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

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Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help is a popular international brand name in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership handle large number of product categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic items. Historically, the business's core clients include the Original Equipment Manufacturers (OEMs), which used to sell Samsung products withtheir own brand name. Till early 1990s, the core competency of Samsung lie in its low cost offerings than its competitors by making existing products at economies of scale. Its customer 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 name. Samsung was not simply known outside Korea. There were likewise no or little interest in building the trademark name internationally. Marketing spending plan was managed by production department with a focal point on offering cheap products.During the 1997 Asian Financial Crisis the business almost got bankrupt, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most important business in the world. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even noted. He repositioned Samsung as a worldwide brand and informed his divisional supervisors to understand marketing and its significance. Now their goal is to arrive 10 by 2005.

Problem Statement

Samsung's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to integrate marketing successfully is still a major obstacle. Developing a constant brand identity throughout the entire world and utilizing marketing methods that best fits the local culture is no simple task.

Situational Analysis

Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help efforts for developing its brand across the world was begun after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to change Samsung from a cheap OEM to a high value-added product provider. To make the vision of Samsung a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Samsung can transform from a low end to a high-end product provider. He understood that improvement can just be done through placing Samsung as a company providing high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a prospective assistance of its executives, Yun faced numerous marketing difficulties in early years of its efforts.

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

As specified above, marketing focus was really low in previous practices, therefore there were no proper marketing budgets for each of the item on the portfolio. There was no marketing planning provided for the existing products. Along with it the item series of the business was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had an obstacle to carry out marketing planning and to create marketing budgets for existing along with for brand-new products from the very beginning, and this would take a substantial time.

A big shift would be needed in existing marketing expenditures to construct the Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis brand name. This would lead to increased marketing expenses for Samsung and could interrupt the administration concerning increased expenses, as they hesitated to marketing expenditures previously and a sudden big shiftwould make them interrupt. This could lead to decreasing executive support for global marketing. In this circumstance, Yun faces a challenge for validating increased marketing expenses by demonstrating the long term worth of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis strengths lie in its big product portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents granted in United States( USP).

Another strength of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis is its capability to establish innovative items at a constant rate. It major proves for the innovation and item creating of Samsung is that the business has gotten many awards for its development and item design.

Unlike Apple and other rivals, Samsung is focused on producing devices which can be quickly integrated with any kind of open source Os (OS) and software application. This provides Samsung an edge over Apple devices.

Samsung's capability to produce luxury products at low expense of production is likewise one of the major strength of Samsung as it makes it possible for the business to record more market by offering quality products with expense control.


Samsung's weaknesses are hidden in the company's dependence on outsourcing software for its gadgets due to company's inability in establishing software application, unlike Sony. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis also has low profit margins as compare to Apple due to substantial difference in the rates of Apple and Samsung with a much lesser difference in quality.


Opportunities for Samsung depend on the growing Smartphone market and the business's effectiveness in the market. It can increase its market share and profits from cellular phone as the business is rather effective in cell phone market. Samsung presently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would make it possible for the business to increase its item portfolio with a boost in its wealth.


The dynamic market environment of innovation market present a severe threat on Samsung's survival and require the business to invest much of its revenues share on R&D in order to survive in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a huge danger for the business's development in the existence of strong competitors like Apple.

4 P's of Marketing


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution provides quality products and has a quite rich portfolio which accommodates various segments. Most of the items are in the leading three of their particular markets. LCD and cellphones are the biggest items of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the product line of Samsung:

• Laptops.
• Cellphone.
• A/c unit.
• Computer.
• Hard disk drives.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help utilizes both market competitive and market skimming prices strategies for its wide variety of items. In competitive rates it adjusts the cost according to the competition in order to acquire advantage, whereas, it utilizes market skimming technique where the item has actually an added value and by offering a couple of items it can reach break-even.


It has among the best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon and so on. All its products are prompt supplied to the selling location/ provided to the consumers straight in case of online order.


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

Worth Chain Analysis.

It's an analytical structure for determining company activities that include worth or competitive advantage for the company.

Inbound Logistics.

It has among the most efficient and effective supply chain network and has over 2700 suppliers throughout various industries all over the world. Almost 80% of which is based in Asia and the staying around the globe. For its inbound logistics it owns various logistics firms as it subsidiaries. It takes care of its providers and creates an unified relationship with them and even lowered their payment cycles to boost this relationship even more which adds worth to their chain network.


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

Outbound Logistics.

Its outgoing logistics system performance is one of the primary factors Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help is able to take on Apple. Samsung's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target client attention towards the item is done through marketing and sales to communicate with them the value and competitive advantage the product uses. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution marketing spending plan is continually on the rise since they started their rearranging globally and will continue to do so as they are continuously seeking to invest and broaden in high possible growth markets. The budget plan is invested in occasions, print and media advertisements, public relations etc.

Samsung put their clients at the top and constantly strive to deliver unmatchable client service standards. By adding a direct support line to call them 24 hours they have actually further increased the included worth of Samsung service.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help has diversified market segmentation, based upon its provision of wide variety of products to a great deal of customers. Samsung target client sections can be divided into 3 categories i.e. Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device options.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help geographic division is based upon two requirements i.e. region and density. Samsung serves about 80 countries worldwide with its items offered to Urban along with Backwoods of the nation. The Samsung is also growing its worldwide existence and the company's flexibility in locating its plants motivates global expansion of Samsung.


The market 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 items that can be utilized by both males and females. The target customers for Samsung IT and mobile interaction products have an age variety of 18-65 with majority at a young or newly married life process stage. They are mainly experts, employees and students. Apart from it, Samsung Consumer Electronic devices are targeted to a client section with an age range of 25-65. They are primarily employees and specialists. Samsung Device Solutions are targeted at students, employees and specialists with an age variety of 25-65.


The psychographic segmentation of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution s based upon the social class and the lifestyle of the customer. Samsung target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Samsung offer items like mobile phone very little more affordable i.e. Motorola along with not much costly i.e. Apple. It offers quality items to middle level consumers at a slightly high price than others targeting the same sector.


Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help bulk target consumers have distinct behavioural attributes. It has customers with an ambitious, trendy and determined character with moderate level of loyalty towards the brand. Its consumers have some degree of shift towards other popular brands i.e. Apple. Most of Samsun customers desire quality in addition to cost control. They are brought in towards Samsung since of its moderate prices with a level of quality.

Quantitative analysis.

Sales of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution has actually increased astonishingly 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 biggest selling category 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 upon the mission of Kim to target the more youthful audience and develop 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 products were selling themselves. In the current age marketing is extremely crucial and companies can not prosper without it. Kim has actually already begun to reinforce the marketing activities of Samsung and soon it will turn into one of its core strength like making if not much better.



Samsung operates styles, manufactures and offer a huge portfolio of customer electronic devices. It runs in a very competitive environment and has successfully positioned itself as the maker of quality items. The answer is yes.


As, stated previously that Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis runs in an extremely competitive environment, which indicates all the companies have similar items. So, the answer for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to comprehend the performance of the items and quickly make their own designs. Yes, Samsung is just behind IBM in registering new patents yearly, however the benefit is very short term in this industry.


Chairman Lee has totally turn-around Samsung, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 company on the planet. Absolutely yes there appertains company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread practically in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are really conductive for its operations. It faces some political pressures in less industrialized countries where law and order situation is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help operations.


Purchasing power of clients is important for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations etc. provide growth opportunities, whereas, due to recession even the customers of industrialized countries suffer terribly. It is very crucial for the company to keep an eye on the ongoing financial circumstance of the country before entering the market.


Multinational companies have to face various social and cultural issues throughout its operations in a foreign country. Samsung has also dealt with numerous problems however have actually embraced to the regional environments of the majority of the nations exceptionally well. It has customized its products, practices, policies etc. accordingly in order to be successful.


With a yearly expense of 2.4 billion dollars in Research & Development, and with constant innovative product launches, Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution is among the leading innovative companies of the world. With a clear mission to be ahead of the rest when it comes to technological developments, Samsung has actually risen to the no 25 of the leading successful companies of the world.


Each nation has their own laws and policies, being a multinational company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal effects. So, it needs to study or employ a regional law expert before starting its operations in a specific nation.


With the increasing awareness amongst customers about the ecological & ethical violations of business, Samsung has to guarantee that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be extremely extreme. On the other hand it has to do some Business Social Responsibility practices to reveal the locals that it cares about their environment and people.

Porter's Five Forces

Hazard of Alternative

Threat of alternative for Samsung's each product classification is quite substantial. Aspects for high threat of alternative for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution Smart device include the presence of high number of suppliers and Market saturation in industrialized countries, which make the cost of switching for customers almost zero. Along with it, Samsung printing services items are threatened by the increasing attraction of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the technique of market saturation in numerous variety of item classifications, requiring Samsung to introduce more innovative features in existing items and brand-new innovative items to keep its development. Other factor for the intense rivalry among the rivals is the little product differentiation amongst the products. The prominent players in the innovation industry are quite knowledgeable about the value of R&D spending for their survival and are running into a race of marketing and R&D spending, to catch the market. The significant competitors for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the varying market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

( 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. Due to incapability of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help to construct its own software application, it has to outsource its software application development to Google, which ends up being a possible provider of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Negotiating power of purchasers for various number of product classifications of Samsung is intense. Among the aspect leading to the intense bargaining power is the schedule of a great deal of competitors in almost each product category i.e. rivals of Samsung Smartphone, with a really little differentiation. The high availability of suppliers of Smart devices with minimum distinction, make the switching cost for buyers almost zero, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product categories likewise make the bargaining power of buyers more intense in for Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Solution. In spite of igh bargaining power Samsung is quite capable of selling its items at a higher rate than much of its rivals, due to luxury quality product and a fair brand name image.

Hazard of New Entrants:

Hazard of new entrants for Samsung is rather low. Among the significant factor for low danger of brand-new entrants is the high competition in the market. The requirement of substantial amount of capital to enter in the market is likewise one of the potential barrier to entry. Together with it, requirement of huge know-how and research study and advancement expenses for survival in the industry likewise make new entrants unwilling to go into in the marketplace. Market saturation is also among the barrier of entry in technology industry. High bargaining power of suppliers require the players in the market to charge as low rates as possible and this can just be attained by production effectiveness. New firms, in majority cases, do not have the production efficiency, thus increasing the threats for entryway in the innovation market.

Competitive Analysis

Samsung's high product diversification supplies it differentiation from its competitors. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Help had a big R&D costs on all of its product classifications which allow the business to earn prospective revenue from sales of practically all of its items.

The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to worldwide market share, among 8 different item categories. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel but its incomes from chips was growing much faster than Intel and has grown close to the profits levels of Intel, as given in the case Display 2.

Along with the chips Samsung mobile market was also growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The significant reson behind Samsung's high development despite of greater rates than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was also profiting from increasing market share of high end LCDs as given in case Exhibition 3. The major reason, making the business enable to get 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 Analysis in LCD market, nevertheless, it had actually also started joint venture with Samsung in 2003 for LCD making, minimizing the competition for Samsung.

Porter's Competitive Technique

Low Expense Management method of porter is fully implemented by Samsung the way they accomplish economies of scale by enhancing their core proficiencies of production. They always bring something innovative and new whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Nsc Hospital Reaching For The Stars What It Takes To Grasp Leadership Case Study Analysis would develop a brand-new brand image by targeting the younger generation of the particular country. As, particularly mobile phones of Samsung are very popular among the more youthful market.


1. It is the best strategy to construct Customer Life time Value (CLV) by developing a long-term relationship with customers. Develop loyalty through delivering value and profit for long-term, as research has actually showed it is more affordable to maintain present clients than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among younger people and which in turn will generate new clients for my products.


1. Old consumers who were related to Samsung before may not like this new image the company is attempting to represent.
2 It will sustain further expenditures to reposition some items and it might not even bring success as the trends change extremely quickly among the younger demographic.

Alternative option 2.

Samsung has made producing its core proficiency for the most part of their organisation and due to which its managers are not scared to completely step out of their convenience zone. It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment should be developed internally first as genuine marketing begins inside the corporation.


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


2. Its con can develop an extremely unhealthy environment in the workplace, as individuals typically withstand change since they fear it.

Determine the very best alternative

Alternative is the finest as it plainly has more pros because when a Consumer Lifetime Worth is built the business will benefit from it till that customer is alive and has acquiring power. Plus, our target clients are the more youthful generation which are bound to live longer than the existing aging people. Nonetheless, Samsung's main objective is to develop commitment amongst its clients and make them bought it from them and even buy their different items too.

Implementation Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations sensible and attainable.
• A group consisting of best marketing and sales specialists must be put together, and both views need to be considered prior to securing the resources needed to implement the plan.
• Thorough interaction of the strategy must be done as it is extremely crucial for everybody to be on the same page to make it work.
• Jobs and timelines must be build and interacted accordingly to each person accountable.
• The supervisor ought to use a control panel which shows the development of all the jobs which have been done or about to be done and by whom.
• The manager need to monitor and keep a continuous look at the overall and individual efficiency.
• Everybody must be willing to adjust midway due to the fact that any new trend or policy may can be found in due to which all the things currently planned have to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the project the manager should interact the results and if successful must commemorate with the team.


This change the budget plan allowance of many supervisors and various nations were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth possible warranted a 35% allotment while they were receiving 45%. It truly helped to fairly distribute the resources and catch more customers by investing more on advertisements on the high development potential regions of the world.


Its constant investment in R&D and ingenious practices have moved them to brand-new heights however for them its' just the start and they desire to be amongst the top 3 brands in the world. Their marketing efforts should be directed towards younger market amid the internal arguments about marketing and must create Customer Life time Worth as it will not just offer them advantages now however will continue to reap it till the consumer lifetime. As the expense of retaining the client is much more affordable than bring in a new one.