Polygon Hotel Group In Dubai Harvard Case Study Solution

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Polygon Hotel Group In Dubai Case Study Solution & Analysis


Polygon Hotel Group In Dubai Case Study Solution is a widely known worldwide brand in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Polygon Hotel Group In Dubai handle large number of item categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core clients consist of the Original Devices Manufacturers (OEMs), which utilized to offer Enterprise items withtheir own brand. Till early 1990s, the core proficiency of Organization depend on its low price offerings than its competitors by producing existing products at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who used to sell Polygon Hotel Group In Dubai Case Study Analysis items with their own trademark name. Corp was not merely known outside Korea. There were likewise no or little interest in constructing the trademark name internationally. Marketing budget was controlled by production department with a prime focus on supplying low-cost products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the top 25 most important business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Enterprise as a global brand name and informed his divisional managers to understand marketing and its importance. Now their goal is to reach the top 10 by 2005.

Problem Statement

Company's shift from a product based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional managers to include marketing efficiently is still a significant obstacle. Producing a consistent brand name identity throughout the entire world and using marketing techniques that finest fits the regional culture is no simple job. The M-net program analysis have been truly valuable in identifying the high and less prospective growth areas, but allotment of resources accordingly is not well gotten among the supervisors. There is no agreement among the hierarchy regarding the best matched future technique.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Polygon Hotel Group In Dubai Case Study Solution can change from a low end to a high end product company. He understood that improvement can just be done through placing Enterprise as a company providing high-end items and this could just be done through high level of marketing.

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

One of 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 believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the existing marketing requirement was excessive high, the gap was too larger and to fill this gap with incorrect understandings about marketing was rather challenging for Yun.

Along with it the item range of the company was increasing with the ripening of brand-new item ideas by the R&D sector of Org. Yun had a challenge to perform marketing preparation and to produce marketing spending plans for existing as well as for brand-new items from the very start, and this would take a big time.

A substantial shift would be needed in current marketing expenditures to construct the Venture brand name. This would result in increased marketing expenses for Venture and could interrupt the administration concerning increased expenses, as they were unwilling to marketing expenditures formerly and a sudden big shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Polygon Hotel Group In Dubai Case Study Help strengths lie in its huge item portfolio. Corporation has biggest number of patents in the market with overall number of 15499 patents given in US( USP).

Another strength of Polygon Hotel Group In Dubai Case Study Analysis is its ability to develop innovative items at a constant rate. It significant shows for the innovation and item designing of Corp is that the business has actually gotten a lot of awards for its innovation and item design.

Unlike Apple and other competitors, Company is concentrated on producing devices which can be quickly integrated with any type of open source Operating System (OS) and software. This offers Venture an edge over Apple gadgets.
Porter's 5 Forces Analysis
Corp's ability to produce luxury items at low cost of production is likewise among the major strength of Enterprise as it enables the business to record more market by providing quality items with expense control.

Weak points

Polygon Hotel Group In Dubai Case Study Help weak points are concealed in the business's reliance on outsourcing software application for its devices due to business's inability in establishing software, unlike Sony. Corp also has low earnings margins as compare to Apple due to substantial difference in the costs of Apple and Org with a much lower distinction in quality. The varied focus of the company due to a great deal of products in its portfolio, lead to the less efficient production and make the business unable to charge higher rates like Apple. The company is likewise ineffective in managing its patents and regularly faces the issue of patent offense.


Opportunities for Polygon Hotel Group In Dubai Case Study Solution lie in the growing Mobile phone market and the company's effectiveness in the market. Company presently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic industry environment of technology market present a serious danger on Venture's survival and require the company to invest much of its earnings share on R&D in order to survive in the long run. The market saturation in industrialized nations i.e. saturation of mobile business is also a big danger for the company's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Polygon Hotel Group In Dubai Case Study Help offers quality items and has a quite rich portfolio which accommodates different sections. Most of the items remain in the leading 3 of their particular industries. LCD and cellphones are the greatest products of Organization, whereas DRAM is also not far behind in comparison of them. Following is the line of product of Company:

• Laptops.
• Cellphone.
• Air conditioner.
• Desktop computer.
• Hard disks.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Polygon Hotel Group In Dubai Case Study Analysis utilizes both market competitive and market skimming rates methods for its wide range of products. In competitive rates it changes the cost according to the competitors in order to get benefit, whereas, it utilizes market skimming strategy where the item has an included value and by offering a couple of items it can reach break-even.


It has one of the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its items are timely supplied to the selling place/ delivered to the consumers directly in case of online order.

Vrio Analysis
It wasn't a widely known company beyond Korea up until 1993. But the management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has actually entered the league of leading 25 companies on the planet in simply 9 years. This is an amazing achievement regardless of the continuous arguments among the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their products. Paid item advertisements, social promo and digital ads are uses to develop awareness about Business items.

Value Chain Analysis.

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

Inbound Logistics.

It has among the most effective and reliable supply chain network and has over 2700 providers throughout various industries worldwide. Almost 80% of which is based in Asia and the staying worldwide. For its inbound logistics it owns numerous logistics firms as it subsidiaries. It cares for its suppliers and creates a harmonious relationship with them and even decreased their payment cycles to boost this relationship even more which includes worth to their chain network.


Business's core proficiency is its mass making it produces 90% of its products in-house. Divided into three different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is keeping operation centers worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the primary factors Polygon Hotel Group In Dubai Case Study Analysis is able to compete with Apple. Business's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Corporation.

Marketing and Sales.

Drawing in target consumer attention towards the item is done through marketing and sales to communicate with them the worth and competitive advantage the item offers. Polygon Hotel Group In Dubai Case Study Solution advertising budget is constantly increasing since they began their rearranging internationally and will continue to do so as they are continuously seeking to invest and expand in high potential growth markets. The budget is invested in events, print and media advertisements, public relations and so on.

Organization put their customers at the top and continuously make every effort to deliver unmatchable customer service standards. By adding a direct assistance line to call them 24 hours they have actually even more increased the added value of Company service.


Polygon Hotel Group In Dubai Case Study Help has diversified market segmentation, based upon its arrangement of wide variety of products to large number of consumers. Corporation target customer sections can be divided into 3 categories i.e. Polygon Hotel Group In Dubai Case Study Solution IT and Mobile Communications, Venture Customer Electronics and Business Gadget services.


Polygon Hotel Group In Dubai Case Study Solution geographical division is based upon two criteria i.e. area and density. Venture serves about 80 countries worldwide with its products offered to Urban along with Backwoods of the country. The Company is likewise growing its worldwide existence and the business's flexibility in locating its plants encourages global growth of Org.


The market division of Polygon Hotel Group In Dubai Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Corporation produces items that can be utilized by both males and females. The target consumers for Corp IT and mobile interaction items have an age series of 18-65 with bulk at a young or recently married life process stage. They are primarily trainees, workers and professionals. Apart from it, Enterprise Consumer Electronics are targeted to a customer segment with an age range of 25-65. They are mainly experts and workers. Corp Gadget Solutions are targeted at trainees, staff members and specialists with an age variety of 25-65.


The psychographic division of Polygon Hotel Group In Dubai Case Study Help s based upon the social class and the lifestyle of the consumer. Company target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Corporation offer items like mobile phone not much cheaper i.e. Motorola in addition to very little pricey i.e. Apple. It supplies quality items to middle level customers at a slightly high cost than others targeting the exact same sector.


Polygon Hotel Group In Dubai Case Study Analysis majority target consumers have unique behavioural characteristics. It has consumers with an ambitious, stylish and determined character with moderate level of commitment towards the brand. Its customers have some degree of shift towards other renowned brands i.e. Apple. The majority of Venture clients want quality as well as cost control. They are attracted towards Org because of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Polygon Hotel Group In Dubai Case Study Solution has actually increased amazingly 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 category of Business with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based upon the objective of Kim to target the younger audience and develop a global brand picture of the company. Whereas, the core strength of the business is presently producing however long gone are those days when good items were offering themselves. In the present age marketing is very crucial and companies can not be successful without it. Kim has actually already begun to reinforce the marketing activities of Corporation and very soon it will become one of its core strength like manufacturing if not better.



Organization runs styles, produces and sell a large portfolio of consumer electronics. It operates in an incredibly competitive environment and has successfully positioned itself as the maker of quality products. So, the response is yes.


As, said previously that Polygon Hotel Group In Dubai Case Study Solution operates in an extremely competitive environment, which means all the business have comparable products. The response for rarity is no.


Due to the nature of the industry, it is extremely easy for rivals to understand the performance of the items and quickly make their own models. Yes, Org is just behind IBM in registering new patents every year, however the advantage is extremely short-term in this market.


Chairman Lee has entirely turn-around Org, from going nearly bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 company in the world. Certainly yes there appertains organization in the business and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread practically in every nation worldwide, bulk of the environments like USA, Europe, China etc., are extremely 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 category, where political instability do have a result on Polygon Hotel Group In Dubai Case Study Analysis operations.


Purchasing power of customers is crucial for business like Corporation to grow and be successful. Emerging markets like India, middle-eastern nations and so on provide growth opportunities, whereas, due to economic crisis even the clients of industrialized nations suffer terribly. Hence it is extremely crucial for the company to watch on the continuous financial circumstance of the country prior to entering the market.


Multinational business need to deal with various social and cultural issues throughout its operations in a foreign country. Business has likewise dealt with lots of problems however have actually adopted to the regional environments of the majority of the countries incredibly well. It has tailored its items, practices, policies and so on appropriately in order to succeed.


With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with continuous innovative item launches, Polygon Hotel Group In Dubai Case Study Help is among the top innovative companies of the world. With a clear mission to be ahead of the rest when it concerns technological improvements, Corporation has increased to the no 25 of the leading effective companies of the world.


Each nation has their own laws and policies, being an international business Corporation have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal repercussions. So, it needs to study or hire a regional law professional prior to beginning its operations in a particular country.


With the rising awareness among customers about the ethical & ecological infractions of business, Company needs to ensure that it follows all the security standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the effects 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 individuals.

Porter's 5 Forces

Hazard of Substitution

Risk of substitution for Enterprise's each item category is quite considerable. Running in a very dynamic industry lead the business to deal with a high hazard of substitution. Aspects for high risk of substitution for Polygon Hotel Group In Dubai Case Study Analysis Smartphone include the presence of high number of suppliers and Market saturation in industrialized countries, which make the expense of switching for customers nearly no. Alternative threats for Company visual display screen lie in the altering life style of customers. Consumers can switch to viewing visuals at home towards outside activities. Together with it, Company printing solutions items are threatened by the increasing tourist attraction of clients towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Org and its close rivals is extreme. The major factor behind this is the method of market saturation in different number of product categories, requiring Venture to introduce more ingenious features in existing items and brand-new innovative items to maintain its growth. The major competitors for Polygon Hotel Group In Dubai Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Polygon Hotel Group In Dubai Case Study Solution has a large supply chain consisting of about 2700 providers across the world.( Corp Sustainability Report, 2016) Provider's bargaining power for Organization is low as Corporation runs economies of scale and its orders are of potential size and worth. These huge orders enable Enterprise to work out costs with its suppliers. Due to incapability of Business to construct its own software application, it has to outsource its software development to Google, which ends up being a possible supplier of software application for Business, resulting in high bargaining power of Google. Although, in the majority of cases Enterprise has a power to work out prices, however it offer significant prices to its suppliers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications likewise make the bargaining power of buyers more extreme in for Enterprise. In spite of igh bargaining power Corporation is rather capable of offering its items at a higher rate than much of its competitors, due to high end quality item and a reasonable brand name image.

Risk of New Entrants:

Danger of brand-new entrants for Polygon Hotel Group In Dubai Case Study Analysis is quite low. Along with it, requirement of huge expertise and research study and advancement expenditures for survival in the market also make brand-new entrants reluctant to enter in the market. Market saturation is also one of the barrier of entry in innovation industry.

Competitive Analysis

Corporation's high item diversification provides it differentiation from its competitors. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Polygon Hotel Group In Dubai Case Study Analysis had a big R&D costs on all of its item classifications which enable the business to make possible revenue from sales of nearly all of its products.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in regards to global market share, amongst 8 various item classifications. Company was the international leader in making DRAM, SRAM and NAND flash chips. Corporation earnings from chips was less than Intel but its earnings from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as provided in the case Exhibition 2.

In addition to the chips Company mobile market was likewise thriving at a high rate than its competitors i.e. Motorola and Nokia. Org's cellular phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The significant reson behind Enterprise's high growth despite of greater prices than Nokia and Motorola was the company's high-end quality cellular phone.

Organization was likewise profiting from increasing market share of luxury LCDs as given in case Exhibit 3. The significant factor, making the business allow to get the chance is its mass production at low expense. Sony was the biggest rival for Polygon Hotel Group In Dubai Case Study Solution in LCD market, nevertheless, it had actually likewise begun joint endeavor with Business in 2003 for LCD making, minimizing the competitors for Corp.

Porter's Competitive Strategy

Low Cost Management method of porter is completely implemented by Business the method they achieve economies of scale by strengthening their core proficiencies of production. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, because they were unable to take on them on low cost. Distinction is another strategy well carried out by Corp by continuous financial investment in the R&D and remaining ahead of the competition. They always bring something brand-new and innovative whether it's a service or an item.


Alternative Option 1

The Chief Marketing Officer (CMO) of Polygon Hotel Group In Dubai Case Study Solution would create a brand-new brand image by targeting the younger generation of the specific nation. As, particularly smart phones of Venture are popular amongst the younger demographic.


1. It is the best technique to develop Client Lifetime Worth (CLV) by producing a long-term relationship with customers. Build commitment through providing value and reap the benefits for long-term, as research has actually showed it is much cheaper to retain present consumers than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst younger individuals and which in turn will bring in new consumers for my items.


1. Old customers who were associated with Org prior to may not like this brand-new image the company is attempting to portray.
2 It will sustain more expenses to reposition some products and it may not even bring success as the trends change extremely rapidly amongst the more youthful group.

Alternative solution 2.

Business has made manufacturing its core competency for the a lot of part of their company and due to which its managers are not afraid to completely step out of their comfort zone. It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment must be created internally initially as real marketing starts inside the corporation.


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


2. Its con can create a very unhealthy environment in the office, as individuals frequently resist change since they fear it.

Determine the best alternative

Alternative is the best as it plainly has more pros since once a Consumer Life time Value is built the company will profit from it till that client is alive and has purchasing power. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. Nonetheless, Company's primary goal is to create commitment amongst its consumers and make them redeemed it from them and even purchase their various products too.

Application Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations possible and reasonable.
• A group including finest marketing and sales specialists should be assemble, and both views ought to be taken into consideration prior to securing the resources needed to implement the plan.
• Thorough communication of the strategy must be done as it is extremely essential for everybody to be on the very same page to make it work.
• Tasks and timelines must be develop and interacted accordingly to each person responsible.
• The supervisor ought to utilize a control panel which reveals the progress of all the jobs which have actually been done or about to be done and by whom.
• The manager should monitor and keep a continuous examine the total and private efficiency.
• Everybody should be willing to adjust midway since any brand-new pattern or policy may can be found in due to which all the important things already prepared have to be changed. It's better to have contingency strategies already prepared.
• At the end of the project the supervisor should interact the outcomes and if successful must celebrate with the team.


This modification the budget plan allowance of different countries and many managers were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia development potential warranted a 35% allowance while they were receiving 45%. It truly helped to fairly disperse the resources and catch more customers by investing more on advertisements on the high growth potential areas of the world.

Polygon Hotel Group In Dubai Case Study Analysis is a leading 25 company on the planet now and plans to get ahead of Sony who sits presently at no. 20. Its continuous financial investment in R&D and innovative practices have moved them to new heights however for them its' just the start and they want to be amongst the leading 3 brands in the world. They completely turn-around from practically going bankrupt throughout the Asian Financial Crisis to a world prominent brand name, understood for quality and innovation. Their value chain and their core proficiency their production capability, along-with international brand image structure have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts must be directed towards more youthful group in the middle of the internal arguments about marketing and ought to develop Customer Life time Worth as it will not just give them benefits now however will continue to reap it till the consumer life time. As the expense of maintaining the customer is much cheaper than drawing in a new one.