Polygon Hotel Group In Dubai Harvard Case Study Analysis

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Polygon Hotel Group In Dubai Case Study Solution & Analysis


Polygon Hotel Group In Dubai Case Study Analysis is a well-known international brand in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Polygon Hotel Group In Dubai deals in large number of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the company's core clients consist of the Original Devices Manufacturers (OEMs), which used to offer Samsung products withtheir own brand. Till early 1990s, the core proficiency of Samsung depend on its low price offerings than its rivals by making existing items at economies of scale. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to sell Polygon Hotel Group In Dubai Case Study Help products with their own brand. Samsung was not simply known outside Korea. There were likewise no or little interest in developing the brand worldwide. Marketing spending plan was managed by production department with a focal point on supplying low-cost products.During the 1997 Asian Financial Crisis the business nearly got insolvent, however with the Vision of Chairman Lee it totally 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 business was not even listed. He repositioned Samsung as a global brand name and educated his divisional managers to understand marketing and its importance. Now their objective is to reach the top 10 by 2005.

Problem Declaration

Samsung's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to include marketing successfully is still a significant challenge. Producing a consistent brand name identity across the entire world and employing marketing strategies that best fits the regional culture is no simple task. The M-net program analysis have been truly valuable in figuring out the high and less possible development locations, however allocation of resources accordingly is not well received among the managers. There is no agreement among the hierarchy regarding the very best fit future method.

Situational Analysis

Polygon Hotel Group In Dubai Case Study Help efforts for building its brand across the world was begun after introducing the "new management effort" by Chairman Lee in 1993. The objective was to change Samsung from a cheap OEM to a high value-added item service provider. To make the vision of Samsung a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can transform from a low end to a luxury item service provider. He knew that improvement can only be done through placing Samsung as a company providing high-end products and this could only be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand, with a prospective support of its executives, Yun dealt with numerous marketing obstacles in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the present marketing requirement was too much high, the space was too wider and to fill this gap with wrong understandings about marketing was quite difficult for Yun.

Along with it the product range of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had a challenge to perform marketing planning and to develop marketing budgets for existing as well as for new products from the very beginning, and this would take a big time.

A huge shift would be needed in current marketing expenditures to develop the Samsung brand. This would result in increased marketing expenses for Samsung and could interrupt the administration concerning increased expenditures, as they were unwilling to marketing expenditures previously and a sudden huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Polygon Hotel Group In Dubai Case Study Analysis strengths lie in its big item portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents granted in US( USP).

Another strength of Polygon Hotel Group In Dubai Case Study Help is its ability to develop ingenious items at a continuous rate. It major shows for the innovation and item creating of Samsung is that the company has gotten so many awards for its innovation and item style.

Unlike Apple and other competitors, Samsung is concentrated on producing devices which can be easily incorporated with any type of open source Operating System (OS) and software. This offers Samsung an edge over Apple gadgets.

Samsung's capability to produce luxury products at low expense of production is also 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.


Polygon Hotel Group In Dubai Case Study Solution weak points are concealed in the company's dependence on outsourcing software for its devices due to business's failure in establishing software, unlike Sony. Samsung likewise has low earnings margins as compare to Apple due to big difference in the rates of Apple and Samsung with a much lesser distinction in quality. The varied focus of the business due to a great deal of items in its portfolio, lead to the less efficient production and make the business unable to charge higher rates like Apple. The business is likewise inefficient in managing its patents and often faces the problem of patent infraction.


Opportunities for Polygon Hotel Group In Dubai Case Study Solution lie in the growing Smart device market and the company's performance 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 vibrant industry environment of innovation market present a severe risk on Samsung's survival and force the company to invest much of its earnings share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile company is likewise a huge hazard for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing


Polygon Hotel Group In Dubai Case Study Help offers quality items and has a rather rich portfolio which deals with different segments. The majority of the items are in the top 3 of their respective markets. LCD and smart phones are the greatest products of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the line of product of Samsung:

• Laptops.
• Cellphone.
• Air conditioning system.
• Computer.
• Hard disks.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Polygon Hotel Group In Dubai Case Study Help utilizes both market competitive and market skimming pricing techniques for its wide array of items. In competitive rates it adjusts the rate according to the competitors in order to gain benefit, whereas, it uses market skimming method where the product has an added value and by selling 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 etc. All its items are prompt supplied to the selling place/ provided to the customers straight in case of online order.


It wasn't a popular company beyond Korea up until 1993. The management initiative taken by their CEO has actually pushed them to market more efficiently outside the borders and now it has actually gotten in the league of top 25 companies in the world in just 9 years. This is an impressive accomplishment despite the ongoing arguments among the managers about adopting marketing practices. It uses both offline & online channels of promo to market their products. Paid item ads, social promo and digital advertisements are utilizes to create awareness about Samsung products.

Value Chain Analysis.

It's an analytical framework for recognizing company activities that add worth or competitive advantage for the company.

Incoming Logistics.

It has among the most reliable and effective supply chain network and has more than 2700 suppliers across various industries all over the world. Practically 80% of which is based in Asia and the staying around the globe. For its inbound logistics it owns numerous logistics companies as it subsidiaries. It cares for its providers and develops an unified relationship with them and even minimized their payment cycles to enhance this relationship even more which includes value to their chain network.


Samsung's core competency is its mass manufacturing it produces 90% of its products internal. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronics. It is keeping operation hubs worldwide to even more include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main factors Polygon Hotel Group In Dubai Case Study Analysis is able to compete with Apple. Samsung's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even carries out 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 item is done through marketing and sales to interact with them the worth and competitive benefit the product uses. Polygon Hotel Group In Dubai Case Study Analysis marketing spending plan is constantly increasing given that they began their repositioning worldwide and will continue to do so as they are continuously aiming to invest and expand in high potential development markets. The budget is invested in events, print and media ads, public relations and so on.

Samsung Service. Samsung put their clients at the top and continuously make every effort to deliver unmatchable customer service standards. As after sales service is ending up being very essential to keep clients pleased and engaged, they even carry out studies through 3rd parties to discover their client's feedback and execute it in the positive method to decrease or if possible entirely remove their client problems. By including a direct assistance line to call them 24 hours they have actually further increased the added worth of Polygon Hotel Group In Dubai Case Study Help service.


Polygon Hotel Group In Dubai Case Study Analysis has diversified market segmentation, based upon its provision of wide variety of products to large number of consumers. Samsung target consumer segments can be divided into 3 classifications i.e. Polygon Hotel Group In Dubai Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.


Polygon Hotel Group In Dubai Case Study Solution geographical segmentation is based upon two requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products offered to Urban along with Rural areas of the nation. The Samsung is likewise growing its global presence and the business's versatility in locating its plants motivates worldwide growth of Samsung.


The market division of Polygon Hotel Group In Dubai Case Study Analysis is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be used by both women and males. The target consumers for Samsung IT and mobile communication products have an age range of 18-65 with bulk at a young or newly wed life process phase. They are mainly students, professionals and staff members. Apart from it, Samsung Customer Electronics are targeted to a client sector with an age variety of 25-65. They are mostly workers and specialists. However Polygon Hotel Group In Dubai Case Study Analysis Device Solutions are targeted at trainees, workers and specialists with an age range of 25-65.


The psychographic segmentation of Polygon Hotel Group In Dubai Case Study Solution s based upon the social class and the lifestyle of the consumer. Samsung target clients on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell products like mobile phone not much less expensive i.e. Motorola in addition to not much pricey i.e. Apple. It offers quality products to middle level customers at a somewhat high rate than others targeting the very same sector.


Polygon Hotel Group In Dubai Case Study Analysis majority target consumers have special behavioural characteristics. It has clients with an enthusiastic, fashionable and figured out personality with moderate level of commitment towards the brand. Its clients have some degree of shift towards other renowned brands i.e. Apple. The majority of Samsun clients desire quality along with cost control. They are attracted towards Samsung due to the fact that of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Samsung has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has likewise minimized 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 cost, profits/ sales are increasing but net revenue is not increasing accordingly. New expansions and hiring's were the primary reason of the increase in the overhead costs, with china presently not providing any earnings to Samsung, but there is a lot potential in the existing market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the business is currently making but long gone are those days when good items were offering themselves. Kim has actually already begun to strengthen the marketing activities of Samsung and very soon it will end up being one of its core strength like producing if not better.



Samsung operates styles, makes and sell a large portfolio of consumer electronics. It runs in an extremely competitive environment and has actually successfully positioned itself as the maker of quality products. The response is yes.


As, stated previously that Polygon Hotel Group In Dubai Case Study Analysis runs in an extremely competitive environment, which implies all the companies have comparable products. So, the answer for rarity is no.


Due to the nature of the industry, it is extremely easy for competitors to comprehend the functionality of the items and quickly make their own designs. Yes, Samsung is just behind IBM in signing up new patents yearly, but the advantage is extremely short-term in this industry.


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

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. However, it deals with some political pressures in less developed countries where law and order scenario is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Polygon Hotel Group In Dubai Case Study Solution operations.


Purchasing power of clients is important for companies like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations etc. offer growth opportunities, whereas, due to recession even the consumers of developed nations suffer badly. It is very important for the business to keep an eye on the ongoing economic scenario of the nation prior to getting in the market.


Multinational business have to deal with numerous social and cultural problems throughout its operations in a foreign country. Samsung has actually also faced numerous issues however have actually adopted to the regional environments of most of the countries incredibly well. It has tailored its products, practices, policies etc. appropriately in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with consistent innovative product launches, Polygon Hotel Group In Dubai Case Study Help is among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it concerns technological developments, Samsung has actually increased to the no 25 of the top successful business of the world.


Each nation has their own laws and policies, being a multinational business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal repercussions. It has to study or work with a regional law professional prior to starting its operations in a specific country.


With the rising awareness among customers about the environmental & ethical infractions of companies, Samsung has to guarantee that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some countries the effects can be really extreme. On the other hand it needs to do some Business Social Duty practices to reveal the residents that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Substitution

Threat of substitution for Samsung's each item classification is rather considerable. Elements for high hazard of alternative for Polygon Hotel Group In Dubai Case Study Help Mobile phone consist of the existence of high number of suppliers and Market saturation in developed countries, which make the cost of switching for customers practically zero. Along with it, Samsung printing solutions items are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close rivals is extreme. The major reason behind this is the approach of market saturation in various number of item classifications, forcing Samsung to introduce more ingenious functions in existing products and brand-new innovative items to keep its development. The significant competitors for Polygon Hotel Group In Dubai Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Polygon Hotel Group In Dubai Case Study Solution has a vast supply chain including about 2700 suppliers throughout the world.( 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. These big orders make it possible for Samsung to work out prices with its providers. However, due to incapability of Polygon Hotel Group In Dubai Case Study Analysis 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. Although, in most of cases Samsung has a power to negotiate costs, however it supply substantial rates to its suppliers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in most of the product categories likewise make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its products at a higher cost than much of its rivals, due to high end quality product and a fair brand name image.

Hazard of New Entrants:

Risk of new entrants for Samsung is quite low. Among the major factor for low hazard of new entrants is the high competitors in the industry. The requirement of big amount of capital to go into in the market is likewise among the possible barrier to entry. In addition to it, requirement of huge know-how and research study and advancement expenses for survival in the market likewise make new entrants reluctant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of suppliers force the gamers in the market to charge as low prices as possible and this can just be attained by production performance. Brand-new companies, in bulk cases, do not have the production performance, for this reason increasing the dangers for entrance in the innovation market.

Competitive Analysis

Samsung's high item diversification supplies it differentiation from its competitors. It is among the three top brands by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on consumer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a huge R&D costs on all of its product categories which enable the company to earn prospective revenue from sales of practically all of its products. (See Display) However, due to the broad product variety the company faces high variety of competitors.

The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of international market share, among 8 different item categories. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Although, Samsung earnings from chips was less than Intel however its revenues from chips was growing faster than Intel and has actually grown near the income levels of Intel, as given up the case Display 2.

Together with the chips Samsung mobile market was also thriving at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was also 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 most significant rival for Polygon Hotel Group In Dubai Case Study Analysis in LCD market, nevertheless, it had likewise started joint venture with Samsung in 2003 for LCD producing, reducing the competition for Samsung.

Porter's Competitive Technique

Low Cost Leadership technique of porter is completely carried out by Samsung the method they attain economies of scale by enhancing their core proficiencies of manufacturing. They constantly bring something innovative and new whether it's a service or an item.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Polygon Hotel Group In Dubai Case Study Help would create a new brand image by targeting the more youthful generation of the particular country. As, especially smart phones of Samsung are preferred among the more youthful demographic.


1. It is the very best method to develop Consumer Life time Worth (CLV) by creating a long-term relationship with consumers. Construct loyalty through delivering value and reap the benefits for long-lasting, as research has revealed it is more affordable to maintain existing customers than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread faster amongst more youthful people and which in turn will generate brand-new consumers for my products.


1. Old consumers who were connected with Samsung before may not like this brand-new image the business is trying to represent.
2 It will sustain additional costs to reposition some products and it may not even bring success as the trends alter extremely quickly among the younger market.

Alternative solution 2.

It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be provided. Marketing environment should be created internally first as real marketing begins inside the corporation.


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


2. Its con can produce an extremely unhealthy environment in the work environment, as individuals frequently withstand change because they fear it.

Determine the very best alternative

First option is the best as it plainly has more pros since as soon as a Customer Life time Worth is constructed the company will benefit from it till that consumer lives and has buying power too. Plus, our target consumers are the younger generation which are bound to live longer than the present old age individuals. Samsung's main objective is to develop loyalty amongst its consumers and make them redeemed it from them and even buy their various products.

Application Strategy

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations achievable and reasonable.
• A group consisting of best marketing and sales experts should be put together, and both views ought to be taken into account before protecting the resources required to execute the plan.
• Thorough communication of the strategy must be done as it is very essential for everybody to be on the very same page to make it work.
• Tasks and timelines ought to be build and interacted accordingly to each person responsible.
• The supervisor should use a dashboard which shows the progress of all the jobs which have actually been done or about to be done and by whom.
• The manager must keep track of and keep a constant look at the specific and general efficiency.
Since any new pattern or policy may come in due to which all the things currently prepared have actually to be changed, • Everyone need to be ready to adapt midway. It's much better to have contingency strategies currently prepared.
• At the end of the project the supervisor need to interact the results and if successful should celebrate with the group.


This modification the budget plan allotment of different countries and numerous managers were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia growth prospective merited a 35% allowance while they were getting 45%. It truly helped to relatively distribute the resources and record more clients by spending more on ads on the high development capacity areas of the world.


Polygon Hotel Group In Dubai Case Study Analysis is a leading 25 business in the world now and prepares to get ahead of Sony who sits presently at no. 20. Its continuous investment in R&D and innovative practices have propelled them to new heights but for them its' just the start and they wish to be among the top 3 brands worldwide. They entirely turnaround from almost going bankrupt during the Asian Financial Crisis to a world popular brand, known for quality and innovation. Their worth chain and their core proficiency their production capability, along-with global brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts need to be directed towards more youthful demographic in the middle of the internal arguments about marketing and ought to create Customer Life time Value as it will not only provide benefits now but will continue to gain it till the consumer life time. As the cost of retaining the consumer is more affordable than attracting a brand-new one.