Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Harvard Case Study Analysis

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Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution & Analysis


Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which used to offer Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help items withtheir own brand name. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Samsung items with their own brand name. He repositioned Samsung as an international brand and informed his divisional supervisors to understand marketing and its value.

Problem Declaration

Samsung's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to include marketing efficiently is still a significant difficulty. Creating a constant brand name identity across the whole world and utilizing marketing techniques that finest fits the local culture is no easy task. The M-net program analysis have been truly useful in figuring out the high and less prospective development locations, but allowance of resources accordingly is not well received amongst the supervisors. There is no consensus among the hierarchy relating to the very best fit future strategy.

Situational Analysis

Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution efforts for building its trademark name throughout the world was started after presenting the "new management effort" by Chairman Lee in 1993. The objective was to transform Samsung from a low-cost OEM to a high value-added item provider. To make the vision of Samsung a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Samsung can transform from a low end to a high end item supplier. He knew that transformation can just be done through positioning Samsung as a business 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 build Samsung brand, with a possible assistance of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the value of marketing. They considered 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 rather low in their previous service practices, and the existing marketing requirement was excessive high, the space was too larger and to fill this gap with incorrect perceptions about marketing was rather challenging for Yun.

Along with it the product range of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a difficulty to carry out marketing planning and to develop marketing budget plans for existing as well as for brand-new items from the very beginning, and this would take a substantial time.

A big shift would be required in present marketing expenditures to construct the Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis brand name. This would lead to increased marketing expenses for Samsung and might disrupt the administration concerning increased costs, as they were reluctant to marketing expenses previously and a sudden huge shiftwould make them disturb. This might result in decreasing executive support for global marketing. In this situation, Yun deals with an obstacle for justifying increased marketing expenses by demonstrating the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its substantial product portfolio. Samsung has biggest number of patents in the industry with total number of 15499 patents approved in US( USP). Big amount of R&D costs has allowed the company to grow its product portfolio at a higher rate than its competitors. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total earnings.

Another strength of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution is its ability to develop innovative items at a continuous rate. It major proves for the innovation and product developing of Samsung is that the company has actually received many awards for its development and item design.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be easily integrated with any type of open source Os (OS) and software application. This provides Samsung an edge over Apple gadgets.

Samsung's capability to produce luxury products at low cost of production is also one of the significant strength of Samsung as it enables the company to catch more market by offering quality items with cost control.


Samsung's weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to company's inability in establishing software application, unlike Sony. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help likewise has low revenue margins as compare to Apple due to substantial difference in the costs of Apple and Samsung with a much lower difference in quality.


Opportunities for Samsung depend on the growing Smartphone market and the business's efficiency in the market. It can increase its market share and profits from cellular phone as the business is quite efficient in cellular phone market. Samsung presently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would allow the business to increase its product portfolio with a boost in its wealth.


The vibrant industry environment of innovation market pose an extreme danger on Samsung's survival and require the business to invest much of its earnings share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile company is likewise a huge hazard for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis provides quality products and has a quite rich portfolio which accommodates various sectors. The majority of the items remain in the leading three of their particular markets. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Samsung:

• Laptops.
• Cellphone.
• A/c.
• Computer.
• Hard disk drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution utilizes both market competitive and market skimming rates strategies for its variety of items. In competitive pricing it changes the cost according to the competitors in order to acquire benefit, whereas, it utilizes market skimming strategy where the product has an added 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 prompt supplied to the selling place/ delivered to the consumers straight in case of online order.


It utilizes both offline & online channels of promotion to market their products. Paid product ads, social promo and digital ads are uses to develop awareness about Samsung items.

Worth Chain Analysis.

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

Inbound Logistics.

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


Samsung's core competency is its mass producing it produces 90% of its products in-house. Divided into three various divisions its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronics. It is keeping operation hubs worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the main reasons Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution has the ability to take on Apple. Samsung's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target customer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the product uses. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis advertising budget is constantly growing considering that they started their repositioning internationally and will continue to do so as they are continually aiming to invest and broaden in high prospective growth markets. The budget is invested in occasions, print and media ads, public relations and so on.

Samsung put their clients at the leading and continually make every effort to deliver unmatchable customer service standards. By adding a direct assistance line to contact them 24 hours they have further increased the included worth of Samsung service.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution has actually diversified market segmentation, based upon its provision of wide variety of items to large number of consumers. Samsung target customer sectors can be divided into 3 categories i.e. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help geographic division is based upon two criteria i.e. region and density. Samsung serves about 80 nations worldwide with its products provided to Urban in addition to Backwoods of the nation. The Samsung is likewise growing its worldwide presence and the company's flexibility in locating its plants encourages worldwide growth of Samsung.


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


The psychographic division of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution s based upon the social class and the lifestyle of the consumer. Samsung target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung sell products like cellular phone very little less expensive i.e. Motorola in addition to very little costly i.e. Apple. It supplies quality products to middle level consumers at a slightly high rate than others targeting the exact same segment.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis bulk target customers have distinct behavioural characteristics. They are attracted towards Samsung since of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis has increased amazingly 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.

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



Samsung operates designs, manufactures and offer a large portfolio of consumer electronic devices. It runs in an incredibly competitive environment and has actually effectively placed itself as the maker of quality products. So, the answer is yes.


As, said earlier that Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis operates in an extremely competitive environment, which indicates all the business have similar items. So, the answer for rarity is no.


Due to the nature of the industry, it is really simple for rivals to comprehend the performance of the products and quickly 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 totally turn-around Samsung, from going practically bankrupt during the Asian financial crisis of 1997 to the top 25 business worldwide. Certainly yes there appertains organization in the company and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every country worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. It deals with some political pressures in less industrialized countries where law and order situation is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help operations.


Purchasing power of clients is crucial for companies like Samsung to grow and prosper. Emerging markets like India, middle-eastern countries and so on provide development chances, whereas, due to economic crisis even the customers of industrialized countries suffer terribly. It is extremely essential for the company to keep an eye on the ongoing economic circumstance of the country prior to entering the market.


International companies need to deal with various social and cultural concerns throughout its operations in a foreign nation. Samsung has likewise dealt with numerous problems but have embraced to the regional environments of most of the nations exceptionally well. It has actually customized its items, practices, policies and so on appropriately in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research & Advancement, and with continuous ingenious item launches, Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis is among the top innovative companies of the world. With a clear mission to be ahead of the rest when it concerns technological improvements, Samsung has increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. So, it needs to study or hire a regional law professional prior to beginning its operations in a particular nation.


With the increasing awareness among consumers about the environmental & ethical infractions of business, Samsung needs to ensure that it follows all the security guidelines. Environmental damages, ethical misconducts are not appropriate and in some nations the consequences can be very severe. On the other hand it needs to do some Business Social Responsibility practices to reveal the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Hazard of Replacement

Danger of replacement for Samsung's each product category is quite significant. Aspects for high risk of alternative for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis Smart device include the presence of high number of providers and Market saturation in industrialized nations, which make the expense of switching for customers almost no. Along with it, Samsung printing solutions items are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly among Samsung and its close competitors is extreme. The major reason behind this is the technique of market saturation in various number of product categories, forcing Samsung to present more ingenious functions in existing products and brand-new ingenious items to keep its growth. Other factor for the intense competition among the rivals is the little product differentiation among the items. The popular players in the innovation market are rather aware of the significance of R&D spending for their survival and are running into a race of marketing and R&D costs, to catch the marketplace. The significant competitors for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry leads to the fluctuating market shares which can be seen in Display F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. Due to incapability of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis to develop its own software, it has to outsource its software advancement to Google, which ends up being a potential supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the item categories likewise make the bargaining power of buyers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its items at a higher price than much of its competitors, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Danger of new entrants for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help is quite low. Along with it, requirement of huge knowledge and research and development expenditures for survival in the market likewise make new entrants hesitant to go into in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high product diversification supplies it differentiation from its competitors. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help had a big R&D spending on all of its product classifications which enable the business to earn prospective profits from sales of practically all of its products.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to international market share, among 8 different item categories. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel however its revenues from chips was growing quicker than Intel and has actually grown close to the earnings levels of Intel, as given in the case Display 2.

Together with the chips Samsung mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cellular phone's sales growth 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 greater costs than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The significant factor, making the business allow to avail the opportunity is its mass production at low cost. Sony was the biggest competitor for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help in LCD market, nevertheless, it had likewise begun joint venture with Samsung in 2003 for LCD manufacturing, minimizing the competition for Samsung.

Porter's Competitive Technique

Low Expense Management strategy of porter is fully carried out by Samsung the way they attain economies of scale by strengthening their core competencies of production. Even to the point that their rival SONY chose to form an alliance with them to make for them, because they were not able to compete with them on low expense. Distinction is another method well carried out by Samsung by continuous financial investment in the R&D and staying ahead of the competitors. They constantly bring something ingenious and brand-new whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis would produce a new brand image by targeting the more youthful generation of the particular nation. As, specifically smart phones of Samsung are very popular among the younger group.


1. It is the best technique to develop Consumer Lifetime Worth (CLV) by creating a long-term relationship with clients. Develop loyalty through delivering value and reap the benefits for long-term, as research has showed it is much cheaper to maintain present customers than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful individuals and which in turn will generate brand-new clients for my items.


1. Old customers who were connected with Samsung before might not like this brand-new image the company is attempting to depict.
2 It will sustain further expenditures to rearrange some products and it might not even bring success as the patterns change really quickly among the more youthful market.

Alternative option 2.

It would be done by arranging training workshops throughout which significance of marketing will be taught and numbers will be provided. Marketing environment should be developed internally initially as genuine marketing starts inside the corporation.


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


2. Its con can create a very unhealthy environment in the work environment, as individuals often withstand change since they fear it.

Determine the best alternative

Very first alternative is the best as it clearly has more pros because once a Client Lifetime Value is constructed the business will make money from it till that customer is alive and has purchasing power as well. Plus, our target consumers are the younger generation which are bound to live longer than the existing aging individuals. However, Samsung's primary objective is to develop loyalty amongst its clients and make them redeemed it from them and even buy their different products as well.

Application Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations attainable and practical.
• A team consisting of finest marketing and sales specialists need to be put together, and both views need to be taken into account prior to protecting the resources required to implement the plan.
• Thorough interaction of the strategy must be done as it is extremely essential for everybody to be on the same page to make it work.
• Jobs and timelines should be construct and interacted accordingly to each person accountable.
• The manager ought to use a dashboard which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor must monitor and keep a consistent check on the general and specific performance.
• Everyone need to be willing to adapt midway due to the fact that any brand-new pattern or policy might be available in due to which all the things currently prepared have to be changed. It's much better to have contingency strategies already prepared.
• At the end of the project the supervisor should communicate the results and if effective ought to commemorate with the group.

Budget plan

The M-net program exposed compelling analysis about the low and high growth possible areas and how much marketing spending plan should be designated accordingly. This modification the budget plan allotment of different countries and many supervisors were dissatisfied and argued however the analysis done by the program was precise and revealed figures like The United States and Canada and Russia development possible merited a 35% allowance while they were getting 45%. Whereas, China and Europe ought to be receiving 42% but were rather provided 31%. It really helped to fairly disperse the resources and capture more clients by spending more on ads on the high development potential areas of the world.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help is a leading 25 business in the world now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent financial investment in R&D and innovative practices have moved them to brand-new heights however for them its' just the start and they wish to be among the leading 3 brand names in the world. They entirely turnaround from nearly declaring bankruptcy throughout the Asian Financial Crisis to a world renowned brand name, known for quality and development. Their worth chain and their core proficiency their production capability, along-with international brand name image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts must be directed towards younger demographic amid the internal arguments about marketing and need to create Customer Life time Value as it will not only give them benefits now but will continue to reap it till the customer lifetime. As the cost of retaining the customer is more affordable than bring in a new one.