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Portfolio Assignment 4 Harvard Case Study Analysis

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Portfolio Assignment 4 Case Study Solution & Analysis


Intro

Portfolio Assignment 4 Case Study Help is a popular global brand name in innovation market, founded in 1938 by Lee Byung Chul, in South Korea. Portfolio Assignment 4 deals in a great deal of item categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic items. Historically, the company's core clients consist of the Original Devices Manufacturers (OEMs), which utilized to sell Samsung products withtheir own brand. Till early 1990s, the core proficiency of Samsung lie in its low price offerings than its rivals by manufacturing existing products at economies of scale. Its customer circle includes Original Devices Manufacturers (OEMs), who used to sell Portfolio Assignment 4 Case Study Analysis products with their own brand. Samsung was not merely understood outside Korea. There were also no or little interest in building the brand name internationally. Marketing spending plan was managed by production department with a prime focus on providing inexpensive 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 noted the top 25 most valuable business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as a worldwide brand and educated his divisional managers to understand marketing and its value. Now their goal is to reach the top 10 by 2005.

Issue Declaration

Samsung's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to include marketing efficiently is still a significant challenge. Producing a consistent brand identity throughout the whole world and utilizing marketing methods that best fits the local culture is no easy job. The M-net program analysis have been actually practical in determining the high and less possible development locations, but allotment of resources accordingly is not well received among the managers. There is no consensus among the hierarchy regarding the best matched future strategy.

Situational Analysis

Yun had a rather clear picture in his mind about how Portfolio Assignment 4 Case Study Help can change from a low end to a high end product provider. He understood that improvement can just be done through placing Samsung as a business providing high-end products and this might just be done through high level of marketing.

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

Among the marketing obstacles for Yun was the understandings of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the present marketing requirement was too much high, the space was too larger and to fill this gap with wrong perceptions about marketing was quite tough for Yun.

As mentioned above, marketing focus was very low in previous practices, for that reason there were no appropriate marketing spending plans for each of the item on the portfolio. There was no marketing planning provided for the existing items. Together with it the item series of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Samsung. Yun had a difficulty to carry out marketing planning and to create marketing budgets for existing along with for brand-new products from the very start, and this would take a big time.

A big shift would be needed in existing marketing expenditures to build the Portfolio Assignment 4 Case Study Help brand. This would result in increased marketing expenditures for Samsung and could disturb the administration concerning increased expenses, as they hesitated to marketing expenditures formerly and an abrupt big shiftwould make them disturb. This might result in declining executive support for international marketing. In this scenario, Yun faces an obstacle for validating increased marketing costs by showing the long term worth of big marketing expenditures.

Internal Analysis
SWOT Analysis
Strengths


Portfolio Assignment 4 Case Study Solution strengths lie in its big product portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents granted in United States( USP).

Another strength of Portfolio Assignment 4 Case Study Solution is its ability to establish innovative products at a continuous rate. It major shows for the development and item developing of Samsung is that the company has actually gotten many awards for its development and item design.

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

Samsung's ability to produce luxury products at low cost of production is also one of the major strength of Samsung as it allows the company to record more market by supplying quality products with cost control.

Weak points

Samsung's weaknesses are concealed in the business's dependence on outsourcing software for its gadgets due to business's failure in establishing software, unlike Sony. Portfolio Assignment 4 Case Study Solution also has low earnings margins as compare to Apple due to big distinction in the rates of Apple and Samsung with a much lower difference in quality.

Opportunities

Opportunities for Samsung depend on the growing Smart device market and the company's performance in the market. It can increase its market share and profits from cellular phone as the business is rather efficient in cellular phone market. Samsung currently runs in about 80 countries and the company has a chance 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 company to increase its item portfolio with an increase in its wealth.

Hazards

The dynamic industry environment of technology industry present a severe risk on Samsung's survival and force the company to spend much of its earnings share on R&D in order to endure in the long run. The market saturation in industrialized nations i.e. saturation of mobile company is also a big threat for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing

Item

Portfolio Assignment 4 Case Study Solution uses quality items and has a rather rich portfolio which accommodates different sectors. The majority of the items are in the leading three of their respective markets. LCD and cellphones are the greatest products of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the line of product of Samsung:

• LCD/ TV
• Laptops.
• Mobile phones.
• Air conditioner.
• Desktop computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.
• DRAM.

Cost.

Portfolio Assignment 4 Case Study Solution utilizes both market competitive and market skimming prices methods for its variety of items. In competitive pricing it changes the rate according to the competitors in order to gain advantage, whereas, it utilizes market skimming technique where the product has an included value and by offering a couple of products it can reach break-even.

Location.

It has one of the 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/ provided to the clients straight in case of online order.

Promotion.

It utilizes both offline & online channels of promotion to market their products. Paid product ads, social promo and digital ads are uses to produce awareness about Samsung items.

Worth Chain Analysis.

It's an analytical structure for determining service activities that add worth or competitive benefit for the company.

Incoming Logistics.

It has among the most efficient and efficient supply chain network and has over 2700 suppliers across numerous markets worldwide. Almost 80% of which is based in Asia and the remaining around the globe. For its inbound logistics it owns different logistics companies as it subsidiaries. It cares for its providers and produces a harmonious relationship with them and even reduced their payment cycles to improve this relationship even more which includes worth to their chain network.

Operations.

Samsung's core proficiency is its mass producing it produces 90% of its products internal. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronics. It is maintaining operation centers worldwide to even more add worth to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main reasons Portfolio Assignment 4 Case Study Analysis has the ability to compete with Apple. Samsung's own Electronic Logitec system plays a significant role in the outbound 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 client attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the item offers. Portfolio Assignment 4 Case Study Help marketing budget plan is continually increasing because they started their repositioning internationally and will continue to do so as they are continually seeking to invest and broaden in high potential development markets. The budget is invested in events, print and media advertisements, public relations and so on.

Samsung put their clients at the leading and continuously strive to provide unmatchable consumer service requirements. By including a direct support line to contact them 24 hours they have actually further increased the included worth of Samsung service.

Segmentation.

Portfolio Assignment 4 Case Study Solution has actually diversified market division, based upon its provision of wide range of products to a great deal of customers. Samsung target customer sections can be divided into 3 classifications i.e. Portfolio Assignment 4 Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device services.

Geographic.

Portfolio Assignment 4 Case Study Analysis geographic division is based upon two criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products provided to Urban along with Rural areas of the country. The Samsung is also growing its global existence and the business's versatility in finding its plants motivates global growth of Samsung.

Demographic.

Samsung produces products that can be used by both women and males. The target consumers for Samsung IT and mobile communication items have an age range of 18-65 with majority at a young or freshly wed life cycle phase. Apart from it, Samsung Customer Electronic devices are targeted to a customer segment with an age range of 25-65.

Psychographic.

The psychographic division of Portfolio Assignment 4 Case Study Help 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 cellular phone very little less expensive i.e. Motorola in addition to very little expensive i.e. Apple. It supplies quality items to middle level consumers at a slightly high price than others targeting the very same section.

Behavioural.

Portfolio Assignment 4 Case Study Solution majority target customers have special behavioural qualities. It has clients with an ambitious, trendy and determined character with moderate level of commitment towards the brand name. Its clients have some degree of shift towards other distinguished brands i.e. Apple. The majority of Samsun clients desire quality in addition to expense control. They are drawn in towards Samsung since of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Samsung has actually increased amazingly 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 biggest selling category 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 however net earnings is not increasing accordingly. New expansions and working with's were the main reason of the increase in the overhead costs, with china currently not supplying any revenue to Samsung, but there is a lot capacity in the existing market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based upon the mission of Kim to target the younger audience and produce an international brand name picture of the company. Whereas, the core strength of the business is currently producing however long gone are those days when excellent products were offering themselves. In the current age marketing is really important and business can not be successful without it. Kim has currently begun to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like making if not much better.

VRIO.

Worth.

Samsung operates designs, produces and offer a vast portfolio of customer electronic devices. It operates in an extremely competitive environment and has actually successfully positioned itself as the maker of quality products. The answer is yes.

Rarity.

As, said earlier that Portfolio Assignment 4 Case Study Analysis operates in an extremely competitive environment, which suggests all the companies have similar products. So, the answer for rarity is no.

Imitability.

Due to the nature of the market, it is extremely simple for rivals to understand the functionality of the products and easily make their own models. Yes, Samsung is only behind IBM in signing up new patents yearly, however the advantage is very short term in this market.

Company.

Chairman Lee has entirely turnaround Samsung, from going almost bankrupt during the Asian financial crisis of 1997 to the leading 25 business in the world. Definitely yes there is proper company in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand spread almost in every nation worldwide, majority of the environments like USA, Europe, China and so on, are really conductive for its operations. It faces some political pressures in less industrialized nations where law and order situation is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Portfolio Assignment 4 Case Study Solution operations.

Economic

Buying power of customers is vital for business like Samsung to grow and succeed. Emerging markets like India, middle-eastern nations etc. provide development chances, whereas, due to economic crisis even the customers of developed countries suffer terribly. It is extremely important for the company to keep an eye on the ongoing economic circumstance of the nation prior to getting in the market.

Socio-Cultural

International companies have to face numerous social and cultural issues throughout its operations in a foreign country. Samsung has actually likewise faced numerous concerns but have actually adopted to the regional environments of most of the nations extremely well. It has customized its items, practices, policies and so on appropriately in order to succeed.

Technological

With a yearly expenditure of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Portfolio Assignment 4 Case Study Analysis is among the leading ingenious business of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Samsung has actually risen to the no 25 of the leading successful companies of the world.

Legal

Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. It has to study or employ a local law professional before beginning its operations in a specific country.

Environmental

With the increasing awareness among consumers about the environmental & ethical offenses of business, Samsung has to ensure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some nations the effects can be extremely severe. On the other hand it has to do some Corporate Social Obligation practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Danger of Replacement

Risk of alternative for Samsung's each item classification is quite considerable. Aspects for high hazard of substitution for Portfolio Assignment 4 Case Study Help Smartphone include the existence of high number of providers and Market saturation in developed countries, which make the cost of switching for consumers nearly zero. Along with it, Samsung printing options items are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Samsung and its close rivals is extreme. The significant factor behind this is the method of market saturation in different variety of item categories, requiring Samsung to introduce more ingenious features in existing products and brand-new innovative items to preserve its growth. Other element for the extreme competition amongst the competitors is the little product differentiation amongst the products. The prominent players in the technology market are rather familiar with the importance of R&D spending for their survival and are encountering a race of marketing and R&D spending, to catch the marketplace. The major competitors for Portfolio Assignment 4 Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

Portfolio Assignment 4 Case Study Solution has a large supply chain including about 2700 suppliers throughout the world.( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These substantial orders enable Samsung to negotiate prices with its providers. Due to incapability of Samsung to build its own software application, it has to outsource its software application development to Google, which becomes a possible supplier of software application for Samsung, resulting in high bargaining power of Google. Although, in most of cases Samsung has a power to work out rates, but it offer considerable costs to its providers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Bargaining power of buyers for numerous variety of item classifications of Samsung is extreme. One of the aspect leading to the extreme bargaining power is the schedule of a great deal of rivals in nearly each product category i.e. rivals of Samsung Smartphone, with a really little differentiation. The high accessibility of providers of Smartphones with minimum distinction, make the changing expense for purchasers almost zero, for this reason increasing the bargaining power of purchasers. Market saturation in the majority of the product categories also make the bargaining power of purchasers more extreme in for Portfolio Assignment 4 Case Study Analysis. In spite of igh bargaining power Samsung is quite capable of offering its products at a greater rate than much of its rivals, due to high-end quality item and a fair brand image.

Hazard of New Entrants:

Danger of brand-new entrants for Samsung is rather low. Among the major element for low risk of brand-new entrants is the high competitors in the market. The requirement of big amount of capital to go into in the market is likewise one of the prospective barrier to entry. Together with it, requirement of substantial know-how and research study and advancement expenditures for survival in the industry also make brand-new entrants hesitant to go into in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of providers require the gamers in the market to charge as low rates as possible and this can just be achieved by production performance. Brand-new firms, in bulk cases, do not have the production performance, hence increasing the dangers for entrance in the innovation industry.

Competitive Analysis

Samsung's high item diversification provides it differentiation from its competitors. It is among the 3 leading brands by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product classification with Sony concentrating on customer electronics, Nokia on cellular phone and Intel on chips, Samsung had a substantial R&D costs on all of its item classifications which allow the company to make potential profits from sales of almost all of its products. (See Exhibition) However, due to the large item range the business deals with high number of rivals.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to international market share, amongst 8 various item classifications. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung profits from chips was less than Intel however its profits from chips was growing much faster than Intel and has actually grown near to the income levels of Intel, as given in the case Display 2.

Together with the chips Samsung mobile market was likewise flourishing 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 growth. The significant reson behind Samsung's high growth despite of greater prices than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was likewise profiting from increasing market share of high end LCDs as given in case Exhibit 3. The major reason, making the company make it possible for to get the opportunity is its mass production at low expense. Sony was the greatest competitor for Portfolio Assignment 4 Case Study Analysis in LCD market, however, it had actually likewise begun joint endeavor with Samsung in 2003 for LCD producing, lessening the competitors for Samsung.

Porter's Competitive Method

Low Cost Leadership method of porter is fully implemented by Samsung the way they attain economies of scale by strengthening their core competencies of production. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, due to the fact that they were not able to compete with them on low expense. Distinction is another technique well executed by Samsung by constant financial investment in the R&D and staying ahead of the competition. They constantly bring something innovative and brand-new whether it's a product or a service.

Alternatives

Alternative Service 1

The Chief Marketing Officer (CMO) of Portfolio Assignment 4 Case Study Analysis would create a new brand image by targeting the more youthful generation of the particular nation. As, especially mobile phones of Samsung are popular amongst the more youthful market.

Pros

1. It is the very best strategy to develop Client Life time Worth (CLV) by producing a long-lasting relationship with clients. Construct loyalty through delivering value and reap the benefits for long-term, as research study has actually showed it is more affordable to retain present consumers than to bring in new ones.
2. Another pro of this option is that word of mouth spread faster amongst more youthful individuals and which in turn will generate new consumers for my products.

Cons

1. Old clients who were related to Samsung prior to may not like this new image the company is attempting to represent.
2 It will sustain further expenses to rearrange some products and it might not even bring success as the patterns change very rapidly among the more youthful group.

Alternative option 2.

It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be provided. Marketing environment must be produced internally first as genuine marketing starts inside the corporation.

Pros

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

Cons

2. Its con can create a really unhealthy environment in the work environment, as individuals frequently resist modification because they fear it.

Identify the best option

First option is the best as it plainly has more pros due to the fact that as soon as a Consumer Life time Worth is developed the company will benefit from it till that customer lives and has acquiring power too. Plus, our target customers are the more youthful generation which are bound to live longer than the current old age people. Samsung's main goal is to create loyalty among its customers and make them bought it from them and even buy their different products.

Application Plan

• Targeting more youthful generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations practical and possible.
• A team consisting of finest marketing and sales professionals must be assemble, and both views need to be taken into account before protecting the resources required to carry out the plan.
• Thorough interaction of the strategy need to be done as it is very important for everyone to be on the exact same page to make it work.
• Jobs and timelines need to be construct and communicated accordingly to each individual accountable.
• The supervisor should utilize a control panel which reveals the development of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to keep track of and keep a continuous examine the overall and specific efficiency.
Due to the fact that any new pattern or policy may come in due to which all the things already planned have to be changed, • Everyone should be prepared to adapt midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the supervisor must interact the outcomes and if successful need to celebrate with the group.

Budget plan

This modification the budget plan allowance of various countries and numerous managers were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like North America and Russia development potential warranted a 35% allowance while they were getting 45%. It actually assisted to relatively disperse the resources and record more clients by spending more on advertisements on the high growth capacity areas of the world.

Conclusion

Its consistent investment in R&D and ingenious practices have propelled them to brand-new heights however for them its' just the start and they want to be among the leading 3 brand names in the world. Their marketing efforts need to be directed towards more youthful group in the middle of the internal arguments about marketing and must create Customer Lifetime Worth as it will not only offer them benefits now however will continue to enjoy it till the consumer lifetime. As the expense of keeping the consumer is much cheaper than drawing in a brand-new one.