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

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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 Analysis is a widely known worldwide brand in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. Lukens Inc The Melters Committee A Spanish Version deals in a great deal of product classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core consumers include the Original Equipment Manufacturers (OEMs), which used to sell Organization items withtheir own trademark name. Till early 1990s, the core proficiency of Org depend on its low cost offerings than its rivals by making existing items at economies of scale. Its customer circle includes Original Devices Manufacturers (OEMs), who used to offer Lukens Inc The Melters Committee A Spanish Version Case Study Help products with their own trademark name. Corp was not simply known outside Korea. There were likewise no or little interest in building the trademark name worldwide. Marketing budget was controlled by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the business nearly got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable business on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Organization as a global brand and educated his divisional supervisors to understand marketing and its value. Now their goal is to arrive 10 by 2005.

Issue Declaration

Venture's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional managers to include marketing successfully is still a major difficulty. Producing a consistent brand name identity throughout the whole world and employing marketing techniques that finest fits the local culture is no easy task.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Lukens Inc The Melters Committee A Spanish Version Case Study Help can transform from a low end to a high end item supplier. He knew that transformation can only be done through placing Company as a business using high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to build Venture brand, with a prospective support of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality items 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 excessive high, the gap was too broader and to fill this gap with incorrect perceptions about marketing was rather challenging for Yun.

As specified above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing budget plans for each of the product on the portfolio. There was no marketing planning done for the existing items. Along with it the product series of the company was increasing with the ripening of new item concepts by the R&D sector of Company. Yun had an obstacle to perform marketing planning and to produce marketing budget plans for existing along with for new products from the very start, and this would take a huge time.

A substantial shift would be required in current marketing expenses to develop the Org brand name. This would result in increased marketing expenditures for Company and might interrupt the administration regarding increased expenditures, as they were hesitant to marketing expenditures previously and a sudden huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Lukens Inc The Melters Committee A Spanish Version Case Study Help strengths lie in its substantial item portfolio. Corporation has biggest number of patents in the market with total number of 15499 patents approved in US( USP).

Another strength of Lukens Inc The Melters Committee A Spanish Version Case Study Solution is its capability to develop innovative products at a continuous rate. It major proves for the development and item developing of Venture is that the business has received so many awards for its innovation and item style.

Unlike Apple and other competitors, Company is concentrated on producing devices which can be easily incorporated with any type of open source Os (OS) and software application. This offers Business an edge over Apple devices.
Porter's 5 Forces Analysis
Corp's ability to produce high-end products at low expense of production is also among the major strength of Org as it makes it possible for the company to record more market by providing quality items with expense control.


Lukens Inc The Melters Committee A Spanish Version Case Study Help weaknesses are concealed in the company's dependence on outsourcing software application for its gadgets due to company's inability in establishing software, unlike Sony. Venture also has low revenue margins as compare to Apple due to huge distinction in the costs of Apple and Enterprise with a much lower distinction in quality. The diverse focus of the company due to large number of items in its portfolio, lead to the less efficient production and make the company unable to charge higher prices like Apple. The business is likewise ineffective in handling its patents and frequently faces the issue of patent infraction.


Opportunities for Lukens Inc The Melters Committee A Spanish Version Case Study Analysis lie in the growing Mobile phone market and the company's performance in the market. Enterprise presently 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 innovation market present a serious hazard on Enterprise's survival and force the company to spend much of its revenues share on R&D in order to survive in the long run. The marketplace saturation in developed countries i.e. saturation of mobile business is likewise a huge danger for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Lukens Inc The Melters Committee A Spanish Version Case Study Help uses quality products and has a rather abundant portfolio which accommodates various segments. The majority of the products remain in the top three of their particular industries. LCD and cellphones are the greatest items of Org, whereas DRAM is also not far behind in comparison of them. Following is the product line of Business:

• Laptops.
• Mobile phones.
• A/c.
• Personal computers.
• Hard drives.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Lukens Inc The Melters Committee A Spanish Version Case Study Help uses both market competitive and market skimming rates strategies for its wide array of products. In competitive pricing it changes the cost according to the competition in order to acquire advantage, whereas, it utilizes market skimming technique where the product has actually an included worth and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a well-known business beyond Korea till 1993. However the management initiative taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has gone into the league of top 25 business worldwide in simply 9 years. This is a remarkable achievement despite the ongoing arguments among the managers about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid product advertisements, social promotion and digital advertisements are uses to produce awareness about Org products.

Value Chain Analysis.

It's an analytical framework for determining organisation activities that add value or competitive benefit for the business.

Incoming Logistics.

It has one of the most efficient and efficient supply chain network and has over 2700 suppliers across different industries worldwide. Practically 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 suppliers and develops a harmonious relationship with them and even decreased their payment cycles to boost this relationship further which adds value to their chain network.


Business's core competency is its mass manufacturing it produces 90% of its products internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronics. It is preserving operation hubs worldwide to further add worth 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 Solution is able to take on Apple. Company's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Organization.

Marketing and Sales.

Drawing in target client attention towards the product is done through marketing and sales to interact with them the value and competitive benefit the item provides. Lukens Inc The Melters Committee A Spanish Version Case Study Help marketing spending plan is continuously rising since they began their rearranging worldwide and will continue to do so as they are continually looking to invest and expand in high potential development markets. The budget plan is spent on occasions, print and media ads, public relations etc.

Corp put their customers at the leading and continuously make every effort to provide unmatchable consumer service requirements. By adding a direct support line to contact them 24 hours they have actually even more increased the added value of Corp service.


Lukens Inc The Melters Committee A Spanish Version Case Study Analysis has actually diversified market division, based upon its arrangement of wide range of products to a great deal of customers. Enterprise target client segments can be divided into 3 classifications i.e. Lukens Inc The Melters Committee A Spanish Version Case Study Help IT and Mobile Communications, Enterprise Customer Electronics and Business Gadget options.


Lukens Inc The Melters Committee A Spanish Version Case Study Help geographic division is based upon 2 requirements i.e. area and density. Venture serves about 80 countries worldwide with its products offered to Urban in addition to Rural areas of the nation. The Venture is also growing its global presence and the business's flexibility in locating its plants motivates worldwide growth of Corporation.


Org produces products that can be used by both males and females. The target customers for Venture IT and mobile interaction items have an age range of 18-65 with bulk at a young or recently wed life cycle phase. Apart from it, Org Consumer Electronics are targeted to a client section 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. Business target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Organization offer products like mobile phone very little less expensive i.e. Motorola as well as not much pricey i.e. Apple. It supplies quality items to middle level consumers at a somewhat high price than others targeting the very same segment.


Lukens Inc The Melters Committee A Spanish Version Case Study Solution majority target clients have special behavioural characteristics. They are drawn in towards Business since of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Enterprise has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has likewise minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Enterprise with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Revenues/ sales are increasing however net revenue is not increasing appropriately since of the high overhead cost. New growths and hiring's were the primary reason of the boost in the overhead expenses, with china presently not offering any revenue to Venture, however there is so much potential in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based on the mission of Kim to target the younger audience and produce an international brand name picture of the business. Whereas, the core strength of the company is presently manufacturing but long gone are those days when great items were offering themselves. In the existing age marketing is extremely essential and companies can not be successful without it. Kim has actually currently started to enhance the marketing activities of Corp and very soon it will turn into one of its core strength like manufacturing if not better.



Venture runs designs, manufactures and offer a large portfolio of consumer electronic devices. It operates in an extremely competitive environment and has effectively placed itself as the maker of quality products. So, the answer is yes.


As, said previously that Lukens Inc The Melters Committee A Spanish Version Case Study Help operates in an extremely competitive environment, which means all the business have comparable items. The response for rarity is no.


Due to the nature of the market, it is extremely simple for competitors to understand the performance of the items and quickly make their own models. Yes, Corp is just behind IBM in signing up brand-new patents every year, however the advantage is really short-term in this market.


Chairman Lee has totally turn-around Business, from going practically bankrupt during the Asian financial crisis of 1997 to the top 25 company worldwide. Certainly yes there appertains organization in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every country worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It deals with some political pressures in less industrialized countries where law and order scenario is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Lukens Inc The Melters Committee A Spanish Version Case Study Analysis operations.


Purchasing power of consumers is crucial for business like Company to grow and succeed. Emerging markets like India, middle-eastern nations and so on offer development opportunities, whereas, due to recession even the consumers of developed nations suffer badly. For this reason it is extremely important for the company to watch on the continuous financial situation of the nation before going into the market.


International business have to face various social and cultural problems throughout its operations in a foreign nation. Organization has also dealt with many concerns however have actually embraced to the local environments of the majority of the nations exceptionally well. It has tailored its items, practices, policies and so on accordingly in order to achieve success.


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 among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it concerns technological improvements, Organization has risen to the no 25 of the top successful business of the world.


Each nation 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 severe legal consequences. So, it has to study or work with a local law specialist before beginning its operations in a particular nation.


With the increasing awareness among consumers about the environmental & ethical violations of companies, Enterprise needs to guarantee that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some countries the effects can be really serious. On the other hand it needs to do some Business Social Obligation practices to reveal the residents that it cares about their environment and people.

Porter's Five Forces

Threat of Replacement

Risk of substitution for Enterprise's each item category is rather significant. Elements for high danger of alternative for Lukens Inc The Melters Committee A Spanish Version Case Study Analysis Smartphone consist of the existence of high number of providers and Market saturation in industrialized countries, which make the expense of switching for consumers nearly no. Along with it, Org printing solutions items are threatened by the increasing destination of customers towards cloud storage.

Competition Amongst Existing Companies:

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

Lukens Inc The Melters Committee A Spanish Version Case Study Solution has a huge supply chain including about 2700 providers across the world.( Corporation Sustainability Report, 2016) Supplier's bargaining power for Business is low as Venture runs economies of scale and its orders are of potential size and worth. These huge orders make it possible for Corporation to negotiate prices with its suppliers. However, due to incapability of Lukens Inc The Melters Committee A Spanish Version Case Study Solution to construct its own software, it needs to outsource its software application advancement to Google, which ends up being a potential supplier of software for Organization, leading to high bargaining power of Google. Although, in most of cases Corp has a power to work out prices, however it offer significant prices to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Bargaining power of buyers for numerous variety of item categories of Venture is intense. One of the aspect resulting in the extreme bargaining power is the availability of large number of competitors in nearly each product classification i.e. rivals of Organization Smart device, with a very little distinction. The high accessibility of suppliers of Smart devices with minimum differentiation, make the switching expense for buyers nearly no, thus increasing the bargaining power of buyers. Market saturation in the majority of the product classifications also make the bargaining power of buyers more extreme in for Lukens Inc The Melters Committee A Spanish Version Case Study Help. In spite of igh bargaining power Org is rather efficient in offering its products at a higher rate than much of its rivals, due to luxury quality product and a fair brand name image.

Risk of New Entrants:

Hazard of new entrants for Lukens Inc The Melters Committee A Spanish Version Case Study Help is quite low. Along with it, requirement of substantial competence and research study and development expenditures for survival in the industry also make new entrants reluctant to go into in the market. Market saturation is likewise one of the barrier of entry in technology industry.

Competitive Analysis

Company's high item diversification offers it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Lukens Inc The Melters Committee A Spanish Version Case Study Solution had a substantial R&D spending on all of its product classifications which enable the company to make potential earnings from sales of almost all of its items.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to international market share, amongst 8 different product classifications. Venture was the international leader in making DRAM, SRAM and NAND flash chips. Although, Company earnings from chips was less than Intel but its revenues from chips was growing much faster than Intel and has actually grown near the profits levels of Intel, as given in the case Display 2.

In addition to the chips Organization mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Corporation's cellular phone's sales development was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The major reson behind Corp's high development despite of greater costs than Nokia and Motorola was the business's high-end quality mobile phone.

Organization was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The significant factor, making the business enable to avail the opportunity is its mass production at low cost. Sony was the biggest rival for Lukens Inc The Melters Committee A Spanish Version Case Study Help in LCD market, however, it had also begun joint venture with Corporation in 2003 for LCD making, minimizing the competitors for Venture.

Porter's Competitive Strategy

Low Expense Management technique of porter is fully carried out by Enterprise the method they attain economies of scale by strengthening their core competencies of manufacturing. They constantly bring something new and ingenious whether it's a product or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lukens Inc The Melters Committee A Spanish Version Case Study Solution would develop a new brand image by targeting the younger generation of the particular nation. As, especially smart phones of Business are incredibly popular amongst the younger demographic.


1. It is the very best technique to develop Consumer Life time Value (CLV) by producing a long-lasting relationship with clients. Construct commitment through delivering value and reap the benefits for long-lasting, as research has actually showed it is much cheaper to retain present consumers than to attract new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will bring in new customers for my items.


1. Old consumers who were connected with Venture before may not like this brand-new image the company is trying to represent.
2 It will sustain more expenses to rearrange some items and it might not even bring success as the patterns change very quickly amongst the more youthful market.

Alternative solution 2.

It would be done by setting up training workshops during which value of marketing will be taught and numbers will be given. Marketing environment must be developed internally initially as genuine marketing begins inside the corporation.


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


2. Its con can create a really unhealthy environment in the work environment, as people frequently resist change due to the fact that they fear it.

Determine the best alternative

Option is the finest as it plainly has more pros because as soon as a Consumer Life time Value is developed the company will profit from it till that customer is alive and has acquiring power. Plus, our target clients are the more youthful generation which are bound to live longer than the present aging people. Company's primary objective is to create loyalty among its customers and make them repurchase it from them and even buy their various items.

Implementation Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi make with music. And set the expectations achievable and realistic.
• A team consisting of best marketing and sales professionals need to be assemble, and both views must be considered before securing the resources required to implement the strategy.
• Thorough interaction of the plan must be done as it is really important for everyone to be on the very same page to make it work.
• Jobs and timelines must be develop and interacted appropriately to each person accountable.
• The manager need to utilize a control panel which shows the development of all the jobs which have been done or about to be done and by whom.
• The manager should monitor and keep a consistent examine the individual and overall performance.
Because any new pattern or policy may come in due to which all the things already prepared have to be adjusted, • Everybody must be willing to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the campaign the supervisor must interact the results and if successful must celebrate with the group.

Budget plan

The M-net program exposed engaging analysis about the low and high growth prospective areas and just how much marketing spending plan must be designated accordingly. This change the budget allotment of many managers and different nations were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective warranted a 35% allotment while they were receiving 45%. Whereas, China and Europe must be getting 42% but were instead offered 31%. It actually assisted to relatively distribute the resources and catch more consumers by investing more on advertisements on the high growth potential regions of the world.

Lukens Inc The Melters Committee A Spanish Version Case Study Solution is a top 25 company in the world now and plans to get ahead of Sony who sits currently at no. 20. Its consistent investment in R&D and ingenious practices have moved them to new heights but for them its' only the start and they wish to be amongst the leading 3 brands worldwide. They completely turnaround from almost going bankrupt during the Asian Financial Crisis to a world popular brand name, known for quality and innovation. Their worth chain and their core proficiency their manufacturing ability, along-with international brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts ought to be directed towards younger group amidst the internal arguments about marketing and need to produce Customer Lifetime Worth as it will not only give them benefits now however will continue to enjoy it till the customer lifetime. As the expense of maintaining the consumer is much cheaper than attracting a new one.