Millenium Valve Project Harvard Case Study Analysis

Home >> Hrm >> Millenium Valve Project

Millenium Valve Project Case Study Solution and Analysis


Millenium Valve Project Case Study Help is a popular international brand name in innovation market, founded in 1938 by Lee Byung Chul, in South Korea. Millenium Valve Project 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 customers consist of the Original Equipment Manufacturers (OEMs), which used to sell Samsung items withtheir own brand name. Till early 1990s, the core proficiency of Samsung lie in its low cost offerings than its rivals by manufacturing existing items at economies of scale. Its client circle consists of Original Equipment Manufacturers (OEMs), who used to offer Millenium Valve Project Case Study Analysis products with their own trademark name. Samsung was not simply known outside Korea. There were likewise no or little interest in constructing the trademark name globally. Marketing spending plan was managed by production department with a focal point on offering inexpensive products.During the 1997 Asian Financial Crisis the business nearly got bankrupt, however with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the leading 25 most valuable company on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Samsung as a worldwide brand and educated his divisional managers to understand marketing and its importance. Now their goal is to reach the top 10 by 2005.

Problem Statement

Samsung's shift from an item based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to incorporate marketing efficiently is still a major difficulty. Creating a consistent brand identity throughout the entire world and using marketing techniques that best fits the local culture is no easy task. The M-net program analysis have been actually useful in determining the high and less possible development locations, however allotment of resources accordingly is not well received amongst the managers. There is no consensus amongst the hierarchy regarding the best suited future strategy.
Executive Summary
Situational Analysis

Millenium Valve Project Case Study Solution efforts for constructing its brand name across the world was started after presenting the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from a low-cost OEM to a high value-added product company. To make the vision of Samsung a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Samsung can change from a low end to a luxury item service provider. He knew that change can only be done through positioning Samsung as a business providing high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a possible 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 value of marketing. They thought about marketing and selling as exact same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the current marketing requirement was too much high, the space was too broader and to fill this space with wrong understandings about marketing was rather difficult for Yun.

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

A substantial shift would be required in current marketing expenditures to construct the Millenium Valve Project Case Study Solution brand name. This would lead to increased marketing expenses for Samsung and might disrupt the administration concerning increased expenses, as they were reluctant to marketing expenditures previously and an abrupt big shiftwould make them disturb. This might result in decreasing executive support for international marketing. In this situation, Yun faces a difficulty for justifying increased marketing expenditures by demonstrating the long term worth of big marketing expenditures.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its big item portfolio. Samsung has biggest variety of patents in the market with overall variety of 15499 patents approved in United States( USP). Big quantity of R&D costs has allowed the business to grow its item portfolio at a greater rate than its competitors. Millenium Valve Project Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall earnings.

Another strength of Millenium Valve Project Case Study Solution is its ability to establish ingenious items at a constant rate. It major shows for the development and product developing of Samsung is that the business has gotten so many awards for its development and item design.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be quickly incorporated with any type of open source Operating System (OS) and software. This supplies Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's ability to produce high-end products at low cost of production is also one of the major strength of Samsung as it makes it possible for the business to capture more market by providing quality products with cost control.

Weak points

Millenium Valve Project Case Study Solution weak points are hidden in the business's dependence on outsourcing software application for its gadgets due to company's failure in establishing software application, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to substantial difference in the costs of Apple and Samsung with a much lesser distinction in quality. The varied focus of the business due to a great deal of items in its portfolio, lead to the less efficient production and make the company not able to charge higher rates like Apple. The company is likewise ineffective in managing its patents and often deals with the issue of patent violation.


Opportunities for Samsung lie in the growing Mobile phone market and the business's efficiency in the market. It can increase its market share and profits from cell phone as the business is rather efficient in smart phone market. Samsung presently runs in about 80 nations and the company 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 make it possible for the business to increase its item portfolio with an increase in its wealth.


The vibrant market environment of technology market position a serious hazard on Samsung's survival and require the company to invest much of its profits share on R&D in order to make it through in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is also a huge hazard for the business's growth in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

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

• Laptops.
• Smart phone.
• Air conditioning unit.
• Desktop computer.
• Hard drives.
• Washing machines.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Millenium Valve Project Case Study Help utilizes both market competitive and market skimming pricing methods for its wide variety of items. In competitive prices it changes the price according to the competitors in order to acquire advantage, whereas, it utilizes market skimming strategy where the item has actually 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 etc. All its items are prompt supplied to the selling place/ delivered to the consumers straight in case of online order.

Vrio Analysis
It wasn't a widely known business beyond Korea until 1993. But the management effort taken by their CEO has pushed them to market more effectively outside the borders and now it has actually entered the league of top 25 companies on the planet in just 9 years. This is an exceptional achievement despite the ongoing arguments amongst the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promotion and digital advertisements are uses to produce awareness about Samsung items.

Value Chain Analysis.

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

Incoming Logistics.

It has among the most reliable and effective supply chain network and has over 2700 suppliers throughout various markets around the globe. Almost 80% of which is based in Asia and the remaining all over the world. For its inbound logistics it owns various logistics firms as it subsidiaries. It takes care of its suppliers and develops a harmonious relationship with them and even lowered their payment cycles to improve 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 specifically IT & Mobile Communications, Device Solutions and Customer Electronics. It is maintaining operation centers worldwide to even more add value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main reasons Millenium Valve Project Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the product provides. Millenium Valve Project Case Study Solution marketing budget plan is constantly rising given that they began their rearranging internationally and will continue to do so as they are constantly looking to broaden and invest in high potential development markets. The budget is spent on events, print and media ads, public relations etc.

Samsung Service. Samsung put their clients on top and constantly make every effort to provide unmatchable customer service standards. As after sales service is ending up being incredibly important to keep consumers happy and engaged, they even carry out studies through third parties to discover their consumer's feedback and execute it in the positive way to minimize or if possible totally remove their consumer concerns. By including a direct assistance line to call them 24 hours they have actually further increased the added worth of Millenium Valve Project Case Study Help service.


Millenium Valve Project Case Study Analysis has actually diversified market division, based upon its arrangement of large range of items to large number of consumers. Samsung target consumer sectors can be divided into 3 categories i.e. Millenium Valve Project Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device options.


Millenium Valve Project Case Study Analysis geographic segmentation is based upon 2 criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products offered to Urban in addition to Rural areas of the country. The Samsung is likewise growing its global presence and the business's flexibility in locating its plants encourages global expansion of Samsung.


The group segmentation of Millenium Valve Project Case Study Help is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be used by both females and males. The target consumers for Samsung IT and mobile interaction products have an age series of 18-65 with bulk at a young or newly married life process phase. They are mainly employees, specialists and trainees. Apart from it, Samsung Consumer Electronic devices are targeted to a client segment with an age series of 25-65. They are primarily professionals and employees. Samsung Gadget Solutions are targeted at trainees, staff members and experts with an age variety of 25-65.


The psychographic segmentation of Millenium Valve Project 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 generally upper middle, middle and working class customers, as Samsung offer products like mobile phone not much less expensive i.e. Motorola in addition to very little pricey i.e. Apple. It offers quality products to middle level consumers at a somewhat high cost than others targeting the same section.


Millenium Valve Project Case Study Help bulk target clients have special behavioural characteristics. It has customers with an enthusiastic, fashionable and determined personality with moderate level of loyalty towards the brand name. Its clients have some degree of shift towards other distinguished brand names i.e. Apple. Most of Samsun clients desire quality as well as expense control. They are drawn in towards Samsung because of its moderate costs with a degree of quality.

Quantitative analysis.

Sales of Samsung has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has likewise lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Incomes/ sales are increasing however net earnings is not increasing appropriately because of the high overhead expense. New growths and working with's were the primary reason of the increase in the overhead expenses, with china presently not providing any earnings to Samsung, however there is a lot capacity in the current market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the younger audience and produce a global brand image of the company. Whereas, the core strength of the business is presently producing but long gone are those days when great items were offering themselves. In the present age marketing is really important and companies can not succeed without it. Kim has currently started to enhance the marketing activities of Samsung and very soon it will turn into one of its core strength like making if not much better.



Samsung operates designs, makes and offer a large portfolio of customer electronics. It operates in an extremely competitive environment and has actually successfully placed itself as the maker of quality items. So, the response is yes.


As, said previously that Millenium Valve Project Case Study Help operates in a highly competitive environment, which suggests all the business have comparable items. The answer for rarity is no.


Due to the nature of the market, it is extremely easy for competitors to understand the performance of the items and easily make their own models. Yes, Samsung is just behind IBM in registering brand-new patents every year, however the advantage is very short-term in this market.


Chairman Lee has completely turnaround Samsung, from going practically bankrupt during the Asian financial crisis of 1997 to the leading 25 business on the planet. Definitely yes there appertains organization in the business and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, bulk of the environments like U.S.A., Europe, China etc., are very conductive for its operations. It deals with some political pressures in less industrialized nations where law and order scenario is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Millenium Valve Project Case Study Solution operations.


Purchasing power of clients is important for companies like Samsung to succeed and grow. Emerging markets like India, middle-eastern countries etc. supply growth opportunities, whereas, due to economic crisis even the clients of industrialized nations suffer badly. Hence it is very crucial for the company to watch on the ongoing economic situation of the country before going into the market.


International companies need to deal with various social and cultural problems during its operations in a foreign country. Samsung has actually also dealt with numerous issues but have embraced to the regional environments of most of the nations exceptionally well. It has customized its products, practices, policies etc. appropriately in order to succeed.


With a yearly expense of 2.4 billion dollars in Research study & Development, and with constant innovative product launches, Millenium Valve Project Case Study Solution is one of the top innovative companies of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Samsung has risen to the no 25 of the leading 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 result in severe legal consequences. It has to study or employ a local law specialist before starting its operations in a particular country.


With the increasing awareness amongst customers about the environmental & ethical offenses of business, Samsung has to ensure that it follows all the security standards. Environmental damages, ethical misconducts are not appropriate and in some nations the repercussions can be really extreme. On the other hand it has to do some Business Social Obligation practices to reveal the residents that it appreciates their environment and people.

Porter's Five Forces

Danger of Substitution

Risk of alternative for Samsung's each product classification is rather considerable. Factors for high hazard of alternative for Millenium Valve Project Case Study Analysis Smartphone include the presence of high number of providers and Market saturation in developed nations, which make the cost of switching for consumers almost zero. Along with it, Samsung printing solutions products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Samsung and its close rivals is intense. The major reason behind this is the technique of market saturation in various number of product classifications, requiring Samsung to introduce more ingenious features in existing items and new ingenious items to keep its development. The significant competitors for Millenium Valve Project Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. Due to incapability of Millenium Valve Project Case Study Solution to develop its own software application, it has to outsource its software application development to Google, which becomes a prospective provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Bargaining power of purchasers for various variety of product categories of Samsung is extreme. Among the aspect leading to the extreme bargaining power is the availability of large number of rivals in practically each item classification i.e. rivals of Samsung Smartphone, with a really little distinction. The high availability of providers of Smartphones with minimum distinction, make the switching cost for buyers nearly zero, hence increasing the bargaining power of purchasers. Market saturation in most of the product classifications also make the bargaining power of purchasers more intense in for Millenium Valve Project Case Study Solution. In spite of igh bargaining power Samsung is rather capable of offering its items at a greater rate than much of its rivals, due to luxury quality product and a fair brand name image.

Danger of New Entrants:

Risk of new entrants for Samsung is quite low. Among the significant element for low hazard of brand-new entrants is the high competition in the industry. The requirement of big amount of capital to enter in the marketplace is likewise one of the potential barrier to entry. In addition to it, requirement of huge expertise and research and development expenditures for survival in the industry likewise make new entrants unwilling to enter in the market. Market saturation is also among the barrier of entry in innovation industry. High bargaining power of suppliers force the gamers in the industry to charge as low costs as possible and this can only be attained by production efficiency. New firms, in majority cases, do not have the production performance, thus increasing the risks for entryway in the technology industry.

Competitive Analysis

Samsung's high product diversity offers it distinction from its competitors. Unlikely to its close competitors including 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, Millenium Valve Project Case Study Help had a big R&D spending on all of its product classifications which allow the company to make potential profits from sales of nearly all of its items.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in regards to global market share, amongst 8 different item categories. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel however its earnings from chips was growing quicker than Intel and has grown near to the earnings levels of Intel, as given in the case Exhibit 2.

In addition to the chips Samsung mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Samsung's high growth despite of greater prices than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was also profiting from increasing market share of high-end LCDs as given up case Exhibit 3. The major factor, making the company allow to avail the opportunity is its mass production at low expense. Sony was the greatest rival for Millenium Valve Project Case Study Solution in LCD market, nevertheless, it had likewise started joint venture with Samsung in 2003 for LCD manufacturing, reducing the competition for Samsung.

Porter's Competitive Method

Low Cost Management method of porter is totally implemented by Samsung the method they achieve economies of scale by enhancing their core proficiencies of production. They constantly bring something brand-new and innovative whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Millenium Valve Project Case Study Solution would create a new brand name image by targeting the more youthful generation of the specific country. As, particularly cellphones of Samsung are preferred among the more youthful demographic.


1. It is the best strategy to build Client Lifetime Worth (CLV) by developing a long-lasting relationship with customers. Build commitment through delivering value and reap the benefits for long-lasting, as research study has actually showed it is much cheaper to keep existing clients than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst more youthful people and which in turn will bring in brand-new consumers for my products.


1. Old clients who were related to Samsung prior to may not like this brand-new image the business is trying to depict.
2 It will incur additional expenditures to rearrange some items and it may not even bring success as the patterns change extremely quickly amongst the younger demographic.

Alternative option 2.

It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be provided. Marketing environment should be created internally first as real marketing begins inside the corporation.


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


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

Recognize the very best option

Option is the finest as it clearly has more pros due to the fact that as soon as a Client Life time Worth is built the business will benefit from it till that customer is alive and has buying power. Plus, our target consumers are the younger generation which are bound to live longer than the current aging people. Samsung's primary goal is to produce commitment amongst its consumers and make them redeemed it from them and even buy their various products.

Implementation Plan

• Targeting younger generation through social marketing, developing a link with them like Pepsi make with music. And set the expectations practical and achievable.
• A group consisting of best marketing and sales experts should be put together, and both views need to be considered before securing the resources needed to carry out the strategy.
• Thorough interaction of the plan should be done as it is really important for everybody to be on the exact same page to make it work.
• Jobs and timelines ought to be develop and interacted appropriately to each person accountable.
• The supervisor need to utilize a dashboard which reveals the development of all the jobs which have actually been done or about to be done and by whom.
• The manager need to keep an eye on and keep a constant check on the overall and individual efficiency.
• Everybody need to want to adapt midway due to the fact that any new pattern or policy might be available in due to which all the things already prepared have to be changed. It's better to have contingency strategies currently prepared.
• At the end of the campaign the manager ought to interact the outcomes and if successful ought to commemorate with the group.

Budget plan

This change the budget plan allocation 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 prospective warranted a 35% allotment while they were receiving 45%. It truly assisted to fairly disperse the resources and capture more customers by investing more on ads on the high growth capacity areas of the world.

Its continuous financial investment in R&D and innovative practices have propelled them to new heights however for them its' only the start and they desire to be among the top 3 brand names in the world. Their marketing efforts need to be directed towards more youthful market amidst the internal arguments about marketing and need to produce Consumer Life time Value as it will not only offer them advantages now but will continue to gain it till the client lifetime. As the cost of maintaining the customer is much more affordable than drawing in a new one.