Mindersoft Inc 2 Harvard Case Study Solution

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Mindersoft Inc 2 Case Study Solution and Analysis


Mindersoft Inc 2 Case Study Help is a well-known worldwide brand in technology market, founded in 1938 by Lee Byung Chul, in South Korea. Mindersoft Inc 2 deals in a great deal of product classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core customers consist of the Original Equipment Manufacturers (OEMs), which utilized to offer Samsung products withtheir own trademark name. Till early 1990s, the core competency of Samsung depend on its low cost offerings than its competitors by making existing products at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who utilized to offer Mindersoft Inc 2 Case Study Solution products with their own brand name. Samsung was not simply understood outside Korea. There were also no or little interest in developing the brand name internationally. Marketing budget plan was managed by production department with a focal point on providing cheap products.During the 1997 Asian Financial Crisis the business practically got insolvent, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable business on the planet. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Samsung as an international brand name and informed his divisional supervisors to comprehend marketing and its importance. Now their goal is to arrive 10 by 2005.

Issue Declaration

Samsung's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to incorporate marketing effectively is still a significant challenge. Producing a consistent brand name identity across the whole world and employing marketing strategies that finest fits the local culture is no simple job.
Executive Summary
Situational Analysis

Mindersoft Inc 2 Case Study Help efforts for developing its brand name across the world was started after introducing the "new management initiative" by Chairman Lee in 1993. The objective was to transform Samsung from an inexpensive OEM to a high value-added item supplier. To make the vision of Samsung a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Samsung can transform from a low end to a high end product company. He knew that transformation can just be done through placing Samsung as a company offering high-end items and this could just be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand name, with a possible support of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They thought about marketing and selling as exact same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the existing marketing requirement was too much high, the gap was too wider and to fill this gap with incorrect perceptions about marketing was quite tough for Yun.

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

A huge shift would be required in current marketing expenses to construct the Samsung brand name. This would result in increased marketing expenses for Samsung and could disrupt the administration relating to increased expenditures, as they were reluctant to marketing expenses formerly and an unexpected huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its big product portfolio. Samsung has biggest number of patents in the industry with overall variety of 15499 patents granted in United States( USP). Big quantity of R&D spending has made it possible for the business to grow its product portfolio at a greater rate than its competitors. Mindersoft Inc 2 Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall incomes.

Another strength of Mindersoft Inc 2 Case Study Help is its ability to develop ingenious items at a constant rate. It major proves for the development and item creating of Samsung is that the company has received so many awards for its development and item style.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be easily incorporated with any type of open source Operating System (OS) and software. This offers Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury products at low expense of production is likewise one of the major strength of Samsung as it allows the company to capture more market by offering quality products with cost control.

Weak points

Mindersoft Inc 2 Case Study Solution weaknesses are hidden in the business's dependence on outsourcing software for its gadgets due to company's failure in developing software, unlike Sony. Samsung likewise has low revenue margins as compare to Apple due to substantial difference in the costs of Apple and Samsung with a much lower distinction in quality. The diverse focus of the company due to large number of products in its portfolio, lead to the less efficient production and make the business unable to charge higher prices like Apple. The business is likewise inefficient in managing its patents and regularly faces the issue of patent offense.


Opportunities for Samsung lie in the growing Smart device market and the company's effectiveness in the market. It can increase its market share and profits from cellular phone as the company is rather efficient in cell 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 get patents. It would allow the company to increase its item portfolio with a boost in its wealth.


The dynamic industry environment of technology market pose a serious danger on Samsung's survival and force the company to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in developed countries i.e. saturation of mobile business is also a big danger for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Samsung uses quality products and has a quite abundant portfolio which caters to various sectors. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Smart phone.
• Air conditioning unit.
• Computer.
• Disk drives.
• Washer.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Mindersoft Inc 2 Case Study Analysis uses both market competitive and market skimming prices strategies for its variety of items. In competitive pricing it adjusts the rate according to the competition in order to gain advantage, whereas, it utilizes market skimming technique where the item has an added worth and by selling a few items it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its items are prompt supplied to the selling place/ provided to the clients straight in case of online order.

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

Value Chain Analysis.

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

Inbound Logistics.

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


Samsung's core competency is its mass making it produces 90% of its items in-house. Divided into 3 different divisions its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is preserving operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Mindersoft Inc 2 Case Study Analysis has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the product uses. Mindersoft Inc 2 Case Study Help marketing budget plan is continually increasing since they began their repositioning internationally and will continue to do so as they are constantly wanting to invest and expand in high potential development markets. The budget is spent on events, print and media ads, public relations and so on.

Samsung put their customers at the top and continually aim to provide unmatchable client service standards. By adding a direct assistance line to call them 24 hours they have actually even more increased the added worth of Samsung service.


Mindersoft Inc 2 Case Study Solution has actually diversified market segmentation, based upon its provision of vast array of items to a great deal of consumers. Samsung target consumer sections can be divided into 3 categories i.e. Mindersoft Inc 2 Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device services.


Mindersoft Inc 2 Case Study Help geographical segmentation is based upon 2 criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products offered to Urban along with Rural areas of the country. The Samsung is also growing its global existence and the business's versatility in finding its plants encourages international expansion of Samsung.


Samsung produces products that can be utilized by both women and males. The target customers for Samsung IT and mobile communication products have an age range of 18-65 with majority at a young or freshly married life cycle phase. Apart from it, Samsung Consumer Electronic devices are targeted to a client sector with an age variety of 25-65.


The psychographic segmentation of Mindersoft Inc 2 Case Study Help 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 sell items like mobile phone very little cheaper i.e. Motorola as well as not much expensive i.e. Apple. It offers quality products to middle level customers at a slightly high rate than others targeting the exact same sector.


Mindersoft Inc 2 Case Study Solution bulk target customers have distinct behavioural attributes. They are drawn in towards Samsung since 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 profit of.48 billion $ to 5.9 billion $. It has actually likewise decreased its financial obligation from 15 billion $ to 4.6 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. Because of the high overhead cost, earnings/ sales are increasing but net earnings is not increasing accordingly. New expansions and working with's were the primary reason of the boost in the overhead costs, with china currently not supplying any revenue to Samsung, but there is a lot capacity in the present market with 75 % yet to be checked out.

Qualitative analysis.

Whereas, the core strength of the business is currently manufacturing however long gone are those days when excellent products were selling themselves. Kim has already begun to enhance the marketing activities of Samsung and very soon it will end up being one of its core strength like making if not better.



Samsung runs designs, produces and sell a huge portfolio of customer electronics. It operates in an exceptionally competitive environment and has effectively positioned itself as the maker of quality products. So, the answer is yes.


As, said previously that Mindersoft Inc 2 Case Study Help operates in an extremely competitive environment, which means all the business have comparable products. So, the response for rarity is no.


Due to the nature of the industry, it is extremely simple for competitors to comprehend the performance of the items and quickly make their own models. Yes, Samsung is just behind IBM in signing up new patents every year, but the benefit is really short-term in this industry.


Chairman Lee has entirely turn-around Samsung, from going almost insolvent throughout the Asian financial crisis of 1997 to the top 25 business worldwide. Absolutely yes there is proper organization in the company and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread practically in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. However, it deals with some political pressures in less industrialized nations where order situation is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Mindersoft Inc 2 Case Study Solution operations.


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


International companies have to face different social and cultural issues throughout its operations in a foreign country. Samsung has actually also faced lots of concerns but have actually adopted to the regional environments of most of the countries incredibly well. It has actually tailored its products, practices, policies etc. appropriately in order to achieve success.


With a yearly expense of 2.4 billion dollars in Research study & Development, and with constant innovative product launches, Mindersoft Inc 2 Case Study Solution is one of the top innovative companies of the world. With a clear objective to be ahead of the rest when it comes to technological improvements, Samsung has actually risen to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal repercussions. It has to study or work with a regional law expert prior to starting its operations in a particular country.


With the rising awareness among customers about the environmental & ethical offenses of companies, Samsung needs to guarantee that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some nations the consequences can be extremely serious. On the other hand it has to do some Corporate Social Obligation practices to reveal the residents that it appreciates their environment and people.

Porter's Five Forces

Threat of Alternative

Hazard of substitution for Samsung's each item category is quite substantial. Elements for high threat of alternative for Mindersoft Inc 2 Case Study Analysis Mobile phone include the presence of high number of providers and Market saturation in industrialized nations, which make the cost of switching for customers practically no. Along with it, Samsung printing services products are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Samsung and its close competitors is intense. The significant factor behind this is the technique of market saturation in various variety of item categories, requiring Samsung to present more ingenious functions in existing products and new ingenious items to preserve its development. Other element for the extreme competition among the competitors is the little product distinction among the products. The prominent gamers in the innovation market are quite aware of the importance of R&D costs for their survival and are encountering a race of marketing and R&D spending, to catch the market. The major rivals for Mindersoft Inc 2 Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the fluctuating market shares which can be seen in Exhibit F.

Bargaining Power of Suppliers:

( 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 Mindersoft Inc 2 Case Study Analysis to develop its own software, it has to outsource its software advancement to Google, which becomes a possible provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in many of the product classifications likewise make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is quite capable of selling its items at a greater rate than much of its competitors, due to high end quality item and a reasonable brand name image.

Hazard of New Entrants:

Hazard of brand-new entrants for Samsung is rather low. One of the significant element for low hazard of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to enter in the market is likewise one of the potential barrier to entry. Along with it, requirement of substantial knowledge and research study and development expenditures for survival in the industry likewise make brand-new entrants unwilling to go into in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of providers force the players in the industry to charge as low rates as possible and this can only be accomplished by production performance. Brand-new firms, in majority cases, lack the production performance, thus increasing the dangers for entrance in the innovation market.

Competitive Analysis

Samsung's high item diversity offers it differentiation from its competitors. It is among the 3 top brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority 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 categories which make it possible for the business to make potential earnings from sales of almost all of its items. (See Display) Nevertheless, due to the broad product variety the business faces high variety of competitors.

The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of global market share, amongst 8 various product categories. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel but its profits from chips was growing faster than Intel and has actually grown near to the earnings levels of Intel, as given up the case Exhibition 2.

Together with the chips Samsung mobile market was likewise growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Samsung's high growth despite of higher prices 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 Exhibition 3. The major factor, making the company allow to obtain the opportunity is its mass production at low expense. Sony was the greatest rival for Mindersoft Inc 2 Case Study Solution in LCD market, however, it had actually likewise begun joint venture with Samsung in 2003 for LCD producing, reducing the competitors 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. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, because they were not able to take on them on low expense. Differentiation is another technique well executed by Samsung by constant investment in the R&D and staying ahead of the competitors. They constantly bring something brand-new and innovative whether it's an item or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Mindersoft Inc 2 Case Study Solution would develop a new brand image by targeting the younger generation of the specific nation. As, specifically smart phones of Samsung are preferred among the more youthful demographic.


1. It is the very best strategy to construct Client Lifetime Worth (CLV) by producing a long-term relationship with consumers. Construct loyalty through providing value and profit for long-lasting, as research has actually showed it is much cheaper to maintain existing clients than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly among more youthful individuals and which in turn will generate new clients for my items.


1. Old consumers who were connected with Samsung before might not like this new image the company is attempting to depict.
2 It will sustain further expenses to rearrange some products and it may not even bring success as the trends alter extremely quickly among the more youthful group.

Alternative option 2.

Samsung has actually made making its core competency for the a lot of part of their business and due to which its supervisors are not afraid to completely get out of their convenience zone. It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get demoted. Marketing environment ought to be created internally first as genuine marketing starts inside the corporation.


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


2. Its con can produce a really unhealthy environment in the work environment, as people often withstand modification due to the fact that they fear it.

Identify the best option

Very first option is the very best as it plainly has more pros since when a Client Life time Worth is built the business will benefit from it till that client lives and has acquiring power as well. Plus, our target customers are the more youthful generation which are bound to live longer than the existing aging individuals. Samsung's main goal is to develop commitment amongst its consumers and make them repurchase it from them and even purchase their various products.

Implementation Strategy

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations achievable and practical.
• A group including best marketing and sales professionals need to be put together, and both views ought to be taken into consideration prior to securing the resources required to carry out the strategy.
• Thorough communication of the strategy need to be done as it is really crucial for everyone to be on the exact same page to make it work.
• Tasks and timelines must be construct and interacted accordingly to each person responsible.
• The manager should use a control panel which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The manager must monitor and keep a consistent check on the general and specific efficiency.
• Everybody must want to adjust midway because any new pattern or policy may can be found in due to which all the things already prepared have to be adjusted. It's better to have contingency strategies already prepared.
• At the end of the project the manager should communicate the outcomes and if successful must commemorate with the group.


This change the budget allocation of various countries and lots of managers were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia development possible merited a 35% allotment while they were receiving 45%. It really assisted to fairly disperse the resources and catch more consumers by spending more on ads on the high growth potential areas of the world.

Its constant financial investment in R&D and ingenious practices have actually moved them to new heights but for them its' just the start and they want to be among the top 3 brands in the world. Their marketing efforts should be directed towards younger demographic in the middle of the internal arguments about marketing and need to create Consumer Life time Value as it will not only give them advantages now however will continue to reap it till the consumer life time. As the expense of retaining the client is much less expensive than drawing in a brand-new one.