Morgan Components 3 Harvard Case Study Solution

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Morgan Components 3 Case Study Solution and Analysis


Morgan Components 3 Case Study Analysis is a popular international brand in technology market, established in 1938 by Lee Byung Chul, in South Korea. Morgan Components 3 handle a great deal of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the company's core customers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Business products withtheir own brand name. Till early 1990s, the core proficiency of Venture lie in its low price offerings than its competitors by manufacturing existing products at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to sell Morgan Components 3 Case Study Solution products with their own trademark name. Corp was not merely known outside Korea. There were also no or little interest in constructing the trademark name internationally. Marketing budget was controlled by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the business nearly got insolvent, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the leading 25 most important business on the planet. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Org as a global brand name and informed his divisional supervisors to understand marketing and its importance. Now their objective is to arrive 10 by 2005.

Issue Statement

Corporation's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to integrate marketing effectively is still a major obstacle. Developing a constant brand identity throughout the whole world and utilizing marketing strategies that best fits the local culture is no easy job.
Executive Summary
Situational Analysis

Morgan Components 3 Case Study Help efforts for developing its brand name throughout the world was started after presenting the "brand-new management effort" by Chairman Lee in 1993. The goal was to transform Corp from a cheap OEM to a high value-added product company. To make the vision of Enterprise a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear image in his mind about how Enterprise can change from a low end to a high-end product provider. He knew that improvement can just be done through positioning Corporation as a company offering high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to develop Venture brand, with a possible support of its executives, Yun dealt with numerous marketing difficulties in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as very same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the present marketing requirement was excessive high, the gap was too wider and to fill this space with wrong perceptions about marketing was quite tough for Yun.

As stated above, marketing focus was extremely low in previous practices, for that reason there were no proper marketing budget plans for each of the product on the portfolio. There was no marketing preparation provided for the existing products. In addition to it the product range of the company was increasing with the ripening of new item ideas by the R&D sector of Corporation. Yun had a difficulty to perform marketing planning and to create marketing budgets for existing in addition to for new products from the very start, and this would take a substantial time.

A big shift would be needed in existing marketing expenditures to develop the Organization brand name. This would result in increased marketing expenses for Enterprise and might disturb the administration concerning increased costs, as they were hesitant to marketing expenses formerly and a sudden big shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Morgan Components 3 Case Study Help strengths lie in its big product portfolio. Enterprise has largest number of patents in the market with total number of 15499 patents approved in US( USP).

Another strength of Morgan Components 3 Case Study Analysis is its capability to establish ingenious products at a continuous rate. It major shows for the innovation and item creating of Business is that the company has actually gotten many awards for its development and product design.

Unlike Apple and other competitors, Corporation is concentrated on producing devices which can be easily incorporated with any kind of open source Os (OS) and software application. This provides Enterprise an edge over Apple gadgets.
Porter's 5 Forces Analysis
Corporation's capability to produce high-end items at low cost of production is likewise one of the significant strength of Enterprise as it allows the business to record more market by supplying quality items with expense control.

Weak points

Morgan Components 3 Case Study Solution weaknesses are hidden in the business's dependence on outsourcing software application for its gadgets due to business's failure in developing software, unlike Sony. Corporation also has low earnings margins as compare to Apple due to huge distinction in the prices of Apple and Corp with a much lower distinction in quality. The diverse focus of the company due to large number of items in its portfolio, result in the less effective production and make the company not able to charge higher rates like Apple. The company is also inefficient in handling its patents and regularly deals with the issue of patent violation.


Opportunities for Organization depend on the growing Mobile phone market and the company's effectiveness in the market. It can increase its market share and earnings from cellular phone as the business is quite efficient in cell phone market. Venture currently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Venture can move towards acquisitions to acquire patents. It would make it possible for the company to increase its item portfolio with a boost in its wealth.


The dynamic industry environment of innovation industry posture a serious threat on Organization's survival and force the business to invest much of its earnings share on R&D in order to endure in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is also a huge danger for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Morgan Components 3 Case Study Solution uses quality products and has a quite abundant portfolio which caters to different segments. The majority of the items remain in the top three of their particular markets. LCD and mobile phones are the greatest items of Org, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Enterprise:

• Laptops.
• Smart phone.
• Ac system.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Morgan Components 3 Case Study Solution uses both market competitive and market skimming rates strategies for its wide range of products. In competitive prices it adjusts the cost according to the competitors in order to acquire benefit, whereas, it uses market skimming strategy where the item has an added value and by offering a couple of 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 etc. All its items are prompt supplied to the selling place/ delivered to the clients straight in case of online order.

Vrio Analysis
It uses both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital advertisements are uses to create awareness about Corp products.

Value Chain Analysis.

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

Incoming Logistics.

For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its suppliers and develops a harmonious relationship with them and even minimized their payment cycles to enhance this relationship further which includes worth to their chain network.


Organization's core proficiency is its mass making it produces 90% of its products internal. Divided into 3 various divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is maintaining operation centers worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main reasons Morgan Components 3 Case Study Analysis has the ability to compete with Apple. Business's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Corp.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the item uses. Morgan Components 3 Case Study Analysis advertising budget plan is constantly growing because they started their repositioning worldwide and will continue to do so as they are continuously looking to invest and broaden in high prospective growth markets. The budget is invested in occasions, print and media advertisements, public relations and so on.

Corp put their clients at the leading and continually make every effort to provide unmatchable client service requirements. By adding a direct support line to call them 24 hours they have further increased the added value of Org service.


Morgan Components 3 Case Study Analysis has actually diversified market division, based upon its provision of vast array of items to a great deal of consumers. Org target customer segments can be divided into 3 categories i.e. Morgan Components 3 Case Study Help IT and Mobile Communications, Organization Consumer Electronics and Company Device solutions.


Morgan Components 3 Case Study Help geographic division is based upon two criteria i.e. area and density. Org serves about 80 nations worldwide with its items supplied to Urban as well as Rural areas of the country. The Corporation is also growing its international existence and the business's versatility in finding its plants motivates worldwide expansion of Corp.


Org produces items that can be used by both women and males. The target customers for Organization IT and mobile communication items have an age variety of 18-65 with majority at a young or freshly married life cycle stage. Apart from it, Company Customer Electronics are targeted to a client sector with an age range of 25-65.


The psychographic segmentation of Morgan Components 3 Case Study Analysis s based upon the social class and the lifestyle of the customer. Enterprise target clients on the basis of social class are generally upper middle, middle and working class clients, as Enterprise offer products like cellular phone very little cheaper i.e. Motorola as well as very little expensive i.e. Apple. It offers quality items to middle level consumers at a somewhat high price than others targeting the very same sector.


Morgan Components 3 Case Study Help bulk target clients have special behavioural attributes. It has clients with an ambitious, stylish and identified character with moderate level of loyalty towards the brand name. Its customers have some degree of shift towards other prominent brands i.e. Apple. The majority of Corp consumers want quality in addition to expense control. Because of its moderate rates with a degree of quality, they are attracted towards Organization.

Quantitative analysis.

Sales of Morgan Components 3 Case Study Analysis has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Org with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is presently manufacturing however long gone are those days when great items were offering themselves. Kim has already started to reinforce the marketing activities of Corporation and extremely soon it will become one of its core strength like producing if not much better.



Venture operates designs, makes and offer a large portfolio of consumer electronics. It operates in an exceptionally competitive environment and has successfully positioned itself as the maker of quality products. So, the response is yes.


As, said previously that Morgan Components 3 Case Study Solution runs in a highly competitive environment, which suggests all the companies have similar products. So, the response for rarity is no.


Due to the nature of the industry, it is very easy for competitors to comprehend the functionality of the items and easily make their own models. Yes, Org is just behind IBM in registering brand-new patents each year, however the advantage is very short-term in this market.


Chairman Lee has totally turn-around Corp, from going nearly insolvent throughout the Asian monetary crisis of 1997 to the leading 25 company worldwide. Absolutely yes there is proper organization in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread almost in every nation worldwide, majority of the environments like USA, Europe, China and so on, are very conductive for its operations. It faces some political pressures in less industrialized nations where law and order circumstance is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Morgan Components 3 Case Study Solution operations.


Purchasing power of customers is important for business like Venture to grow and succeed. Emerging markets like India, middle-eastern nations etc. supply development chances, whereas, due to economic crisis even the consumers of developed countries suffer severely. Hence it is very essential for the business to keep an eye on the ongoing economic circumstance of the country before getting in the market.


International business need to face numerous social and cultural problems throughout its operations in a foreign nation. Organization has likewise dealt with numerous concerns however have embraced to the regional environments of most of the countries exceptionally well. It has tailored its items, practices, policies and so on appropriately in order to be successful.


With a yearly expense of 2.4 billion dollars in Research & Development, and with constant ingenious product launches, Morgan Components 3 Case Study Help 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 developments, Org has actually increased to the no 25 of the leading successful business of the world.


Each nation has their own laws and policies, being a multinational business Org have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal repercussions. It has to study or work with a regional law professional before beginning its operations in a specific nation.


With the increasing awareness amongst consumers about the environmental & ethical infractions of companies, Corp has to guarantee that it follows all the safety standards. Ecological damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be really serious. On the other hand it needs to do some Business Social Duty practices to reveal the locals that it cares about their environment and people.

Porter's Five Forces

Hazard of Replacement

Risk of replacement for Business's each item category is quite substantial. Running in an exceptionally vibrant market lead the company to deal with a high threat of replacement. Factors for high threat of substitution for Morgan Components 3 Case Study Analysis Mobile phone consist of the existence of high number of suppliers and Market saturation in industrialized countries, which make the expense of switching for customers practically absolutely no. Substitution threats for Organization visual display screen lie in the changing life style of consumers. Customers can switch to seeing visuals in the house towards outdoor activities. Along with it, Organization printing solutions products are threatened by the increasing destination of clients towards cloud storage.

Rivalry Among Existing Firms:

The rivaly among Venture and its close rivals is extreme. The major reason behind this is the technique of market saturation in various variety of product categories, requiring Corp to present more ingenious functions in existing items and new ingenious items to keep its development. Other element for the intense competition amongst the rivals is the little item differentiation amongst the products. The prominent players in the innovation market are rather knowledgeable about the significance of R&D spending for their survival and are facing a race of marketing and R&D spending, to capture the market. The significant competitors for Morgan Components 3 Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry results in the varying market shares which can be seen in Exhibit F.

Bargaining Power of Suppliers:

Morgan Components 3 Case Study Help has a vast supply chain including about 2700 suppliers throughout the world.( Organization Sustainability Report, 2016) Provider's bargaining power for Venture is low as Business runs economies of scale and its orders are of possible size and worth. These substantial orders make it possible for Corp to work out costs with its providers. Due to incapability of Company to develop its own software application, it has to outsource its software development to Google, which becomes a prospective supplier of software application for Company, resulting in high bargaining power of Google. In most of Morgan Components 3 Case Study Analysis has a power to negotiate costs, but it provide considerable rates to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Haggling power of purchasers for various number of item categories of Business is intense. One of the factor resulting in the intense bargaining power is the availability of large number of competitors in almost each item category i.e. rivals of Corp Mobile phone, with a very little differentiation. The high schedule of suppliers of Mobile phones with minimum differentiation, make the changing cost for purchasers almost no, for this reason increasing the bargaining power of purchasers. Market saturation in most of the product categories likewise make the bargaining power of buyers more intense in for Morgan Components 3 Case Study Analysis. In spite of igh bargaining power Corp is rather capable of selling its items at a higher cost than much of its competitors, due to high-end quality item and a reasonable brand name image.

Threat of New Entrants:

Hazard of new entrants for Morgan Components 3 Case Study Analysis is quite low. Along with it, requirement of huge proficiency and research and advancement expenses for survival in the market likewise make brand-new entrants reluctant to go into in the market. Market saturation is also one of the barrier of entry in innovation industry.

Competitive Analysis

Business's high item diversification offers it differentiation from its rivals. It is among the three leading brand names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Corp had a big R&D spending on all of its product categories which allow the business to earn prospective revenue from sales of nearly all of its items. (See Exhibition) However, due to the broad product range the company faces high number of rivals.

The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in regards to international market share, among 8 various item categories. Corporation was the international leader in producing DRAM, SRAM and NAND flash chips. Organization incomes from chips was less than Intel but its profits from chips was growing quicker than Intel and has grown close to the profits levels of Intel, as provided in the case Exhibit 2.

Together with the chips Enterprise mobile market was likewise flourishing at a high rate than its competitors i.e. Motorola and Nokia. Organization'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 Enterprise's high development despite of greater costs than Nokia and Motorola was the company's high-end quality cell phones.

Enterprise was likewise reaping the benefits from increasing market share of high end LCDs as given up case Exhibit 3. The major reason, making the company enable to obtain the chance is its mass production at low cost. Sony was the biggest competitor for Morgan Components 3 Case Study Analysis in LCD market, however, it had actually likewise begun joint venture with Enterprise in 2003 for LCD producing, reducing the competition for Venture.

Porter's Competitive Strategy

Low Cost Leadership strategy of porter is fully executed by Corporation the method they accomplish economies of scale by strengthening their core proficiencies of production. Even to the point that their competitor SONY decided to form an alliance with them to make for them, because they were not able to compete with them on low expense. Differentiation is another strategy well carried out by Organization by continuous financial investment in the R&D and remaining ahead of the competitors. They constantly bring something innovative and brand-new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Morgan Components 3 Case Study Analysis would develop a brand-new brand image by targeting the younger generation of the specific nation. As, specifically cellphones of Business are incredibly popular among the younger demographic.


1. It is the very best technique to construct Consumer Lifetime Value (CLV) by producing a long-lasting relationship with clients. Develop loyalty through providing value and profit for long-term, as research study has actually showed it is more affordable to retain current consumers than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among more youthful people and which in turn will bring in brand-new customers for my products.


1. Old clients who were associated with Corp before may not like this new image the company is trying to represent.
2 It will incur additional expenditures to rearrange some items and it may not even bring success as the patterns alter extremely quickly among the younger demographic.

Alternative solution 2.

It would be done by arranging training workshops during which importance of marketing will be taught and numbers will be provided. Marketing environment ought to be developed internally initially as real marketing starts inside the corporation.


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


2. Its con can produce an extremely unhealthy environment in the workplace, as individuals typically withstand change due to the fact that they fear it.

Determine the best alternative

Alternative is the best as it plainly has more pros since when a Consumer Lifetime Value is built the company will profit from it till that consumer is alive and has purchasing power. Plus, our target clients are the younger generation which are bound to live longer than the present aging people. Company's main objective is to create commitment amongst its customers and make them redeemed it from them and even buy their different items.

Implementation Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations practical and achievable.
• A group including finest marketing and sales specialists must be put together, and both views ought to be taken into consideration before protecting the resources required to carry out the strategy.
• Thorough interaction of the strategy ought to be done as it is very crucial for everybody to be on the exact same page to make it work.
• Jobs and timelines should be construct and interacted appropriately to each individual responsible.
• The supervisor ought to use a dashboard which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The manager ought to keep track of and keep a continuous examine the individual and overall efficiency.
• Everyone must want to adjust midway since any new trend or policy may can be found in due to which all the important things currently planned have to be adjusted. It's better to have contingency strategies already prepared.
• At the end of the campaign the manager should communicate the outcomes and if successful need to commemorate with the group.

Budget plan

The M-net program exposed engaging analysis about the low and high development potential areas and just how much advertising budget ought to be assigned accordingly. This modification the spending plan allowance of various nations and numerous managers were unhappy and argued however the analysis done by the program was accurate and showed figures like The United States and Canada and Russia growth potential warranted a 35% allotment while they were receiving 45%. Whereas, China and Europe ought to be receiving 42% however were rather provided 31%. It actually helped to relatively disperse the resources and capture more clients by spending more on advertisements on the high growth capacity areas of the world.

Morgan Components 3 Case Study Analysis is a leading 25 company on the planet now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous investment in R&D and innovative practices have actually propelled them to brand-new heights but for them its' only the start and they wish to be among the top 3 brand names on the planet. They entirely turn-around from almost going bankrupt throughout the Asian Financial Crisis to a world renowned brand, understood for quality and innovation. Their worth chain and their core proficiency their manufacturing capability, along-with worldwide brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional growth in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts need to be directed towards more youthful group amidst the internal arguments about marketing and ought to develop Client Life time Worth as it will not just give them advantages now however will continue to enjoy it till the client life time. As the cost of maintaining the consumer is more affordable than bring in a new one.