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Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution and Analysis


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution is a well-known worldwide brand in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership deals in large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the company's core clients consist of the Original Equipment Manufacturers (OEMs), which utilized to sell Samsung products withtheir own brand name. Till early 1990s, the core proficiency of Samsung depend on its low cost offerings than its rivals by producing existing items at economies of scale. Its client circle includes Original Devices Manufacturers (OEMs), who used to offer Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution products with their own brand. Samsung was not merely understood outside Korea. There were likewise no or little interest in constructing the brand name worldwide. Marketing spending plan was controlled by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the business nearly got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most important company worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Samsung as a worldwide brand and educated his divisional managers to comprehend marketing and its significance. Now their goal is to arrive 10 by 2005.

Issue Statement

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 significant difficulty. Producing a constant brand name identity across the whole world and employing marketing strategies that finest fits the regional culture is no easy task. The M-net program analysis have been truly handy in determining the high and less potential development locations, however allocation of resources appropriately is not well received among the supervisors. There is no agreement among the hierarchy relating to the very best matched future method.
Executive Summary
Situational Analysis

Yun had a rather clear picture in his mind about how Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help can transform from a low end to a high end item company. He knew that transformation can just be done through positioning Samsung as a business offering high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a potential support of its executives, Yun faced several marketing challenges in early years of its efforts.

One of the marketing difficulties for Yun was the understandings 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 existing marketing requirement was excessive high, the gap was too broader and to fill this gap with incorrect understandings about marketing was quite tough for Yun.

As stated above, marketing focus was very low in previous practices, therefore there were no correct marketing budgets for each of the product on the portfolio. There was no marketing planning provided for the existing items. Together with it the product variety of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had a difficulty to carry out marketing preparation and to develop marketing budgets for existing in addition to for brand-new products from the very start, and this would take a huge time.

A big shift would be needed in present marketing expenditures to construct the Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution brand. This would lead to increased marketing expenditures for Samsung and could disrupt the administration relating to increased costs, as they were reluctant to marketing expenditures formerly and an abrupt huge shiftwould make them interrupt. This could result in declining executive support for international marketing. In this circumstance, Yun faces a difficulty for justifying increased marketing expenses by demonstrating the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution strengths lie in its huge item portfolio. Samsung has biggest number of patents in the industry with overall number of 15499 patents given in United States( USP).

Another strength of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis is its ability to develop innovative items at a constant rate. It significant shows for the development and item designing of Samsung is that the business has actually gotten a lot of awards for its development and item design.

Unlike Apple and other competitors, Samsung is concentrated on producing gadgets which can be quickly integrated with any type of open source Operating System (OS) and software. This provides Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's ability to produce luxury products at low expense of production is likewise among the significant strength of Samsung as it makes it possible for the business to catch more market by offering quality items with cost control.

Weak points

Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis weaknesses are concealed in the business's dependence on outsourcing software for its gadgets due to company's inability in establishing software, unlike Sony. Samsung likewise has low revenue margins as compare to Apple due to substantial distinction in the costs of Apple and Samsung with a much lower difference in quality. The diverse focus of the company due to large number of products in its portfolio, result in the less efficient production and make the business unable to charge greater rates like Apple. The company is also inefficient in managing its patents and regularly faces the problem of patent infraction.


Opportunities for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help lie in the growing Smart device market and the company's effectiveness in the market. Samsung currently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology industry posture a severe threat on Samsung's survival and require the company to invest much of its revenues share on R&D in order to endure in the long run. The marketplace saturation in developed countries i.e. saturation of mobile company is also a big hazard for the business's growth in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution uses quality items and has a rather abundant portfolio which deals with different sections. The majority of the items are in the top three of their respective industries. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Samsung:

• Laptops.
• Smart phone.
• Air conditioner.
• Desktop computer.
• Disk drives.
• Washing machines.
• Refrigerators.
• Cameras.
• Microwaves.
• Flash memory.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution utilizes both market competitive and market skimming pricing methods for its wide range of items. In competitive prices it adjusts the cost according to the competitors in order to gain benefit, whereas, it uses market skimming technique where the product has actually an added 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 distributors, E commerce channels like Amazon and so on. All its products are timely supplied to the selling place/ delivered to the customers straight in case of online order.

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

Worth Chain Analysis.

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

Incoming Logistics.

It has among the most effective and efficient supply chain network and has more than 2700 suppliers throughout various markets around the globe. Practically 80% of which is based in Asia and the staying all over the world. For its incoming 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 enhance this relationship even more which adds worth to their chain network.


Samsung's core proficiency is its mass producing it produces 90% of its items in-house. Divided into three various departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main reasons Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution is able to take on Apple. Samsung's own Electronic Logitec system plays a significant 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.

Bring in target customer attention towards the product is done through marketing and sales to interact with them the value and competitive benefit the item uses. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution marketing spending plan is continuously increasing given that they began their rearranging globally and will continue to do so as they are continually looking to invest and expand in high potential development markets. The budget is spent on occasions, print and media ads, public relations etc.

Samsung put their consumers at the top and continuously strive to provide unmatchable customer service standards. By adding a direct support line to contact them 24 hours they have further increased the added value of Samsung service.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis has actually diversified market segmentation, based upon its provision of wide range of products to large number of consumers. Samsung target consumer sections can be divided into 3 classifications i.e. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget solutions.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis geographical division is based upon 2 requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products provided to Urban along with Backwoods of the nation. The Samsung is also growing its global presence and the company's flexibility in finding its plants motivates global expansion of Samsung.


The demographic segmentation of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both females and males. The target clients for Samsung IT and mobile communication items have an age range of 18-65 with bulk at a young or freshly married life cycle stage. They are primarily specialists, students and staff members. Apart from it, Samsung Consumer Electronics are targeted to a client segment with an age variety of 25-65. They are mostly experts and employees. Samsung Gadget Solutions are targeted at students, workers and specialists with an age variety of 25-65.


The psychographic division of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung sell items like mobile phone not much more affordable i.e. Motorola as well as very little costly i.e. Apple. It provides quality items to middle level customers at a slightly high cost than others targeting the exact same sector.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution bulk target clients have special behavioural characteristics. They are brought in towards Samsung since of its moderate costs with a level of quality.

Quantitative analysis.

Sales of Samsung has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has likewise reduced its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead expense, earnings/ sales are increasing but net revenue is not increasing appropriately. New expansions and employing's were the main reason of the increase in the overhead costs, with china presently not supplying any earnings to Samsung, however there is so much capacity in the present market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is currently manufacturing however long gone are those days when good items were offering themselves. Kim has actually already started to strengthen the marketing activities of Samsung and very quickly it will become one of its core strength like making if not much better.



Samsung operates styles, manufactures and sell a large portfolio of customer electronic devices. It operates in a very competitive environment and has successfully positioned itself as the maker of quality products. So, the response is yes.


As, said earlier that Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis runs in a highly competitive environment, which suggests all the companies have comparable items. So, the answer for rarity is no.


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


Chairman Lee has totally turn-around Samsung, from going almost bankrupt during the Asian monetary crisis of 1997 to the leading 25 company on the planet. Definitely yes there is proper organization in the company and the results promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread nearly in every country worldwide, majority of the environments like U.S.A., 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 good. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis operations.


Buying power of consumers is vital for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern nations etc. supply development opportunities, whereas, due to recession even the customers of developed nations suffer terribly. Thus it is very essential for the company to watch on the ongoing financial circumstance of the nation prior to getting in the market.


Multinational business have to face numerous social and cultural problems throughout its operations in a foreign country. Samsung has actually likewise faced many issues but have actually embraced to the regional environments of the majority of the countries incredibly well. It has tailored its items, practices, policies etc. accordingly in order to be successful.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with constant innovative item launches, Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help is one of the top innovative business of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has risen to the no 25 of the top effective business of the world.


Each country has their own laws and policies, being an international company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal effects. It has to study or employ a regional law specialist prior to starting its operations in a particular country.


With the rising awareness amongst customers about the ethical & environmental violations of companies, Samsung needs to ensure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some countries the effects can be extremely serious. On the other hand it has to do some Corporate Social Responsibility practices to show the locals that it appreciates their environment and people.

Porter's 5 Forces

Threat of Replacement

Risk of replacement for Samsung's each item category is quite substantial. Factors for high threat of substitution for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help Smartphone include the presence of high number of providers and Market saturation in industrialized countries, which make the cost of changing for consumers nearly zero. Along with it, Samsung printing services products are threatened by the increasing attraction of clients towards cloud storage.

Competition Amongst Existing Firms:

The rivaly amongst Samsung and its close competitors is intense. The major factor behind this is the approach of market saturation in various variety of item categories, requiring Samsung to introduce more ingenious functions in existing items and brand-new ingenious items to preserve its growth. Other factor for the extreme competition among the competitors is the little item differentiation amongst the items. The popular gamers in the innovation market are rather knowledgeable about the value of R&D costs for their survival and are facing a race of marketing and R&D costs, to record the marketplace. The significant competitors for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry leads to the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Supplier'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 Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution to construct its own software application, it has to outsource its software application development to Google, which becomes a potential provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in most of the product categories likewise make the bargaining power of purchasers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher cost than much of its competitors, due to high end quality product and a reasonable brand image.

Danger of New Entrants:

Hazard of brand-new entrants for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis is rather low. Along with it, requirement of huge know-how and research study and development expenditures for survival in the industry also make new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Samsung's high product diversity provides it distinction from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis had a substantial R&D costs on all of its product categories which enable the company to earn prospective earnings from sales of practically all of its items.

The business ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in terms of global market share, amongst 8 various item categories. Samsung was the international leader in producing DRAM, SRAM and NAND flash chips. Samsung profits from chips was less than Intel but its profits from chips was growing faster than Intel and has grown close to the revenue levels of Intel, as given in the case Exhibition 2.

In addition to the chips Samsung mobile market was likewise growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The significant reson behind Samsung's high growth despite of higher prices than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was likewise profiting from increasing market share of high-end LCDs as given up case Display 3. The major reason, making the company make it possible for to obtain the chance is its mass production at low expense. Sony was the greatest rival for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution in LCD market, nevertheless, it had actually also begun joint venture with Samsung in 2003 for LCD producing, decreasing the competition for Samsung.

Porter's Competitive Strategy

Low Cost Leadership technique of porter is totally executed by Samsung the way they attain economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to produce for them, since they were unable to take on them on low expense. Distinction is another method well carried out by Samsung by continuous financial investment in the R&D and staying ahead of the competitors. They constantly bring something new and ingenious whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis would produce a brand-new brand image by targeting the more youthful generation of the specific country. As, especially smart phones of Samsung are incredibly popular among the younger demographic.


1. It is the very best method to build Consumer Lifetime Value (CLV) by developing a long-term relationship with consumers. Construct loyalty through delivering worth and profit for long-term, as research has revealed it is much cheaper to maintain present clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful individuals and which in turn will bring in new consumers for my products.


1. Old customers who were associated with Samsung before might not like this brand-new image the business is attempting to portray.
2 It will sustain further expenses to rearrange some products and it might not even bring success as the trends alter extremely quickly amongst the more youthful group.

Alternative option 2.

It would be done by organizing training workshops during which importance of marketing will be taught and numbers will be offered. Marketing environment need to be created internally first as real 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 change due to the fact that they fear it.

Determine the best alternative

First alternative is the very best as it plainly has more pros due to the fact that when a Client Lifetime Value is developed the company will make money from it till that customer lives and has acquiring power too. Plus, our target clients are the younger generation which are bound to live longer than the present old age individuals. Samsung's primary objective is to produce commitment among its clients and make them redeemed it from them and even purchase their various products.

Execution Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations possible and sensible.
• A group including finest marketing and sales experts need to be put together, and both views ought to be considered before securing the resources needed to execute the strategy.
• Thorough communication of the strategy need to be done as it is extremely important for everybody to be on the same page to make it work.
• Tasks and timelines must be build and communicated appropriately to each person accountable.
• The supervisor should utilize a dashboard which shows the progress of all the jobs which have actually been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a continuous check on the overall and individual efficiency.
Due to the fact that any new trend or policy may come in due to which all the things currently prepared have actually to be changed, • Everybody must be ready to adapt midway. It's much better to have contingency plans currently prepared.
• At the end of the project the manager ought to communicate the outcomes and if successful ought to celebrate with the team.

Budget plan

The M-net program exposed engaging analysis about the low and high growth possible locations and just how much marketing budget plan must be allocated appropriately. This modification the budget plan allocation of various countries and many managers were dissatisfied and argued however the analysis done by the program was precise and revealed figures like The United States and Canada and Russia growth potential merited a 35% allocation while they were getting 45%. Whereas, China and Europe ought to be getting 42% however were instead given 31%. It truly helped to relatively distribute the resources and record more consumers by investing more on advertisements on the high development capacity areas of the world.

Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution is a leading 25 company worldwide now and plans to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and innovative practices have actually moved them to new heights however for them its' only the start and they wish to be among the leading 3 brands on the planet. They entirely turnaround from practically going bankrupt during the Asian Financial Crisis to a world distinguished brand name, known for quality and innovation. Their worth chain and their core proficiency their manufacturing ability, along-with worldwide brand image building have actually 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 further in the future. Their marketing efforts ought to be directed towards younger demographic in the middle of the internal arguments about marketing and must produce Client Lifetime Value as it will not just give them benefits now but will continue to gain it till the client life time. As the cost of retaining the customer is more affordable than attracting a brand-new one.