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 widely known global brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Morgan Components 3 deals in large number of product classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core customers consist of the Original Equipment Manufacturers (OEMs), which used to offer Enterprise products withtheir own trademark name. Till early 1990s, the core proficiency of Organization lie in its low price offerings than its rivals by manufacturing existing items at economies of scale. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to sell Morgan Components 3 Case Study Analysis products with their own trademark name. Org was not merely known outside Korea. There were also no or little interest in building the brand globally. Marketing budget was managed by production department with a prime focus on offering low-cost products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the leading 25 most important company worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Organization as a worldwide brand and informed his divisional managers to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Statement

Enterprise's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to incorporate marketing effectively is still a significant difficulty. Producing a constant brand identity throughout the whole world and employing marketing techniques that finest fits the regional culture is no simple job.
Executive Summary
Situational Analysis

Morgan Components 3 Case Study Help efforts for building its brand name throughout the world was started after introducing the "new management initiative" by Chairman Lee in 1993. The goal was to change Corporation from a cheap OEM to a high value-added product provider. To make the vision of Enterprise a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Enterprise can change from a low end to a luxury item service provider. He understood that transformation can just be done through positioning Organization as a business using high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to develop Company brand, with a prospective support of its executives, Yun faced a number of marketing challenges in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was too much high, the space was too wider and to fill this gap with incorrect understandings about marketing was rather difficult for Yun.

Along with it the item range of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Business. Yun had a difficulty to carry out marketing preparation and to produce marketing spending plans for existing as well as for brand-new products from the very beginning, and this would take a substantial time.

A huge shift would be required in current marketing expenditures to develop the Morgan Components 3 Case Study Analysis brand name. This would lead to increased marketing expenditures for Business and could disrupt the administration relating to increased expenditures, as they hesitated to marketing expenditures formerly and a sudden big shiftwould make them disturb. This might lead to decreasing executive support for global marketing. In this scenario, Yun faces a challenge for justifying increased marketing expenditures by showing the long term worth of big marketing expenses.

Internal Analysis
SWOT Analysis

Organization strengths lie in its substantial item portfolio. Venture has biggest variety of patents in the industry with total number of 15499 patents granted in United States( USP). Big quantity of R&D spending has allowed the company to grow its product portfolio at a higher rate than its competitors. Morgan Components 3 Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total profits.

Another strength of Morgan Components 3 Case Study Help is its ability to develop ingenious products at a constant rate. It major proves for the innovation and item creating of Enterprise is that the company has actually gotten so many awards for its development and item style.

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

Weak points

Enterprise's weaknesses are hidden in the business's dependence on outsourcing software for its devices due to company's failure in developing software application, unlike Sony. Morgan Components 3 Case Study Solution likewise has low revenue margins as compare to Apple due to huge difference in the rates of Apple and Business with a much lesser distinction in quality.


Opportunities for Morgan Components 3 Case Study Help lie in the growing Smartphone market and the business's performance in the market. Corporation presently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of technology industry posture an extreme threat on Company's survival and force the company to invest much of its incomes share on R&D in order to endure in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a big danger for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Enterprise offers quality products and has a rather rich portfolio which caters to various sections. LCD and mobile phones are the most significant products of Company, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Cellphone.
• Air conditioning unit.
• Desktop computer.
• Disk drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Morgan Components 3 Case Study Analysis utilizes both market competitive and market skimming rates strategies for its variety of items. In competitive rates it changes the rate according to the competition in order to gain benefit, whereas, it utilizes market skimming method where the product has an included worth and by selling a few items it can reach break-even.


It has among the very best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon etc. All its products are prompt supplied to the selling place/ provided to the clients directly in case of online order.

Vrio Analysis
It wasn't a widely known business beyond Korea until 1993. But the management initiative taken by their CEO has actually pressed them to market more effectively outside the borders and now it has gone into the league of top 25 business in the world in simply 9 years. This is a remarkable accomplishment in spite of the continuous arguments amongst the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital advertisements are uses to produce awareness about Corporation products.

Worth Chain Analysis.

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

Incoming Logistics.

For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even decreased their payment cycles to boost this relationship further which adds value to their chain network.


Venture's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into 3 various divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is maintaining operation hubs worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the main factors Morgan Components 3 Case Study Help is able to take on Apple. Venture's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Organization.

Marketing and Sales.

Bring in target client attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the item offers. Morgan Components 3 Case Study Help advertising spending plan is continuously rising considering that they began their repositioning globally and will continue to do so as they are continuously looking to invest and expand in high potential development markets. The budget plan is spent on occasions, print and media ads, public relations and so on.

Business put their clients at the leading and continuously make every effort to provide unmatchable customer service standards. By adding a direct assistance line to call them 24 hours they have further increased the added worth of Organization service.


Morgan Components 3 Case Study Analysis has diversified market division, based upon its arrangement of large range of items to a great deal of consumers. Organization target client segments can be divided into 3 categories i.e. Morgan Components 3 Case Study Help IT and Mobile Communications, Corp Customer Electronic Devices and Company Gadget services.


Morgan Components 3 Case Study Analysis geographic segmentation is based upon two requirements i.e. area and density. Corporation serves about 80 countries worldwide with its products offered to Urban along with Rural areas of the country. The Org is likewise growing its worldwide presence and the business's versatility in finding its plants encourages worldwide growth of Company.


The demographic segmentation of Morgan Components 3 Case Study Analysis is based upon gender, age, life-cycle phase and occupation. Enterprise produces items that can be used by both males and women. The target customers for Enterprise IT and mobile interaction items have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. They are mostly experts, staff members and students. Apart from it, Corporation Customer Electronic devices are targeted to a customer segment with an age series of 25-65. They are mainly workers and experts. Company Gadget Solutions are targeted at students, workers and specialists with an age variety of 25-65.


The psychographic segmentation of Morgan Components 3 Case Study Help s based upon the social class and the life style of the customer. Organization target clients on the basis of social class are generally upper middle, middle and working class customers, as Venture sell items like mobile phone not much cheaper i.e. Motorola in addition to very little costly i.e. Apple. It offers quality items to middle level consumers at a somewhat high rate than others targeting the very same section.


Morgan Components 3 Case Study Solution majority target clients have special behavioural characteristics. They are drawn in towards Venture since of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Morgan Components 3 Case Study Solution has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the largest selling category of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the more youthful audience and create a worldwide brand picture of the business. Whereas, the core strength of the company is presently producing however long gone are those days when good products were offering themselves. In the current age marketing is very crucial and business can not be successful without it. Kim has actually currently begun to strengthen the marketing activities of Business and very soon it will become one of its core strength like making if not better.



Corporation runs designs, produces and offer a huge portfolio of consumer electronic devices. It operates in an incredibly competitive environment and has successfully positioned itself as the maker of quality items. So, the answer is yes.


As, stated previously that Morgan Components 3 Case Study Analysis operates in a highly competitive environment, which indicates all the companies have similar items. The answer for rarity is no.


Due to the nature of the market, it is really simple for rivals to understand the performance of the items and quickly make their own models. Yes, Company is just behind IBM in signing up brand-new patents yearly, however the benefit is really short term in this market.


Chairman Lee has entirely turnaround Corporation, from going nearly insolvent during the Asian financial crisis of 1997 to the leading 25 company on the planet. Absolutely yes there is proper company in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are very conductive for its operations. However, it deals with some political pressures in less industrialized nations where order scenario is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Morgan Components 3 Case Study Help operations.


Buying power of clients is important for companies like Business to succeed and grow. Emerging markets like India, middle-eastern nations etc. supply development opportunities, whereas, due to recession even the customers of developed nations suffer terribly. Hence it is very essential for the business to keep an eye on the ongoing financial situation of the country before going into the marketplace.


Multinational companies have to face various social and cultural issues throughout its operations in a foreign nation. Org has actually likewise dealt with many concerns however have actually embraced to the local environments of most of the countries remarkably well. It has tailored its items, practices, policies and so on appropriately in order to achieve success.


With an annual expense of 2.4 billion dollars in Research & Advancement, and with continuous ingenious item launches, Morgan Components 3 Case Study Help is among the leading innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Organization has increased to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being an international company Org need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. So, it needs to study or work with a regional law expert before beginning its operations in a specific nation.


With the increasing awareness amongst consumers about the ecological & ethical violations of companies, Corp needs to ensure that it follows all the safety standards. Ecological damages, ethical misconducts are not acceptable and in some countries the effects can be really serious. On the other hand it has to do some Corporate Social Duty practices to show the locals that it cares about their environment and people.

Porter's 5 Forces

Risk of Replacement

Danger of replacement for Business's each item classification is quite substantial. Running in an extremely dynamic industry lead the business to face a high threat of replacement. Factors for high hazard of alternative for Morgan Components 3 Case Study Help Smartphone consist of the existence of high number of suppliers and Market saturation in industrialized nations, that make the expense of switching for customers practically no. Replacement dangers for Venture visual display depend on the altering lifestyle of customers. Clients can switch to viewing visuals at home towards outside activities. Together with it, Corporation printing services products are threatened by the increasing destination of consumers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Venture and its close competitors is intense. The significant factor behind this is the method of market saturation in numerous variety of product categories, forcing Corp to present more ingenious features in existing items and new ingenious products to preserve its development. Other element for the extreme rivalry amongst the rivals is the little item distinction among the items. The prominent players in the technology industry are quite familiar with the value of R&D spending for their survival and are running into a race of marketing and R&D costs, to capture the market. The significant rivals for Morgan Components 3 Case Study Solution samrtphones include 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 Suppliers:

( Enterprise Sustainability Report, 2016) Provider's bargaining power for Business is low as Corporation runs economies of scale and its orders are of prospective size and worth. Due to incapability of Morgan Components 3 Case Study Analysis to construct its own software application, it has to outsource its software development to Google, which becomes a possible supplier of software application for Corporation, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications also make the bargaining power of purchasers more intense in for Corporation. In spite of igh bargaining power Venture is quite capable of selling its products at a greater cost than much of its rivals, due to high end quality item and a fair brand image.

Threat of New Entrants:

Hazard of new entrants for Corp is quite low. Among the major element for low hazard of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to go into in the market is likewise among the prospective barrier to entry. Together with it, requirement of substantial competence and research study and advancement expenses for survival in the market also make brand-new entrants unwilling to enter in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of suppliers force the players in the market to charge as low costs as possible and this can just be achieved by production performance. New companies, in bulk cases, lack the production performance, hence increasing the risks for entrance in the innovation market.

Competitive Analysis

Org's high product diversification supplies it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Morgan Components 3 Case Study Help had a substantial R&D costs on all of its product categories which enable the company to make possible revenue from sales of nearly all of its items.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to global market share, among 8 various item classifications. Org was the global leader in making DRAM, SRAM and NAND flash chips. Although, Corp incomes from chips was less than Intel however its incomes from chips was growing much faster than Intel and has actually grown near to the income levels of Intel, as given up the case Exhibit 2.

In addition to the chips Org mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Venture's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales development. The major reson behind Org's high growth despite of greater costs than Nokia and Motorola was the business's high-end quality mobile phone.

Corporation 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 biggest rival for Morgan Components 3 Case Study Analysis in LCD market, however, it had actually likewise begun joint endeavor with Organization in 2003 for LCD manufacturing, minimizing the competition for Org.

Porter's Competitive Method

Low Cost Management strategy of porter is totally carried out by Corporation the method they attain economies of scale by strengthening their core competencies of production. They constantly bring something new and ingenious whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Morgan Components 3 Case Study Solution would develop a new brand image by targeting the more youthful generation of the particular country. As, specifically smart phones of Org are preferred amongst the younger demographic.


1. It is the very best strategy to construct Consumer Lifetime Value (CLV) by developing a long-lasting relationship with customers. Build loyalty through delivering value and reap the benefits for long-term, as research study has actually revealed it is much cheaper to maintain current clients than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among younger individuals and which in turn will bring in brand-new consumers for my products.


1. Old customers who were connected with Company before might not like this new image the company is trying to represent.
2 It will sustain more expenditures to rearrange some items and it may not even bring success as the patterns alter really rapidly amongst the more youthful demographic.

Alternative option 2.

Venture has actually made producing its core competency for the a lot of part of their company and due to which its supervisors are not scared to totally step out of their convenience zone. It would be done by arranging training workshops throughout which significance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get demoted. Marketing environment need to be developed internally initially as genuine marketing starts inside the corporation.


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


2. Its con can create a very unhealthy environment in the office, as people often withstand modification due to the fact that they fear it.

Determine the very best option

First option is the very best as it plainly has more pros because as soon as a Consumer Lifetime Value is constructed the business will make money from it till that client is alive and has purchasing power too. Plus, our target clients are the more youthful generation which are bound to live longer than the present old age individuals. Nonetheless, Org's primary goal is to create commitment among its clients and make them repurchase it from them and even purchase their different items too.

Implementation Strategy

• Targeting younger generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations achievable and sensible.
• A team including finest marketing and sales professionals need to be put together, and both views need to be taken into consideration before protecting the resources needed to execute the plan.
• Thorough interaction of the plan should be done as it is extremely important for everybody to be on the same page to make it work.
• Jobs and timelines ought to be develop and interacted appropriately to each person responsible.
• The manager need to use a dashboard which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The manager need to monitor and keep a consistent look at the overall and individual efficiency.
• Everybody need to be willing to adapt midway because any brand-new pattern or policy may be available in due to which all the important things already prepared have to be changed. It's much better to have contingency plans already prepared.
• At the end of the campaign the supervisor must interact the results and if effective ought to commemorate with the team.

Budget plan

This modification the budget plan allotment of lots of managers and different countries were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia development potential merited a 35% allowance while they were getting 45%. It truly assisted to fairly distribute the resources and capture more clients by investing more on advertisements on the high growth capacity regions of the world.

Morgan Components 3 Case Study Analysis is a leading 25 company on the planet now and plans to get ahead of Sony who sits presently at no. 20. Its constant financial investment in R&D and innovative practices have actually propelled them to brand-new heights but for them its' just the start and they want to be amongst the top 3 brand names on the planet. They completely turnaround from practically going bankrupt throughout the Asian Financial Crisis to a world popular brand, understood for quality and innovation. Their value chain and their core proficiency their manufacturing ability, along-with international brand name image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts need to be directed towards younger demographic amid the internal arguments about marketing and must produce Customer Lifetime Worth as it will not only provide advantages now but will continue to enjoy it till the client life time. As the cost of retaining the customer is much cheaper than drawing in a brand-new one.