Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Harvard Case Study Analysis

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Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution and Analysis


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis is a widely known international brand name in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism handle large number of product classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic products. Historically, the company's core clients include the Original Equipment Manufacturers (OEMs), which utilized to offer Samsung items withtheir own brand. Till early 1990s, the core competency of Samsung depend on its low price offerings than its rivals by producing existing products at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help items with their own trademark name. Samsung was not merely understood outside Korea. There were likewise no or little interest in building the brand internationally. Marketing spending plan was controlled by production department with a focal point on providing inexpensive products.During the 1997 Asian Financial Crisis the company practically got bankrupt, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the leading 25 most valuable company on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as an international brand name and informed his divisional supervisors to comprehend marketing and its importance. Now their goal is to arrive 10 by 2005.

Problem Declaration

Samsung's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to integrate marketing successfully is still a significant obstacle. Developing a constant brand identity throughout the whole world and using marketing techniques that finest fits the local culture is no easy job.

Situational Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis efforts for developing its brand across the world was begun after introducing the "new management initiative" by Chairman Lee in 1993. The objective was to transform Samsung from a cheap OEM to a high value-added item service provider. To make the vision of Samsung a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Samsung can change from a low end to a high end product supplier. He understood that transformation can just be done through positioning Samsung 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 Samsung brand, with a prospective support of its executives, Yun dealt with several marketing obstacles in early years of its efforts.

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

Along with it the item range of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had a challenge to carry out marketing preparation and to create marketing spending plans for existing as well as for brand-new products from the very start, and this would take a substantial time.

A huge shift would be required in existing marketing expenses to construct the Samsung brand name. This would result in increased marketing expenditures for Samsung and might interrupt the administration regarding increased expenditures, as they were reluctant to marketing expenses formerly and a sudden huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution strengths lie in its big product portfolio. Samsung has largest number of patents in the market with total number of 15499 patents given in US( USP).

Another strength of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is its capability to develop ingenious products at a constant rate. It significant shows for the innovation and product designing of Samsung is that the company has actually received numerous awards for its innovation and item style.

Unlike Apple and other competitors, Samsung is concentrated on producing gadgets which can be quickly integrated with any kind of open source Os (OS) and software application. This supplies Samsung an edge over Apple gadgets.

Samsung's ability to produce high end items at low expense of production is likewise among the significant strength of Samsung as it enables the business to capture more market by supplying quality items with cost control.


Samsung's weak points are concealed in the company's reliance on outsourcing software application for its gadgets due to company's failure in establishing software, unlike Sony. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help also has low profit margins as compare to Apple due to big distinction in the prices of Apple and Samsung with a much lower difference in quality.


Opportunities for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis lie in the growing Smart device market and the business's effectiveness in the market. Samsung currently runs in about 80 nations and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The dynamic industry environment of innovation market pose a severe hazard on Samsung's survival and force the business to invest much of its revenues share on R&D in order to survive in the long run. The market saturation in developed nations i.e. saturation of mobile company is likewise a huge threat for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing


Samsung uses quality products and has a quite rich portfolio which caters to various segments. LCD and mobile phones are the greatest items of Samsung, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Cellphone.
• A/c unit.
• Personal computers.
• Hard drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help uses both market competitive and market skimming rates methods for its wide variety of products. In competitive rates it adjusts the price according to the competitors in order to get advantage, whereas, it uses market skimming method where the item has actually an included worth and by selling a few items it can reach break-even.


It has among the very best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon etc. All its items are timely provided to the selling location/ provided to the clients directly in case of online order.


It wasn't a widely known company beyond Korea until 1993. The management initiative taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has gotten in the league of top 25 companies in the world in simply 9 years. This is an impressive accomplishment regardless of the continuous arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promo to market their items. Paid item advertisements, social promo and digital ads are utilizes to create awareness about Samsung products.

Value Chain Analysis.

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

Incoming Logistics.

For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and develops an unified relationship with them and even minimized their payment cycles to boost this relationship further which includes value to their chain network.


Samsung's core proficiency is its mass making it produces 90% of its items in-house. Divided into three various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is keeping operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main factors Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target consumer attention towards the product is done through marketing and sales to interact with them the value and competitive advantage the product offers. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution marketing budget plan is constantly rising considering that they began their rearranging internationally and will continue to do so as they are continually wanting to invest and broaden in high possible growth markets. The spending plan is invested in occasions, print and media ads, public relations etc.

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


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help has diversified market segmentation, based upon its arrangement of large range of products to large number of consumers. Samsung target consumer sectors can be divided into 3 categories i.e. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help geographical division is based upon 2 criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items provided to Urban in addition to Rural areas of the country. The Samsung is also growing its international presence and the business's versatility in locating its plants motivates worldwide expansion of Samsung.


Samsung produces products that can be utilized by both males and women. The target clients for Samsung IT and mobile communication products have an age range of 18-65 with majority at a young or newly married life cycle stage. Apart from it, Samsung Customer Electronics are targeted to a client section with an age range of 25-65.


The psychographic segmentation of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism 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 customers, as Samsung offer products like mobile phone not much more affordable i.e. Motorola in addition to not much costly i.e. Apple. It offers quality items to middle level consumers at a somewhat high cost than others targeting the same segment.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis majority target consumers have special behavioural qualities. They are drawn in towards Samsung since of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help has actually increased astonishingly 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 largest selling category of Samsung 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 business is presently making but long gone are those days when excellent items were selling themselves. Kim has currently started to reinforce the marketing activities of Samsung and really quickly it will become one of its core strength like producing if not better.



Samsung operates designs, produces and offer a huge portfolio of customer electronics. It operates in a very competitive environment and has effectively placed itself as the maker of quality products. So, the response is yes.


As, said earlier that Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution 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 extremely simple for rivals to understand the functionality of the products and quickly make their own models. Yes, Samsung is only behind IBM in signing up new patents each year, but the advantage is extremely short-term in this market.


Chairman Lee has entirely turn-around Samsung, from going practically insolvent throughout the Asian monetary crisis of 1997 to the top 25 company worldwide. Certainly yes there appertains organization in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread practically in every nation worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. It faces some political pressures in less industrialized nations where law and order scenario is not excellent. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help operations.


Purchasing power of clients is essential for business like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries and so on provide development opportunities, whereas, due to economic crisis even the clients of industrialized countries suffer terribly. Thus it is really important for the company to keep an eye on the continuous financial scenario of the country before going into the market.


International companies have to deal with different social and cultural issues during its operations in a foreign nation. Samsung has likewise faced lots of issues however have adopted to the local environments of the majority of the countries remarkably well. It has tailored its items, practices, policies etc. accordingly in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with continuous ingenious product launches, Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is among the top ingenious business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Samsung has actually increased to the no 25 of the top effective business of the world.


Each nation has their own laws and policies, being an international company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. It has to study or employ a local law expert before beginning its operations in a particular country.


With the rising awareness among consumers about the ethical & ecological offenses of business, Samsung needs to ensure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some countries the effects can be really extreme. On the other hand it has to do some Business Social Duty practices to reveal the locals that it appreciates their environment and individuals.

Porter's Five Forces

Hazard of Replacement

Threat of replacement for Samsung's each item classification is quite substantial. Running in an incredibly vibrant industry lead the company to deal with a high danger of substitution. Elements for high danger of substitution for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution Smartphone include the existence of high variety of providers and Market saturation in industrialized countries, which make the expense of switching for consumers practically zero. Replacement threats for Samsung visual screen depend on the changing lifestyle of customers. Customers can switch to watching visuals in your home towards outside activities. In addition to it, Samsung printing options products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Samsung and its close competitors is intense. The major factor behind this is the technique of market saturation in various number of product classifications, requiring Samsung to present more ingenious features in existing items and brand-new ingenious items to maintain its growth. The significant rivals for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help has a large supply chain including about 2700 suppliers across 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 prospective size and worth. These big orders enable Samsung to work out costs with its suppliers. However, due to incapability of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help to develop its own software, it has to outsource its software advancement to Google, which ends up being a potential provider of software for Samsung, resulting in high bargaining power of Google. In many of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis has a power to negotiate prices, however it provide considerable rates to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in many of the product classifications likewise make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its items at a higher price than much of its rivals, due to high end quality item and a reasonable brand name image.

Risk of New Entrants:

Risk of new entrants for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is quite low. Along with it, requirement of big expertise and research and advancement expenses for survival in the industry likewise make brand-new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high product diversity provides it differentiation from its competitors. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution had a huge R&D costs on all of its product categories which enable the business to earn possible revenue from sales of nearly all of its items.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of global market share, amongst 8 various item classifications. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Samsung earnings from chips was less than Intel but its revenues from chips was growing faster than Intel and has grown close to the earnings levels of Intel, as given in the case Exhibit 2.

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

Samsung was also profiting from increasing market share of high-end LCDs as given in case Display 3. The major reason, making the business make it possible for to get the opportunity is its mass production at low cost. Sony was the greatest rival for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis in LCD market, nevertheless, it had actually likewise begun joint endeavor with Samsung in 2003 for LCD manufacturing, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Leadership method of porter is totally carried out by Samsung the way they accomplish economies of scale by strengthening their core competencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, because they were unable to compete with them on low cost. Distinction is another strategy well implemented by Samsung by constant investment in the R&D and staying ahead of the competition. They constantly bring something new and ingenious whether it's an item or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help would produce a new brand image by targeting the younger generation of the particular country. As, particularly smart phones of Samsung are popular among the younger demographic.


1. It is the very best technique to develop Consumer Life time Worth (CLV) by creating a long-term relationship with customers. Develop commitment through delivering worth and reap the benefits for long-term, as research study has showed it is much cheaper to retain present consumers than to bring in new ones.
2. Another pro of this option is that word of mouth spread faster among more youthful people and which in turn will generate new customers for my products.


1. Old clients who were associated with Samsung before might not like this brand-new image the company is attempting to portray.
2 It will incur more costs to rearrange some items and it might not even bring success as the patterns alter extremely quickly among the younger demographic.

Alternative option 2.

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


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


2. Its con can produce a really unhealthy environment in the workplace, as individuals frequently withstand change due to the fact that they fear it.

Identify the very best option

Option is the finest as it clearly has more pros because when a Consumer Life time Worth is developed the business will benefit from it till that consumer is alive and has buying power. Plus, our target customers are the younger generation which are bound to live longer than the existing old age people. Samsung's main goal is to produce commitment among its consumers and make them redeemed it from them and even purchase their various items.

Application Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations achievable and reasonable.
• A group including best marketing and sales specialists need to be put together, and both views must be taken into account prior to securing the resources required to execute the strategy.
• Thorough interaction of the plan must be done as it is extremely essential for everyone to be on the exact same page to make it work.
• Jobs and timelines should be develop and interacted accordingly to each individual accountable.
• The supervisor should utilize a dashboard which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The manager need to keep an eye on and keep a consistent examine the overall and specific efficiency.
• Everybody ought to be willing to adapt midway since any new trend or policy might come in due to which all the things already planned have to be adjusted. It's much better to have contingency strategies already prepared.
• At the end of the project the manager should communicate the results and if successful must celebrate with the group.

Spending plan

This modification the spending plan allocation of lots of managers and different nations were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia development potential warranted a 35% allotment while they were getting 45%. It really assisted to relatively distribute the resources and catch more customers by investing more on ads on the high growth capacity regions of the world.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis is a leading 25 company worldwide now and plans to get ahead of Sony who sits presently at no. 20. Its continuous investment in R&D and ingenious practices have actually moved them to new heights but for them its' just the start and they wish to be amongst the top 3 brand names on the planet. They totally turnaround from practically declaring bankruptcy during the Asian Financial Crisis to a world prominent brand name, understood for quality and development. Their value chain and their core proficiency their manufacturing capability, along-with global brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional growth in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts should be directed towards younger demographic amidst the internal arguments about marketing and ought to create Consumer Life time Value as it will not just provide benefits now however will continue to enjoy it till the client lifetime. As the expense of keeping the consumer is more affordable than attracting a brand-new one.