Lukens Inc The Melters Committee A Spanish Version Harvard Case Study Analysis

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


Historically, the business's core customers consist of the Original Equipment Manufacturers (OEMs), which utilized to sell Lukens Inc The Melters Committee A Spanish Version Case Study Help products withtheir own brand name. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to sell Samsung products with their own brand name. He repositioned Samsung as a worldwide brand and informed his divisional supervisors to comprehend marketing and its significance.

Issue Declaration

Samsung's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to include marketing effectively is still a major obstacle. Creating a consistent brand name identity throughout the whole world and employing marketing methods that finest fits the regional culture is no simple job. The M-net program analysis have been really practical in determining the high and less prospective development locations, but allowance of resources appropriately is not well gotten amongst the managers. There is no consensus amongst the hierarchy regarding the very best fit future method.
Executive Summary
Situational Analysis

Yun had a rather clear photo in his mind about how Lukens Inc The Melters Committee A Spanish Version Case Study Solution can change from a low end to a high end product provider. He understood that transformation can only be done through placing Samsung 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 Samsung brand, with a possible assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

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

Along with it the item range of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a challenge to perform marketing preparation and to develop marketing budget plans for existing as well as for brand-new items from the very beginning, and this would take a big time.

A substantial shift would be needed in existing marketing expenditures to develop the Samsung brand name. This would result in increased marketing expenses for Samsung and could disturb the administration concerning increased expenditures, as they were reluctant to marketing expenditures formerly and an unexpected huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Lukens Inc The Melters Committee A Spanish Version Case Study Solution strengths lie in its huge item portfolio. Samsung has biggest number of patents in the industry with total number of 15499 patents approved in United States( USP).

Another strength of Lukens Inc The Melters Committee A Spanish Version Case Study Analysis is its capability to develop innovative products at a constant rate. It significant proves for the innovation and item developing of Samsung is that the business has actually gotten a lot of awards for its development and product style.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be quickly incorporated with any kind of open source Os (OS) and software. This offers Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's ability to produce high-end items at low cost of production is likewise one of the major strength of Samsung as it makes it possible for the business to catch more market by providing quality items with expense control.


Lukens Inc The Melters Committee A Spanish Version Case Study Analysis weaknesses are concealed in the company's reliance on outsourcing software application for its gadgets due to business's failure in developing software, unlike Sony. Samsung likewise has low earnings margins as compare to Apple due to huge difference in the rates of Apple and Samsung with a much lesser difference in quality. The varied focus of the business due to a great deal of items in its portfolio, lead to the less effective production and make the business unable to charge greater prices like Apple. The company is also ineffective in handling its patents and often faces the issue of patent violation.


Opportunities for Lukens Inc The Melters Committee A Spanish Version Case Study Analysis lie in the growing Smartphone market and the business's performance in the market. Samsung currently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology market posture an extreme hazard on Samsung's survival and force the business to spend much of its earnings share on R&D in order to survive in the long run. The marketplace saturation in developed nations i.e. saturation of mobile company is likewise a big danger for the company's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Samsung provides quality products and has a quite 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 contrast of them.

• Laptops.
• Cellphone.
• Air conditioning unit.
• Personal computers.
• Hard drives.
• Washing machines.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Lukens Inc The Melters Committee A Spanish Version Case Study Analysis utilizes both market competitive and market skimming rates strategies for its wide range of items. In competitive prices it adjusts the rate according to the competition in order to acquire benefit, whereas, it uses market skimming method where the product has an included worth and by selling a few items it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its items are prompt supplied to the selling place/ provided to the customers straight in case of online order.

Vrio Analysis
It wasn't a well-known business outside of Korea until 1993. However the management effort taken by their CEO has actually pushed them to market more efficiently outside the borders and now it has actually gone into the league of top 25 companies on the planet in just 9 years. This is a remarkable achievement regardless of the ongoing arguments amongst the managers about embracing marketing practices. It uses both offline & online channels of promotion to market their items. Paid item advertisements, social promotion and digital ads are uses to produce awareness about Samsung products.

Worth Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns numerous logistics firms as it subsidiaries. It looks after its suppliers and produces a harmonious relationship with them and even decreased their payment cycles to increase this relationship even more which adds value to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its products in-house. Divided into three various divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the main factors Lukens Inc The Melters Committee A Spanish Version Case Study Solution has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the item uses. Lukens Inc The Melters Committee A Spanish Version Case Study Solution advertising budget is constantly increasing given that they started their repositioning globally and will continue to do so as they are continually wanting to invest and expand in high prospective growth markets. The budget is invested in occasions, print and media ads, public relations and so on.

Samsung put their consumers at the leading and continually strive to deliver unmatchable customer service requirements. By including a direct assistance line to contact them 24 hours they have actually further increased the included worth of Samsung service.


Lukens Inc The Melters Committee A Spanish Version Case Study Help has actually diversified market segmentation, based upon its provision of wide range of items to a great deal of customers. Samsung target customer sections can be divided into 3 categories i.e. Lukens Inc The Melters Committee A Spanish Version Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device options.


Lukens Inc The Melters Committee A Spanish Version Case Study Solution geographic division is based upon two requirements i.e. area and density. Samsung serves about 80 countries worldwide with its items offered to Urban along with Rural areas of the nation. The Samsung is likewise growing its global presence and the company's versatility in locating its plants encourages global growth of Samsung.


Samsung produces items that can be used by both women and males. The target consumers for Samsung IT and mobile interaction items have an age range of 18-65 with bulk at a young or recently married life cycle phase. Apart from it, Samsung Customer Electronics are targeted to a customer sector with an age range of 25-65.


The psychographic segmentation of Lukens Inc The Melters Committee A Spanish Version Case Study Help s based upon the social class and the life style of the customer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class customers, as Samsung sell products like cell phones not much more affordable i.e. Motorola in addition to very little pricey i.e. Apple. It offers quality items to middle level consumers at a slightly high price than others targeting the exact same section.


Lukens Inc The Melters Committee A Spanish Version Case Study Solution majority target customers have unique behavioural attributes. It has clients with an ambitious, fashionable and determined personality with moderate level of commitment towards the brand. Its clients have some degree of shift towards other renowned brand names i.e. Apple. Most of Samsun customers want quality in addition to cost control. They are attracted towards Samsung because of its moderate rates with an extent of quality.

Quantitative analysis.

Sales of Samsung has increased amazingly 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 lowered its debt 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. Revenues/ sales are increasing but net earnings is not increasing appropriately since of the high overhead expense. New growths and employing's were the main factor of the increase in the overhead costs, with china presently not supplying any profit to Samsung, but there is so much potential in the existing market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently making however long gone are those days when good products were selling themselves. Kim has actually already begun to strengthen the marketing activities of Samsung and really quickly it will become one of its core strength like producing if not better.



Samsung runs designs, makes and sell a vast portfolio of customer electronics. It operates in a very competitive environment and has actually successfully positioned itself as the maker of quality items. So, the answer is yes.


As, stated previously that Lukens Inc The Melters Committee A Spanish Version Case Study Analysis runs in an extremely competitive environment, which suggests all the business have comparable products. So, the response for rarity is no.


Due to the nature of the market, it is very easy for rivals to comprehend the functionality of the products 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 industry.


Chairman Lee has entirely turn-around Samsung, from going practically insolvent during the Asian financial crisis of 1997 to the leading 25 business worldwide. Certainly yes there is proper company in the business and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread nearly in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less developed nations where law and order circumstance is not great. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Lukens Inc The Melters Committee A Spanish Version Case Study Solution operations.


Buying power of clients is crucial for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations and so on offer development chances, whereas, due to recession even the clients of industrialized nations suffer badly. It is extremely essential for the company to keep an eye on the ongoing financial situation of the nation before going into the market.


Multinational business have to deal with various social and cultural issues during its operations in a foreign country. Samsung has likewise dealt with many concerns however have adopted to the local environments of most of the countries incredibly well. It has actually customized its products, practices, policies and so on appropriately in order to be successful.


With a yearly expense of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Lukens Inc The Melters Committee A Spanish Version Case Study Help is one of the leading ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological improvements, Samsung has risen to the no 25 of the leading effective business of the world.


Each nation has their own laws and policies, being an international company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal repercussions. So, it has to study or employ a local law professional prior to starting its operations in a particular country.


With the increasing awareness amongst consumers about the ethical & ecological infractions of business, Samsung needs to make sure that it follows all the security standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the consequences can be very severe. On the other hand it needs to do some Corporate Social Duty practices to reveal the locals that it appreciates their environment and individuals.

Porter's Five Forces

Risk of Alternative

Hazard of alternative for Samsung's each product category is rather considerable. Running in an incredibly dynamic industry lead the business to deal with a high danger of substitution. Elements for high hazard of replacement for Lukens Inc The Melters Committee A Spanish Version Case Study Solution Smart device consist of the presence of high variety of suppliers and Market saturation in industrialized nations, that make the cost of switching for customers practically zero. Substitution risks for Samsung visual screen lie in the changing lifestyle of clients. Consumers can change to seeing visuals at home towards outdoor activities. In addition to it, Samsung printing solutions items are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Among Existing Firms:

The rivaly among Samsung and its close rivals is extreme. The significant reason behind this is the approach of market saturation in different number of item classifications, forcing Samsung to present more ingenious features in existing products and new ingenious items to keep its growth. The significant rivals for Lukens Inc The Melters Committee A Spanish Version Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

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

Bargaining Power of Purchasers:

Haggling power of buyers for numerous number of item categories of Samsung is intense. Among the factor causing the intense bargaining power is the schedule of a great deal of competitors in almost each item classification i.e. competitors of Samsung Smart device, with an extremely little distinction. The high schedule of suppliers of Mobile phones with minimum differentiation, make the changing expense for buyers almost zero, hence increasing the bargaining power of purchasers. Market saturation in the majority of the item classifications also make the bargaining power of purchasers more intense in for Lukens Inc The Melters Committee A Spanish Version Case Study Solution. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher rate than much of its competitors, due to luxury quality item and a reasonable brand image.

Danger of New Entrants:

Threat of new entrants for Lukens Inc The Melters Committee A Spanish Version Case Study Solution is rather low. Along with it, requirement of huge expertise and research study and advancement expenses for survival in the industry also make new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high product diversification provides it distinction from its competitors. It is one of the three top brands by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on consumer electronics, Nokia on cell phones and Intel on chips, Samsung had a big R&D costs on all of its product classifications which allow the business to make possible earnings from sales of nearly all of its products. (See Display) However, due to the large product variety the company deals with high variety of rivals.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to worldwide market share, amongst 8 various item classifications. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Although, Samsung profits from chips was less than Intel however its earnings from chips was growing much faster than Intel and has actually grown near the profits levels of Intel, as given up the case Exhibit 2.

In addition to the chips Samsung mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cellular phone's sales development was 51% as compare to Motorola with only 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 business's high-end quality cellular phone.

Samsung was likewise profiting from increasing market share of high-end LCDs as given in case Display 3. The significant reason, making the business make it possible for 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 Help in LCD market, nevertheless, it had likewise started joint endeavor with Samsung in 2003 for LCD manufacturing, lessening the competition for Samsung.

Porter's Competitive Strategy

Low Cost Leadership method of porter is totally carried out by Samsung the way they accomplish economies of scale by strengthening their core proficiencies of manufacturing. They constantly bring something brand-new and innovative whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lukens Inc The Melters Committee A Spanish Version Case Study Analysis would create a brand-new brand name image by targeting the more youthful generation of the particular nation. As, particularly mobile phones of Samsung are very popular among the younger group.


1. It is the best strategy to construct Customer Life time Value (CLV) by creating a long-term relationship with consumers. Construct commitment through providing worth and reap the benefits for long-term, as research has actually showed it is more affordable to retain current clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger individuals and which in turn will bring in brand-new consumers for my items.


1. Old customers who were connected with Samsung prior to may not like this new image the company is attempting to portray.
2 It will sustain further expenditures to reposition some items and it might not even bring success as the trends alter very rapidly amongst the younger market.

Alternative option 2.

Samsung has actually made making its core competency for the most part of their company and due to which its managers are not scared to fully step out of their convenience zone. It would be done by arranging training workshops during which importance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get benched. Marketing environment need to be produced internally initially as genuine marketing begins inside the corporation.


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


2. Its con can produce a very unhealthy environment in the workplace, as people frequently withstand change since they fear it.

Recognize the best option

Alternative is the best as it clearly has more pros because as soon as a Customer Lifetime Value is developed the business will benefit from it till that client is alive and has buying power. Plus, our target clients are the younger generation which are bound to live longer than the existing aging people. Samsung's primary goal is to develop commitment amongst its consumers and make them repurchase it from them and even buy their various products.

Implementation Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi make with music. And set the expectations possible and realistic.
• A group including best marketing and sales specialists must be put together, and both views should be considered prior to securing the resources required to implement the plan.
• Thorough communication of the plan should be done as it is extremely essential for everyone to be on the very same page to make it work.
• Tasks and timelines should be build and communicated accordingly to each person responsible.
• The manager should use a control panel which shows the development of all the tasks which have been done or about to be done and by whom.
• The supervisor need to keep an eye on and keep a consistent check on the specific and overall performance.
• Everyone should be willing to adjust 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 project the supervisor ought to interact the results and if successful ought to celebrate with the team.

Budget plan

This modification the spending plan allotment of different countries and numerous supervisors were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth possible warranted a 35% allowance while they were getting 45%. It actually helped to fairly distribute the resources and catch more clients by spending more on ads on the high growth potential regions of the world.

Its consistent investment in R&D and ingenious practices have actually moved them to new heights but for them its' only the start and they want to be among the top 3 brand names in the world. Their marketing efforts should be directed towards more youthful market in the middle of the internal arguments about marketing and ought to create Consumer Life time Value as it will not only give them benefits now but will continue to gain it till the consumer lifetime. As the cost of maintaining the consumer is much cheaper than drawing in a brand-new one.