Millenium Valve Project Harvard Case Study Solution

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Millenium Valve Project Case Study Solution & Analysis


Historically, the company's core clients consist of the Original Devices Manufacturers (OEMs), which used to sell Millenium Valve Project Case Study Analysis items withtheir own brand name. Its consumer circle includes Original Equipment Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He repositioned Samsung as an international brand name and informed his divisional supervisors to understand marketing and its significance.

Issue Statement

Samsung's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to integrate marketing efficiently is still a major challenge. Creating a consistent brand name identity across the whole world and using marketing techniques that best fits the local culture is no simple job. The M-net program analysis have been truly useful in determining the high and less prospective growth areas, however allotment of resources appropriately is not well received among the managers. There is no consensus amongst the hierarchy concerning the best suited future method.

Situational Analysis

Yun had a rather clear image in his mind about how Millenium Valve Project Case Study Analysis can change from a low end to a high end product supplier. He understood that change can only be done through positioning Samsung as a company using high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand name, with a prospective support of its executives, Yun faced several 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 items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous service practices, and the present marketing requirement was too much high, the space was too wider and to fill this space with incorrect understandings about marketing was quite challenging for Yun.

As mentioned above, marketing focus was really low in previous practices, therefore there were no proper marketing budget plans for each of the item on the portfolio. There was no marketing preparation done for the existing items. In addition to it the product variety of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to develop marketing budgets for existing in addition to for new products from the very start, and this would take a big time.

A big shift would be required in present marketing expenses to develop the Millenium Valve Project Case Study Solution brand name. This would result in increased marketing expenditures for Samsung and could disturb the administration regarding increased expenses, as they hesitated to marketing expenditures formerly and a sudden big shiftwould make them disturb. This might result in decreasing executive assistance for global marketing. In this scenario, Yun deals with a difficulty for justifying increased marketing expenses by demonstrating the long term value of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its substantial product portfolio. Samsung has biggest number of patents in the industry with total variety of 15499 patents granted in United States( USP). Large amount of R&D costs has allowed the business to grow its product portfolio at a greater rate than its competitors. Millenium Valve Project 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 Millenium Valve Project Case Study Solution is its capability to establish innovative items at a continuous rate. It significant shows for the development and item creating of Samsung is that the business has received numerous awards for its development and product design.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be quickly integrated with any kind of open source Os (OS) and software. This provides Samsung an edge over Apple devices.

Samsung's capability to produce high-end products at low cost of production is likewise one of the major strength of Samsung as it makes it possible for the company to record more market by offering quality products with cost control.


Millenium Valve Project Case Study Help weaknesses are hidden in the business's reliance on outsourcing software application for its gadgets due to business's failure in establishing software application, unlike Sony. Samsung also has low earnings margins as compare to Apple due to big difference in the prices of Apple and Samsung with a much lesser difference in quality. The diverse focus of the business due to large number of items in its portfolio, result in the less efficient production and make the company not able to charge greater costs like Apple. The company is likewise inefficient in handling its patents and often faces the issue of patent offense.


Opportunities for Millenium Valve Project Case Study Solution lie in the growing Mobile phone market and the business's performance in the market. Samsung currently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.


The vibrant industry environment of innovation market posture an extreme threat on Samsung's survival and force the business to invest much of its revenues share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile business is also a big risk for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing


Samsung offers quality items and has a quite rich portfolio which caters to different segments. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Disk drives.
• Washer.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Millenium Valve Project Case Study Help utilizes both market competitive and market skimming prices methods for its wide array of items. In competitive prices it adjusts the cost according to the competitors in order to acquire benefit, whereas, it utilizes market skimming strategy where the item has actually an added value and by offering a few products it can reach break-even.


It has one of the 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 directly in case of online order.


It utilizes both offline & online channels of promotion to market their items. Paid item advertisements, social promotion and digital advertisements are utilizes to produce awareness about Samsung products.

Value Chain Analysis.

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

Inbound Logistics.

For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its suppliers and creates an unified relationship with them and even reduced their payment cycles to boost this relationship even more which includes worth to their chain network.


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

Outbound Logistics.

Its outbound logistics system efficiency is one of the primary reasons Millenium Valve Project Case Study Solution has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item offers. Millenium Valve Project Case Study Analysis advertising spending plan is continuously on the rise since they started their rearranging globally and will continue to do so as they are continually seeking to expand and invest in high prospective development markets. The budget is spent on occasions, print and media advertisements, public relations etc.

Samsung Service. Samsung put their customers at the top and continuously strive to provide unmatchable client service requirements. As after sales service is becoming incredibly essential to keep clients pleased and engaged, they even carry out studies through 3rd parties to discover their customer's feedback and implement it in the positive way to decrease or if possible completely remove their customer concerns. By including a direct assistance line to contact them 24 hours they have actually even more increased the included value of Millenium Valve Project Case Study Help service.


Millenium Valve Project Case Study Solution has diversified market division, based upon its arrangement of wide range of items to a great deal of consumers. Samsung target client sections can be divided into 3 classifications i.e. Millenium Valve Project Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget options.


Millenium Valve Project Case Study Analysis geographical division is based upon 2 requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products supplied to Urban along with Backwoods of the nation. The Samsung is also growing its worldwide presence and the company's versatility in locating its plants encourages international expansion of Samsung.


Samsung produces items that can be utilized by both females and males. The target consumers for Samsung IT and mobile interaction products have an age range of 18-65 with majority at a young or newly wed life cycle phase. Apart from it, Samsung Customer Electronics are targeted to a customer section with an age variety of 25-65.


The psychographic segmentation of Millenium Valve Project Case Study Analysis s based upon the social class and the life style of the customer. Samsung target consumers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung offer products like cellular phone very little cheaper i.e. Motorola along with not much expensive i.e. Apple. It provides quality products to middle level consumers at a somewhat high price than others targeting the very same section.


Millenium Valve Project Case Study Help bulk target consumers have special behavioural attributes. They are attracted towards Samsung because of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Samsung has actually increased astonishingly 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. Since of the high overhead expense, revenues/ sales are increasing but net earnings is not increasing appropriately. New expansions and employing's were the main factor of the increase in the overhead expenses, with china currently not supplying any profit to Samsung, however there is so much capacity in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the younger audience and develop a global brand picture of the company. Whereas, the core strength of the business is currently making but long gone are those days when great products were offering themselves. In the existing age marketing is really crucial and business can not succeed without it. Kim has actually already started to enhance the marketing activities of Samsung and soon it will become one of its core strength like making if not much better.



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


As, said previously that Millenium Valve Project Case Study Analysis operates in a highly competitive environment, which means all the business have comparable items. So, the response for rarity is no.


Due to the nature of the market, it is really easy for competitors to understand the performance of the products and quickly make their own models. Yes, Samsung is just behind IBM in registering new patents yearly, however the benefit is really short term in this industry.


Chairman Lee has entirely turnaround Samsung, from going nearly insolvent during the Asian financial crisis of 1997 to the leading 25 business worldwide. Definitely yes there appertains organization in the company and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every country worldwide, majority of the environments like USA, Europe, China etc., are extremely conductive for its operations. However, it deals with some political pressures in less developed nations where law and order scenario is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Millenium Valve Project Case Study Analysis operations.


Purchasing power of clients is crucial for business like Samsung to prosper and grow. Emerging markets like India, middle-eastern countries etc. provide growth chances, whereas, due to economic crisis even the customers of industrialized countries suffer badly. For this reason it is really crucial for the business to keep an eye on the ongoing economic circumstance of the nation prior to getting in the market.


International companies have to deal with various social and cultural problems during its operations in a foreign nation. Samsung has also faced lots of issues but have embraced to the regional environments of the majority of the nations remarkably well. It has actually customized its products, practices, policies etc. accordingly in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with continuous innovative item launches, Millenium Valve Project Case Study Analysis is among the top innovative business of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Samsung has actually risen to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. It has to study or work with a regional law specialist prior to starting its operations in a specific nation.


With the increasing awareness among consumers about the ethical & ecological violations of companies, Samsung has to ensure that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some nations the effects can be really extreme. On the other hand it has to do some Business Social Responsibility practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Hazard of Substitution

Danger of substitution for Samsung's each item category is quite substantial. Factors for high risk of replacement for Millenium Valve Project Case Study Analysis Smart device include the existence of high number of suppliers and Market saturation in developed nations, which make the expense of switching for consumers practically absolutely no. Along with it, Samsung printing services products are threatened by the increasing destination of consumers towards cloud storage.

Competition Amongst Existing Firms:

The rivaly among Samsung and its close rivals is extreme. The significant reason behind this is the method of market saturation in numerous variety of product categories, requiring Samsung to present more ingenious functions in existing items and new ingenious items to preserve its development. Other factor for the extreme rivalry amongst the competitors is the little product distinction among the items. The prominent gamers in the technology market are quite aware of the significance of R&D costs for their survival and are running into a race of marketing and R&D costs, to capture the marketplace. The significant rivals for Millenium Valve Project Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the varying 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 Millenium Valve Project Case Study Analysis to build its own software application, it has to outsource its software development to Google, which ends up being a potential supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Negotiating power of buyers for various variety of item categories of Samsung is intense. One of the factor leading to the extreme bargaining power is the accessibility of a great deal of rivals in practically each product category i.e. rivals of Samsung Smartphone, with a very little distinction. The high accessibility of suppliers of Smart devices with minimum distinction, make the switching expense for purchasers practically no, thus increasing the bargaining power of buyers. Market saturation in the majority of the item categories also make the bargaining power of purchasers more intense in for Millenium Valve Project Case Study Analysis. In spite of igh bargaining power Samsung is quite efficient in offering its items at a higher rate than much of its rivals, due to high end quality product and a reasonable brand image.

Hazard of New Entrants:

Danger of brand-new entrants for Millenium Valve Project Case Study Analysis is rather low. Along with it, requirement of substantial competence and research study and development expenses for survival in the industry also make new entrants reluctant 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 provides it distinction from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority 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 huge R&D spending on all of its product categories which enable the business to earn potential earnings from sales of almost all of its products.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in terms of worldwide market share, amongst 8 various item categories. Samsung was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown close to the earnings levels of Intel, as provided in the case Exhibit 2.

Together with the chips Samsung mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cellular phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The significant reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of high-end LCDs as given up case Exhibit 3. The significant reason, making the company enable to get the chance is its mass production at low cost. Sony was the greatest rival for Millenium Valve Project Case Study Solution in LCD market, however, it had also begun joint venture with Samsung in 2003 for LCD making, lessening the competition for Samsung.

Porter's Competitive Technique

Low Expense Management method of porter is fully carried out by Samsung the way they achieve economies of scale by strengthening their core proficiencies of manufacturing. They always bring something ingenious and brand-new whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Millenium Valve Project Case Study Help would create a brand-new brand image by targeting the more youthful generation of the particular nation. As, specifically cellphones of Samsung are very popular amongst the more youthful group.


1. It is the very best technique to construct Consumer Lifetime Worth (CLV) by producing a long-lasting relationship with customers. Build loyalty through providing worth and profit for long-term, as research has revealed it is more affordable to retain existing customers than to bring in new ones.
2. Another pro of this option is that word of mouth spread faster amongst more youthful people and which in turn will generate new customers for my items.


1. Old consumers who were related to Samsung prior to might not like this brand-new image the business is attempting to represent.
2 It will sustain additional costs to rearrange some items and it may not even bring success as the trends change very quickly amongst the more youthful group.

Alternative option 2.

Samsung has actually made manufacturing its core competency for the a lot of part of their organisation and due to which its supervisors are not afraid to totally get out of their convenience zone. It would be done by organizing training workshops during which significance of marketing will be taught and numbers will be given. Failure to get the passing scores will get benched. Marketing environment must be developed internally first as genuine marketing starts inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the workplace, as people often resist change because they fear it.

Recognize the very best option

Alternative is the finest as it clearly has more pros because once a Customer Lifetime Value is developed the company will benefit from it till that client is alive and has buying power. Plus, our target clients are the more youthful generation which are bound to live longer than the current aging people. Nevertheless, Samsung's main goal is to produce loyalty among its consumers and make them bought it from them and even purchase their various items too.

Execution Plan

• Targeting younger generation through social marketing, developing a link with them like Pepsi make with music. And set the expectations reasonable and achievable.
• A group including best marketing and sales experts ought to be put together, and both views need to be taken into account prior to protecting the resources required to execute the plan.
• Thorough communication of the strategy ought to be done as it is really crucial for everyone to be on the same page to make it work.
• Tasks and timelines ought to be construct and communicated accordingly to each individual accountable.
• The manager need to utilize a control panel which reveals the progress of all the jobs which have actually been done or about to be done and by whom.
• The supervisor ought to monitor and keep a constant look at the total and individual efficiency.
Because any new trend or policy might come in due to which all the things currently planned have actually to be changed, • Everyone ought to be willing to adapt midway. It's better to have contingency strategies currently prepared.
• At the end of the campaign the manager need to communicate the results and if successful need to commemorate with the group.

Budget plan

This change the budget plan allocation of lots of supervisors and different countries were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth possible merited a 35% allotment while they were receiving 45%. It truly assisted to fairly distribute the resources and capture more clients by investing more on ads on the high growth potential regions of the world.


Millenium Valve Project Case Study Solution is a top 25 business in the world now and plans to get ahead of Sony who sits presently at no. 20. Its constant financial investment in R&D and ingenious practices have moved them to brand-new heights however for them its' just the start and they wish to be among the leading 3 brands worldwide. They completely turn-around from nearly declaring bankruptcy during the Asian Financial Crisis to a world prominent brand, known for quality and innovation. Their value chain and their core competency their production ability, along-with international brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further expansion in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts should be directed towards younger demographic in the middle of the internal arguments about marketing and must produce Consumer Lifetime Value as it will not only provide benefits now however will continue to reap it till the consumer lifetime. As the expense of keeping the client is more affordable than attracting a new one.