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

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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 global brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism deals in large number of item classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which used to sell Corp products withtheir own brand. Till early 1990s, the core proficiency of Company lie in its low rate offerings than its competitors by producing existing items at economies of scale. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis products with their own brand name. Company was not merely understood outside Korea. There were also no or little interest in developing the trademark name worldwide. Marketing budget plan was managed by production department with a prime focus on offering cheap products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the leading 25 most valuable company worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Org as an international brand name and informed his divisional managers to comprehend marketing and its significance. Now their objective is to reach the top 10 by 2005.

Issue Statement

Corporation's shift from an item based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to incorporate marketing effectively is still a significant difficulty. Creating a constant brand name identity throughout the entire world and using marketing strategies that finest fits the regional culture is no easy job.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help can transform from a low end to a high end product provider. He knew that improvement can only be done through positioning Organization as a business using high-end products and this might just be done through high level of marketing.

In spite of having a clear vision about how to construct Enterprise brand, with a potential support of its executives, Yun faced numerous marketing difficulties in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and thought that quality items do not required 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 gap was too broader and to fill this space with wrong perceptions about marketing was rather challenging for Yun.

Along with it the product range of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Venture. Yun had a challenge to carry out marketing preparation and to create marketing budgets 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 current marketing expenditures to develop the Corporation brand name. This would result in increased marketing expenses for Business and could interrupt the administration concerning increased expenditures, as they were hesitant to marketing expenses formerly and an abrupt big shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Corp strengths lie in its huge product portfolio. Company has biggest number of patents in the industry with total number of 15499 patents approved in United States( USP). Big quantity of R&D spending has actually enabled the company to grow its item portfolio at a greater rate than its competitors. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall earnings.

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

Unlike Apple and other competitors, Venture is focused on producing devices which can be easily integrated with any kind of open source Operating System (OS) and software application. This supplies Enterprise an edge over Apple devices.
Porter's 5 Forces Analysis
Org's capability to produce luxury items at low cost of production is also among the major strength of Corp as it enables the business to capture more market by offering quality items with expense control.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution weaknesses are concealed in the business's dependence on outsourcing software application for its devices due to business's inability in developing software, unlike Sony. Organization likewise has low profit margins as compare to Apple due to huge distinction in the prices of Apple and Venture with a much lesser difference in quality. The diverse focus of the business due to large number of products in its portfolio, result in the less efficient production and make the business not able to charge greater costs like Apple. The company is also inefficient in managing its patents and often deals with the issue of patent violation.


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 efficiency in the market. Company currently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology industry posture a serious hazard on Org's survival and force the company to invest much of its earnings share on R&D in order to endure in the long run. The marketplace saturation in developed nations i.e. saturation of mobile company is also a huge hazard for the company's development in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help provides quality items and has a quite rich portfolio which accommodates different sectors. The majority of the items are in the leading 3 of their respective industries. LCD and cellphones are the most significant products of Venture, whereas DRAM is also not far behind in comparison of them. Following is the product line of Org:

• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Disk drives.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution utilizes both market competitive and market skimming rates techniques for its wide array of items. In competitive pricing it adjusts the price according to the competitors in order to acquire advantage, whereas, it utilizes market skimming strategy where the product has actually an included worth and by offering a few items it can reach break-even.


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

Vrio Analysis
It utilizes both offline & online channels of promo to market their products. Paid product ads, social promotion and digital advertisements are utilizes to produce awareness about Org items.

Value Chain Analysis.

It's an analytical structure for identifying business activities that add value or competitive advantage for the company.

Incoming Logistics.

For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and creates a harmonious relationship with them and even lowered their payment cycles to boost this relationship further which adds value to their chain network.


Corporation's core competency is its mass making it produces 90% of its items internal. Divided into 3 various departments its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronics. It is preserving operation hubs worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the primary factors Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution has the ability to take on Apple. Venture's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Company.

Marketing and Sales.

Attracting target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the product uses. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis advertising spending plan is constantly growing since they started their rearranging internationally and will continue to do so as they are continually seeking to invest and broaden in high prospective growth markets. The spending plan is spent on events, print and media ads, public relations etc.

Company Service. Organization put their customers at the top and continually strive to provide unmatchable customer care standards. As after sales service is becoming exceptionally essential to keep customers pleased and engaged, they even perform surveys through 3rd parties to learn their consumer's feedback and execute it in the positive method to lower or if possible completely eliminate their consumer issues. By adding a direct support line to contact them 24 hr they have actually even more increased the included worth of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution service.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help has diversified market segmentation, based upon its provision of wide range of items to large number of consumers. Company target customer sectors can be divided into 3 classifications i.e. Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution IT and Mobile Communications, Corp Consumer Electronic Devices and Business Device options.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis geographical segmentation is based upon 2 criteria i.e. area and density. Business serves about 80 countries worldwide with its products supplied to Urban along with Rural areas of the nation. The Corporation is likewise growing its international presence and the business's versatility in finding its plants encourages worldwide expansion of Organization.


The market segmentation of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis is based upon gender, age, life-cycle phase and profession. Business produces products that can be used by both males and females. The target customers for Corp IT and mobile communication products have an age range of 18-65 with majority at a young or recently married life cycle stage. They are mostly trainees, professionals and staff members. Apart from it, Corporation Consumer Electronic devices are targeted to a consumer segment with an age variety of 25-65. They are mostly experts and employees. Enterprise Gadget Solutions are targeted at students, employees and experts with an age range of 25-65.


The psychographic division 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. Corporation target consumers on the basis of social class are generally upper middle, middle and working class consumers, as Org sell items like cellular phone not much cheaper i.e. Motorola along with not much pricey i.e. Apple. It provides quality items to middle level consumers at a somewhat high price than others targeting the exact same segment.


Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis majority target consumers have distinct behavioural characteristics. It has clients with an ambitious, trendy and determined personality with moderate level of commitment towards the brand. Its customers have some degree of shift towards other renowned brands i.e. Apple. The majority of Venture customers desire quality as well as cost control. Due to the fact that of its moderate prices with a degree of quality, they are drawn in towards Company.

Quantitative analysis.

Sales of Org has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has likewise decreased its debt from 15 billion $ to 4.6 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. Revenues/ sales are increasing but net profit is not increasing accordingly due to the fact that of the high overhead cost. New growths and working with's were the primary factor of the boost in the overhead costs, with china presently not supplying any revenue to Company, but there is so much capacity in the current market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based upon the objective of Kim to target the younger audience and create an international brand picture of the business. Whereas, the core strength of the business is currently manufacturing however long gone are those days when excellent items were selling themselves. In the current age marketing is very crucial and companies can not be successful without it. Kim has already begun to enhance the marketing activities of Company and soon it will turn into one of its core strength like producing if not better.



Company runs styles, produces and offer a huge portfolio of consumer electronics. 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 previously that Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help operates in a highly competitive environment, which means all the companies have similar products. So, the response for rarity is no.


Due to the nature of the market, it is really simple for rivals to comprehend the functionality of the items and easily make their own designs. Yes, Corp is only behind IBM in signing up new patents each year, but the benefit is very short term in this industry.


Chairman Lee has entirely turnaround Enterprise, from going almost bankrupt during the Asian monetary crisis of 1997 to the leading 25 business worldwide. Absolutely yes there appertains company in the company and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. However, it faces some political pressures in less industrialized nations where order situation is bad. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help operations.


Buying power of customers is important for companies like Org to prosper and grow. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to recession even the customers of industrialized countries suffer severely. It is very crucial for the business to keep an eye on the ongoing financial situation of the country prior to getting in the market.


Multinational business have to face different social and cultural issues throughout its operations in a foreign nation. Org has also faced numerous concerns but have actually adopted to the regional environments of the majority of the countries exceptionally well. It has customized its products, practices, policies etc. accordingly in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with continuous innovative item launches, Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it pertains to technological improvements, Corporation has actually risen to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational company Organization need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. It has to study or hire a local law specialist prior to starting its operations in a specific country.


With the rising awareness amongst consumers about the environmental & ethical offenses of companies, Corp has to guarantee that it follows all the security standards. Ecological damages, ethical misconducts are not acceptable and in some countries the consequences can be extremely serious. On the other hand it has to do some Business Social Obligation practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Substitution

Hazard of replacement for Company's each item category is rather considerable. Running in an exceptionally vibrant market lead the company to deal with a high danger of replacement. Aspects for high threat of alternative for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis Smart device include the existence of high number of providers and Market saturation in industrialized countries, that make the cost of switching for customers practically absolutely no. Alternative threats for Company visual display screen depend on the altering lifestyle of customers. Consumers can switch to seeing visuals at home towards outdoor activities. Together with it, Corp printing solutions products are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly among Enterprise and its close rivals is intense. The major reason behind this is the approach of market saturation in various number of product categories, forcing Corporation to present more innovative features in existing items and new ingenious products to maintain its growth. The significant rivals for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution has a huge supply chain consisting of about 2700 suppliers throughout the world.( Organization Sustainability Report, 2016) Provider's bargaining power for Organization is low as Organization runs economies of scale and its orders are of potential size and worth. These substantial orders allow Venture to work out rates with its providers. Nevertheless, due to incapability of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution to develop its own software, it has to outsource its software application development to Google, which ends up being a potential provider of software for Company, leading to high bargaining power of Google. Although, in the majority of cases Org has a power to work out costs, but it provide significant costs to its providers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in most of the item categories likewise make the bargaining power of purchasers more intense in for Organization. In spite of igh bargaining power Org is quite capable of selling its products at a higher cost than much of its rivals, due to high end quality product and a fair brand name image.

Risk of New Entrants:

Hazard of brand-new entrants for Corporation is rather low. One of the significant aspect for low threat of new entrants is the high competitors in the market. The requirement of huge amount of capital to enter in the market is likewise among the potential barrier to entry. In addition to it, requirement of huge expertise and research study and development expenditures for survival in the market also make new entrants unwilling to enter in the marketplace. Market saturation is likewise one of the barrier of entry in technology market. High bargaining power of suppliers require the gamers in the industry to charge as low prices as possible and this can only be attained by production performance. Brand-new companies, in majority cases, lack the production performance, for this reason increasing the dangers for entryway in the technology market.

Competitive Analysis

Company's high item diversification provides it distinction 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 customer electronic devices, Nokia on cell phones and Intel on chips, Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Analysis had a huge R&D costs on all of its item classifications which allow the business to make prospective earnings from sales of nearly all of its products.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to international market share, amongst 8 different item classifications. Organization was the worldwide leader in making DRAM, SRAM and NAND flash chips. Enterprise incomes from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown close to the revenue levels of Intel, as provided in the case Display 2.

Along with the chips Corp mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Venture's mobile phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The significant reson behind Org's high growth despite of higher prices than Nokia and Motorola was the company's high-end quality mobile phone.

Corporation was also profiting from increasing market share of high end LCDs as given up case Exhibit 3. The major factor, making the business allow to obtain the opportunity is its mass production at low cost. Sony was the biggest rival for Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Solution in LCD market, however, it had likewise started joint endeavor with Corporation in 2003 for LCD making, decreasing the competition for Corporation.

Porter's Competitive Method

Low Cost Leadership strategy of porter is completely carried out by Corp the way they accomplish economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to produce for them, due to the fact that they were not able to take on them on low expense. Distinction is another method well carried out by Company by constant investment in the R&D and staying ahead of the competition. They always bring something brand-new and ingenious whether it's an item or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Lvmh Moet Hennessy Louis Vuitton The Rise Of Talentism Case Study Help would create a new brand image by targeting the younger generation of the particular country. As, specifically cellphones of Business are incredibly popular among the younger demographic.


1. It is the very best technique to develop Consumer Life time Worth (CLV) by producing a long-term relationship with consumers. Build loyalty through providing worth and reap the benefits for long-lasting, as research study has actually revealed it is much cheaper to maintain current customers than to attract new ones.
2. Another pro of this option is that word of mouth spread quicker amongst younger individuals and which in turn will bring in new clients for my items.


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

Alternative service 2.

Corp has actually made producing its core competency for the a lot of part of their organisation and due to which its managers are not scared to fully step out of their comfort 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 ratings will get demoted. Marketing environment ought to be developed 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 develop a really unhealthy environment in the workplace, as people typically withstand change because they fear it.

Identify the best option

First option is the best as it plainly has more pros due to the fact that once a Client Life time Worth is built the company will make money from it till that customer is alive and has buying power also. Plus, our target consumers are the more youthful generation which are bound to live longer than the existing old age people. Organization's main objective is to create loyalty amongst its consumers and make them bought it from them and even buy their different items.

Application Strategy

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations achievable and practical.
• A team including best marketing and sales specialists must be assemble, and both views ought to be taken into account prior to protecting the resources needed to implement the plan.
• Thorough interaction of the plan should be done as it is extremely essential for everybody to be on the same page to make it work.
• Jobs and timelines need to be construct and interacted appropriately to each individual accountable.
• The manager ought to use a control panel which shows the development of all the jobs which have been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a consistent check on the overall and private efficiency.
• Everybody need to be willing to adapt midway due to the fact that any new trend or policy may can be found in due to which all the things already prepared need to be changed. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor must interact the results and if effective ought to celebrate with the team.

Spending plan

This change the budget allowance of different nations and many managers were dissatisfied and argued but the analysis done by the program was precise and revealed figures like North America and Russia growth potential warranted a 35% allocation while they were getting 45%. It actually helped to relatively disperse the resources and catch more clients by investing more on ads on the high growth capacity areas of the world.

Its continuous investment in R&D and innovative practices have actually propelled them to brand-new heights however for them its' only the start and they desire to be among the top 3 brands in the world. Their marketing efforts must be directed towards more youthful group in the middle of the internal arguments about marketing and should create Customer Lifetime Worth as it will not only give them advantages now however will continue to reap it till the consumer lifetime. As the cost of keeping the customer is much more affordable than drawing in a new one.