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


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is a well-known worldwide brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism handle a great deal of item categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic products. Historically, the company's core clients include the Original Devices Manufacturers (OEMs), which used to sell Samsung products withtheir own brand. Till early 1990s, the core competency of Samsung depend on its low price offerings than its rivals by making existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help items with their own brand. Samsung was not simply known outside Korea. There were likewise no or little interest in constructing the brand internationally. Marketing spending plan was managed by production department with a focal point on supplying low-cost products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the top 25 most important business worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Samsung as an international brand name and informed his divisional managers to comprehend marketing and its importance. Now their objective is to reach the top 10 by 2005.

Issue Declaration

Samsung's transition from a product based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing effectively is still a significant obstacle. Creating a constant brand name identity throughout the entire world and utilizing marketing strategies that finest fits the local culture is no simple task. The M-net program analysis have been really valuable in identifying the high and less possible growth areas, however allowance of resources accordingly is not well received amongst the managers. There is no agreement amongst the hierarchy relating to the best matched future strategy.
Executive Summary
Situational Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help efforts for developing its brand across the world was begun after presenting the "new management initiative" by Chairman Lee in 1993. The objective was to change Samsung from an inexpensive OEM to a high value-added item supplier. 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 provider. He knew that transformation can only be done through placing Samsung as a company using high-end items and this could just be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand name, with a prospective assistance of its executives, Yun faced numerous marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the existing marketing requirement was too much high, the gap was too wider and to fill this gap with incorrect perceptions about marketing was quite challenging for Yun.

As stated above, marketing focus was really low in previous practices, for that reason there were no proper marketing budgets for each of the item on the portfolio. There was no marketing preparation done for the existing products. Together with it the product variety of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had an obstacle to perform 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 big time.

A substantial shift would be required in existing marketing expenditures to build the Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help brand name. This would lead to increased marketing expenditures for Samsung and could disturb the administration relating to increased costs, as they were reluctant to marketing expenditures previously and a sudden huge shiftwould make them interrupt. This might lead to declining executive assistance for worldwide marketing. In this situation, Yun faces a difficulty for justifying increased marketing expenditures by showing the long term worth of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help strengths lie in its huge item portfolio. Samsung has largest number of patents in the market with total number of 15499 patents approved in United States( USP).

Another strength of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is its ability to establish innovative products at a constant rate. It major proves for the development and product creating of Samsung is that the business has actually received so many awards for its development and item style.

Unlike Apple and other rivals, Samsung is concentrated on producing devices which can be quickly incorporated with any type of open source Os (OS) and software application. This supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end items at low expense of production is also one of the significant strength of Samsung as it makes it possible for the company to record more market by providing quality items with cost control.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis weak points are concealed in the business's dependence on outsourcing software for its devices due to company's inability in developing software application, unlike Sony. Samsung also has low profit margins as compare to Apple due to big difference in the rates of Apple and Samsung with a much lower difference in quality. The varied focus of the company due to large number of items in its portfolio, lead to the less efficient production and make the business unable to charge higher costs like Apple. The business is likewise inefficient in handling its patents and often deals with the problem of patent violation.


Opportunities for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis lie in the growing Mobile phone market and the company's performance 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 posture a severe danger on Samsung's survival and force the business to spend much of its earnings share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a huge threat for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

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

• Laptops.
• Cellphone.
• Air conditioning unit.
• Computer.
• Hard drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis uses both market competitive and market skimming prices strategies for its wide variety of items. In competitive rates it changes the cost according to the competition in order to gain advantage, whereas, it uses market skimming method where the product has actually an added worth and by selling a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a well-known business beyond Korea up until 1993. The management effort taken by their CEO has actually pressed them to market more effectively outside the borders and now it has actually gotten in the league of leading 25 companies in the world in just 9 years. This is an exceptional accomplishment in spite of the ongoing arguments amongst the supervisors about adopting marketing practices. It utilizes both offline & online channels of promotion to market their products. Paid item ads, social promotion and digital ads are uses to create awareness about Samsung products.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most reliable and efficient supply chain network and has over 2700 suppliers throughout various markets worldwide. Almost 80% of which is based in Asia and the remaining around the world. For its inbound logistics it owns numerous logistics companies as it subsidiaries. It takes care of its suppliers and develops an unified relationship with them and even reduced their payment cycles to enhance this relationship further which includes value to their chain network.


Samsung's core proficiency is its mass producing it produces 90% of its products in-house. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the primary reasons Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis is able to take on Apple. Samsung'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 Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the item provides. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help advertising budget is constantly rising given that they started their rearranging internationally and will continue to do so as they are continuously seeking to broaden and invest in high possible development markets. The budget is spent on occasions, print and media ads, public relations etc.

Samsung Service. Samsung put their clients at the top and continually make every effort to deliver unmatchable customer care requirements. As after sales service is ending up being very crucial to keep clients delighted and engaged, they even carry out surveys through 3rd parties to find out their client's feedback and execute it in the favorable way to minimize or if possible completely eliminate their customer problems. By adding a direct support line to call them 24 hours they have even more increased the included worth of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis service.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution has actually diversified market segmentation, based upon its provision of large range of products to large number of customers. Samsung target consumer sections can be divided into 3 classifications i.e. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget services.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis geographic division is based upon two criteria i.e. region and density. Samsung serves about 80 countries worldwide with its products provided to Urban along with Backwoods of the nation. The Samsung is also growing its international presence and the business's flexibility in finding its plants motivates global growth of Samsung.


The demographic segmentation of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both males and females. The target clients for Samsung IT and mobile communication items have an age variety of 18-65 with majority at a young or newly wed life cycle phase. They are primarily professionals, staff members and students. Apart from it, Samsung Consumer Electronics are targeted to a customer sector with an age range of 25-65. They are mostly specialists and employees. Samsung Device Solutions are targeted at trainees, employees and professionals with an age range of 25-65.


The psychographic division of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help s based upon the social class and the life style of the customer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class consumers, as Samsung offer items like cellular phone not much cheaper i.e. Motorola as well as very little expensive i.e. Apple. It offers quality products to middle level customers at a somewhat high price than others targeting the same section.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution bulk target clients have distinct behavioural attributes. It has customers with an enthusiastic, fashionable and identified personality with moderate level of loyalty towards the brand name. Its clients have some degree of shift towards other renowned brands i.e. Apple. The majority of Samsun consumers want quality as well as cost control. They are brought in towards Samsung because of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings 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 company is presently manufacturing however long gone are those days when great items were selling themselves. Kim has already begun to enhance the marketing activities of Samsung and really quickly it will become one of its core strength like producing if not better.



Samsung operates styles, manufactures and offer a vast portfolio of customer electronics. It runs in an incredibly competitive environment and has successfully placed itself as the maker of quality items. The response is yes.


As, stated earlier that Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution runs in a highly competitive environment, which suggests all the companies have similar products. So, the answer for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to comprehend the functionality of the items and easily make their own designs. Yes, Samsung is just behind IBM in registering new patents yearly, but the benefit is really short term in this industry.


Chairman Lee has completely turnaround Samsung, from going nearly insolvent 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 promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. However, it deals with some political pressures in less industrialized countries where law and order scenario is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution operations.


Buying power of clients is important for business like Samsung to grow and succeed. Emerging markets like India, middle-eastern nations and so on supply growth chances, whereas, due to recession even the consumers of industrialized nations suffer badly. For this reason it is extremely crucial for the business to watch on the continuous economic situation of the country prior to entering the marketplace.


International companies need to deal with different social and cultural problems throughout its operations in a foreign country. Samsung has also dealt with lots of concerns but have embraced to the regional environments of the majority of the countries remarkably well. It has actually customized its items, practices, policies and so on accordingly in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with continuous ingenious item 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 mission to be ahead of the rest when it pertains to technological advancements, Samsung has actually increased to the no 25 of the top effective companies of the world.


Each nation 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 employ a local law professional prior to beginning its operations in a particular nation.


With the rising awareness amongst consumers about the ecological & ethical infractions of business, Samsung needs to make sure that it follows all the safety standards. Ecological damages, ethical misconducts are not appropriate and in some countries the effects can be really extreme. On the other hand it has to do some Corporate Social Obligation practices to reveal the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Hazard of Substitution

Threat of substitution for Samsung's each product category is quite significant. Elements for high hazard of substitution for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help Mobile phone consist of the presence of high number of providers and Market saturation in developed countries, which make the cost of switching for consumers practically absolutely no. Along with it, Samsung printing options items are threatened by the increasing destination of customers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Samsung and its close rivals is intense. The major factor behind this is the approach of market saturation in numerous number of product classifications, forcing Samsung to present more ingenious features in existing items and new innovative products to keep its development. The significant rivals for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help has a large supply chain consisting of about 2700 providers 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 big orders make it possible for Samsung to work out costs with its providers. However, due to incapability of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis to construct its own software, it needs to outsource its software application advancement to Google, which ends up being a potential supplier of software for Samsung, leading to high bargaining power of Google. Although, in most of cases Samsung has a power to work out prices, but it supply significant 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 many of the product categories likewise make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its items 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:

Danger of new entrants for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is quite low. Along with it, requirement of huge proficiency and research and advancement expenditures for survival in the industry likewise make brand-new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high product diversity supplies it differentiation from its rivals. It is among the three leading brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product classification with Sony concentrating on customer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a huge R&D costs on all of its item categories which allow the business to earn prospective income from sales of almost all of its items. (See Display) However, due to the wide product range the company deals with high number of competitors.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to global market share, among 8 various product categories. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung earnings from chips was less than Intel however its incomes from chips was growing faster than Intel and has grown near to the income levels of Intel, as given up the case Display 2.

In addition to the chips Samsung mobile market was likewise flourishing 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 only 4% and Nokia with zero sales growth. The significant reson behind Samsung's high development despite of higher rates than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was likewise profiting from increasing market share of high end LCDs as given in case Display 3. The major reason, making the business enable to obtain the opportunity is its mass production at low expense. Sony was the biggest rival for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis in LCD market, nevertheless, it had actually also begun joint endeavor with Samsung in 2003 for LCD producing, decreasing the competitors for Samsung.

Porter's Competitive Method

Low Cost Leadership strategy of porter is totally executed by Samsung the method they achieve economies of scale by reinforcing their core competencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to produce for them, since they were unable to compete with them on low expense. Distinction is another technique well carried out by Samsung by continuous investment in the R&D and remaining ahead of the competitors. They constantly bring something brand-new and innovative whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis would create a brand-new brand image by targeting the more youthful generation of the specific country. As, especially cellphones of Samsung are very popular among the more youthful demographic.


1. It is the best method to build Customer Lifetime Value (CLV) by producing a long-lasting relationship with customers. Construct loyalty through delivering value and profit for long-lasting, as research study has revealed it is more affordable to retain existing clients than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread faster among younger individuals and which in turn will bring in brand-new consumers for my products.


1. Old customers who were associated with Samsung before may not like this new image the company is trying to depict.
2 It will incur additional expenditures to rearrange some items and it might not even bring success as the trends change very rapidly amongst the more youthful market.

Alternative option 2.

Samsung has actually made making its core competency for the a lot of part of their company and due to which its managers are not afraid to completely step out of their comfort zone. It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment ought to be produced internally initially as genuine marketing starts inside the corporation.


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


2. Its con can produce an extremely unhealthy environment in the office, as people typically resist modification due to the fact that they fear it.

Identify the best option

Alternative is the best as it plainly has more pros because once a Customer Life time Worth is constructed the company will benefit from it till that client is alive and has purchasing power. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging people. Samsung's primary goal is to create loyalty among its clients and make them repurchase it from them and even purchase their various items.

Application Plan

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi do with music. And set the expectations achievable and realistic.
• A group including best marketing and sales specialists should be assemble, and both views must be taken into account prior to securing the resources required to execute the plan.
• Thorough communication of the plan must be done as it is really crucial for everybody to be on the exact same page to make it work.
• Tasks and timelines need to be develop and interacted appropriately to each individual accountable.
• The manager must use 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 ought to keep track of and keep a continuous look at the overall and individual performance.
Because any new trend or policy might come in due to which all the things already planned have to be changed, • Everyone ought to be prepared to adapt midway. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the manager need to communicate the outcomes and if effective should commemorate with the group.

Budget plan

This modification the spending plan allocation of different nations and many supervisors were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like North America and Russia development possible warranted a 35% allocation while they were getting 45%. It really helped to fairly distribute the resources and record more consumers by spending more on ads on the high development potential 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 currently at no. 20. Its constant financial investment in R&D and ingenious practices have actually propelled them to brand-new heights however for them its' just the start and they want to be amongst the top 3 brands in the world. They completely turn-around from practically going bankrupt throughout the Asian Financial Crisis to a world renowned brand, understood for quality and innovation. Their value chain and their core competency their production capability, along-with global brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further expansion in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts ought to be directed towards more youthful demographic amidst the internal arguments about marketing and should develop Consumer Lifetime Value as it will not just give them advantages now however will continue to enjoy it till the consumer life time. As the expense of maintaining the consumer is more affordable than drawing in a new one.