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 and Analysis


Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help products withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He repositioned Samsung as a global brand name and informed his divisional managers to comprehend marketing and its importance.

Issue Statement

Samsung's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to incorporate marketing efficiently is still a major obstacle. Creating a consistent brand name identity throughout the entire world and employing marketing methods that finest fits the local culture is no simple task.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help can change from a low end to a high end product company. He understood that transformation can just be done through positioning Samsung 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 build Samsung brand, with a possible support of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as very same tools and believed 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 current marketing requirement was too much high, the space was too broader and to fill this gap with incorrect understandings about marketing was quite challenging for Yun.

Along with it the product variety of the business was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing planning and to create marketing spending plans for existing as well as for brand-new items from the very beginning, and this would take a huge time.

A substantial shift would be required in present marketing expenditures to construct the Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help brand. This would lead to increased marketing expenses for Samsung and could interrupt the administration relating to increased costs, as they were reluctant to marketing expenditures previously and a sudden huge shiftwould make them interrupt. This could result in declining executive assistance for international marketing. In this scenario, Yun deals with a challenge for validating increased marketing costs by showing the long term value of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help strengths lie in its substantial product portfolio. Samsung has biggest number of patents in the industry with overall number of 15499 patents granted in United States( USP).

Another strength of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution is its ability to establish ingenious items at a constant rate. It significant proves for the innovation and item creating of Samsung is that the company has actually received numerous awards for its innovation and item design.

Unlike Apple and other competitors, Samsung is concentrated on producing devices which can be easily incorporated with any kind of open source Operating System (OS) and software application. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury products at low expense of production is also among the significant strength of Samsung as it makes it possible for the business to record more market by supplying quality items with expense control.

Weak points

Samsung's weak points are hidden in the business's dependence on outsourcing software application for its gadgets due to business's inability in establishing software application, unlike Sony. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution also has low revenue margins as compare to Apple due to big distinction in the prices of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Samsung lie in the growing Smartphone market and the business's performance in the market. It can increase its market share and earnings from cellular phone as the company is quite effective in cell phone market. Samsung presently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would enable the business to increase its item portfolio with a boost in its wealth.


The vibrant industry environment of innovation market pose an extreme risk on Samsung's survival and require the business to spend much of its revenues share on R&D in order to endure in the long run. The market saturation in industrialized countries i.e. saturation of mobile company is likewise a big risk for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Samsung provides quality items and has a rather abundant portfolio which caters to different segments. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Smart phone.
• A/c unit.
• Personal computers.
• Hard disks.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help uses both market competitive and market skimming rates methods for its wide variety of items. In competitive prices it changes the price according to the competition in order to acquire advantage, whereas, it utilizes market skimming technique where the product has an included value and by offering a couple of items it can reach break-even.


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

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

Value Chain Analysis.

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

Incoming Logistics.

It has one of the most effective and effective supply chain network and has more than 2700 providers across different markets around the globe. Nearly 80% of which is based in Asia and the remaining worldwide. For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even reduced their payment cycles to boost this relationship further which adds worth to their chain network.


Samsung's core competency is its mass manufacturing it produces 90% of its products in-house. Divided into three various divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary reasons Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target customer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the product provides. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis marketing budget plan is continually on the rise given that they started their rearranging globally and will continue to do so as they are continually seeking to invest and expand in high potential development markets. The budget plan is invested in occasions, print and media ads, public relations and so on.

Samsung put their consumers at the leading and constantly aim to provide unmatchable consumer service standards. By adding a direct assistance line to contact them 24 hours they have actually even more increased the added value of Samsung service.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution has actually diversified market division, based upon its provision of large range of items to large number of consumers. Samsung target client sectors can be divided into 3 classifications i.e. Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device options.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis geographical segmentation is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its items supplied to Urban as well as Rural areas of the country. The Samsung is also growing its worldwide presence and the business's flexibility in finding its plants motivates worldwide expansion of Samsung.


Samsung produces products that can be used by both males and females. The target consumers for Samsung IT and mobile communication products have an age range of 18-65 with majority at a young or newly wed life cycle stage. Apart from it, Samsung Customer Electronic devices are targeted to a consumer segment with an age variety 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 life style of the consumer. Samsung target clients on the basis of social class are primarily upper middle, middle and working class customers, as Samsung offer items like cell phones very little more affordable i.e. Motorola along with very little pricey i.e. Apple. It provides quality products to middle level customers at a slightly high rate than others targeting the very same sector.


Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis bulk target customers have distinct behavioural attributes. It has consumers with an enthusiastic, trendy and identified character with moderate level of loyalty towards the brand name. Its consumers have some degree of shift towards other distinguished brands i.e. Apple. Most of Samsun clients want quality as well as cost control. They are attracted towards Samsung because of its moderate prices with a level 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 revenue of.48 billion $ to 5.9 billion $. Digital media is the biggest 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 decision is based on the objective of Kim to target the younger audience and create a global brand image of the business. Whereas, the core strength of the company is currently manufacturing but long gone are those days when excellent items were offering themselves. In the present age marketing is extremely essential and business can not be successful without it. Kim has already begun to enhance the marketing activities of Samsung and very soon it will turn into one of its core strength like making if not better.



Samsung operates designs, manufactures and offer a huge portfolio of consumer electronic devices. It runs in a very competitive environment and has successfully positioned itself as the maker of quality items. The response is yes.


As, stated previously that Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help operates in an extremely competitive environment, which indicates all the business have comparable products. The response for rarity is no.


Due to the nature of the market, it is really simple for rivals to comprehend the performance of the items and easily make their own models. Yes, Samsung is only behind IBM in signing up brand-new patents every year, however the benefit is very short term in this market.


Chairman Lee has totally turnaround Samsung, from going nearly insolvent throughout the Asian financial crisis of 1997 to the top 25 business on the planet. Definitely yes there appertains organization in the company and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread practically in every nation worldwide, bulk of the environments like USA, Europe, China etc., are extremely conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized countries where law and order circumstance is bad. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution operations.


Purchasing power of clients is essential for business like Samsung to succeed and grow. Emerging markets like India, middle-eastern nations etc. offer growth chances, whereas, due to recession even the clients of industrialized countries suffer terribly. It is very important for the company to keep an eye on the ongoing financial circumstance of the nation prior to going into the market.


International business need to face various social and cultural concerns throughout its operations in a foreign country. Samsung has also faced lots of issues but have actually embraced to the local environments of the majority of the nations exceptionally well. It has tailored its items, practices, policies etc. appropriately in order to succeed.


With an annual expense of 2.4 billion dollars in Research & Advancement, and with consistent innovative product launches, Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution is one of the top innovative business of the world. With a clear mission to be ahead of the rest when it pertains to technological improvements, Samsung has actually increased to the no 25 of the top successful companies of the world.


Each nation has their own laws and policies, being an international business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal consequences. It has to study or employ a regional law expert prior to beginning its operations in a particular nation.


With the increasing awareness among consumers about the environmental & ethical violations of business, Samsung needs to ensure that it follows all the security standards. Environmental damages, ethical misconducts are not acceptable and in some countries the effects can be very extreme. On the other hand it has to do some Business Social Duty practices to reveal the locals that it cares about their environment and individuals.

Porter's Five Forces

Threat of Alternative

Threat of replacement for Samsung's each item classification is rather significant. Running in a very vibrant industry lead the company to deal with a high hazard of alternative. Elements for high danger of replacement for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Help Smartphone consist of the existence of high number of suppliers and Market saturation in industrialized nations, that make the expense of changing for customers almost zero. Replacement risks for Samsung visual screen depend on the altering lifestyle of customers. Clients can switch to seeing visuals in the house towards outdoor activities. Along with it, Samsung printing solutions products are threatened by the increasing tourist attraction of clients towards cloud storage.

Competition Among Existing Companies:

The rivaly among Samsung and its close rivals is extreme. The major reason behind this is the method of market saturation in various variety of item classifications, forcing Samsung to present more innovative features in existing items and new innovative products to keep its growth. Other factor for the intense competition amongst the competitors is the little product distinction amongst the items. The popular players in the innovation market are rather knowledgeable about the importance of R&D costs for their survival and are encountering a race of marketing and R&D spending, to record the marketplace. The significant rivals for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the changing market shares which can be seen in Exhibition 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 possible size and worth. Due to incapability of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution to develop its own software, it has to outsource its software development to Google, which becomes a prospective provider of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Haggling power of buyers for numerous number of product categories of Samsung is intense. One of the aspect causing the intense bargaining power is the availability of large number of competitors in almost each item classification i.e. competitors of Samsung Smart device, with a really little differentiation. The high schedule of providers of Smart devices with minimum distinction, make the changing expense for buyers practically no, thus increasing the bargaining power of buyers. Market saturation in the majority of the product classifications likewise make the bargaining power of purchasers more extreme in for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Solution. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher rate than much of its competitors, due to high-end quality product and a reasonable brand image.

Danger of New Entrants:

Danger of brand-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 know-how and research and development expenditures for survival in the market also make brand-new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Samsung's high product diversity offers it differentiation from its competitors. It is one of the three top brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on customer electronic devices, Nokia on cell phones and Intel on chips, Samsung had a big R&D spending on all of its product classifications which enable the business to make possible income from sales of practically all of its products. (See Display) However, due to the broad item variety the company faces high variety of competitors.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of international market share, amongst 8 various item categories. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung earnings from chips was less than Intel however its earnings from chips was growing faster than Intel and has grown close to the earnings levels of Intel, as offered 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 development despite of greater rates than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The major factor, making the business allow to avail the chance is its mass production at low cost. Sony was the most significant rival for Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis in LCD market, however, it had actually also started joint endeavor with Samsung in 2003 for LCD manufacturing, reducing the competitors for Samsung.

Porter's Competitive Method

Low Expense Management strategy of porter is totally carried out by Samsung the way they accomplish economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something new and ingenious whether it's an item or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Middle East Broadcasting Centre Mbc Media Innovation In The Middle East Case Study Analysis would create a brand-new brand image by targeting the more youthful generation of the particular country. As, particularly cellphones of Samsung are popular among the more youthful demographic.


1. It is the very best strategy to construct Consumer Life time Value (CLV) by developing a long-term relationship with customers. Construct commitment through delivering worth and reap the benefits for long-lasting, as research study has actually showed it is more affordable to keep present clients than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful people and which in turn will generate brand-new customers for my items.


1. Old customers who were related to Samsung before might not like this new image the business is attempting to represent.
2 It will sustain more costs to reposition some items and it might not even bring success as the trends alter extremely rapidly among the more youthful demographic.

Alternative service 2.

Samsung has actually made producing its core proficiency for the many part of their organisation and due to which its managers are not afraid to totally step out of their convenience zone. It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get demoted. Marketing environment need to be produced internally initially as real marketing begins inside the corporation.


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


2. Its con can create a really unhealthy environment in the workplace, as individuals typically resist change because they fear it.

Recognize the best alternative

Option is the best as it clearly has more pros due to the fact that as soon as a Consumer Life time Worth is built the business will benefit from it till that customer is alive and has purchasing power. Plus, our target clients are the more youthful generation which are bound to live longer than the existing old age individuals. Nevertheless, Samsung's primary goal is to create commitment amongst its consumers and make them redeemed it from them and even purchase their different items as well.

Application Plan

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations sensible and possible.
• A group consisting of finest marketing and sales professionals ought to be put together, and both views need to be taken into account prior to protecting the resources required to implement the strategy.
• Thorough interaction of the plan ought to be done as it is really crucial for everyone to be on the same page to make it work.
• Tasks and timelines should be develop and communicated accordingly to each individual responsible.
• The manager need to utilize a control panel which shows the progress of all the tasks which have been done or about to be done and by whom.
• The manager need to keep track of and keep a constant check on the specific and overall efficiency.
• Everybody ought to be willing to adjust midway since any brand-new pattern or policy might come in due to which all the things currently prepared have to be adjusted. It's better to have contingency strategies already prepared.
• At the end of the campaign the manager need to interact the results and if effective must celebrate with the group.

Spending plan

The M-net program revealed compelling analysis about the low and high growth possible locations and just how much marketing budget ought to be assigned accordingly. This change the budget allowance of lots of managers and different nations were dissatisfied and argued but the analysis done by the program was precise and showed figures like The United States and Canada and Russia growth prospective warranted a 35% allotment while they were receiving 45%. Whereas, China and Europe must be getting 42% however were rather provided 31%. It really assisted to relatively disperse the resources and capture more customers by spending more on ads on the high development potential regions of the world.

Middle East Broadcasting Centre Mbc Media Innovation In The Middle East 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 investment in R&D and ingenious practices have actually propelled them to brand-new heights however for them its' only the start and they wish to be amongst the top 3 brands in the world. They entirely turnaround from almost going bankrupt throughout the Asian Financial Crisis to a world distinguished brand, understood for quality and development. Their value chain and their core proficiency their manufacturing ability, along-with worldwide brand name image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts must be directed towards more youthful group amidst the internal arguments about marketing and ought to produce Client Lifetime Worth as it will not only provide advantages now however will continue to enjoy it till the consumer lifetime. As the cost of maintaining the client is more affordable than drawing in a new one.