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Lukens Inc The Melters Committee A Spanish Version Case Study Solution & Analysis


Lukens Inc The Melters Committee A Spanish Version Case Study Help is a widely known worldwide brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Lukens Inc The Melters Committee A Spanish Version deals in large number of product categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic products. Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which utilized to sell Samsung products withtheir own trademark name. Till early 1990s, the core proficiency of Samsung depend on its low price offerings than its competitors by manufacturing existing items at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Lukens Inc The Melters Committee A Spanish Version Case Study Solution items with their own trademark name. Samsung was not merely understood outside Korea. There were also no or little interest in building the brand worldwide. Marketing spending plan was managed by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the company practically got bankrupt, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the leading 25 most valuable business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Samsung as a worldwide brand name and educated his divisional managers to comprehend marketing and its value. Now their goal is to reach the top 10 by 2005.

Issue Statement

Samsung's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing efficiently is still a significant challenge. Creating a constant brand name identity across the whole world and using marketing strategies that finest fits the local culture is no simple job.

Situational Analysis

Lukens Inc The Melters Committee A Spanish Version Case Study Solution efforts for building its brand throughout the world was started after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to change Samsung from an inexpensive OEM to a high value-added item provider. To make the vision of Samsung a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Samsung can change from a low end to a high-end item company. He knew that improvement can just be done through positioning Samsung as a company using high-end items and this could just be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand, with a potential support of its executives, Yun faced numerous marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the current marketing requirement was too much high, the gap was too broader and to fill this space with incorrect perceptions about marketing was quite tough for Yun.

As mentioned above, marketing focus was really low in previous practices, therefore there were no appropriate marketing spending plans for each of the product on the portfolio. There was no marketing planning provided for the existing items. Together with it the product variety of the business was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had an obstacle to perform marketing planning and to create marketing budget plans for existing along with for brand-new items from the very start, and this would take a big time.

A big shift would be required in current marketing expenditures to build the Lukens Inc The Melters Committee A Spanish Version Case Study Help brand name. This would result in increased marketing expenditures for Samsung and might disturb the administration concerning increased costs, as they were reluctant to marketing expenditures previously and an abrupt huge shiftwould make them disrupt. This could lead to declining executive support for global marketing. In this scenario, Yun deals with a difficulty for justifying increased marketing expenses by demonstrating the long term worth of big marketing expenditures.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its huge item portfolio. Samsung has biggest variety of patents in the market with overall number of 15499 patents approved in US( USP). Big quantity of R&D spending has actually made it possible for the company to grow its item portfolio at a higher rate than its rivals. Lukens Inc The Melters Committee A Spanish Version Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall revenues.

Another strength of Lukens Inc The Melters Committee A Spanish Version Case Study Solution is its capability to develop ingenious products at a constant rate. It major shows for the development and product designing of Samsung is that the company has actually received so many awards for its development and item design.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be quickly incorporated with any type of open source Os (OS) and software. This supplies Samsung an edge over Apple devices.

Samsung's capability to produce luxury products at low cost of production is likewise one of the significant strength of Samsung as it allows the company to capture more market by offering quality items with cost control.

Weak points

Lukens Inc The Melters Committee A Spanish Version Case Study Help weaknesses are hidden in the company's dependence on outsourcing software application for its gadgets due to company's failure in developing software, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to big difference in the costs of Apple and Samsung with a much lower difference in quality. The varied focus of the business due to a great deal of products in its portfolio, lead to the less effective production and make the business not able to charge greater rates like Apple. The business is also ineffective in managing its patents and often deals with the issue of patent offense.


Opportunities for Samsung lie in the growing Smartphone market and the business's performance in the market. It can increase its market share and earnings from mobile phone as the business is rather effective in smart phone market. Samsung presently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would enable the company to increase its item portfolio with a boost in its wealth.


The vibrant industry environment of technology industry position a severe danger on Samsung's survival and force the business to invest much of its revenues share on R&D in order to make it through in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is also a huge threat for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing


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

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Computer.
• Hard disk drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lukens Inc The Melters Committee A Spanish Version Case Study Solution uses both market competitive and market skimming prices techniques for its wide array of items. In competitive pricing it changes the price according to the competitors in order to acquire benefit, whereas, it utilizes market skimming strategy where the item has actually an added worth and by selling a couple of 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 products are prompt supplied to the selling place/ delivered to the consumers directly in case of online order.


It wasn't a well-known company beyond Korea till 1993. The management effort taken by their CEO has pushed them to market more effectively outside the borders and now it has actually gotten in the league of top 25 business in the world in simply 9 years. This is an impressive accomplishment regardless of the continuous arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promotion and digital advertisements are utilizes to produce awareness about Samsung items.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most efficient and effective supply chain network and has over 2700 suppliers throughout various industries around the world. Almost 80% of which is based in Asia and the staying all over the world. For its inbound logistics it owns different logistics companies as it subsidiaries. It cares for its providers and creates an unified relationship with them and even decreased their payment cycles to enhance this relationship further which adds worth to their chain network.


Samsung's core proficiency is its mass making it produces 90% of its items internal. Divided into 3 different departments its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is keeping operation centers worldwide to even more add value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main reasons Lukens Inc The Melters Committee A Spanish Version Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target client attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product uses. Lukens Inc The Melters Committee A Spanish Version Case Study Solution advertising budget is continuously on the rise considering that they began their repositioning globally and will continue to do so as they are constantly looking to expand and invest in high possible growth markets. The spending plan is invested in occasions, print and media ads, public relations and so on.

Samsung put their clients at the leading and constantly aim to deliver unmatchable consumer service standards. By including a direct support line to call them 24 hours they have further increased the added worth of Samsung service.


Lukens Inc The Melters Committee A Spanish Version Case Study Analysis has diversified market segmentation, based upon its arrangement of wide range of items to large number of consumers. Samsung target consumer sectors can be divided into 3 categories i.e. Lukens Inc The Melters Committee A Spanish Version Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget options.


Lukens Inc The Melters Committee A Spanish Version Case Study Analysis geographic segmentation is based upon two requirements i.e. area and density. Samsung serves about 80 countries worldwide with its products supplied to Urban in addition to Backwoods of the country. The Samsung is also growing its worldwide presence and the company's flexibility in locating its plants encourages international expansion of Samsung.


The market segmentation of Lukens Inc The Melters Committee A Spanish Version Case Study Help is based upon gender, age, life-cycle stage and occupation. Samsung produces items that can be utilized by both males and women. The target consumers for Samsung IT and mobile interaction products have an age series of 18-65 with bulk at a young or newly married life cycle phase. They are mainly professionals, trainees and workers. Apart from it, Samsung Customer Electronics are targeted to a consumer segment with an age range of 25-65. They are primarily employees and experts. Samsung Device Solutions are targeted at trainees, workers and professionals with an age range of 25-65.


The psychographic segmentation of Lukens Inc The Melters Committee A Spanish Version Case Study Analysis s based upon the social class and the life style of the customer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class consumers, as Samsung offer products like mobile phone not much more affordable i.e. Motorola in addition to very little expensive i.e. Apple. It supplies quality products to middle level customers at a somewhat high cost than others targeting the very same sector.


Lukens Inc The Melters Committee A Spanish Version Case Study Help majority target consumers have distinct behavioural qualities. They are brought in towards Samsung due to the fact that of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Samsung has actually increased remarkably 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 likewise minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Since of the high overhead cost, incomes/ sales are increasing however net revenue is not increasing appropriately. New expansions and employing's were the primary factor of the increase in the overhead costs, with china currently not providing any revenue to Samsung, but there is so much potential in the current market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently manufacturing however long gone are those days when excellent items were offering themselves. Kim has actually already begun to enhance the marketing activities of Samsung and really soon it will end up being one of its core strength like manufacturing if not better.



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


As, stated previously that Lukens Inc The Melters Committee A Spanish Version Case Study Analysis operates in a highly competitive environment, which suggests all the companies have comparable products. So, the answer for rarity is no.


Due to the nature of the industry, it is very simple for rivals to understand the functionality of the items and easily make their own designs. Yes, Samsung is just behind IBM in signing up brand-new patents yearly, however the advantage is extremely short-term in this market.


Chairman Lee has entirely turnaround Samsung, from going practically bankrupt throughout the Asian monetary crisis of 1997 to the top 25 business on the planet. Certainly yes there appertains organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, majority of the environments like USA, Europe, China etc., are very conductive for its operations. It deals with some political pressures in less industrialized nations where law and order circumstance is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Lukens Inc The Melters Committee A Spanish Version Case Study Solution operations.


Buying power of consumers is crucial for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to recession even the customers of industrialized nations suffer terribly. It is extremely important for the business to keep an eye on the continuous financial scenario of the country prior to entering the market.


Multinational business have to face numerous social and cultural concerns during its operations in a foreign nation. Samsung has likewise dealt with many issues however have actually embraced to the local environments of the majority of the countries exceptionally well. It has customized its products, practices, policies and so on appropriately in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with continuous ingenious item launches, Lukens Inc The Melters Committee A Spanish Version Case Study Analysis is among the top ingenious companies of the world. With a clear objective to be ahead of the rest when it pertains to technological improvements, Samsung has increased to the no 25 of the leading effective business of the world.


Each nation 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 result in major legal consequences. So, it needs to study or hire a regional law specialist before beginning its operations in a specific country.


With the rising awareness among consumers about the environmental & ethical infractions of business, Samsung has to ensure that it follows all the security standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the repercussions can be really severe. On the other hand it needs to do some Corporate Social Obligation practices to reveal the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Hazard of Substitution

Danger of replacement for Samsung's each item category is quite significant. Aspects for high hazard of replacement for Lukens Inc The Melters Committee A Spanish Version Case Study Analysis Mobile phone consist of the presence of high number of providers and Market saturation in developed countries, which make the expense of changing for consumers nearly zero. Along with it, Samsung printing solutions items are threatened by the increasing destination of clients towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Samsung and its close rivals is extreme. The major reason behind this is the technique of market saturation in numerous number of product categories, requiring Samsung to introduce more ingenious functions in existing items and new ingenious items to preserve its growth. The major competitors for Lukens Inc The Melters Committee A Spanish Version Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. Due to incapability of Lukens Inc The Melters Committee A Spanish Version Case Study Help to construct its own software, it has to outsource its software development to Google, which becomes a prospective provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications also make the bargaining power of buyers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its products at a higher cost than much of its competitors, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Hazard of brand-new entrants for Lukens Inc The Melters Committee A Spanish Version Case Study Analysis is quite low. Along with it, requirement of huge expertise and research study and advancement expenses for survival in the industry likewise make brand-new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high product diversification offers it distinction from its rivals. 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, Lukens Inc The Melters Committee A Spanish Version Case Study Solution had a huge R&D spending on all of its item categories which enable the business to earn possible profits from sales of nearly all of its products.

The company ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to international market share, among 8 various product classifications. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its profits from chips was growing quicker than Intel and has grown near to the revenue levels of Intel, as given in the case Exhibit 2.

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

Samsung was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The major factor, making the business allow to get the opportunity is its mass production at low cost. Sony was the most significant competitor for Lukens Inc The Melters Committee A Spanish Version Case Study Solution in LCD market, nevertheless, it had also begun joint venture with Samsung in 2003 for LCD making, decreasing the competition for Samsung.

Porter's Competitive Technique

Low Cost Leadership technique of porter is totally implemented by Samsung the method they accomplish economies of scale by reinforcing their core proficiencies of production. They constantly bring something brand-new and innovative whether it's an item or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lukens Inc The Melters Committee A Spanish Version Case Study Analysis would produce a new brand name image by targeting the younger generation of the particular country. As, specifically mobile phones of Samsung are preferred amongst the younger demographic.


1. It is the best strategy to build Consumer Life time Worth (CLV) by producing a long-lasting relationship with consumers. Build loyalty through providing worth and profit for long-lasting, as research study has actually revealed it is more affordable to keep current customers than to attract new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful individuals and which in turn will generate new consumers for my products.


1. Old customers who were related to Samsung prior to may not like this brand-new image the business is attempting to represent.
2 It will sustain further expenditures to reposition some items and it might not even bring success as the patterns alter very rapidly amongst the more youthful market.

Alternative solution 2.

It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be provided. Marketing environment ought to be developed internally first as real marketing starts 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 because they fear it.

Recognize the best alternative

First alternative is the best as it plainly has more pros due to the fact that when a Client Lifetime Value is built the company will benefit from it till that customer is alive and has acquiring power as well. Plus, our target clients are the younger generation which are bound to live longer than the existing aging people. Samsung's main objective is to develop loyalty amongst its consumers and make them repurchase it from them and even buy their different products.

Application Strategy

• Targeting younger generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations reasonable and possible.
• A team including finest marketing and sales experts must be put together, and both views should be taken into consideration before protecting the resources needed to carry out the plan.
• Thorough interaction of the strategy must be done as it is very important for everybody to be on the same page to make it work.
• Jobs and timelines must be develop and interacted accordingly to each individual responsible.
• The supervisor need to use a dashboard which shows the progress of all the tasks which have actually been done or about to be done and by whom.
• The manager must keep track of and keep a continuous look at the specific and overall efficiency.
Because any brand-new pattern or policy might come in due to which all the things already prepared have actually to be changed, • Everybody should be ready to adapt midway. It's better to have contingency strategies currently prepared.
• At the end of the project the manager need to interact the results and if successful need to celebrate with the team.


This change the budget plan allocation of many managers and various countries were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia growth prospective merited a 35% allowance while they were receiving 45%. It truly assisted to relatively disperse the resources and capture more consumers by investing more on ads on the high growth capacity areas of the world.


Lukens Inc The Melters Committee A Spanish Version Case Study Help is a top 25 business worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its continuous financial investment in R&D and innovative practices have moved them to brand-new heights but for them its' only the start and they want to be among the top 3 brands worldwide. They completely turnaround from almost declaring bankruptcy during the Asian Financial Crisis to a world popular brand, understood for quality and innovation. Their value chain and their core competency their production capability, along-with worldwide brand name image building 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 further in the future. Their marketing efforts must be directed towards younger market in the middle of the internal arguments about marketing and ought to develop Client Lifetime Value as it will not just give them advantages now however will continue to enjoy it till the consumer lifetime. As the cost of retaining the customer is more affordable than bring in a brand-new one.