Netflix Srategy Term Paper Harvard Case Study Analysis

Home >> Hrm >> Netflix Srategy Term Paper

Netflix Srategy Term Paper Case Study Solution and Analysis


Historically, the business's core consumers include the Original Equipment Manufacturers (OEMs), which used to sell Netflix Srategy Term Paper Case Study Help items withtheir own brand name. Its customer circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Samsung products with their own brand name. He repositioned Samsung as a worldwide brand name and educated his divisional managers to comprehend marketing and its significance.

Issue Declaration

Samsung's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to integrate marketing successfully is still a major difficulty. Developing a consistent brand identity across the entire world and employing marketing strategies that best fits the local culture is no easy task.

Situational Analysis

Netflix Srategy Term Paper Case Study Help efforts for constructing its brand across the world was begun after introducing the "brand-new management effort" by Chairman Lee in 1993. The objective was to transform Samsung from an inexpensive OEM to a high value-added item provider. To make the vision of Samsung a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Samsung can change from a low end to a luxury item provider. He knew that improvement can only be done through positioning Samsung as a business providing high-end items and this could just be done through high level of marketing.

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

Among the marketing challenges for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the present marketing requirement was too much high, the space was too wider and to fill this space with wrong understandings about marketing was rather tough for Yun.

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

A substantial shift would be required in existing marketing expenditures to develop the Samsung brand name. This would result in increased marketing expenses for Samsung and could disrupt the administration concerning increased costs, as they were hesitant to marketing expenditures previously and an unexpected huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Netflix Srategy Term Paper Case Study Solution strengths lie in its huge product portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents approved in United States( USP).

Another strength of Netflix Srategy Term Paper Case Study Help is its ability to develop ingenious products at a constant rate. It major proves for the innovation and item designing of Samsung is that the company has actually gotten a lot of awards for its development and product style.

Unlike Apple and other rivals, Samsung is concentrated on producing devices which can be quickly integrated with any kind of open source Operating System (OS) and software. This supplies Samsung an edge over Apple devices.

Samsung's capability to produce high end items at low expense of production is also one of the significant strength of Samsung as it allows the company to capture more market by offering quality products with expense control.


Samsung's weaknesses are concealed in the company's dependence on outsourcing software application for its gadgets due to business's failure in establishing software application, unlike Sony. Netflix Srategy Term Paper Case Study Help likewise has low earnings margins as compare to Apple due to big distinction in the rates of Apple and Samsung with a much lesser difference in quality.


Opportunities for Netflix Srategy Term Paper Case Study Analysis lie in the growing Mobile phone market and the company's performance in the market. Samsung presently runs in about 80 countries and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant market environment of innovation industry position a severe risk on Samsung's survival and require the business to invest much of its earnings share on R&D in order to endure in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is also a huge risk for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing


Samsung provides quality items and has a quite rich portfolio which caters to various sections. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Cellphone.
• A/c.
• Desktop computer.
• Hard disk drives.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Netflix Srategy Term Paper Case Study Solution uses both market competitive and market skimming prices techniques for its wide range of items. In competitive rates it changes the rate according to the competition in order to acquire benefit, whereas, it uses market skimming strategy where the product has actually an included worth 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 suppliers, E commerce channels like Amazon and so on. All its products are prompt provided to the selling location/ provided to the customers straight in case of online order.


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

Worth Chain Analysis.

It's an analytical framework for determining service activities that add value or competitive advantage for the business.

Inbound Logistics.

It has one of the most efficient and efficient supply chain network and has over 2700 providers across numerous markets worldwide. Nearly 80% of which is based in Asia and the staying all over the world. For its inbound logistics it owns numerous logistics firms as it subsidiaries. It cares for its providers and produces an unified relationship with them and even lowered their payment cycles to increase this relationship further which adds value to their chain network.


Samsung'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 Customer Electronics. It is preserving operation hubs worldwide to even more add worth to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Netflix Srategy Term Paper Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the item provides. Netflix Srategy Term Paper Case Study Analysis marketing budget plan is continually growing because they began their repositioning globally and will continue to do so as they are constantly seeking to expand and invest in high potential growth markets. The spending plan is invested in occasions, print and media ads, public relations etc.

Samsung Service. Samsung put their customers on top and continuously aim to provide unmatchable client service requirements. As after sales service is becoming very essential to keep clients happy and engaged, they even conduct studies through third parties to learn their customer's feedback and execute it in the positive way to lower or if possible completely eliminate their consumer problems. By adding a direct support line to call them 24 hr they have even more increased the included value of Netflix Srategy Term Paper Case Study Solution service.


Netflix Srategy Term Paper Case Study Solution has diversified market division, based upon its arrangement of large range of products to a great deal of customers. Samsung target consumer sectors can be divided into 3 classifications i.e. Netflix Srategy Term Paper Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device services.


Netflix Srategy Term Paper Case Study Solution geographical division is based upon 2 requirements i.e. region and density. Samsung serves about 80 nations worldwide with its items offered to Urban along with Backwoods of the nation. The Samsung is likewise growing its worldwide existence and the business's flexibility in locating its plants motivates global growth of Samsung.


The demographic segmentation of Netflix Srategy Term Paper Case Study Solution is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be used by both women and males. The target clients for Samsung IT and mobile interaction items have an age variety of 18-65 with majority at a young or recently married life cycle stage. They are mainly workers, students and experts. Apart from it, Samsung Customer Electronic devices are targeted to a consumer sector with an age variety of 25-65. They are mainly employees and experts. Samsung Gadget Solutions are targeted at students, employees and professionals with an age variety of 25-65.


The psychographic segmentation of Netflix Srategy Term Paper 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 generally upper middle, middle and working class customers, as Samsung sell items like mobile phone very little more affordable i.e. Motorola along with very little costly i.e. Apple. It supplies quality items to middle level consumers at a somewhat high cost than others targeting the very same sector.


Netflix Srategy Term Paper Case Study Help bulk target consumers have unique behavioural qualities. It has consumers with an ambitious, stylish and identified character with moderate level of commitment towards the brand name. Its clients have some degree of shift towards other distinguished brand names i.e. Apple. The majority of Samsun clients want quality as well as expense control. They are attracted towards Samsung due to the fact that of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Samsung 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 $. It has actually likewise minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Due to the fact that of the high overhead cost, incomes/ sales are increasing however net earnings is not increasing accordingly. New expansions and working with's were the main factor of the increase in the overhead expenses, with china presently not offering any revenue to Samsung, however there is so much capacity in the existing market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the business is presently making but long gone are those days when good products were offering themselves. Kim has currently begun to reinforce the marketing activities of Samsung and extremely quickly it will end up being one of its core strength like manufacturing if not much better.



Samsung runs styles, produces and sell a huge portfolio of customer electronics. It runs in an extremely competitive environment and has actually successfully positioned itself as the maker of quality products. So, the response is yes.


As, stated previously that Netflix Srategy Term Paper Case Study Analysis runs in an extremely competitive environment, which means all the companies have comparable items. So, the answer for rarity is no.


Due to the nature of the industry, it is very simple for competitors to comprehend the functionality of the items and quickly make their own models. Yes, Samsung is only behind IBM in signing up new patents yearly, but the benefit is extremely short-term in this market.


Chairman Lee has completely turnaround Samsung, from going practically insolvent throughout the Asian financial crisis of 1997 to the leading 25 business in the world. Certainly yes there appertains company in the company and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread nearly in every nation worldwide, majority of the environments like USA, Europe, China etc., are very conductive for its operations. It faces some political pressures in less developed countries where law and order situation is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Netflix Srategy Term Paper Case Study Solution operations.


Buying power of consumers is essential for companies like Samsung to grow and be successful. Emerging markets like India, middle-eastern nations etc. offer growth opportunities, whereas, due to recession even the customers of industrialized nations suffer severely. It is extremely crucial for the company to keep an eye on the ongoing financial situation of the nation before going into the market.


International business have to face various social and cultural problems throughout its operations in a foreign nation. Samsung has actually likewise faced many problems but have embraced to the local environments of most of the nations exceptionally well. It has tailored its items, practices, policies etc. appropriately in order to succeed.


With an annual expense of 2.4 billion dollars in Research study & Advancement, and with constant ingenious item launches, Netflix Srategy Term Paper Case Study Help is one of the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Samsung has increased to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being an international business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal repercussions. It has to study or hire a regional law professional before starting its operations in a specific country.


With the rising awareness amongst customers about the ecological & ethical infractions of companies, Samsung needs to guarantee that it follows all the security guidelines. Ecological damages, ethical misconducts are not acceptable and in some nations the effects can be very severe. On the other hand it has to do some Corporate Social Obligation practices to show the residents that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Substitution

Threat of replacement for Samsung's each item category is quite considerable. Running in an exceptionally dynamic industry lead the company to deal with a high risk of replacement. Elements for high danger of replacement for Netflix Srategy Term Paper Case Study Solution Smartphone include the presence of high variety of providers and Market saturation in developed countries, that make the cost of switching for consumers nearly zero. Substitution threats for Samsung visual display lie in the changing life style of consumers. Customers can change to watching visuals at home towards outdoor activities. In addition to it, Samsung printing services products are threatened by the increasing attraction of clients towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly amongst Samsung and its close rivals is intense. The significant reason behind this is the approach of market saturation in different number of item classifications, requiring Samsung to present more innovative features in existing items and new ingenious items to preserve its development. Other aspect for the extreme competition amongst the competitors is the little product distinction among the items. The popular players in the innovation market are quite familiar with the value of R&D costs for their survival and are running into a race of marketing and R&D spending, to record the marketplace. The major rivals for Netflix Srategy Term Paper Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the fluctuating market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

Netflix Srategy Term Paper Case Study Solution has a huge supply chain consisting of about 2700 providers across the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These big orders enable Samsung to negotiate prices with its providers. However, due to incapability of Netflix Srategy Term Paper Case Study Analysis to construct its own software, it needs to outsource its software development to Google, which ends up being a possible supplier of software application for Samsung, resulting in high bargaining power of Google. In most of Netflix Srategy Term Paper Case Study Help has a power to work out rates, however it supply substantial prices to its providers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Market saturation in most of the item categories also make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is quite capable of selling its products at a higher cost than much of its rivals, due to high end quality product and a reasonable brand image.

Hazard of New Entrants:

Danger of new entrants for Samsung is rather low. Among the significant element for low risk of brand-new entrants is the high competitors in the market. The requirement of substantial quantity of capital to go into in the marketplace is likewise among the prospective barrier to entry. In addition to it, requirement of huge expertise and research and development expenses for survival in the industry likewise make new entrants hesitant to enter in the marketplace. 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 prices as possible and this can just be attained by production performance. New companies, in majority cases, lack the production efficiency, hence increasing the threats for entrance in the technology industry.

Competitive Analysis

Samsung's high product diversity supplies it distinction from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Netflix Srategy Term Paper Case Study Solution had a substantial R&D costs on all of its item classifications which enable the company to make potential earnings from sales of practically all of its products.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in regards to worldwide market share, amongst 8 various product categories. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel however its profits from chips was growing faster than Intel and has actually grown near the profits levels of Intel, as given up the case Exhibit 2.

In addition to the chips Samsung mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales development. The major reson behind Samsung's high development despite of greater prices than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was likewise reaping the benefits from increasing market share of luxury LCDs as given up case Display 3. The significant reason, making the business enable to obtain the opportunity is its mass production at low cost. Sony was the most significant rival for Netflix Srategy Term Paper Case Study Analysis in LCD market, however, it had actually also started joint endeavor with Samsung in 2003 for LCD making, minimizing the competitors for Samsung.

Porter's Competitive Technique

Low Expense Leadership method of porter is fully carried out by Samsung the way they attain economies of scale by enhancing their core proficiencies of production. They always bring something innovative and brand-new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Netflix Srategy Term Paper Case Study Analysis would produce a new brand image by targeting the younger generation of the specific country. As, especially mobile phones of Samsung are incredibly popular among the more youthful group.


1. It is the best technique to develop Consumer Lifetime Worth (CLV) by developing a long-lasting relationship with consumers. Develop commitment through providing value and profit for long-lasting, as research study has actually revealed it is much cheaper to keep current consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will bring in new customers for my products.


1. Old consumers who were connected with Samsung before might not like this brand-new image the company is trying to represent.
2 It will incur more costs to rearrange some products and it may not even bring success as the patterns change very quickly amongst the younger market.

Alternative service 2.

It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be given. Marketing environment must be developed internally first as genuine marketing begins inside the corporation.


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


2. Its con can develop a very unhealthy environment in the workplace, as people frequently resist modification because they fear it.

Identify the very best option

First option is the best as it plainly has more pros due to the fact that when a Client Lifetime Worth is developed the company will make money from it till that customer is alive and has purchasing power as well. Plus, our target clients are the younger generation which are bound to live longer than the existing old age people. Nevertheless, Samsung's primary goal is to create loyalty amongst its customers and make them redeemed it from them and even buy their different items too.

Execution Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi do with music. And set the expectations possible and sensible.
• A team consisting of best marketing and sales professionals ought to be put together, and both views ought to be taken into account prior to securing the resources required to execute the plan.
• Thorough interaction of the plan need to be done as it is extremely important for everyone to be on the exact same page to make it work.
• Jobs and timelines should be build and interacted accordingly to each individual responsible.
• The supervisor must utilize a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor ought to keep track of and keep a continuous examine the specific and overall performance.
Since any new pattern or policy may come in due to which all the things currently planned have to be adjusted, • Everybody need to be ready to adjust midway. It's much better to have contingency plans already prepared.
• At the end of the project the supervisor need to communicate the results and if successful need to commemorate with the group.

Budget plan

This modification the spending plan allotment of different countries and lots of managers were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia development possible merited a 35% allotment while they were getting 45%. It really helped to fairly disperse the resources and capture more consumers by investing more on advertisements on the high development capacity areas of the world.


Netflix Srategy Term Paper Case Study Analysis 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 innovative practices have propelled them to brand-new heights but for them its' only the start and they wish to be amongst the top 3 brand names worldwide. They completely turn-around from practically going bankrupt during the Asian Financial Crisis to a world distinguished brand, understood for quality and innovation. Their worth chain and their core proficiency their production capability, along-with worldwide brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts need to be directed towards younger group amidst the internal arguments about marketing and must produce Customer Lifetime Value as it will not only provide benefits now however will continue to gain it till the customer life time. As the cost of maintaining the consumer is much cheaper than drawing in a brand-new one.