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Radnet Inc Financing An Acquisition 4 Harvard Case Study Solution

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Radnet Inc Financing An Acquisition 4 Case Study Solution and Analysis


Intro

Historically, the company's core consumers consist of the Original Equipment Manufacturers (OEMs), which utilized to sell Radnet Inc Financing An Acquisition 4 Case Study Help products withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Samsung items with their own brand name. He repositioned Samsung as an international brand name and informed his divisional managers to understand marketing and its significance.

Issue Statement

Samsung's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the hesitation of divisional supervisors to integrate marketing successfully is still a major obstacle. Developing a constant brand name identity throughout the entire world and using marketing techniques that best fits the regional culture is no simple task.
Executive Summary
Situational Analysis

Radnet Inc Financing An Acquisition 4 Case Study Solution efforts for developing its brand across the world was begun after introducing the "brand-new management effort" by Chairman Lee in 1993. The objective was to change Samsung from a low-cost OEM to a high value-added item company. To make the vision of Samsung a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Samsung can change from a low end to a high-end product service provider. He knew that change can just be done through positioning Samsung as a business using high-end items and this could only be done through high level of marketing.

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

Among the marketing challenges for Yun was the perceptions of executives about the worth 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 service practices, and the existing marketing requirement was excessive high, the space was too wider and to fill this gap with incorrect perceptions about marketing was rather challenging for Yun.

Along with it the item range of the company 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 preparation and to produce marketing budget plans for existing as well as for brand-new products from the very beginning, and this would take a substantial time.

A substantial shift would be needed in current marketing expenses to build the Radnet Inc Financing An Acquisition 4 Case Study Analysis brand name. This would lead to increased marketing expenses for Samsung and could interrupt the administration concerning increased expenditures, as they hesitated to marketing expenses previously and a sudden big shiftwould make them disturb. This could result in decreasing executive assistance for worldwide marketing. In this circumstance, Yun deals with a challenge for justifying increased marketing costs by showing the long term value of big marketing expenditures.

Internal Analysis
SWOT Analysis
Strengths


Samsung strengths depend on its huge product portfolio. Samsung has biggest variety of patents in the industry with total number of 15499 patents granted in US( USP). Big amount of R&D spending has actually made it possible for the company to grow its item portfolio at a higher rate than its competitors. Radnet Inc Financing An Acquisition 4 Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total revenues.

Another strength of Radnet Inc Financing An Acquisition 4 Case Study Solution is its ability to develop ingenious products at a continuous rate. It significant shows for the development and product developing of Samsung is that the business has gotten numerous awards for its development and product style.

Unlike Apple and other rivals, Samsung is concentrated on producing devices which can be easily incorporated with any type of open source Os (OS) and software application. This supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end items at low expense of production is also one of the major strength of Samsung as it makes it possible for the business to capture more market by supplying quality products with expense control.

Weaknesses

Samsung's weak points are concealed in the business's dependence on outsourcing software for its gadgets due to business's inability in establishing software application, unlike Sony. Radnet Inc Financing An Acquisition 4 Case Study Solution likewise has low earnings margins as compare to Apple due to substantial difference in the costs of Apple and Samsung with a much lower distinction in quality.

Opportunities

Opportunities for Samsung depend on the growing Smart device market and the business's efficiency in the market. It can increase its market share and incomes from cellular phone as the business is rather efficient in cell phone market. Samsung currently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would enable the company to increase its item portfolio with a boost in its wealth.

Threats

The dynamic market environment of innovation industry position an extreme threat on Samsung's survival and force the business to spend much of its earnings share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile company is also a huge threat for the company's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis
Product

Samsung provides quality items and has a rather abundant portfolio which caters to various segments. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• LCD/ TELEVISION
• Laptops.
• Cellphone.
• Air conditioner.
• Personal computers.
• Hard disks.
• Washer.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Radnet Inc Financing An Acquisition 4 Case Study Analysis uses both market competitive and market skimming rates strategies for its wide variety of products. In competitive pricing it changes the cost according to the competitors in order to gain advantage, whereas, it uses market skimming strategy where the product has actually an included worth and by selling a few items 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 products are prompt supplied to the selling place/ delivered to the clients directly in case of online order.

Promo.
Vrio Analysis
It utilizes both offline & online channels of promotion 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 organisation activities that include worth or competitive advantage for the business.

Inbound Logistics.

For its inbound logistics it owns various logistics companies as it subsidiaries. It looks after its suppliers and creates an unified relationship with them and even decreased their payment cycles to enhance this relationship further which adds worth to their chain network.

Operations.

Samsung's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into three different departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronics. It is preserving operation hubs worldwide to even more add worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the primary reasons Radnet Inc Financing An Acquisition 4 Case Study Solution is able to take on Apple. Samsung's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target customer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the item uses. Radnet Inc Financing An Acquisition 4 Case Study Solution marketing spending plan is continually growing because they began their repositioning globally and will continue to do so as they are continually aiming to invest and expand in high potential growth markets. The budget plan is invested in occasions, print and media advertisements, public relations etc.

Samsung Service. Samsung put their customers on top and constantly strive to deliver unmatchable customer support standards. As after sales service is ending up being incredibly essential to keep clients delighted and engaged, they even perform surveys through 3rd parties to learn their consumer's feedback and execute it in the favorable way to reduce or if possible totally remove their customer concerns. By adding a direct assistance line to contact them 24 hours they have actually even more increased the added worth of Radnet Inc Financing An Acquisition 4 Case Study Solution service.

Division.

Radnet Inc Financing An Acquisition 4 Case Study Solution has actually diversified market segmentation, based upon its arrangement of vast array of products to a great deal of customers. Samsung target consumer segments can be divided into 3 classifications i.e. Radnet Inc Financing An Acquisition 4 Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget services.

Geographical.

Radnet Inc Financing An Acquisition 4 Case Study Solution geographical division is based upon two requirements i.e. region and density. Samsung serves about 80 nations worldwide with its items offered to Urban in addition to Rural areas of the nation. The Samsung is likewise growing its international presence and the company's versatility in finding its plants motivates global growth of Samsung.

Group.

The demographic segmentation of Radnet Inc Financing An Acquisition 4 Case Study Analysis is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be utilized by both males and females. The target clients for Samsung IT and mobile communication products have an age series of 18-65 with bulk at a young or newly married life cycle phase. They are primarily trainees, workers and specialists. Apart from it, Samsung Consumer Electronics are targeted to a client section with an age series of 25-65. They are mostly experts and staff members. Samsung Device Solutions are targeted at students, workers and specialists with an age variety of 25-65.

Psychographic.

The psychographic division of Radnet Inc Financing An Acquisition 4 Case Study Analysis s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell items like cell phones not much more affordable i.e. Motorola along with not much costly i.e. Apple. It offers quality products to middle level consumers at a slightly high rate than others targeting the very same segment.

Behavioural.

Radnet Inc Financing An Acquisition 4 Case Study Solution majority target clients have distinct behavioural attributes. It has consumers with an enthusiastic, fashionable and figured out personality with moderate level of commitment towards the brand name. Its clients have some degree of shift towards other prominent brand names i.e. Apple. Most of Samsun consumers want quality along with expense control. Due to the fact that of its moderate costs with an extent of quality, they are attracted towards Samsung.

Quantitative analysis.

Sales of Samsung has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has likewise lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Because of the high overhead expense, revenues/ sales are increasing but net earnings is not increasing accordingly. New expansions and employing's were the main factor of the boost in the overhead costs, with china currently not offering any profit to Samsung, however there is a lot capacity in the existing market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based on the mission of Kim to target the younger audience and create a global brand name image of the business. Whereas, the core strength of the business is currently producing but long gone are those days when good products were selling themselves. In the existing age marketing is very important and business can not succeed without it. Kim has actually currently started to strengthen the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not better.

VRIO.

Worth.

Samsung operates designs, produces and offer a huge portfolio of customer electronic devices. It operates in an exceptionally competitive environment and has effectively positioned itself as the maker of quality products. So, the response is yes.

Rarity.

As, stated earlier that Radnet Inc Financing An Acquisition 4 Case Study Analysis runs in a highly competitive environment, which suggests all the business have similar products. The response for rarity is no.

Imitability.

Due to the nature of the industry, it is very easy for rivals to understand the functionality of the products and quickly make their own models. Yes, Samsung is just behind IBM in registering new patents each year, however the benefit is extremely short term in this industry.

Organization.

Chairman Lee has totally turn-around Samsung, from going practically insolvent throughout the Asian financial crisis of 1997 to the top 25 business on the planet. Certainly yes there appertains company in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being a multinational brand name spread nearly in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. Nevertheless, it faces some political pressures in less industrialized countries where law and order scenario is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Radnet Inc Financing An Acquisition 4 Case Study Solution operations.

Economic

Purchasing power of clients is essential for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern nations etc. provide growth chances, whereas, due to economic crisis even the consumers of developed countries suffer severely. For this reason it is very crucial for the business to watch on the continuous financial scenario of the country before entering the market.

Socio-Cultural

International business need to face different social and cultural issues throughout its operations in a foreign nation. Samsung has also faced lots of problems however have actually embraced to the local environments of most of the countries extremely well. It has customized its items, practices, policies etc. accordingly in order to be successful.

Technological

With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with consistent innovative product launches, Radnet Inc Financing An Acquisition 4 Case Study Analysis is among the top ingenious companies of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Samsung has risen to the no 25 of the leading successful companies of the world.

Legal

Each country has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal repercussions. So, it needs to study or employ a local law specialist prior to beginning its operations in a particular country.

Environmental

With the rising awareness among consumers about the environmental & ethical offenses of companies, Samsung has to guarantee that it follows all the safety standards. Environmental damages, ethical misbehaviors are not appropriate and in some nations the consequences can be really severe. On the other hand it needs to do some Corporate Social Obligation practices to reveal the locals that it appreciates their environment and people.

Porter's Five Forces

Danger of Substitution

Risk of substitution for Samsung's each product classification is quite significant. Running in an exceptionally vibrant market lead the company to deal with a high risk of replacement. Aspects for high hazard of alternative for Radnet Inc Financing An Acquisition 4 Case Study Help Smart device include the existence of high variety of providers and Market saturation in developed countries, that make the expense of changing for consumers nearly absolutely no. Replacement threats for Samsung visual display lie in the changing lifestyle of customers. Customers can switch to seeing visuals at home towards outside activities. In addition to it, Samsung printing options items are threatened by the increasing tourist attraction of consumers towards cloud storage.

Competition Among Existing Firms:

The rivaly among Samsung and its close competitors is extreme. The major factor behind this is the technique of market saturation in different number of item classifications, requiring Samsung to introduce more ingenious features in existing items and new ingenious products to keep its development. Other element for the extreme rivalry amongst the competitors is the little item distinction among the items. The popular players in the innovation industry are rather knowledgeable about the significance of R&D costs for their survival and are facing a race of marketing and R&D spending, to catch the marketplace. The significant rivals for Radnet Inc Financing An Acquisition 4 Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry leads to the varying market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. Due to incapability of Radnet Inc Financing An Acquisition 4 Case Study Help to build its own software, it has to outsource its software advancement to Google, which ends up being a possible supplier of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Market saturation in many of the item categories also make the bargaining power of buyers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of offering its items at a higher price than much of its rivals, due to high end quality item and a reasonable brand name image.

Threat of New Entrants:

Hazard of brand-new entrants for Samsung is rather low. One of the major element for low danger of new entrants is the high competition in the market. The requirement of huge amount of capital to enter in the marketplace is likewise among the possible barrier to entry. Together with it, requirement of big expertise and research and advancement expenses for survival in the market also make new entrants reluctant to enter in the market. Market saturation is likewise among the barrier of entry in innovation industry. High bargaining power of providers require the players in the market to charge as low prices as possible and this can just be accomplished by production efficiency. New firms, in majority cases, lack the production effectiveness, for this reason increasing the dangers for entrance in the technology industry.

Competitive Analysis

Samsung's high product diversification supplies it distinction from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Radnet Inc Financing An Acquisition 4 Case Study Help had a substantial R&D spending on all of its product categories which enable the business to earn potential revenue from sales of almost all of its products.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to worldwide market share, amongst 8 different item classifications. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel but its profits from chips was growing faster than Intel and has grown close to the profits levels of Intel, as given up the case Display 2.

Along with the chips Samsung mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Samsung'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 Samsung's high development despite of greater costs than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise reaping the benefits from increasing market share of high-end LCDs as given up case Display 3. The significant reason, making the business allow to get the opportunity is its mass production at low cost. Sony was the greatest rival for Radnet Inc Financing An Acquisition 4 Case Study Solution in LCD market, nevertheless, it had also begun joint endeavor with Samsung in 2003 for LCD making, lessening the competition for Samsung.

Porter's Competitive Method

Low Expense Management technique of porter is totally carried out by Samsung the way they attain economies of scale by reinforcing their core proficiencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to manufacture for them, because they were not able to take on them on low cost. Distinction is another method well carried out by Samsung by constant investment in the R&D and staying ahead of the competitors. They constantly bring something ingenious and new whether it's a service or a product.

Alternatives

Alternative Option 1

The Chief Marketing Officer (CMO) of Radnet Inc Financing An Acquisition 4 Case Study Analysis would produce a brand-new brand image by targeting the younger generation of the specific country. As, particularly smart phones of Samsung are preferred amongst the younger demographic.

Pros

1. It is the best strategy to construct Consumer Lifetime Worth (CLV) by creating a long-lasting relationship with consumers. Build loyalty through providing worth and reap the benefits for long-term, as research has actually showed it is much cheaper to maintain existing clients than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful people and which in turn will generate brand-new consumers for my products.

Cons

1. Old customers who were associated with Samsung prior to may not like this new image the business is attempting to portray.
2 It will sustain additional costs to reposition some products and it might not even bring success as the trends alter extremely rapidly amongst the younger market.

Alternative service 2.

Samsung has actually made manufacturing its core competency for the a lot of part of their service and due to which its managers are not afraid to fully step out of their comfort zone. It would be done by setting up training workshops throughout which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be produced internally initially as genuine marketing starts inside the corporation.

Pros

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

Cons

2. Its con can develop a very unhealthy environment in the office, as people typically withstand modification because they fear it.

Identify the very best alternative

Option is the finest as it clearly has more pros because when a Customer Life time Worth is built the company will profit from it till that client is alive and has buying power. Plus, our target clients are the more youthful generation which are bound to live longer than the present aging people. Nonetheless, Samsung's main objective is to develop commitment amongst its consumers and make them repurchase it from them and even buy their various products also.

Execution Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi make with music. And set the expectations reasonable and attainable.
• A group consisting of finest marketing and sales professionals need to be put together, and both views ought to be considered before securing the resources needed to carry out the plan.
• Thorough communication of the strategy ought to be done as it is very essential for everybody to be on the same page to make it work.
• Tasks and timelines ought to be develop and communicated appropriately to each individual accountable.
• The manager should utilize a dashboard which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The manager should keep an eye on and keep a consistent look at the private and overall efficiency.
Since any new trend or policy may come in due to which all the things currently planned have to be adjusted, • Everyone need to be ready to adjust midway. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor must interact the results and if effective must commemorate with the team.

Budget

This modification the budget plan allocation of different countries and lots of managers were dissatisfied and argued however the analysis done by the program was precise and showed figures like North America and Russia development possible warranted a 35% allotment while they were receiving 45%. It truly assisted to relatively disperse the resources and capture more customers by investing more on ads on the high growth potential areas of the world.
Recommendations
Conclusion

Its constant financial investment in R&D and ingenious practices have propelled them to brand-new heights but for them its' just the start and they desire to be among the top 3 brands in the world. Their marketing efforts need to be directed towards more youthful demographic amidst the internal arguments about marketing and must produce Consumer Life time Worth as it will not just offer them advantages now but will continue to reap it till the consumer lifetime. As the expense of retaining the customer is much less expensive than attracting a brand-new one.