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Netflix Srategy Term Paper Case Study Solution & Analysis


Historically, the company's core clients consist of the Original Equipment Manufacturers (OEMs), which utilized to offer Netflix Srategy Term Paper Case Study Analysis products withtheir own brand name. Its customer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Samsung products with their own brand name. He repositioned Samsung as a worldwide brand name and educated his divisional managers to understand marketing and its value.

Issue Statement

Samsung's shift from a product based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional managers to include marketing efficiently is still a major difficulty. Creating a constant brand name identity throughout the entire world and employing marketing techniques that finest fits the regional culture is no simple job.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Netflix Srategy Term Paper Case Study Solution can transform from a low end to a high end product service provider. He knew that transformation can only be done through placing Samsung as a business using 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, with a potential assistance of its executives, Yun faced several marketing challenges in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the value 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 service practices, and the existing marketing requirement was too much high, the space was too broader and to fill this gap with incorrect understandings about marketing was quite difficult for Yun.

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

A substantial shift would be required in current marketing expenses to construct the Netflix Srategy Term Paper Case Study Help brand name. This would result in increased marketing expenditures for Samsung and could disturb the administration relating to increased expenses, as they were reluctant to marketing expenditures previously and an abrupt huge shiftwould make them disrupt. This might result in decreasing executive support for global marketing. In this situation, Yun faces a difficulty for validating increased marketing costs by showing the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its big item portfolio. Samsung has biggest variety of patents in the industry with total variety of 15499 patents approved in United States( USP). Big quantity of R&D costs has actually allowed the business to grow its item portfolio at a greater rate than its competitors. Netflix Srategy Term Paper Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total revenues.

Another strength of Netflix Srategy Term Paper Case Study Analysis is its ability to establish ingenious products at a constant rate. It major proves for the development and item developing of Samsung is that the business has received a lot of awards for its innovation and item design.

Unlike Apple and other rivals, Samsung is concentrated on producing devices which can be quickly incorporated with any type of open source Operating System (OS) and software application. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end products at low cost of production is likewise one of the significant strength of Samsung as it enables the company to record more market by providing quality items with cost control.

Weak points

Netflix Srategy Term Paper Case Study Solution weaknesses are concealed in the business's dependence on outsourcing software for its gadgets due to company's failure in establishing software, unlike Sony. Samsung also has low revenue margins as compare to Apple due to substantial distinction in the prices of Apple and Samsung with a much lower distinction in quality. The varied focus of the business due to large number of products in its portfolio, lead to the less effective production and make the business not able to charge higher rates like Apple. The business is also ineffective in handling its patents and often deals with the issue of patent infraction.


Opportunities for Samsung depend on the growing Mobile phone market and the business's effectiveness in the market. It can increase its market share and incomes from mobile phone as the company is quite effective in cell phone market. Samsung presently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would allow the company to increase its product portfolio with a boost in its wealth.


The dynamic market environment of technology industry pose an extreme threat on Samsung's survival and require the business to spend much of its earnings share on R&D in order to endure in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is likewise a huge danger for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Netflix Srategy Term Paper Case Study Solution provides quality items and has a quite rich portfolio which caters to various sections. The majority of the items are in the leading 3 of their respective markets. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Air conditioner.
• Computer.
• Disk drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Netflix Srategy Term Paper Case Study Analysis utilizes both market competitive and market skimming rates techniques for its wide variety of items. In competitive pricing it adjusts the rate according to the competitors in order to get advantage, whereas, it uses market skimming strategy where the product has an included value and by selling a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a well-known business beyond Korea until 1993. However the management initiative taken by their CEO has actually pressed them to market more effectively outside the borders and now it has actually gotten in the league of top 25 business on the planet in simply 9 years. This is an exceptional achievement in spite of the ongoing arguments amongst the managers about embracing marketing practices. It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promo and digital advertisements are uses to develop awareness about Samsung products.

Worth Chain Analysis.

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

Inbound Logistics.

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


Samsung's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 various divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is preserving operation centers worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main reasons Netflix Srategy Term Paper Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item uses. Netflix Srategy Term Paper Case Study Analysis marketing budget plan is constantly on the rise because they began their rearranging globally and will continue to do so as they are continuously looking to broaden and invest in high possible growth markets. The budget is invested in events, print and media advertisements, public relations etc.

Samsung put their consumers at the top and constantly aim to provide unmatchable consumer service requirements. By including a direct assistance line to call them 24 hours they have even more increased the included value of Samsung service.


Netflix Srategy Term Paper Case Study Help has actually diversified market division, based upon its provision of wide variety of products to large number of consumers. Samsung target consumer sections can be divided into 3 categories i.e. Netflix Srategy Term Paper Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device solutions.


Netflix Srategy Term Paper Case Study Help geographical segmentation is based upon 2 criteria i.e. area and density. Samsung serves about 80 nations worldwide with its items provided to Urban in addition to Backwoods of the country. The Samsung is also growing its international presence and the business's versatility in locating its plants encourages worldwide growth of Samsung.


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


The psychographic segmentation of Netflix Srategy Term Paper Case Study Analysis s based upon the social class and the lifestyle of the consumer. Samsung target customers on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell products like cellular phone very little more affordable i.e. Motorola in addition to not much costly i.e. Apple. It offers quality products to middle level consumers at a slightly high price than others targeting the very same sector.


Netflix Srategy Term Paper Case Study Help majority target customers have unique behavioural attributes. They are attracted towards Samsung since of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Netflix Srategy Term Paper Case Study Analysis has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the more youthful audience and produce a global brand name picture of the company. Whereas, the core strength of the business is currently making but long gone are those days when excellent items were selling themselves. In the present age marketing is really important and companies can not prosper without it. Kim has currently started to reinforce the marketing activities of Samsung and soon it will turn into one of its core strength like producing if not better.



Samsung operates styles, produces and sell a vast portfolio of consumer electronics. It runs in an exceptionally competitive environment and has actually successfully positioned itself as the maker of quality items. So, the response is yes.


As, stated previously that Netflix Srategy Term Paper Case Study Solution operates in a highly competitive environment, which suggests all the business have comparable products. So, the response for rarity is no.


Due to the nature of the industry, it is very simple for competitors to comprehend the functionality of the products and quickly make their own designs. Yes, Samsung is just behind IBM in registering brand-new patents annually, however the advantage is extremely short term in this market.


Chairman Lee has entirely turnaround Samsung, from going nearly insolvent throughout the Asian monetary crisis of 1997 to the leading 25 company on the planet. Absolutely yes there appertains organization in the business and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread practically in every country worldwide, majority of the environments like U.S.A., Europe, China etc., are very conductive for its operations. Nevertheless, it deals with some political pressures in less developed nations where order circumstance is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Netflix Srategy Term Paper Case Study Analysis operations.


Buying power of clients is essential for companies like Samsung to prosper and grow. Emerging markets like India, middle-eastern nations and so on supply development opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer terribly. For this reason it is very important for the company to watch on the continuous economic scenario of the nation prior to entering the marketplace.


International business have to deal with various social and cultural problems during its operations in a foreign country. Samsung has likewise faced numerous issues but have adopted to the regional environments of the majority of the countries incredibly well. It has actually customized its items, practices, policies etc. accordingly in order to achieve success.


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


Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal consequences. So, it needs to study or hire a regional law specialist before beginning its operations in a particular country.


With the rising awareness among consumers about the ethical & ecological offenses of companies, Samsung needs to ensure that it follows all the safety standards. Ecological damages, ethical misconducts are not appropriate and in some countries the consequences can be extremely 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

Threat of Substitution

Risk of alternative for Samsung's each product classification is quite substantial. Running in a very vibrant market lead the business to face a high threat of substitution. Elements for high risk of alternative for Netflix Srategy Term Paper Case Study Solution Smartphone consist of the existence of high number of providers and Market saturation in industrialized countries, which make the cost of switching for customers practically absolutely no. Replacement hazards for Samsung visual display screen depend on the changing lifestyle of customers. Clients can switch to enjoying visuals at home towards outside activities. In addition to it, Samsung printing options products are threatened by the increasing attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Samsung and its close rivals is extreme. The major factor behind this is the approach of market saturation in different number of item classifications, requiring Samsung to present more innovative functions in existing items and new innovative products to preserve its growth. The significant competitors for Netflix Srategy Term Paper Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. Due to incapability of Netflix Srategy Term Paper Case Study Solution to construct its own software, it has to outsource its software advancement to Google, which ends up being a possible provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Bargaining power of purchasers for different number of product classifications of Samsung is extreme. One of the element causing the intense bargaining power is the accessibility of large number of rivals in nearly each product classification i.e. rivals of Samsung Smart device, with an extremely little differentiation. The high accessibility of suppliers of Mobile phones with minimum distinction, make the changing expense for purchasers practically absolutely no, for this reason increasing the bargaining power of purchasers. Market saturation in most of the item categories also make the bargaining power of purchasers more intense in for Netflix Srategy Term Paper Case Study Analysis. In spite of igh bargaining power Samsung is rather efficient in selling its items at a greater price than much of its rivals, due to luxury quality item and a fair brand name image.

Hazard of New Entrants:

Danger of new entrants for Netflix Srategy Term Paper Case Study Analysis is rather low. Along with it, requirement of big proficiency and research study and development expenditures for survival in the industry also make brand-new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high item diversification supplies it distinction from its competitors. It is one of the three leading brand names by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Samsung had a substantial R&D costs on all of its product classifications which enable the business to earn prospective revenue from sales of nearly all of its products. (See Exhibition) However, due to the broad item range the company faces high number of competitors.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to worldwide market share, among 8 various item classifications. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel however its earnings from chips was growing quicker than Intel and has actually grown close to the revenue levels of Intel, as given up the case Exhibit 2.

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

Samsung was also reaping the benefits from increasing market share of high-end LCDs as given in case Exhibition 3. The major factor, making the business make it possible for to avail the chance is its mass production at low expense. Sony was the greatest competitor for Netflix Srategy Term Paper Case Study Analysis in LCD market, however, it had actually also begun joint endeavor with Samsung in 2003 for LCD making, lessening the competition for Samsung.

Porter's Competitive Method

Low Expense Leadership technique of porter is fully executed by Samsung the way they attain economies of scale by enhancing their core competencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to produce for them, because they were unable to take on them on low cost. Distinction is another method well executed by Samsung by constant investment in the R&D and remaining ahead of the competitors. They always bring something new and ingenious whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Netflix Srategy Term Paper Case Study Analysis would develop a brand-new brand name image by targeting the more youthful generation of the specific nation. As, particularly mobile phones of Samsung are popular amongst the younger market.


1. It is the very best strategy to develop Client Lifetime Value (CLV) by creating a long-term relationship with clients. Construct commitment through delivering value and profit for long-lasting, as research study has actually revealed it is much cheaper to retain present customers than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among more youthful individuals and which in turn will bring in new customers for my items.


1. Old customers who were related to Samsung prior to might not like this new image the company is trying to depict.
2 It will incur further costs to reposition some items and it might not even bring success as the patterns change extremely rapidly amongst the younger market.

Alternative solution 2.

It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be provided. Marketing environment should be produced internally first as real 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 create a very unhealthy environment in the work environment, as people typically withstand modification since they fear it.

Identify the very best option

Very first option is the best as it plainly has more pros since when a Customer Life time Value is constructed the business will make money from it till that client lives and has buying power too. Plus, our target clients are the more youthful generation which are bound to live longer than the current old age people. Samsung's primary objective is to produce commitment among its consumers and make them redeemed it from them and even buy their different items.

Execution Strategy

• Targeting more youthful generation through social marketing, creating a link with them like Pepsi do with music. And set the expectations realistic and possible.
• A team consisting of finest marketing and sales professionals should be assemble, and both views ought to be taken into consideration before securing the resources needed to carry out the plan.
• Thorough communication of the strategy should be done as it is really important for everyone 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 should use a control panel which shows the progress of all the tasks which have been done or about to be done and by whom.
• The manager should keep an eye on and keep a constant look at the total and individual efficiency.
Due to the fact that any new pattern or policy may come in due to which all the things already planned have actually to be changed, • Everybody ought to be ready to adapt midway. It's much better to have contingency strategies already prepared.
• At the end of the campaign the supervisor must interact the results and if successful need to commemorate with the group.


The M-net program exposed engaging analysis about the low and high development potential areas and just how much marketing budget ought to be designated accordingly. This modification the spending plan allowance of lots of managers and different nations were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia growth potential merited a 35% allowance while they were receiving 45%. Whereas, China and Europe must be receiving 42% but were instead given 31%. It truly helped to fairly distribute the resources and catch more consumers by spending more on advertisements on the high development capacity areas of the world.

Netflix Srategy Term Paper Case Study Help is a leading 25 business in the world now and prepares to get ahead of Sony who sits currently at no. 20. Its constant financial investment in R&D and innovative practices have propelled them to brand-new heights however for them its' only the start and they want to be among the leading 3 brand names in the world. They totally turn-around from practically declaring bankruptcy during the Asian Financial Crisis to a world popular brand name, understood for quality and innovation. Their value chain and their core proficiency their production ability, along-with global brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more 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 market in the middle of the internal arguments about marketing and must develop Client Lifetime Value as it will not only provide benefits now but will continue to reap it till the consumer life time. As the expense of keeping the consumer is more affordable than drawing in a brand-new one.