Princessa Beauty Products 5 Harvard Case Study Help

Home >> Hrm >> Princessa Beauty Products 5

Princessa Beauty Products 5 Case Study Solution and Analysis


Princessa Beauty Products 5 Case Study Help is a widely known worldwide brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Princessa Beauty Products 5 deals in large number of item categories including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the business's core consumers include the Original Devices Manufacturers (OEMs), which used to offer Corporation items withtheir own brand name. Till early 1990s, the core proficiency of Corp depend on its low price offerings than its competitors by making existing products at economies of scale. Its customer circle includes Original Devices Manufacturers (OEMs), who utilized to offer Princessa Beauty Products 5 Case Study Analysis products with their own trademark name. Corp was not simply known outside Korea. There were also no or little interest in building the brand internationally. Marketing spending plan was managed by production department with a prime focus on offering cheap products.During the 1997 Asian Financial Crisis the business practically got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the leading 25 most valuable company worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Enterprise as an international brand name and informed his divisional supervisors to understand marketing and its significance. Now their goal is to reach the top 10 by 2005.

Problem Statement

Company's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to integrate marketing efficiently is still a significant obstacle. Developing a consistent brand identity across the entire world and using marketing techniques that finest fits the local culture is no simple job.
Executive Summary
Situational Analysis

Princessa Beauty Products 5 Case Study Analysis efforts for developing its trademark name across the world was begun after presenting the "brand-new management initiative" by Chairman Lee in 1993. The objective was to transform Organization from a low-cost OEM to a high value-added product company. To make the vision of Corporation a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Corporation can change from a low end to a high end product company. He understood that improvement can just be done through placing Venture as a company providing high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to build Corp brand name, with a potential assistance of its executives, Yun faced numerous marketing obstacles in early years of its efforts.

One of the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as very same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the existing marketing requirement was excessive high, the gap was too broader and to fill this gap with wrong perceptions about marketing was rather difficult for Yun.

Along with it the item range of the company was increasing with the ripening of new item concepts by the R&D sector of Venture. Yun had a difficulty to carry out marketing planning and to create marketing spending plans for existing as well as for brand-new items from the very start, and this would take a substantial time.

A substantial shift would be needed in present marketing expenditures to construct the Princessa Beauty Products 5 Case Study Analysis brand. This would result in increased marketing expenditures for Corporation and could interrupt the administration concerning increased expenses, as they were reluctant to marketing expenses previously and an abrupt big shiftwould make them interrupt. This might result in decreasing executive assistance for worldwide marketing. In this scenario, Yun faces a difficulty for justifying increased marketing expenditures by demonstrating the long term worth of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Princessa Beauty Products 5 Case Study Solution strengths lie in its huge item portfolio. Organization has biggest number of patents in the market with total number of 15499 patents granted in United States( USP).

Another strength of Princessa Beauty Products 5 Case Study Analysis is its ability to develop innovative items at a constant rate. It major proves for the development and item developing of Organization is that the company has actually gotten numerous awards for its development and item style.

Unlike Apple and other competitors, Organization is concentrated on producing gadgets which can be easily incorporated with any kind of open source Operating System (OS) and software application. This provides Org an edge over Apple gadgets.
Porter's 5 Forces Analysis
Venture's ability to produce high-end products at low cost of production is likewise among the major strength of Venture as it enables the company to record more market by supplying quality products with expense control.


Enterprise's weak points are concealed in the business's dependence on outsourcing software for its devices due to business's failure in developing software, unlike Sony. Princessa Beauty Products 5 Case Study Help also has low profit margins as compare to Apple due to big distinction in the costs of Apple and Enterprise with a much lower difference in quality.


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


The vibrant industry environment of technology industry present a serious risk on Corp's survival and require the company to invest much of its profits share on R&D in order to endure in the long run. The market saturation in industrialized nations i.e. saturation of mobile business is likewise a huge hazard for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Princessa Beauty Products 5 Case Study Help uses quality products and has a quite abundant portfolio which caters to various sectors. Most of the products are in the leading 3 of their respective industries. LCD and smart phones are the most significant items of Corp, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Company:

• Laptops.
• Mobile phones.
• Ac system.
• Personal computers.
• Hard drives.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Princessa Beauty Products 5 Case Study Analysis utilizes both market competitive and market skimming prices strategies for its variety of products. In competitive pricing it changes the price according to the competitors in order to acquire advantage, whereas, it utilizes market skimming strategy where the item has an added value and by offering a couple of items it can reach break-even.


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

Vrio Analysis
It wasn't a widely known business outside of Korea till 1993. But the management initiative taken by their CEO has pressed them to market more efficiently outside the borders and now it has actually entered the league of leading 25 companies worldwide in simply 9 years. This is an amazing achievement in spite of the continuous arguments among the supervisors about adopting marketing practices. It utilizes both offline & online channels of promo to market their items. Paid item ads, social promo and digital advertisements are utilizes to create awareness about Organization products.

Worth Chain Analysis.

It's an analytical structure for identifying organisation activities that add value or competitive advantage for the company.

Incoming Logistics.

It has among the most effective and efficient supply chain network and has over 2700 suppliers across various markets worldwide. Practically 80% of which is based in Asia and the staying around the globe. For its inbound logistics it owns numerous logistics firms as it subsidiaries. It takes care of its suppliers and produces a harmonious relationship with them and even reduced their payment cycles to boost this relationship further which includes value to their chain network.


Business's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into three various divisions its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to further include worth to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main factors Princessa Beauty Products 5 Case Study Solution has the ability to take on Apple. Org's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Corp.

Marketing and Sales.

Drawing in target consumer attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the product offers. Princessa Beauty Products 5 Case Study Solution marketing budget plan is continually growing because they started their repositioning worldwide and will continue to do so as they are continually looking to broaden and invest in high possible growth markets. The budget plan is spent on occasions, print and media ads, public relations and so on.

Corporation put their clients at the leading and constantly make every effort to provide unmatchable customer service requirements. By adding a direct support line to call them 24 hours they have even more increased the added value of Corp service.


Princessa Beauty Products 5 Case Study Help has diversified market division, based upon its provision of wide variety of products to large number of customers. Business target consumer segments can be divided into 3 categories i.e. Princessa Beauty Products 5 Case Study Solution IT and Mobile Communications, Corporation Customer Electronic Devices and Corp Gadget options.


Princessa Beauty Products 5 Case Study Solution geographic division is based upon two requirements i.e. area and density. Venture serves about 80 nations worldwide with its products supplied to Urban along with Backwoods of the country. The Business is likewise growing its worldwide existence and the business's flexibility in locating its plants encourages global growth of Company.


Enterprise produces items that can be used by both females and males. The target customers for Corp IT and mobile interaction products have an age variety of 18-65 with majority at a young or freshly married life cycle stage. Apart from it, Business Consumer Electronic devices are targeted to a client sector with an age variety of 25-65.


The psychographic division of Princessa Beauty Products 5 Case Study Help s based upon the social class and the lifestyle of the customer. Business target consumers on the basis of social class are mainly upper middle, middle and working class customers, as Enterprise sell products like cellular phone very little more affordable i.e. Motorola along with very little costly i.e. Apple. It supplies quality items to middle level consumers at a slightly high rate than others targeting the very same sector.


Princessa Beauty Products 5 Case Study Analysis bulk target clients have special behavioural attributes. They are attracted towards Enterprise since of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Princessa Beauty Products 5 Case Study Analysis has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. Digital media is the largest selling category of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based upon the objective of Kim to target the more youthful audience and produce a global brand name picture of the company. Whereas, the core strength of the business is presently manufacturing however long gone are those days when great items were selling themselves. In the present age marketing is very important and companies can not be successful without it. Kim has actually currently started to strengthen the marketing activities of Org and very soon it will turn into one of its core strength like making if not much better.



Business runs designs, manufactures and sell a vast portfolio of consumer electronics. It runs in an exceptionally competitive environment and has successfully placed itself as the maker of quality items. So, the answer is yes.


As, stated previously that Princessa Beauty Products 5 Case Study Help runs in a highly competitive environment, which means all the business have comparable products. So, the response for rarity is no.


Due to the nature of the market, it is very easy for competitors to comprehend the functionality of the items and easily make their own models. Yes, Corporation is just behind IBM in registering brand-new patents yearly, but the benefit is extremely short-term in this market.


Chairman Lee has completely turn-around Business, from going almost insolvent throughout the Asian financial crisis of 1997 to the leading 25 company on the planet. Definitely yes there is proper organization in the company and the outcomes speak for 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 and so on, are very conductive for its operations. Nevertheless, it deals with some political pressures in less developed countries where order circumstance is bad. Latin American, African and some Asian countries fall in this category, where political instability do have an impact on Princessa Beauty Products 5 Case Study Solution operations.


Purchasing power of consumers is essential for companies like Organization to prosper and grow. Emerging markets like India, middle-eastern countries etc. supply development chances, whereas, due to economic crisis even the customers of industrialized countries suffer severely. It is really crucial for the company to keep an eye on the ongoing financial situation of the nation before going into the market.


Multinational companies need to deal with various social and cultural issues during its operations in a foreign nation. Company has likewise faced numerous issues however have actually embraced to the regional environments of the majority of the countries remarkably well. It has actually tailored its items, practices, policies and so on accordingly in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with constant ingenious product launches, Princessa Beauty Products 5 Case Study Help is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Organization has increased to the no 25 of the top successful business of the world.


Each country has their own laws and policies, being a multinational business Venture have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. It has to study or employ a regional law specialist before beginning its operations in a specific nation.


With the increasing awareness among customers about the ethical & environmental violations of business, Venture needs to ensure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some countries the consequences can be extremely extreme. On the other hand it has to do some Business Social Obligation practices to reveal the locals that it appreciates their environment and people.

Porter's 5 Forces

Threat of Replacement

Risk of alternative for Enterprise's each item classification is quite substantial. Running in a very vibrant industry lead the company to deal with a high hazard of substitution. Factors for high danger of substitution for Princessa Beauty Products 5 Case Study Solution Smartphone include the existence of high variety of providers and Market saturation in industrialized countries, which make the expense of switching for consumers nearly absolutely no. Replacement hazards for Corp visual display screen lie in the changing lifestyle of clients. Clients can switch to watching visuals in your home towards outdoor activities. Along with it, Org printing solutions items are threatened by the increasing destination of customers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Company and its close rivals is extreme. The significant factor behind this is the technique of market saturation in numerous number of product categories, requiring Corporation to introduce more innovative functions in existing items and brand-new ingenious products to preserve its development. Other aspect for the intense rivalry amongst the rivals is the little product distinction amongst the items. The popular gamers in the innovation industry are quite aware of the importance of R&D spending for their survival and are facing a race of marketing and R&D spending, to record the market. The significant rivals for Princessa Beauty Products 5 Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the varying market shares which can be seen in Display F.

Bargaining Power of Suppliers:

( Corporation Sustainability Report, 2016) Supplier's bargaining power for Org is low as Company runs economies of scale and its orders are of potential size and worth. Due to incapability of Princessa Beauty Products 5 Case Study Solution to develop its own software application, it has to outsource its software application advancement to Google, which ends up being a potential supplier of software for Corporation, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Bargaining power of purchasers for numerous variety of item categories of Corp is intense. Among the aspect causing the extreme bargaining power is the schedule of large number of competitors in almost each item classification i.e. competitors of Organization Mobile phone, with an extremely little differentiation. The high schedule of suppliers of Smart devices with minimum distinction, make the changing cost for buyers practically zero, hence increasing the bargaining power of buyers. Market saturation in the majority of the product classifications also make the bargaining power of buyers more intense in for Princessa Beauty Products 5 Case Study Help. In spite of igh bargaining power Company is quite capable of selling its products at a higher price than much of its competitors, due to high-end quality product and a reasonable brand name image.

Threat of New Entrants:

Threat of new entrants for Org is quite low. One of the significant factor for low risk of new entrants is the high competitors in the market. The requirement of huge quantity of capital to enter in the marketplace is likewise one of the prospective barrier to entry. Together with it, requirement of big expertise and research and advancement expenses for survival in the industry likewise make brand-new entrants hesitant to enter in the marketplace. Market saturation is likewise one of the barrier of entry in technology market. High bargaining power of providers force the gamers in the market to charge as low costs as possible and this can only be accomplished by production performance. New firms, in majority cases, lack the production performance, for this reason increasing the risks for entryway in the technology industry.

Competitive Analysis

Venture'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 category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Princessa Beauty Products 5 Case Study Solution had a big R&D spending on all of its product classifications which make it possible for the business to make possible income from sales of practically all of its products.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to worldwide market share, amongst 8 various item categories. Corp was the international leader in producing DRAM, SRAM and NAND flash chips. Although, Enterprise incomes from chips was less than Intel but its earnings from chips was growing much faster than Intel and has actually grown near the profits levels of Intel, as given in the case Exhibition 2.

In addition to the chips Enterprise mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Corp's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Organization's high growth despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Corporation was also profiting from increasing market share of high-end LCDs as given up case Exhibit 3. The major reason, making the business make it possible for to avail the opportunity is its mass production at low expense. Sony was the greatest rival for Princessa Beauty Products 5 Case Study Help in LCD market, nevertheless, it had likewise begun joint endeavor with Business in 2003 for LCD manufacturing, lessening the competition for Venture.

Porter's Competitive Strategy

Low Cost Leadership strategy of porter is fully implemented by Enterprise the way they accomplish economies of scale by enhancing their core proficiencies of manufacturing. They always bring something brand-new and ingenious whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Princessa Beauty Products 5 Case Study Solution would produce a brand-new brand name image by targeting the more youthful generation of the specific nation. As, specifically cellphones of Enterprise are preferred among the younger demographic.


1. It is the best strategy to develop Customer Life time Value (CLV) by developing a long-lasting relationship with consumers. Construct commitment through delivering value and profit for long-term, as research study has revealed it is more affordable to retain present clients than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread faster among younger individuals and which in turn will generate brand-new customers for my products.


1. Old customers who were associated with Organization prior to might not like this new image the company is trying to portray.
2 It will sustain additional costs to reposition some products and it may not even bring success as the patterns change very rapidly amongst the more youthful group.

Alternative service 2.

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


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


2. Its con can produce an extremely unhealthy environment in the work environment, as people often withstand modification because they fear it.

Recognize the best alternative

Very first option is the best as it plainly has more pros because once a Consumer Lifetime Worth is constructed the company will benefit from it till that client lives and has purchasing power too. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. Nevertheless, Corp's primary goal is to produce loyalty among its clients and make them repurchase it from them and even purchase their different products too.

Execution Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations sensible and achievable.
• A team including finest marketing and sales professionals must be assemble, and both views need to be considered before securing the resources required to implement the plan.
• Thorough interaction of the strategy should be done as it is really important for everyone to be on the very same page to make it work.
• Tasks and timelines ought to be construct and communicated accordingly to each person responsible.
• The manager ought to utilize a control panel which reveals the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a constant examine the specific and total efficiency.
Since any new pattern or policy might come in due to which all the things already prepared have to be adjusted, • Everyone should be willing to adjust midway. It's much better to have contingency strategies already prepared.
• At the end of the project the supervisor must communicate the outcomes and if successful should celebrate with the team.

Spending plan

The M-net program revealed engaging analysis about the low and high growth potential locations and how much advertising spending plan ought to be designated accordingly. This modification the budget allotment of many supervisors and different nations were dissatisfied and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth prospective merited a 35% allotment while they were receiving 45%. Whereas, China and Europe must be getting 42% however were instead given 31%. It truly helped to relatively disperse the resources and capture more customers by spending more on ads on the high development potential areas of the world.

Princessa Beauty Products 5 Case Study Help is a leading 25 company worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its continuous investment in R&D and innovative practices have moved them to brand-new heights however for them its' just the start and they want to be among the leading 3 brands on the planet. They totally turn-around from practically going bankrupt throughout the Asian Financial Crisis to a world renowned brand name, understood for quality and innovation. Their worth chain and their core competency their production capability, along-with global brand image building have actually 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 ought to be directed towards more youthful group in the middle of the internal arguments about marketing and ought to create Consumer Life time Value as it will not only give them advantages now but will continue to enjoy it till the consumer lifetime. As the cost of retaining the customer is much cheaper than bring in a brand-new one.