplying quality items with expense control.


Loyal3 Own What You Love Case Study Analysis weak points are concealed in the business's dependence on outsourcing software application for its devices due to business's inability in establishing software application, unlike Sony. Company likewise has low profit margins as compare to Apple due to substantial distinction in the prices of Apple and Business with a much lesser difference in quality. The varied focus of the company due to a great deal of products in its portfolio, lead to the less efficient production and make the company not able to charge higher rates like Apple. The company is likewise inefficient in handling its patents and frequently faces the problem of patent infraction.


Opportunities for Loyal3 Own What You Love Case Study Solution lie in the growing Mobile phone market and the business's efficiency in the market. Corporation 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 dynamic market environment of technology industry present an extreme danger on Corporation's survival and force the business to invest much of its profits share on R&D in order to make it through in the long run. The market saturation in industrialized nations i.e. saturation of mobile business is likewise a big threat for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Loyal3 Own What You Love Case Study Help provides quality items and has a quite rich portfolio which deals with different sectors. Most of the products are in the leading three of their particular industries. LCD and cellphones are the most significant items of Enterprise, whereas DRAM is likewise not far behind in contrast of them. Following is the line of product of Venture:

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Computer.
• Hard drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Loyal3 Own What You Love Case Study Solution uses both market competitive and market skimming pricing techniques for its wide array of items. In competitive pricing it changes the rate according to the competition in order to get benefit, whereas, it uses market skimming method where the item has an added worth and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a well-known business outside of Korea up until 1993. The management initiative taken by their CEO has pressed them to market more effectively outside the borders and now it has gone into the league of leading 25 companies in the world in just 9 years. This is an amazing accomplishment in spite of the continuous arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promotion to market their products. Paid product ads, social promotion and digital advertisements are utilizes to create awareness about Org items.

Worth Chain Analysis.

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

Incoming Logistics.

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


Enterprise's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three different divisions its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronics. It is maintaining operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main reasons Loyal3 Own What You Love Case Study Analysis has the ability to compete with Apple. Business'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 coverage claims, etc. on behalf of Corporation.

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to interact with them the value and competitive benefit the product uses. Loyal3 Own What You Love Case Study Solution marketing budget is continually increasing because they started their repositioning globally and will continue to do so as they are continually looking to expand and invest in high prospective development markets. The budget is invested in events, print and media advertisements, public relations and so on.

Venture put their customers at the leading and continually aim to provide unmatchable client service standards. By including a direct support line to call them 24 hours they have even more increased the added value of Company service.


Loyal3 Own What You Love Case Study Solution has diversified market division, based upon its provision of vast array of items to a great deal of customers. Company target client segments can be divided into 3 categories i.e. Loyal3 Own What You Love Case Study Help IT and Mobile Communications, Enterprise Consumer Electronics and Org Gadget options.


Loyal3 Own What You Love Case Study Help geographical division is based upon two requirements i.e. region and density. Company serves about 80 nations worldwide with its items supplied to Urban as well as Rural areas of the country. The Corporation is also growing its global existence and the business's flexibility in locating its plants motivates international growth of Corporation.


Company produces items that can be utilized by both women and males. The target clients for Org IT and mobile communication items have an age variety of 18-65 with majority at a young or newly wed life cycle stage. Apart from it, Enterprise Customer Electronics are targeted to a customer section with an age range of 25-65.


The psychographic segmentation of Loyal3 Own What You Love Case Study Help s based upon the social class and the lifestyle of the consumer. Enterprise target clients on the basis of social class are generally upper middle, middle and working class customers, as Company sell items like cell phones very little less expensive 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 segment.


Loyal3 Own What You Love Case Study Solution majority target customers have special behavioural attributes. They are attracted towards Corporation because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Company has 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 actually also minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Company with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead cost, revenues/ sales are increasing but net revenue is not increasing accordingly. New growths and hiring's were the main reason of the boost in the overhead expenses, with china presently not providing any earnings to Corporation, however there is a lot potential in the existing market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the more youthful audience and develop an international brand picture of the company. Whereas, the core strength of the company is currently manufacturing however long gone are those days when excellent items were offering themselves. In the present age marketing is really crucial and companies can not be successful without it. Kim has currently begun to reinforce the marketing activities of Enterprise and very soon it will become one of its core strength like producing if not much better.



Enterprise runs designs, manufactures and sell a vast portfolio of customer electronic devices. It operates in an extremely competitive environment and has actually effectively positioned itself as the maker of quality items. The answer is yes.


As, stated earlier that Loyal3 Own What You Love Case Study Analysis runs in a highly competitive environment, which indicates all the business have similar items. So, the response for rarity is no.


Due to the nature of the industry, it is extremely simple for rivals to understand the functionality of the items and easily make their own designs. Yes, Organization is only behind IBM in registering new patents every year, however the advantage is very short-term in this industry.


Chairman Lee has entirely turn-around Org, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 business worldwide. Absolutely yes there appertains organization in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. It faces some political pressures in less developed countries where law and order situation is not excellent. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Loyal3 Own What You Love Case Study Analysis operations.


Purchasing power of customers is crucial for companies like Corporation to prosper and grow. Emerging markets like India, middle-eastern countries etc. supply growth opportunities, whereas, due to recession even the clients of industrialized countries suffer terribly. For this reason it is extremely important for the business to watch on the ongoing economic circumstance of the nation prior to getting in the marketplace.


Multinational companies need to deal with various social and cultural problems throughout its operations in a foreign country. Organization has likewise faced many concerns however have adopted to the regional environments of most of the nations extremely well. It has actually customized its items, practices, policies etc. appropriately in order to be successful.


With an annual expense of 2.4 billion dollars in Research study & Development, and with constant ingenious product launches, Loyal3 Own What You Love Case Study Analysis is among the top innovative companies of the world. With a clear mission to be ahead of the rest when it concerns technological improvements, Enterprise has increased to the no 25 of the top effective companies of the world.


Each country has their own laws and policies, being a multinational company Company have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. It has to study or work with a local law professional prior to beginning its operations in a specific country.


With the increasing awareness among customers about the ethical & environmental violations of companies, Org has to guarantee that it follows all the safety guidelines. Ecological damages, ethical misconducts are not appropriate and in some countries the consequences can be really serious. On the other hand it needs to do some Business Social Obligation practices to show the locals that it appreciates their environment and people.

Porter's 5 Forces

Danger of Replacement

Hazard of alternative for Venture's each product classification is rather considerable. Running in an extremely vibrant market lead the business to deal with a high hazard of replacement. Aspects for high danger of substitution for Loyal3 Own What You Love Case Study Analysis Mobile phone include the presence of high variety of providers and Market saturation in industrialized nations, which make the expense of changing for consumers nearly zero. Alternative dangers for Venture visual display screen lie in the altering lifestyle of consumers. Consumers can change to watching visuals in the house towards outside activities. In addition to it, Org printing services products are threatened by the increasing destination of customers towards cloud storage.

Competition Amongst Existing Firms:

The rivaly amongst Organization and its close rivals is extreme. The major reason behind this is the method of market saturation in different number of item classifications, forcing Venture to present more ingenious functions in existing items and brand-new innovative items to maintain its growth. The significant competitors for Loyal3 Own What You Love Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Loyal3 Own What You Love Case Study Analysis has a vast supply chain consisting of about 2700 suppliers across the world.( Org Sustainability Report, 2016) Provider's bargaining power for Corp is low as Enterprise runs economies of scale and its orders are of possible size and worth. These huge orders allow Business to work out prices with its providers. Due to incapability of Corporation to build its own software, it has to outsource its software development to Google, which ends up being a prospective supplier of software application for Enterprise, resulting in high bargaining power of Google. Although, in most of cases Company has a power to negotiate rates, but it offer substantial rates to its suppliers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Negotiating power of buyers for numerous number of product classifications of Company is intense. Among the factor causing the intense bargaining power is the accessibility of large number of rivals in nearly each product classification i.e. competitors of Org Smartphone, with a really little distinction. The high schedule of suppliers of Mobile phones with minimum differentiation, make the switching cost for purchasers practically zero, thus increasing the bargaining power of buyers. Market saturation in the majority of the item classifications likewise make the bargaining power of purchasers more extreme in for Loyal3 Own What You Love Case Study Help. In spite of igh bargaining power Corp is quite efficient in selling its items at a greater price than much of its competitors, due to high-end quality item and a fair brand name image.

Danger of New Entrants:

Danger of brand-new entrants for Loyal3 Own What You Love Case Study Solution is rather low. Along with it, requirement of huge expertise and research study and development expenditures for survival in the market likewise make brand-new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Organization's high item diversity provides it differentiation from its competitors. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Loyal3 Own What You Love Case Study Analysis had a substantial R&D spending on all of its product categories which allow the company to make prospective earnings from sales of almost all of its products.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of international market share, among 8 various product classifications. Org was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Organization revenues from chips was less than Intel but its incomes from chips was growing faster than Intel and has grown close to the earnings levels of Intel, as provided in the case Exhibit 2.

Together with the chips Org mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Corporation's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales development. The significant reson behind Venture's high development despite of higher costs than Nokia and Motorola was the business's high-end quality cellular phone.

Venture was likewise reaping the benefits from increasing market share of high end LCDs as given up case Display 3. The significant factor, making the business make it possible for to avail the chance is its mass production at low expense. Sony was the most significant competitor for Loyal3 Own What You Love Case Study Solution in LCD market, however, it had likewise begun joint venture with Enterprise in 2003 for LCD making, reducing the competitors for Corp.

Porter's Competitive Technique

Low Cost Leadership strategy of porter is fully implemented by Corporation the method they achieve economies of scale by strengthening their core competencies of manufacturing. They always bring something ingenious and new whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Loyal3 Own What You Love Case Study Solution would develop a new brand name image by targeting the more youthful generation of the specific country. As, especially mobile phones of Org are popular amongst the more youthful group.


1. It is the very best technique to construct Consumer Lifetime Value (CLV) by developing a long-term relationship with customers. Build loyalty through delivering worth and reap the benefits for long-lasting, as research has revealed it is much cheaper to maintain present consumers than to attract new ones.
2. Another pro of this option is that word of mouth spread more quickly among more youthful people and which in turn will bring in new clients for my products.


1. Old consumers who were related to Enterprise prior to may not like this new image the company is trying to represent.
2 It will incur additional expenditures to reposition some items and it may not even bring success as the patterns alter really rapidly amongst the younger group.

Alternative solution 2.

It would be done by arranging training workshops throughout which significance of marketing will be taught and numbers will be given. Marketing environment need to be created internally first as genuine 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 produce an extremely unhealthy environment in the workplace, as people often resist modification since they fear it.

Identify the very best option

Very first alternative is the very best as it clearly has more pros because when a Consumer Life time Value is built the business will profit from it till that customer lives and has purchasing power as well. Plus, our target clients are the more youthful generation which are bound to live longer than the present aging people. Nonetheless, Corporation's primary goal is to develop loyalty amongst its customers and make them redeemed it from them and even buy their different items too.

Execution Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations achievable and realistic.
• A group including finest marketing and sales experts must be put together, and both views need to be considered before protecting the resources required to execute the plan.
• Thorough interaction of the plan should be done as it is very essential for everybody to be on the very same page to make it work.
• Jobs and timelines need to be develop and communicated appropriately to each individual accountable.
• The manager must utilize a dashboard which reveals the development of all the tasks which have been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a constant check on the private and total performance.
• Everyone need to be willing to adapt midway due to the fact that any new pattern or policy may be available in due to which all the important things currently planned have to be adjusted. It's much better to have contingency plans currently prepared.
• At the end of the project the supervisor should interact the outcomes and if successful should celebrate with the group.


This change the budget allotment of lots of managers and various countries were dissatisfied and argued however the analysis done by the program was precise and showed figures like North America and Russia growth prospective merited a 35% allocation while they were getting 45%. It really helped to relatively distribute the resources and catch more clients by investing more on advertisements on the high growth potential regions of the world.

Loyal3 Own What You Love Case Study Solution is a top 25 company worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its consistent investment in R&D and ingenious practices have actually propelled them to new heights but for them its' just the start and they want to be amongst the leading 3 brands worldwide. They entirely turnaround from almost declaring bankruptcy throughout the Asian Financial Crisis to a world prominent brand, known for quality and innovation. Their value chain and their core proficiency their production capability, along-with worldwide brand name image building have 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 even more in the future. Their marketing efforts must be directed towards more youthful demographic amidst the internal arguments about marketing and should develop Customer Lifetime Worth as it will not just give them benefits now but will continue to enjoy it till the customer life time. As the expense of maintaining the consumer is much cheaper than attracting a new one.