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Lundbeck Korea Managing An International Growth Engine 4 Harvard Case Study Solution

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Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution & Analysis


Introduction

Historically, the company's core clients include the Original Devices Manufacturers (OEMs), which used to sell Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis products withtheir own brand name. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He repositioned Samsung as a worldwide brand and educated his divisional supervisors to understand marketing and its significance.

Issue Declaration

Samsung's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to include marketing successfully is still a significant difficulty. Developing a constant brand identity across the entire world and utilizing marketing methods that finest fits the local culture is no easy job.
Executive Summary
Situational Analysis

Lundbeck Korea Managing An International Growth Engine 4 Case Study Help efforts for developing its brand name throughout the world was started after presenting the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from an inexpensive OEM to a high value-added item service provider. To make the vision of Samsung a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can change from a low end to a high end item service provider. He knew that change can only be done through placing Samsung as a company using high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a possible assistance of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as same tools and thought that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the present marketing requirement was excessive high, the gap was too wider and to fill this gap with incorrect understandings about marketing was rather difficult for Yun.

As stated 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 preparation done for the existing items. Together with it the product variety of the company was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to create marketing budget plans for existing in addition to for new items from the very start, and this would take a substantial time.

A substantial shift would be required in present marketing expenditures to build the Lundbeck Korea Managing An International Growth Engine 4 Case Study Help brand name. This would result in increased marketing expenses for Samsung and might disrupt the administration regarding increased expenditures, as they hesitated to marketing expenses formerly and a sudden big shiftwould make them disturb. This could lead to decreasing executive assistance for global marketing. In this scenario, Yun deals with a difficulty for validating increased marketing expenditures by showing the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis
Strengths


Lundbeck Korea Managing An International Growth Engine 4 Case Study Help strengths lie in its substantial product portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents given in United States( USP).

Another strength of Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution is its capability to establish innovative items at a continuous rate. It major proves for the development and item creating of Samsung is that the business has received so many awards for its innovation and product design.

Unlike Apple and other rivals, Samsung is concentrated on producing devices which can be quickly integrated with any type of open source Os (OS) and software application. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end products at low cost of production is likewise among the significant strength of Samsung as it enables the business to catch more market by providing quality items with expense control.

Weaknesses

Lundbeck Korea Managing An International Growth Engine 4 Case Study Help weak points are hidden in the business's reliance on outsourcing software application for its gadgets due to business's failure in developing software application, unlike Sony. Samsung likewise has low revenue margins as compare to Apple due to substantial difference in the rates of Apple and Samsung with a much lower difference in quality. The varied focus of the company due to a great deal of products in its portfolio, lead to the less effective production and make the company unable to charge higher rates like Apple. The business is likewise ineffective in managing its patents and regularly faces the issue of patent offense.

Opportunities

Opportunities for Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution lie in the growing Mobile phone market and the company's efficiency in the market. Samsung currently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.

Risks

The vibrant industry environment of technology industry posture an extreme risk on Samsung's survival and require the business to spend much of its revenues share on R&D in order to make it through in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is also a big risk for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis
Product

Samsung offers quality items and has a quite abundant portfolio which caters to different sections. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• LCD/ TV
• Laptops.
• Smart phone.
• Ac system.
• Personal computers.
• Hard drives.
• Washer.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.
• DRAM.

Rate.

Lundbeck Korea Managing An International Growth Engine 4 Case Study Help utilizes both market competitive and market skimming rates techniques for its wide array of items. In competitive rates it adjusts the price according to the competition in order to acquire advantage, whereas, it uses market skimming technique where the item has actually an included value and by selling a couple of items it can reach break-even.

Place.

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

Promo.
Vrio Analysis
It uses both offline & online channels of promo to market their items. Paid product ads, social promo and digital ads are utilizes to create awareness about Samsung items.

Value Chain Analysis.

It's an analytical structure for determining organisation activities that include worth or competitive benefit for the business.

Inbound Logistics.

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

Operations.

Samsung's core competency is its mass making it produces 90% of its products internal. Divided into three different departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main reasons Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution has the ability to take on Apple. Samsung's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target customer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the item provides. Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution marketing spending plan is continuously increasing considering that they began their rearranging globally and will continue to do so as they are constantly seeking to broaden and invest in high prospective growth markets. The spending plan is invested in events, print and media advertisements, public relations etc.

Samsung put their consumers at the leading and continually strive to provide unmatchable consumer service requirements. By including a direct assistance line to contact them 24 hours they have actually even more increased the added worth of Samsung service.

Division.

Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis has actually diversified market division, based upon its provision of large range of items to a great deal of consumers. Samsung target client sectors can be divided into 3 classifications i.e. Lundbeck Korea Managing An International Growth Engine 4 Case Study Help IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device services.

Geographic.

Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis geographical division is based upon two criteria i.e. area and density. Samsung serves about 80 countries worldwide with its items supplied to Urban in addition to Backwoods of the nation. The Samsung is likewise growing its international existence and the company's versatility in finding its plants encourages worldwide expansion of Samsung.

Demographic.

The market division of Lundbeck Korea Managing An International Growth Engine 4 Case Study Help is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both females and males. The target consumers for Samsung IT and mobile interaction items have an age series of 18-65 with bulk at a young or recently wed life process phase. They are mainly trainees, workers and experts. Apart from it, Samsung Consumer Electronics are targeted to a customer segment with an age series of 25-65. They are mostly employees and experts. Samsung Device Solutions are targeted at trainees, employees and professionals with an age range of 25-65.

Psychographic.

The psychographic division of Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis s based upon the social class and the lifestyle of the customer. Samsung target customers on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell products like mobile phone not much cheaper i.e. Motorola in addition to not much pricey i.e. Apple. It supplies quality products to middle level consumers at a somewhat high cost than others targeting the very same sector.

Behavioural.

Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis majority target customers have unique behavioural attributes. It has clients with an ambitious, stylish and figured out personality with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other distinguished brands i.e. Apple. The majority of Samsun consumers want quality in addition to expense control. They are drawn in towards Samsung since of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the biggest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based upon the mission of Kim to target the younger audience and develop a worldwide brand name picture of the company. Whereas, the core strength of the company is currently making however long gone are those days when excellent items were offering themselves. In the present age marketing is extremely crucial and business can not prosper without it. Kim has already started to enhance the marketing activities of Samsung and very soon it will turn into one of its core strength like making if not better.

VRIO.

Worth.

Samsung operates styles, makes and offer a large portfolio of consumer electronic devices. It runs in a very competitive environment and has effectively positioned itself as the maker of quality items. The answer is yes.

Rarity.

As, said earlier that Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis runs in an extremely competitive environment, which indicates all the companies have similar items. The response for rarity is no.

Imitability.

Due to the nature of the market, it is very simple for competitors to understand the functionality of the products and easily make their own designs. Yes, Samsung is just behind IBM in registering new patents each year, but the benefit is really short term in this industry.

Organization.

Chairman Lee has entirely turn-around Samsung, from going almost bankrupt during the Asian monetary crisis of 1997 to the top 25 business on the planet. Certainly yes there appertains company in the company and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being an international brand spread almost in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are very conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized countries where order situation is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution operations.

Economic

Purchasing power of clients is essential for companies like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations and so on provide development chances, whereas, due to economic crisis even the customers of developed countries suffer terribly. For this reason it is extremely essential for the company to keep an eye on the continuous financial situation of the country prior to getting in the marketplace.

Socio-Cultural

International companies need to deal with various social and cultural issues during its operations in a foreign country. Samsung has actually also dealt with lots of problems however have actually embraced to the local environments of the majority of the nations incredibly well. It has actually customized its products, practices, policies and so on appropriately in order to achieve success.

Technological

With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with continuous innovative item launches, Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis is one of the leading ingenious business of the world. With a clear objective to be ahead of the rest when it concerns technological advancements, Samsung has risen to the no 25 of the leading effective companies of the world.

Legal

Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal repercussions. It has to study or hire a local law professional before beginning its operations in a particular nation.

Environmental

With the rising awareness among consumers about the ethical & environmental violations of business, Samsung has to make sure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some nations the effects can be very severe. On the other hand it needs to do some Business Social Obligation practices to reveal the locals that it appreciates their environment and individuals.

Porter's Five Forces

Threat of Alternative

Danger of substitution for Samsung's each item classification is quite substantial. Running in an exceptionally dynamic market lead the business to deal with a high hazard of alternative. Elements for high hazard of replacement for Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis Smart device consist of the presence of high number of providers and Market saturation in developed countries, which make the expense of changing for consumers nearly absolutely no. Alternative dangers for Samsung visual display screen depend on the altering life style of customers. Customers can switch to enjoying visuals in your home towards outside activities. Together with it, Samsung printing solutions products are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Samsung and its close rivals is extreme. The significant factor behind this is the approach of market saturation in different number of product classifications, requiring Samsung to present more innovative features in existing products and brand-new ingenious products to maintain its growth. Other element for the extreme rivalry among the competitors is the little item distinction amongst the items. The prominent gamers in the innovation industry are quite aware of the significance of R&D costs for their survival and are running into a race of marketing and R&D costs, to record the market. The significant rivals for Lundbeck Korea Managing An International Growth Engine 4 Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the varying market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis has a huge supply chain including about 2700 suppliers throughout the world.( 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. These huge orders make it possible for Samsung to negotiate prices with its suppliers. However, due to incapability of Lundbeck Korea Managing An International Growth Engine 4 Case Study Help to construct its own software application, it has to outsource its software development to Google, which ends up being a potential supplier of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out costs, however it supply substantial prices 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 classifications likewise 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 rivals, due to high end quality item and a reasonable brand name image.

Danger of New Entrants:

Threat of brand-new entrants for Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution is quite low. Along with it, requirement of substantial competence and research study and development expenditures for survival in the market also make brand-new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high item diversification supplies it differentiation from its competitors. Unlikely to its close rivals 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, Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis had a huge R&D spending on all of its product categories which enable the business to make possible income from sales of nearly all of its items.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to worldwide market share, among 8 different item classifications. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel however its revenues from chips was growing faster than Intel and has grown near the income levels of Intel, as given in the case Exhibition 2.

Together with 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 just 4% and Nokia with absolutely no sales growth. The significant reson behind Samsung's high growth despite of higher prices than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise reaping the benefits from increasing market share of high end LCDs as given up case Exhibit 3. The major reason, making the business enable to avail the chance is its mass production at low expense. Sony was the biggest rival for Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution in LCD market, nevertheless, it had actually likewise started joint endeavor with Samsung in 2003 for LCD manufacturing, minimizing the competition for Samsung.

Porter's Competitive Technique

Low Expense Management technique of porter is fully carried out by Samsung the method they achieve economies of scale by reinforcing their core competencies of production. Even to the point that their competitor SONY chose to form an alliance with them to produce for them, since they were not able to take on them on low expense. Differentiation is another technique well implemented by Samsung by constant investment in the R&D and remaining ahead of the competition. They constantly bring something brand-new and innovative whether it's a service or a product.

Alternatives

Alternative Solution 1

The Chief Marketing Officer (CMO) of Lundbeck Korea Managing An International Growth Engine 4 Case Study Help would create a brand-new brand name image by targeting the more youthful generation of the particular nation. As, specifically smart phones of Samsung are popular amongst the more youthful group.

Pros

1. It is the very best strategy to build Customer Life time Worth (CLV) by developing a long-term relationship with customers. Construct commitment through delivering value and profit for long-lasting, as research has actually revealed it is more affordable to retain current customers than to attract brand-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 brand-new customers for my products.

Cons

1. Old consumers who were connected with Samsung prior to may not like this new image the company is attempting to portray.
2 It will sustain additional expenses to reposition some products and it may not even bring success as the patterns alter very rapidly amongst the younger group.

Alternative solution 2.

Samsung has actually made manufacturing its core competency for the many part of their service and due to which its supervisors are not afraid to fully get out of their convenience zone. It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment should be developed internally initially as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can create a very unhealthy environment in the office, as individuals typically resist change because they fear it.

Recognize the best alternative

Alternative is the finest as it clearly has more pros since as soon as a Consumer Lifetime Value is constructed the company will benefit from it till that consumer is alive and has acquiring power. Plus, our target consumers are the younger generation which are bound to live longer than the current aging people. However, Samsung's primary objective is to produce loyalty among its consumers and make them redeemed it from them and even buy their various products too.

Application Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations practical and achievable.
• A team consisting of finest marketing and sales professionals should be assemble, and both views must be taken into consideration prior to protecting the resources needed to carry out the plan.
• Thorough interaction of the plan should be done as it is really essential for everybody to be on the same page to make it work.
• Jobs and timelines must be build and communicated accordingly to each person accountable.
• The manager ought to utilize a control panel which shows the progress of all the jobs which have actually been done or about to be done and by whom.
• The manager should keep track of and keep a continuous look at the overall and specific efficiency.
• Everyone ought to be willing to adjust midway because any new trend or policy may be available in due to which all the important things currently planned have to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the project the supervisor need to communicate the results and if effective should celebrate with the team.

Budget

The M-net program exposed compelling analysis about the low and high growth prospective areas and how much advertising budget plan should be allocated appropriately. This modification the spending plan allotment of lots of managers and various countries were unhappy and argued however the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia development possible warranted a 35% allocation while they were receiving 45%. Whereas, China and Europe must be receiving 42% but were rather provided 31%. It truly assisted to fairly distribute the resources and record more clients by spending more on advertisements on the high development capacity regions of the world.
Recommendations
Conclusion

Its continuous investment in R&D and ingenious practices have moved them to new heights however for them its' just the start and they desire to be among the top 3 brand names in the world. Their marketing efforts need to be directed towards younger group amidst the internal arguments about marketing and ought to create Customer Lifetime Value as it will not only offer them advantages now however will continue to enjoy it till the consumer life time. As the cost of keeping the consumer is much cheaper than bring in a new one.