Oracle Corporation Case Study Solution and Analysis
Oracle Corporation Case Study Analysis is a widely known worldwide brand in technology market, established in 1938 by Lee Byung Chul, in South Korea. Oracle Corporation handle a great deal of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which utilized to sell Samsung products withtheir own brand name. Till early 1990s, the core competency of Samsung depend on its low cost offerings than its competitors by making existing products at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to sell Oracle Corporation Case Study Analysis items with their own brand name. Samsung was not simply understood outside Korea. There were also no or little interest in developing the brand worldwide. Marketing budget was controlled by production department with a focal point on supplying low-cost products.During the 1997 Asian Financial Crisis the company almost got insolvent, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable business in the world. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as a global brand and educated his divisional managers to understand marketing and its significance. Now their objective is to arrive 10 by 2005.
Samsung's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to include marketing efficiently is still a major obstacle. Producing a consistent brand name identity throughout the whole world and employing marketing techniques that best fits the local culture is no easy task.
Yun had a rather clear photo in his mind about how Oracle Corporation Case Study Help can change from a low end to a high end product supplier. He understood that transformation can only be done through placing Samsung as a business offering 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 potential assistance of its executives, Yun faced several marketing difficulties in early years of its efforts.
Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They thought about marketing and selling as exact same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was excessive high, the gap was too broader and to fill this gap with wrong perceptions about marketing was quite tough for Yun.
As specified above, marketing focus was extremely low in previous practices, therefore there were no correct marketing budgets for each of the item on the portfolio. There was no marketing planning done for the existing items. Along with it the product range of the business was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to create marketing budget plans for existing along with for new products from the very start, and this would take a big time.
A huge shift would be required in present marketing expenses to develop the Oracle Corporation Case Study Help brand name. This would lead to increased marketing expenses for Samsung and could interrupt the administration relating to increased expenses, as they hesitated to marketing expenses previously and an unexpected huge shiftwould make them disrupt. This could lead to declining executive assistance for worldwide marketing. In this situation, Yun deals with a challenge for validating increased marketing expenditures by demonstrating the long term worth of huge marketing expenses.
Samsung strengths lie in its substantial item portfolio. Samsung has largest variety of patents in the market with total number of 15499 patents granted in US( USP). Large amount of R&D spending has made it possible for the business to grow its product portfolio at a higher rate than its rivals. Oracle Corporation Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall earnings.
Another strength of Oracle Corporation Case Study Analysis is its ability to develop innovative products at a constant rate. It significant shows for the development and item creating of Samsung is that the business has actually received a lot of awards for its development and item style.
Unlike Apple and other rivals, Samsung is focused on producing devices which can be quickly integrated with any type of open source Os (OS) and software. This provides Samsung an edge over Apple gadgets.
Samsung's ability to produce luxury products at low cost of production is also one of the significant strength of Samsung as it makes it possible for the company to record more market by supplying quality items with expense control.
Samsung's weaknesses are hidden in the business's dependence on outsourcing software application for its gadgets due to business's failure in establishing software, unlike Sony. Oracle Corporation Case Study Analysis likewise has low revenue margins as compare to Apple due to substantial distinction in the rates of Apple and Samsung with a much lesser difference in quality.
Opportunities for Samsung lie in the growing Smart device market and the company's effectiveness in the market. It can increase its market share and incomes from cellular phone as the business is rather efficient in smart phone market. Samsung currently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to acquire patents. It would enable the business to increase its item portfolio with an increase in its wealth.
The dynamic market environment of innovation market present an extreme threat on Samsung's survival and require the company to spend much of its earnings share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is likewise a huge danger for the company's development in the existence of strong competitors like Apple.
4 P's of Marketing
Oracle Corporation Case Study Solution provides quality products and has a quite rich portfolio which accommodates different sectors. Most of the products are in the leading three of their particular markets. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Samsung:
• LCD/ TELEVISION
• Smart phone.
• Personal computers.
• Hard disk drives.
• Washing machines.
• Video cameras.
• Flash memory.
Oracle Corporation Case Study Solution utilizes both market competitive and market skimming pricing methods for its wide range of items. In competitive prices it changes the cost according to the competitors in order to gain advantage, whereas, it uses market skimming method where the item has actually an included worth and by offering a couple of products it can reach break-even.
It has among the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its items are prompt provided to the selling location/ delivered to the consumers directly in case of online order.
It utilizes both offline & online channels of promotion to market their products. Paid product advertisements, social promo and digital ads are uses to produce awareness about Samsung items.
Value Chain Analysis.
It's an analytical framework for recognizing business activities that add worth or competitive advantage for the company.
It has among the most efficient and reliable supply chain network and has more than 2700 suppliers throughout different industries all over the world. Nearly 80% of which is based in Asia and the staying worldwide. For its incoming logistics it owns different logistics firms as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even lowered their payment cycles to improve this relationship further which adds worth to their chain network.
Samsung's core competency is its mass making it produces 90% of its items internal. Divided into 3 different departments its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronics. It is maintaining operation centers worldwide to even more add worth to its worth chain network.
Its outgoing logistics system performance is one of the primary factors Oracle Corporation Case Study Analysis is able to compete with Apple. Samsung's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.
Marketing and Sales.
Bring in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the item offers. Oracle Corporation Case Study Analysis marketing spending plan is continually rising considering that they began their repositioning globally and will continue to do so as they are constantly seeking to broaden and invest in high possible development markets. The budget is spent on events, print and media ads, public relations etc.
Samsung put their consumers at the leading and continually make every effort to provide unmatchable customer service requirements. By including a direct support line to contact them 24 hours they have further increased the added worth of Samsung service.
Oracle Corporation Case Study Analysis has diversified market division, based upon its arrangement of vast array of products to a great deal of consumers. Samsung target customer segments can be divided into 3 classifications i.e. Oracle Corporation Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Gadget solutions.
Oracle Corporation Case Study Help geographic segmentation is based upon two criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products supplied to Urban along with Rural areas of the country. The Samsung is likewise growing its worldwide presence and the company's flexibility in finding its plants motivates worldwide expansion of Samsung.
The demographic division of Oracle Corporation Case Study Help is based upon gender, age, life-cycle phase and occupation. Samsung produces items that can be utilized by both males and females. The target consumers for Samsung IT and mobile interaction items have an age series of 18-65 with bulk at a young or recently wed life cycle stage. They are mostly trainees, staff members and experts. Apart from it, Samsung Customer Electronic devices are targeted to a client segment with an age range of 25-65. They are primarily specialists and workers. Samsung Device Solutions are targeted at students, staff members and professionals with an age variety of 25-65.
The psychographic segmentation of Oracle Corporation Case Study Analysis s based upon the social class and the lifestyle of the customer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung offer products like mobile phone very little less expensive i.e. Motorola as well as very little pricey i.e. Apple. It provides quality items to middle level customers at a slightly high cost than others targeting the very same section.
Oracle Corporation Case Study Help majority target customers have unique behavioural qualities. It has consumers with an ambitious, fashionable and figured out personality with moderate level of loyalty towards the brand name. Its clients have some degree of shift towards other distinguished brands i.e. Apple. Most of Samsun consumers want quality along with expense control. Due to the fact that of its moderate costs with a level of quality, they are attracted towards Samsung.
Sales of Samsung has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has actually likewise lowered its debt from 15 billion $ to 4.6 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. Due to the fact that of the high overhead expense, revenues/ sales are increasing but net profit is not increasing accordingly. New growths and working with's were the primary factor of the increase in the overhead expenses, with china currently not supplying any revenue to Samsung, but there is a lot potential in the current market with 75 % yet to be explored.
Yes, this decision is based upon the mission of Kim to target the more youthful audience and produce a global brand image of the company. Whereas, the core strength of the business is currently producing however long gone are those days when excellent products were selling themselves. In the existing age marketing is very essential and business can not succeed without it. Kim has actually currently started to reinforce the marketing activities of Samsung and soon it will become one of its core strength like manufacturing if not better.
Samsung runs styles, makes and offer a huge portfolio of consumer electronics. It runs in an extremely competitive environment and has actually successfully placed itself as the maker of quality items. So, the answer is yes.
As, said previously that Oracle Corporation Case Study Help runs in a highly competitive environment, which implies all the companies have similar products. So, the response for rarity is no.
Due to the nature of the market, it is extremely simple for competitors to comprehend the functionality of the items and quickly make their own models. Yes, Samsung is only behind IBM in registering new patents each year, however the advantage is really short-term in this market.
Chairman Lee has completely turnaround Samsung, from going nearly bankrupt during the Asian monetary crisis of 1997 to the leading 25 business worldwide. Certainly yes there appertains company in the company and the outcomes speak for themselves.
External Ecological Analysis
Being an international brand spread almost in every nation worldwide, bulk of the environments like U.S.A., Europe, China etc., are really conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized countries where law and order circumstance is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Oracle Corporation Case Study Help operations.
Purchasing power of consumers is essential for business like Samsung to succeed and grow. Emerging markets like India, middle-eastern countries etc. supply development opportunities, whereas, due to recession even the consumers of developed nations suffer severely. Hence it is really important for the business to watch on the continuous financial situation of the country prior to entering the marketplace.
Multinational companies have to deal with various social and cultural problems during its operations in a foreign country. Samsung has actually likewise dealt with many problems however have actually adopted to the regional environments of most of the nations remarkably well. It has actually tailored its items, practices, policies and so on accordingly in order to achieve success.
With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with continuous ingenious item launches, Oracle Corporation Case Study Help is one of the top innovative business of the world. With a clear mission to be ahead of the rest when it concerns technological advancements, Samsung has risen to the no 25 of the leading effective companies 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 result in severe legal effects. It has to study or employ a local law specialist prior to starting its operations in a particular country.
With the increasing awareness amongst consumers about the ecological & ethical offenses of companies, Samsung needs to guarantee that it follows all the safety standards. Environmental damages, ethical misbehaviors are not appropriate and in some nations the repercussions can be extremely severe. On the other hand it has to do some Corporate Social Duty practices to reveal the locals that it appreciates their environment and people.
Porter's 5 Forces
Threat of Substitution
Risk of replacement for Samsung's each product category is rather substantial. Elements for high risk of replacement for Oracle Corporation Case Study Solution Mobile phone consist of the existence of high number of providers and Market saturation in industrialized nations, which make the expense of changing for consumers almost no. Along with it, Samsung printing services items are threatened by the increasing destination of customers towards cloud storage.
Rivalry Amongst Existing Companies:
The rivaly amongst Samsung and its close rivals is intense. The major reason behind this is the approach of market saturation in various number of product categories, requiring Samsung to introduce more ingenious functions in existing items and brand-new innovative products to preserve its development. The significant competitors for Oracle Corporation Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.
( 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 Oracle Corporation Case Study Help to develop its own software application, it has to outsource its software application development to Google, which ends up being a potential provider of software for Samsung, resulting in high bargaining power of Google.
Bargaining Power of Buyers:
Haggling power of buyers for numerous variety of item classifications of Samsung is extreme. Among the factor resulting in the intense bargaining power is the accessibility of a great deal of rivals in nearly each item classification i.e. rivals of Samsung Mobile phone, with a very little distinction. The high schedule of providers of Smartphones with minimum distinction, make the switching cost for buyers almost absolutely no, thus increasing the bargaining power of buyers. Market saturation in the majority of the product categories also make the bargaining power of purchasers more extreme in for Oracle Corporation Case Study Help. In spite of igh bargaining power Samsung is rather capable of selling its items at a higher cost than much of its competitors, due to luxury quality item and a reasonable brand image.
Hazard of New Entrants:
Threat of brand-new entrants for Oracle Corporation Case Study Solution is rather low. Along with it, requirement of big know-how and research and development expenditures for survival in the industry also make brand-new entrants unwilling to enter in the market. Market saturation is likewise one of the barrier of entry in technology market.
Samsung's high product diversity provides it distinction from its rivals. It is one of the 3 leading brand names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony concentrating on consumer electronic devices, Nokia on cellular phone and Intel on chips, Samsung had a big R&D spending on all of its product classifications which make it possible for the company to earn prospective income from sales of nearly all of its items. (See Display) However, due to the broad item range the company deals with high number of competitors.
The company ranks first in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to international market share, amongst 8 various item classifications. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel however its incomes from chips was growing much faster than Intel and has grown close to the income levels of Intel, as offered in the case Display 2.
In addition to the chips Samsung mobile market was also growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cell phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The significant reson behind Samsung's high development despite of greater prices than Nokia and Motorola was the business's high-end quality mobile phone.
Samsung was also profiting from increasing market share of luxury LCDs as given up case Display 3. The significant factor, making the business allow to obtain the opportunity is its mass production at low expense. Sony was the most significant competitor for Oracle Corporation Case Study Solution in LCD market, however, it had likewise started joint endeavor with Samsung in 2003 for LCD making, decreasing the competition for Samsung.
Porter's Competitive Method
Low Cost Management strategy of porter is completely carried out by Samsung the way they accomplish economies of scale by strengthening their core proficiencies of production. They always bring something ingenious and brand-new whether it's a service or a product.
Alternative Option 1
The Chief Marketing Officer (CMO) of Oracle Corporation Case Study Solution would develop a brand-new brand image by targeting the more youthful generation of the specific nation. As, particularly cellphones of Samsung are preferred amongst the more youthful group.
1. It is the best strategy to develop Consumer Lifetime Value (CLV) by creating a long-lasting relationship with customers. Build loyalty through delivering value and profit for long-term, as research has revealed it is much cheaper to maintain current customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger individuals and which in turn will bring in new customers for my products.
1. Old consumers who were associated with Samsung prior to may not like this brand-new image the company is attempting to portray.
2 It will sustain more expenditures to rearrange some products and it may not even bring success as the patterns change extremely quickly amongst the more youthful demographic.
Alternative solution 2.
Samsung has made producing its core proficiency for the a lot of part of their service and due to which its managers are not afraid to completely step out of their convenience zone. It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get demoted. Marketing environment ought to be created internally first as real marketing begins inside the corporation.
1. Its pro will be that all the marketing approach fans will come out and likewise the opposite ones.
2. Its con can develop a really unhealthy environment in the workplace, as individuals frequently resist modification since they fear it.
Identify the best option
Option is the finest as it clearly has more pros because as soon as a Client Life time Worth is built the business will benefit from it till that customer is alive and has acquiring power. Plus, our target consumers are the younger generation which are bound to live longer than the current aging individuals. Nonetheless, Samsung's main goal is to develop loyalty among its clients and make them repurchase it from them and even purchase their different products as well.
• Targeting more youthful generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations practical and attainable.
• A team including finest marketing and sales professionals must be assemble, and both views ought to be considered before protecting the resources required to execute the strategy.
• Thorough communication of the plan must be done as it is really important for everyone to be on the same page to make it work.
• Jobs and timelines must be construct and interacted appropriately to each individual responsible.
• The manager must utilize a dashboard which shows the progress of all the tasks which have actually been done or about to be done and by whom.
• The supervisor need to monitor and keep a continuous check on the private and overall efficiency.
• Everybody should want to adjust midway because any brand-new trend or policy may be available in due to which all the things currently planned need to be changed. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor must communicate the outcomes and if successful ought to commemorate with the team.
This change the spending plan allotment of different countries and many supervisors were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia development possible warranted a 35% allotment while they were getting 45%. It actually helped to fairly disperse the resources and catch more consumers by investing more on ads on the high development potential regions of the world.
Its continuous investment in R&D and ingenious practices have moved them to new heights but for them its' just the start and they desire to be among the top 3 brands in the world. Their marketing efforts need to be directed towards younger group amid the internal arguments about marketing and need to develop Customer Lifetime Value as it will not just provide them benefits now but will continue to reap it till the client lifetime. As the cost of retaining the customer is much cheaper than attracting a brand-new one.