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Lumismart B Answering The Call For Negawatts 2 Case Study Analysis is a widely known international brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Lumismart B Answering The Call For Negawatts 2 handle large number of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic items. Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which used to sell Org items withtheir own brand name. Till early 1990s, the core proficiency of Corporation lie in its low cost offerings than its rivals by manufacturing existing products at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Lumismart B Answering The Call For Negawatts 2 Case Study Analysis items with their own brand. Corp was not simply known outside Korea. There were likewise no or little interest in developing the brand name globally. Marketing budget was controlled by production department with a prime focus on supplying cheap products.During the 1997 Asian Financial Crisis the company almost got insolvent, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most important business on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He repositioned Company as an international brand name and educated his divisional supervisors to understand marketing and its significance. Now their goal is to arrive 10 by 2005.

Issue Declaration

Enterprise's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to integrate marketing successfully is still a major obstacle. Producing a constant brand name identity across the whole world and using marketing methods that best fits the local culture is no easy task.
Executive Summary
Situational Analysis

Lumismart B Answering The Call For Negawatts 2 Case Study Help efforts for building its trademark name across the world was begun after introducing the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Enterprise from a low-cost OEM to a high value-added item provider. To make the vision of Corp a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Corporation can change from a low end to a high end product service provider. He knew that improvement can just be done through positioning Corporation 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 construct Company brand, with a potential support of its executives, Yun faced several marketing obstacles in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was excessive high, the gap was too larger and to fill this gap with wrong understandings about marketing was quite tough for Yun.

As mentioned above, marketing focus was extremely low in previous practices, for that reason there were no correct marketing budgets for each of the product on the portfolio. There was no marketing planning done for the existing products. In addition to it the product range of the business was increasing with the ripening of new item ideas by the R&D sector of Enterprise. Yun had a challenge to perform marketing preparation and to create marketing budget plans for existing in addition to for brand-new products from the very beginning, and this would take a substantial time.

A substantial shift would be required in existing marketing expenses to construct the Corporation brand. This would result in increased marketing expenses for Company and might disturb the administration regarding increased costs, as they were unwilling to marketing expenses formerly and a sudden big shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Lumismart B Answering The Call For Negawatts 2 Case Study Solution strengths lie in its substantial item portfolio. Org has largest number of patents in the market with overall number of 15499 patents granted in United States( USP).

Another strength of Lumismart B Answering The Call For Negawatts 2 Case Study Analysis is its ability to establish innovative items at a continuous rate. It significant shows for the innovation and product designing of Enterprise is that the company has received many awards for its innovation and product style.

Unlike Apple and other competitors, Business is focused on producing devices which can be easily incorporated with any type of open source Os (OS) and software. This supplies Business an edge over Apple gadgets.
Porter's 5 Forces Analysis
Org's capability to produce high-end products at low cost of production is likewise among the significant strength of Venture as it allows the business to catch more market by offering quality products with expense control.


Business's weaknesses are concealed in the business's dependence on outsourcing software application for its devices due to company's inability in establishing software, unlike Sony. Lumismart B Answering The Call For Negawatts 2 Case Study Analysis also has low profit margins as compare to Apple due to big distinction in the prices of Apple and Org with a much lower difference in quality.


Opportunities for Lumismart B Answering The Call For Negawatts 2 Case Study Help lie in the growing Smartphone market and the business's performance in the market. Company 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 vibrant market environment of technology market position an extreme threat on Org's survival and force the company to spend much of its incomes share on R&D in order to make it through in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile business is likewise a huge danger for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Organization offers quality products and has a rather rich portfolio which caters to different sectors. LCD and mobile phones are the most significant products of Venture, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Smart phone.
• A/c.
• Personal computers.
• Hard drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lumismart B Answering The Call For Negawatts 2 Case Study Analysis utilizes both market competitive and market skimming prices methods for its wide array of products. In competitive pricing it changes the rate according to the competition in order to acquire advantage, whereas, it utilizes market skimming technique where the item has actually an included value and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It uses both offline & online channels of promotion to market their products. Paid item ads, social promotion and digital advertisements are uses to produce awareness about Corp items.

Value Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even reduced their payment cycles to increase this relationship further which adds worth to their chain network.


Venture's core competency is its mass manufacturing it produces 90% of its items internal. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is keeping operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Lumismart B Answering The Call For Negawatts 2 Case Study Analysis has the ability to compete with Apple. Business's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Enterprise.

Marketing and Sales.

Drawing in target customer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the product offers. Lumismart B Answering The Call For Negawatts 2 Case Study Analysis advertising budget is continuously growing considering that they started their rearranging internationally and will continue to do so as they are continually seeking to broaden and invest in high potential development markets. The budget is spent on events, print and media advertisements, public relations and so on.

Org Service. Org put their consumers on top and constantly aim to deliver unmatchable customer support requirements. As after sales service is becoming exceptionally crucial to keep customers pleased and engaged, they even carry out studies through third parties to learn their consumer's feedback and execute it in the favorable way to lower or if possible completely eliminate their consumer issues. By adding a direct assistance line to call them 24 hours they have even more increased the added value of Lumismart B Answering The Call For Negawatts 2 Case Study Solution service.


Lumismart B Answering The Call For Negawatts 2 Case Study Help has actually diversified market segmentation, based upon its provision of wide range of products to a great deal of consumers. Business target client segments can be divided into 3 classifications i.e. Lumismart B Answering The Call For Negawatts 2 Case Study Solution IT and Mobile Communications, Organization Customer Electronic Devices and Venture Gadget solutions.


Lumismart B Answering The Call For Negawatts 2 Case Study Help geographical segmentation is based upon two criteria i.e. region and density. Business serves about 80 nations worldwide with its items supplied to Urban along with Backwoods of the country. The Corp is also growing its worldwide presence and the business's flexibility in finding its plants encourages international expansion of Corporation.


The market division of Lumismart B Answering The Call For Negawatts 2 Case Study Solution is based upon gender, age, life-cycle phase and occupation. Company produces products that can be used by both females and males. The target clients for Business IT and mobile interaction products have an age variety of 18-65 with majority at a young or newly wed life process stage. They are mostly specialists, employees and trainees. Apart from it, Corporation Customer Electronic devices are targeted to a customer segment with an age range of 25-65. They are mostly experts and staff members. Company Device Solutions are targeted at students, workers and experts with an age variety of 25-65.


The psychographic division of Lumismart B Answering The Call For Negawatts 2 Case Study Solution s based upon the social class and the life style of the customer. Business target consumers on the basis of social class are primarily upper middle, middle and working class customers, as Business offer products like mobile phone very little less expensive i.e. Motorola in addition to very little costly i.e. Apple. It supplies quality products to middle level consumers at a somewhat high cost than others targeting the same sector.


Lumismart B Answering The Call For Negawatts 2 Case Study Help majority target clients have distinct behavioural characteristics. They are drawn in towards Enterprise due to the fact that of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Corporation has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has also reduced its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Due to the fact that of the high overhead cost, incomes/ sales are increasing however net profit is not increasing accordingly. New expansions and working with's were the main reason of the increase in the overhead expenses, with china presently not supplying any earnings to Org, but there is a lot potential in the existing market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the more youthful audience and develop a worldwide brand image of the business. Whereas, the core strength of the business is currently producing however long gone are those days when good products were offering themselves. In the current age marketing is extremely crucial and companies can not be successful without it. Kim has actually already begun to reinforce the marketing activities of Org and soon it will become one of its core strength like manufacturing if not better.



Enterprise operates designs, makes and sell a vast portfolio of consumer electronics. It runs in an exceptionally competitive environment and has successfully placed itself as the maker of quality products. The answer is yes.


As, stated previously that Lumismart B Answering The Call For Negawatts 2 Case Study Solution runs in a highly competitive environment, which means all the companies have comparable items. So, the answer for rarity is no.


Due to the nature of the industry, it is extremely simple for rivals to understand the functionality of the products and quickly make their own designs. Yes, Org is just behind IBM in registering brand-new patents yearly, however the advantage is really short term in this industry.


Chairman Lee has totally turnaround Organization, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 company on the planet. Absolutely yes there appertains organization in the company and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread practically in every country 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 industrialized countries where law and order circumstance is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Lumismart B Answering The Call For Negawatts 2 Case Study Solution operations.


Buying power of customers is important for companies like Org to grow and succeed. Emerging markets like India, middle-eastern countries and so on supply development opportunities, whereas, due to economic crisis even the clients of developed countries suffer terribly. Thus it is really essential for the business to keep an eye on the ongoing financial circumstance of the country prior to getting in the marketplace.


Multinational companies have to deal with different social and cultural issues throughout its operations in a foreign country. Organization has actually also dealt with lots of concerns however have embraced to the local environments of most of the countries extremely well. It has customized its products, practices, policies etc. accordingly in order to succeed.


With a yearly expense of 2.4 billion dollars in Research study & Development, and with consistent ingenious product launches, Lumismart B Answering The Call For Negawatts 2 Case Study Solution is among the top innovative business of the world. With a clear mission to be ahead of the rest when it pertains to technological developments, Corp has risen to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being a multinational business Business have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. So, it has to study or hire a local law professional prior to starting its operations in a specific nation.


With the rising awareness among customers about the environmental & ethical violations of companies, Enterprise needs to make sure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the effects can be really extreme. On the other hand it needs to do some Business Social Responsibility practices to reveal the residents that it cares about their environment and people.

Porter's 5 Forces

Threat of Alternative

Threat of substitution for Org's each item category is rather considerable. Running in an incredibly vibrant industry lead the business to face a high threat of substitution. Factors for high danger of substitution for Lumismart B Answering The Call For Negawatts 2 Case Study Solution Mobile phone consist of the presence of high number of providers and Market saturation in industrialized countries, that make the cost of switching for customers almost no. Replacement risks for Enterprise visual display screen depend on the altering life style of consumers. Customers can change to enjoying visuals at home towards outdoor activities. In addition to it, Organization printing services items are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Org and its close competitors is extreme. The major factor behind this is the approach of market saturation in different number of product categories, requiring Company to introduce more innovative functions in existing items and brand-new innovative products to maintain its development. The major competitors for Lumismart B Answering The Call For Negawatts 2 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Lumismart B Answering The Call For Negawatts 2 Case Study Analysis has a huge supply chain including about 2700 suppliers across the world.( Corp Sustainability Report, 2016) Provider's bargaining power for Corporation is low as Enterprise runs economies of scale and its orders are of prospective size and worth. These huge orders allow Business to negotiate rates with its providers. Due to incapability of Company to construct its own software application, it has to outsource its software development to Google, which becomes a possible provider of software application for Venture, resulting in high bargaining power of Google. In most of Lumismart B Answering The Call For Negawatts 2 Case Study Analysis has a power to work out prices, but it offer substantial costs to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in most of the product categories also make the bargaining power of purchasers more extreme in for Corp. In spite of igh bargaining power Corporation is rather capable of selling its items at a greater price than much of its rivals, due to high end quality product and a fair brand name image.

Risk of New Entrants:

Risk of brand-new entrants for Org is quite low. Among the significant factor for low threat of new entrants is the high competitors in the market. The requirement of huge amount of capital to enter in the marketplace is also among the possible barrier to entry. Along with it, requirement of big expertise and research study and development expenditures for survival in the market likewise make new entrants unwilling to enter in the marketplace. Market saturation is also among the barrier of entry in innovation industry. High bargaining power of providers force the players in the market to charge as low rates as possible and this can only be attained by production effectiveness. Brand-new firms, in majority cases, do not have the production efficiency, thus increasing the threats for entryway in the innovation market.

Competitive Analysis

Corp's high product diversification provides it distinction from its competitors. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single product classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Lumismart B Answering The Call For Negawatts 2 Case Study Help had a substantial R&D spending on all of its product classifications which allow the company to earn possible revenue from sales of almost all of its products.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of global market share, among 8 different item categories. Company was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Corp profits from chips was less than Intel but its revenues from chips was growing much faster than Intel and has actually grown near to the profits levels of Intel, as given in the case Exhibition 2.

In addition to the chips Venture mobile market was also thriving 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 only 4% and Nokia with zero sales growth. The significant reson behind Company's high growth despite of higher rates than Nokia and Motorola was the business's high-end quality cell phones.

Venture was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The significant reason, making the company enable to get the opportunity is its mass production at low expense. Sony was the biggest competitor for Lumismart B Answering The Call For Negawatts 2 Case Study Help in LCD market, nevertheless, it had actually likewise begun joint venture with Company in 2003 for LCD making, lessening the competition for Company.

Porter's Competitive Technique

Low Expense Leadership strategy of porter is completely carried out by Business the way they attain economies of scale by reinforcing their core competencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, because they were unable to take on them on low expense. Distinction is another strategy well carried out by Company by continuous financial investment in the R&D and remaining ahead of the competitors. They constantly bring something new and innovative whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lumismart B Answering The Call For Negawatts 2 Case Study Help would develop a brand-new brand image by targeting the younger generation of the particular nation. As, especially mobile phones of Venture are very popular amongst the more youthful market.


1. It is the very best method to develop Client Life time Value (CLV) by developing a long-term relationship with consumers. Construct loyalty through providing worth and reap the benefits for long-term, as research study has actually showed it is more affordable to maintain existing consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger individuals and which in turn will bring in new clients for my products.


1. Old clients who were related to Business before might not like this brand-new image the company is attempting to depict.
2 It will sustain further costs to reposition some products and it might not even bring success as the trends change very rapidly amongst the more youthful market.

Alternative service 2.

Business has actually made producing its core proficiency for the many part of their organisation and due to which its managers are not afraid to completely step out of their comfort zone. It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be developed internally initially as genuine marketing starts inside the corporation.


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


2. Its con can create a really unhealthy environment in the work environment, as individuals typically withstand modification because they fear it.

Identify the best option

Option is the finest as it clearly has more pros because when a Client Lifetime Worth is developed the company will benefit from it till that client is alive and has acquiring power. Plus, our target clients are the younger generation which are bound to live longer than the existing old age individuals. Nonetheless, Corp's main goal is to develop loyalty among its consumers and make them bought it from them and even buy their various items as well.

Execution Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations reasonable and attainable.
• A team including best marketing and sales specialists need to be put together, and both views ought to be taken into consideration prior to protecting the resources needed to execute the strategy.
• Thorough interaction of the plan should be done as it is very essential for everybody to be on the same page to make it work.
• Jobs and timelines need to be construct and interacted accordingly to each person responsible.
• The manager need to utilize a control panel which shows the development of all the tasks which have been done or about to be done and by whom.
• The manager should monitor and keep a consistent check on the private and total performance.
Since any brand-new pattern or policy may come in due to which all the things already prepared have to be adjusted, • Everybody must be prepared to adapt midway. It's much better to have contingency strategies already prepared.
• At the end of the campaign the supervisor should interact the results and if effective ought to celebrate with the group.

Spending plan

This modification the budget plan allotment of many supervisors and various countries were dissatisfied and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth possible merited a 35% allowance while they were getting 45%. It actually helped to fairly disperse the resources and catch more customers by investing more on advertisements on the high growth potential regions of the world.

Lumismart B Answering The Call For Negawatts 2 Case Study Analysis is a top 25 business on the planet 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 wish to be among the top 3 brands in the world. They totally turnaround from practically declaring bankruptcy during the Asian Financial Crisis to a world distinguished brand name, known for quality and development. Their value chain and their core competency their production ability, along-with worldwide brand name image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts ought to be directed towards more youthful market amid the internal arguments about marketing and should produce Customer Lifetime Value as it will not only give them advantages now however will continue to gain it till the customer life time. As the expense of maintaining the customer is much cheaper than attracting a new one.