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

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


Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to sell Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis products withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Organization items with their own brand name. He rearranged Company as a worldwide brand name and informed his divisional managers to understand marketing and its significance.

Issue Statement

Organization's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to integrate marketing effectively is still a significant difficulty. Producing a constant brand name identity across the entire world and utilizing marketing methods that best fits the regional culture is no simple job.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution can transform from a low end to a high end item company. He understood that improvement can just be done through placing Corp 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 Venture brand name, with a potential assistance of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

Among the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as exact same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the current marketing requirement was excessive high, the gap was too wider and to fill this gap with incorrect understandings about marketing was quite challenging 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 Org. Yun had an obstacle to carry out marketing preparation and to develop marketing spending plans for existing as well as for new items from the very beginning, and this would take a huge time.

A big shift would be required in current marketing expenses to build the Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution brand name. This would lead to increased marketing expenses for Corp and might disturb the administration concerning increased costs, as they hesitated to marketing expenses formerly and a sudden big shiftwould make them disrupt. This might result in declining executive assistance for global marketing. In this circumstance, Yun faces a difficulty for justifying increased marketing expenses by showing the long term value of big marketing expenditures.

Internal Analysis
SWOT Analysis

Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution strengths lie in its big product portfolio. Corporation has biggest number of patents in the industry with total number of 15499 patents given in US( USP).

Another strength of Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution is its capability to establish ingenious items at a constant rate. It significant proves for the innovation and product developing of Venture is that the company has actually received many awards for its innovation and item design.

Unlike Apple and other competitors, Organization is focused on producing devices which can be easily integrated with any kind of open source Os (OS) and software. This supplies Business an edge over Apple devices.
Porter's 5 Forces Analysis
Org's ability to produce high-end products at low cost of production is also among the major strength of Corporation as it makes it possible for the company to catch more market by supplying quality items with cost control.

Weak points

Enterprise's weaknesses are concealed in the company's reliance on outsourcing software for its gadgets due to company's inability in establishing software, unlike Sony. Lundbeck Korea Managing An International Growth Engine 4 Case Study Help also has low revenue margins as compare to Apple due to huge distinction in the prices of Apple and Corp with a much lower distinction in quality.


Opportunities for Company depend on the growing Smartphone market and the company's efficiency in the market. It can increase its market share and incomes from cell phone as the business is rather efficient in cellular phone market. Corporation 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. Venture can move towards acquisitions to acquire patents. It would enable the company to increase its product portfolio with a boost in its wealth.


The vibrant market environment of innovation industry posture a severe risk on Enterprise's survival and force the company to spend much of its profits share on R&D in order to survive in the long run. The market saturation in developed nations i.e. saturation of mobile business is likewise a big danger for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Corporation offers quality products and has a rather rich portfolio which caters to various segments. LCD and mobile phones are the most significant products of Business, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Cellphone.
• A/c.
• Desktop computer.
• Disk drives.
• Washing machines.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution utilizes both market competitive and market skimming pricing techniques for its wide range of items. In competitive prices it changes the price according to the competition in order to acquire advantage, whereas, it utilizes market skimming strategy where the product has actually an added value and by selling 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 etc. All its items are prompt provided to the selling place/ provided to the consumers straight in case of online order.

Vrio Analysis
It uses both offline & online channels of promo to market their items. Paid item advertisements, social promotion and digital advertisements are utilizes to develop awareness about Corporation products.

Worth Chain Analysis.

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

Inbound Logistics.

It has one of the most effective and effective supply chain network and has over 2700 providers throughout numerous markets worldwide. Almost 80% of which is based in Asia and the staying around the world. For its inbound logistics it owns numerous logistics companies as it subsidiaries. It cares for its suppliers and develops a harmonious relationship with them and even decreased their payment cycles to improve this relationship even more which includes value to their chain network.


Corp's core competency is its mass producing it produces 90% of its products in-house. Divided into 3 various divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is keeping operation centers worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary reasons Lundbeck Korea Managing An International Growth Engine 4 Case Study Help has the ability to take on Apple. Company's own Electronic Logitec system plays a major role in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Organization.

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the item offers. Lundbeck Korea Managing An International Growth Engine 4 Case Study Help marketing budget plan is continually growing given that they began their rearranging globally and will continue to do so as they are continuously wanting to expand and invest in high prospective development markets. The budget plan is invested in events, print and media ads, public relations etc.

Business put their customers at the leading and continually strive to provide unmatchable client service requirements. By including a direct support line to call them 24 hours they have actually further increased the added worth of Enterprise service.


Lundbeck Korea Managing An International Growth Engine 4 Case Study Help has diversified market division, based upon its provision of wide variety of items to a great deal of consumers. Corp target customer sections can be divided into 3 categories i.e. Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis IT and Mobile Communications, Organization Customer Electronic Devices and Corp Gadget options.


Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution geographic segmentation is based upon 2 criteria i.e. region and density. Company serves about 80 nations worldwide with its products provided to Urban in addition to Backwoods of the country. The Organization is likewise growing its international presence and the business's versatility in finding its plants motivates international growth of Corporation.


The demographic segmentation of Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution is based upon gender, age, life-cycle phase and occupation. Venture produces products that can be used by both females and males. The target customers for Company IT and mobile communication items have an age variety of 18-65 with bulk at a young or freshly wed life process stage. They are primarily experts, students and employees. Apart from it, Venture Customer Electronic devices are targeted to a client sector with an age range of 25-65. They are mostly specialists and workers. Corp Device Solutions are targeted at trainees, workers and professionals with an age range of 25-65.


The psychographic segmentation of Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution s based upon the social class and the life style of the consumer. Corporation target clients on the basis of social class are mainly upper middle, middle and working class clients, as Business offer products like mobile phone very little more affordable i.e. Motorola as well as not much expensive i.e. Apple. It offers quality products to middle level customers at a somewhat high price than others targeting the very same section.


Lundbeck Korea Managing An International Growth Engine 4 Case Study Help bulk target customers have special behavioural characteristics. They are drawn in towards Corporation due to the fact that of its moderate costs with a level of quality.

Quantitative analysis.

Sales of Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution has increased remarkably 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 classification of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the company is presently manufacturing but long gone are those days when good products were offering themselves. Kim has currently begun to enhance the marketing activities of Business and very quickly it will become one of its core strength like producing if not better.



Company runs styles, manufactures and offer a vast portfolio of customer electronic devices. It runs in an incredibly competitive environment and has successfully placed itself as the maker of quality products. So, the answer is yes.


As, stated earlier that Lundbeck Korea Managing An International Growth Engine 4 Case Study Help operates in a highly competitive environment, which indicates all the business have similar products. The response for rarity is no.


Due to the nature of the market, it is very easy for competitors to comprehend the performance of the items and easily make their own designs. Yes, Corporation is only behind IBM in signing up new patents each year, but the advantage is really short-term in this market.


Chairman Lee has totally turn-around Corporation, from going nearly bankrupt during the Asian monetary crisis of 1997 to the leading 25 company on the planet. Absolutely yes there appertains company in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread practically in every country worldwide, majority of the environments like USA, Europe, China etc., are extremely conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized countries where order circumstance is not good. Latin American, African and some Asian nations fall in this category, where political instability do have a result on Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution operations.


Buying power of customers is important for companies like Venture to grow and be successful. Emerging markets like India, middle-eastern countries and so on provide development opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer severely. It is extremely essential for the company to keep an eye on the ongoing economic situation of the country before entering the market.


International companies need to face different social and cultural concerns during its operations in a foreign nation. Company has actually likewise dealt with numerous issues however have embraced to the regional environments of the majority of the nations incredibly well. It has tailored its items, practices, policies and so on appropriately in order to be successful.


With an annual expense of 2.4 billion dollars in Research & Development, and with consistent innovative item launches, Lundbeck Korea Managing An International Growth Engine 4 Case Study Help is one of the leading innovative business of the world. With a clear mission to be ahead of the rest when it concerns technological developments, Enterprise has risen to the no 25 of the top effective business of the world.


Each nation has their own laws and policies, being a multinational company Company have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal consequences. So, it has to study or employ a regional law expert before beginning its operations in a particular country.


With the rising awareness amongst consumers about the ecological & ethical infractions of companies, Business has to ensure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some countries the repercussions can be very serious. On the other hand it has to do some Corporate Social Obligation practices to reveal the residents that it cares about their environment and individuals.

Porter's Five Forces

Risk of Alternative

Danger of substitution for Venture's each item category is rather significant. Running in an extremely vibrant market lead the business to face a high hazard of alternative. Elements for high hazard of replacement for Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution Mobile phone include the presence of high number of providers and Market saturation in developed nations, that make the expense of changing for customers almost absolutely no. Replacement risks for Venture visual display screen lie in the altering lifestyle of clients. Consumers can switch to seeing visuals in the house towards outside activities. In addition to it, Corporation printing services products are threatened by the increasing attraction of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Enterprise and its close competitors is intense. The major reason behind this is the approach of market saturation in numerous variety of product categories, forcing Corp to present more ingenious functions in existing products and brand-new innovative products to maintain its growth. Other aspect for the intense competition among the competitors is the little product differentiation among the items. The prominent players in the innovation industry are quite aware of the value of R&D spending for their survival and are running into a race of marketing and R&D spending, to record the market. The significant competitors for Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the changing market shares which can be seen in Exhibit F.

Bargaining Power of Suppliers:

Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis has a vast supply chain consisting of about 2700 providers throughout the world.( Corp Sustainability Report, 2016) Provider's bargaining power for Org is low as Corporation runs economies of scale and its orders are of potential size and worth. These substantial orders enable Corporation to work out costs with its providers. Due to incapability of Corporation to build its own software application, it has to outsource its software development to Google, which becomes a potential provider of software application for Company, resulting in high bargaining power of Google. In most of Lundbeck Korea Managing An International Growth Engine 4 Case Study Help has a power to negotiate costs, but it provide substantial rates to its suppliers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in many of the item classifications also make the bargaining power of purchasers more extreme in for Corp. In spite of igh bargaining power Business is quite capable of selling its items at a higher rate than much of its rivals, due to high end quality item and a fair brand name image.

Hazard of New Entrants:

Threat of new entrants for Lundbeck Korea Managing An International Growth Engine 4 Case Study Help is quite low. Along with it, requirement of huge know-how and research study and advancement expenditures for survival in the industry also make brand-new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Corporation's high product diversity supplies it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution had a big R&D spending on all of its item classifications which make it possible for the business to earn potential earnings from sales of almost all of its items.

The business ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of international market share, amongst 8 various item categories. Corp was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Corp incomes from chips was less than Intel but its incomes from chips was growing quicker than Intel and has actually grown close to the revenue levels of Intel, as given in the case Exhibition 2.

Together with the chips Venture mobile market was likewise flourishing at a high rate than its rivals i.e. Motorola and Nokia. Organization's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with no sales growth. The major reson behind Enterprise's high development despite of greater costs than Nokia and Motorola was the company's high-end quality mobile phone.

Org was likewise profiting from increasing market share of luxury LCDs as given in case Display 3. The major reason, making the company allow to get the opportunity is its mass production at low cost. Sony was the biggest competitor for Lundbeck Korea Managing An International Growth Engine 4 Case Study Solution in LCD market, nevertheless, it had actually also begun joint endeavor with Org in 2003 for LCD making, lessening the competition for Org.

Porter's Competitive Technique

Low Cost Management method of porter is fully carried out by Venture the method they achieve economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something new and ingenious whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lundbeck Korea Managing An International Growth Engine 4 Case Study Help would produce a new brand image by targeting the more youthful generation of the specific nation. As, specifically mobile phones of Corp are popular amongst the more youthful demographic.


1. It is the best technique to develop Client Life time Worth (CLV) by developing a long-lasting relationship with consumers. Construct commitment through delivering worth and profit for long-lasting, as research has actually revealed it is more affordable to retain existing customers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful individuals and which in turn will generate new consumers for my items.


1. Old customers who were associated with Corp before may not like this brand-new image the business is trying to portray.
2 It will incur further costs to rearrange some items and it may not even bring success as the trends change extremely quickly among the more youthful demographic.

Alternative option 2.

Org has made manufacturing its core competency for the many part of their company and due to which its managers are not scared to totally step out of their convenience zone. It would be done by organizing 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 need to be produced internally first as genuine marketing begins inside the corporation.


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


2. Its con can create a really unhealthy environment in the office, as individuals frequently resist modification because they fear it.

Identify the best option

First option is the very best as it clearly has more pros since when a Client Lifetime Value is built the business will profit from it till that consumer lives and has purchasing power too. Plus, our target consumers are the younger generation which are bound to live longer than the existing old age people. Company's main goal is to develop loyalty amongst its clients and make them bought it from them and even purchase their various items.

Implementation Strategy

• Targeting more youthful generation through social marketing, developing a link with them like Pepsi do with music. And set the expectations achievable and practical.
• A team including best marketing and sales experts need to be put together, and both views ought to be considered before securing the resources required to carry out the strategy.
• Thorough communication of the strategy ought to be done as it is really important for everyone to be on the same page to make it work.
• Tasks and timelines need to be develop and interacted appropriately to each person responsible.
• The supervisor should use a control panel which reveals the progress of all the tasks which have actually been done or about to be done and by whom.
• The supervisor need to monitor and keep a continuous look at the private and overall efficiency.
Since any brand-new trend or policy may come in due to which all the things already prepared have to be changed, • Everybody must be willing to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the campaign the manager should interact the outcomes and if successful need to celebrate with the team.

Budget plan

This modification the spending plan allotment of various countries and lots of managers were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia development prospective merited a 35% allowance while they were getting 45%. It truly helped to relatively distribute the resources and capture more customers by investing more on advertisements on the high development capacity areas of the world.

Lundbeck Korea Managing An International Growth Engine 4 Case Study Analysis is a leading 25 business in the world now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and ingenious practices have actually moved them to brand-new heights however for them its' just the start and they wish to be amongst the leading 3 brands worldwide. They completely turn-around from almost going bankrupt during the Asian Financial Crisis to a world prominent brand, understood for quality and development. Their value chain and their core competency their production capability, along-with international brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts must be directed towards younger market amidst the internal arguments about marketing and ought to produce Customer Lifetime Value as it will not just provide advantages now however will continue to enjoy it till the customer life time. As the expense of retaining the client is much cheaper than drawing in a new one.