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Purple Delivery Company Case Study Solution & Analysis


Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which utilized to offer Purple Delivery Company Case Study Solution products withtheir own brand name. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to offer Organization items with their own brand name. He rearranged Corp as a global brand and informed his divisional managers to comprehend marketing and its value.

Problem Statement

Corporation's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing effectively is still a significant obstacle. Creating a consistent brand name identity across the entire world and utilizing marketing techniques that finest fits the regional culture is no easy job. The M-net program analysis have actually been really practical in identifying the high and less possible growth locations, but allocation of resources appropriately is not well gotten among the supervisors. There is no consensus among the hierarchy relating to the very best matched future method.
Executive Summary
Situational Analysis

Purple Delivery Company Case Study Solution efforts for building its brand name across the world was started after introducing the "new management effort" by Chairman Lee in 1993. The objective was to transform Business from an inexpensive OEM to a high value-added item service provider. To make the vision of Company a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Venture can transform from a low end to a high-end item supplier. He knew that transformation can just be done through positioning Company as a company 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 Venture brand name, with a potential support of its executives, Yun faced a number of 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 thought about marketing and selling as exact same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was excessive high, the gap was too wider and to fill this gap with incorrect perceptions about marketing was quite tough for Yun.

As stated above, marketing focus was very low in previous practices, therefore there were no proper marketing budget plans for each of the item on the portfolio. There was no marketing preparation done for the existing products. Along with it the item series of the company was increasing with the ripening of new item concepts by the R&D sector of Corporation. Yun had an obstacle to perform marketing planning and to produce marketing budget plans for existing along with for new products from the very start, and this would take a big time.

A substantial shift would be required in existing marketing expenditures to develop the Corporation brand name. This would result in increased marketing expenditures for Organization and could disrupt the administration regarding increased costs, as they were reluctant to marketing expenses previously and an unexpected huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Purple Delivery Company Case Study Help strengths lie in its huge item portfolio. Company has biggest number of patents in the industry with overall number of 15499 patents given in US( USP).

Another strength of Purple Delivery Company Case Study Analysis is its capability to establish innovative items at a constant rate. It significant shows for the development and product developing of Enterprise is that the company has received so many awards for its innovation and item design.

Unlike Apple and other rivals, Venture is focused on producing gadgets which can be quickly integrated with any type of open source Os (OS) and software. This offers Venture an edge over Apple devices.
Porter's 5 Forces Analysis
Venture's ability to produce high end items at low cost of production is also one of the significant strength of Company as it allows the business to capture more market by offering quality items with cost control.


Enterprise's weaknesses are concealed in the business's dependence on outsourcing software application for its gadgets due to business's failure in developing software application, unlike Sony. Purple Delivery Company Case Study Solution likewise has low revenue margins as compare to Apple due to huge distinction in the prices of Apple and Organization with a much lower distinction in quality.


Opportunities for Purple Delivery Company Case Study Solution lie in the growing Smartphone market and the company's efficiency in the market. Enterprise presently runs in about 80 nations and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant market environment of innovation market posture a serious threat on Org's survival and force the business to invest much of its earnings share on R&D in order to endure in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile business is likewise a big hazard for the company's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Corp uses quality items and has a quite rich portfolio which caters to different sectors. LCD and mobile phones are the biggest products of Enterprise, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Air conditioning system.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Purple Delivery Company Case Study Help utilizes both market competitive and market skimming rates methods for its wide array of items. In competitive prices it adjusts the price according to the competition in order to gain benefit, whereas, it uses market skimming technique where the product has actually an included value and by selling a few products it can reach break-even.


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

Vrio Analysis
It utilizes both offline & online channels of promo to market their items. Paid item ads, social promotion and digital advertisements are utilizes to produce awareness about Business products.

Value Chain Analysis.

It's an analytical framework for determining business activities that include worth or competitive benefit for the business.

Inbound Logistics.

For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its providers and develops an unified relationship with them and even decreased their payment cycles to boost this relationship even more which includes worth to their chain network.


Corp's core competency is its mass producing it produces 90% of its items in-house. Divided into three various departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronics. It is preserving operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the primary factors Purple Delivery Company Case Study Solution is able to compete with Apple. Corporation's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Enterprise.

Marketing and Sales.

Bring in target customer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the product uses. Purple Delivery Company Case Study Help advertising budget is continually growing considering that they started their rearranging worldwide and will continue to do so as they are continuously seeking to invest and expand in high potential growth markets. The budget is spent on events, print and media advertisements, public relations and so on.

Company put their customers at the top and continually make every effort to deliver unmatchable consumer service standards. By adding a direct assistance line to contact them 24 hours they have further increased the added value of Venture service.


Purple Delivery Company Case Study Solution has actually diversified market segmentation, based upon its arrangement of large range of products to a great deal of consumers. Venture target client sections can be divided into 3 classifications i.e. Purple Delivery Company Case Study Solution IT and Mobile Communications, Corporation Consumer Electronic Devices and Company Device solutions.


Purple Delivery Company Case Study Solution geographic division is based upon 2 requirements i.e. region and density. Organization serves about 80 nations worldwide with its products offered to Urban as well as Backwoods of the nation. The Corp is also growing its worldwide presence and the business's versatility in locating its plants encourages international growth of Corp.


Org produces products that can be used by both females and males. The target consumers for Organization IT and mobile communication products have an age range of 18-65 with bulk at a young or recently wed life cycle stage. Apart from it, Venture Consumer Electronics are targeted to a client segment with an age range of 25-65.


The psychographic division of Purple Delivery Company Case Study Analysis 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 consumers, as Venture sell items like mobile phone not much more affordable i.e. Motorola along with not much pricey i.e. Apple. It offers quality items to middle level consumers at a somewhat high rate than others targeting the same sector.


Purple Delivery Company Case Study Solution bulk target customers have unique behavioural characteristics. It has customers with an enthusiastic, trendy and identified personality with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other popular brands i.e. Apple. The majority of Enterprise customers desire quality in addition to expense control. Since of its moderate rates with a degree of quality, they are attracted towards Venture.

Quantitative analysis.

Sales of Purple Delivery Company Case Study Solution has increased astonishingly 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 Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the company is presently manufacturing however long gone are those days when excellent items were selling themselves. Kim has already begun to reinforce the marketing activities of Business and very quickly it will become one of its core strength like manufacturing if not much better.



Organization operates styles, produces and sell a vast portfolio of consumer electronics. It runs in a very competitive environment and has actually effectively placed itself as the maker of quality products. The answer is yes.


As, said earlier that Purple Delivery Company Case Study Solution runs in a highly competitive environment, which means all the companies have comparable items. So, the response for rarity is no.


Due to the nature of the market, it is very easy for rivals to comprehend the functionality of the items and quickly make their own designs. Yes, Org is only behind IBM in signing up brand-new patents every year, however the benefit is really short-term in this market.


Chairman Lee has entirely turn-around Venture, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 business on the planet. Absolutely yes there is proper company in the company and the results promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every nation worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. Nevertheless, it faces some political pressures in less developed nations where order scenario is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Purple Delivery Company Case Study Help operations.


Buying power of consumers is vital for companies like Corp to grow and succeed. Emerging markets like India, middle-eastern countries and so on offer development chances, whereas, due to economic crisis even the clients of industrialized countries suffer badly. It is really crucial for the business to keep an eye on the ongoing economic situation of the country before going into the market.


Multinational companies need to face numerous social and cultural issues during its operations in a foreign nation. Company has also dealt with lots of concerns but have actually embraced to the regional environments of most of the countries extremely well. It has customized its items, practices, policies etc. accordingly in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research study & Advancement, and with constant ingenious product launches, Purple Delivery Company Case Study Help is among the leading innovative business of the world. With a clear mission to be ahead of the rest when it concerns technological developments, Corp has increased to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being a multinational business Business need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal effects. It has to study or hire a local law professional before starting its operations in a particular nation.


With the increasing awareness among customers about the environmental & ethical infractions of business, Corporation needs to guarantee that it follows all the security standards. Ecological damages, ethical misbehaviors are not acceptable and in some countries the consequences can be very extreme. On the other hand it has to do some Business Social Responsibility practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Risk of Replacement

Risk of replacement for Business's each product category is rather significant. Running in an exceptionally vibrant industry lead the company to face a high danger of alternative. Factors for high hazard of alternative for Purple Delivery Company Case Study Help Smart device consist of the presence of high variety of suppliers and Market saturation in developed nations, which make the cost of changing for customers almost zero. Substitution hazards for Corporation visual display lie in the altering lifestyle of customers. Consumers can switch to seeing visuals in the house towards outdoor activities. Together with it, Org printing services products are threatened by the increasing attraction of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Business and its close competitors is extreme. The major reason behind this is the approach of market saturation in numerous variety of product classifications, forcing Enterprise to introduce more ingenious features in existing items and new ingenious items to maintain its growth. Other aspect for the intense competition amongst the competitors is the little product distinction amongst the items. The popular players in the technology market are rather aware of the importance of R&D spending for their survival and are encountering a race of marketing and R&D costs, to record the marketplace. The significant rivals for Purple Delivery Company Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry results in the changing market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

Purple Delivery Company Case Study Analysis has a huge supply chain consisting of about 2700 suppliers across the world.( Venture Sustainability Report, 2016) Supplier's bargaining power for Venture is low as Business runs economies of scale and its orders are of prospective size and worth. These big orders allow Company to work out costs with its providers. However, due to incapability of Purple Delivery Company Case Study Help to develop its own software, it needs to outsource its software application development to Google, which becomes a possible supplier of software for Organization, leading to high bargaining power of Google. Although, in most of cases Business has a power to negotiate costs, however it supply substantial rates to its providers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Haggling power of buyers for different variety of item classifications of Company is intense. One of the aspect leading to the intense bargaining power is the schedule of large number of rivals in almost each item category i.e. competitors of Corp Smartphone, with an extremely little differentiation. The high schedule of suppliers of Smart devices with minimum distinction, make the switching expense for purchasers almost zero, for this reason increasing the bargaining power of purchasers. Market saturation in the majority of the product classifications likewise make the bargaining power of purchasers more intense in for Purple Delivery Company Case Study Analysis. In spite of igh bargaining power Corp is quite capable of selling its products at a higher cost than much of its rivals, due to high end quality product and a reasonable brand image.

Hazard of New Entrants:

Danger of brand-new entrants for Purple Delivery Company Case Study Solution is rather low. Along with it, requirement of substantial knowledge and research study and advancement expenditures for survival in the market also make new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Corp's high product diversity offers it distinction from its rivals. It is among the 3 leading brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronics, Nokia on mobile phone and Intel on chips, Company had a huge R&D spending on all of its product classifications which enable the business to earn potential earnings from sales of nearly all of its items. (See Exhibition) However, due to the large item range the company deals with high number of competitors.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to international market share, among 8 different item classifications. Business was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Enterprise profits from chips was less than Intel however its earnings from chips was growing quicker than Intel and has actually grown near the revenue levels of Intel, as given up the case Display 2.

In addition to the chips Venture mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Corporation's cell phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The major reson behind Org's high development despite of higher costs than Nokia and Motorola was the company's high-end quality mobile phone.

Org was also reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The significant factor, making the business allow to get the opportunity is its mass production at low cost. Sony was the most significant rival for Purple Delivery Company Case Study Solution in LCD market, nevertheless, it had likewise begun joint venture with Corp in 2003 for LCD manufacturing, decreasing the competitors for Company.

Porter's Competitive Strategy

Low Expense Leadership strategy of porter is totally executed by Organization the method they achieve economies of scale by strengthening their core proficiencies of manufacturing. They always bring something brand-new and innovative whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Purple Delivery Company Case Study Analysis would develop a new brand name image by targeting the younger generation of the specific country. As, particularly smart phones of Venture are very popular amongst the younger demographic.


1. It is the very best method to build Consumer Lifetime Worth (CLV) by producing a long-term relationship with consumers. Construct commitment through delivering value and profit for long-lasting, as research study has actually showed it is more affordable to maintain existing clients than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among younger people and which in turn will generate new customers for my products.


1. Old consumers who were associated with Enterprise prior to may not like this brand-new image the company is attempting to portray.
2 It will incur further costs to rearrange some items and it may not even bring success as the patterns alter extremely rapidly amongst the younger market.

Alternative option 2.

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


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


2. Its con can develop a really unhealthy environment in the work environment, as people often withstand modification because they fear it.

Determine the best option

Alternative is the best as it clearly has more pros due to the fact that as soon as a Client Lifetime Worth is constructed the company will benefit from it till that client is alive and has acquiring power. Plus, our target customers are the younger generation which are bound to live longer than the existing old age individuals. Enterprise's primary objective is to produce commitment among its clients and make them repurchase it from them and even buy their different items.

Execution Strategy

• Targeting younger generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations reasonable and attainable.
• A group including finest marketing and sales experts ought to be put together, and both views must be considered before protecting the resources needed to execute the strategy.
• Thorough interaction of the strategy need to be done as it is really crucial for everyone to be on the very same page to make it work.
• Tasks and timelines should be build and interacted appropriately to each individual responsible.
• The manager ought to utilize a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor need to keep track of and keep a continuous look at the overall and private efficiency.
Because any new pattern or policy may come in due to which all the things currently planned have actually to be adjusted, • Everyone must be ready to adapt midway. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager need to communicate the outcomes and if effective should celebrate with the team.


The M-net program revealed engaging analysis about the high and low growth prospective locations and how much advertising budget plan need to be allocated accordingly. This modification the spending plan allotment of numerous managers and various countries were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia development potential warranted a 35% allocation while they were getting 45%. Whereas, China and Europe should be getting 42% but were instead offered 31%. It actually helped to fairly disperse the resources and record more customers by spending more on advertisements on the high growth potential areas of the world.

Its consistent financial investment in R&D and ingenious practices have moved them to new heights but for them its' just the start and they want to be among the top 3 brand names in the world. Their marketing efforts need to be directed towards younger market in the middle of the internal arguments about marketing and need to produce Client Lifetime Value as it will not just give them advantages now but will continue to reap it till the customer lifetime. As the cost of retaining the customer is much less expensive than drawing in a new one.