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Rappi Case Study Solution and Analysis


Intro

Rappi Case Study Solution is a popular international brand in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Rappi deals in large number of product classifications including Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the company's core customers include the Original Devices Manufacturers (OEMs), which used to offer Samsung products withtheir own brand name. Till early 1990s, the core competency of Samsung depend on its low cost offerings than its competitors by manufacturing existing items at economies of scale. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Rappi Case Study Solution products with their own trademark name. Samsung was not merely understood outside Korea. There were also no or little interest in building the trademark name worldwide. Marketing budget plan was managed by production department with a focal point on supplying cheap products.During the 1997 Asian Financial Crisis the company practically got insolvent, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the top 25 most valuable business on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Samsung as a global brand and informed his divisional managers to understand marketing and its value. Now their objective is to reach the top 10 by 2005.

Problem Declaration

Samsung's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to include marketing effectively is still a significant difficulty. Producing a constant brand name identity across the entire world and utilizing marketing methods that finest fits the local culture is no simple task. The M-net program analysis have been truly practical in figuring out the high and less possible growth areas, but allocation of resources appropriately is not well gotten among the supervisors. There is no consensus among the hierarchy concerning the very best suited future strategy.

Situational Analysis

Yun had a rather clear picture in his mind about how Rappi Case Study Help can transform from a low end to a high end product service provider. He knew that transformation can just be done through placing Samsung as a company 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 name, with a possible assistance of its executives, Yun dealt with a number of marketing obstacles in early years of its efforts.

Among the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as same tools and believed that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the existing marketing requirement was too much high, the gap was too larger and to fill this gap with incorrect understandings about marketing was rather challenging for Yun.

Along with it the product range of the business was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing planning and to create marketing budgets for existing as well as for new products from the very beginning, and this would take a huge time.

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

Internal Analysis
SWOT Analysis
Strengths


Rappi Case Study Solution strengths lie in its big product portfolio. Samsung has biggest number of patents in the industry with overall number of 15499 patents approved in US( USP).

Another strength of Rappi Case Study Solution is its capability to establish ingenious products at a constant rate. It significant proves for the innovation and item creating of Samsung is that the business has actually gotten many awards for its development and item design.

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

Samsung's capability to produce luxury items at low expense of production is also one of the significant strength of Samsung as it makes it possible for the company to capture more market by supplying quality products with cost control.

Weaknesses

Rappi Case Study Solution weaknesses are hidden in the company's dependence on outsourcing software application for its devices due to business's inability in establishing software application, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to huge difference in the costs of Apple and Samsung with a much lower difference in quality. The varied focus of the business due to a great deal of items in its portfolio, lead to the less effective production and make the company not able to charge higher costs like Apple. The company is also ineffective in managing its patents and regularly deals with the issue of patent infraction.

Opportunities

Opportunities for Rappi Case Study Solution lie in the growing Mobile phone market and the business's performance in the market. Samsung presently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.

Hazards

The vibrant market environment of innovation industry posture an extreme risk on Samsung's survival and force the business to invest much of its earnings share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile business is likewise a huge threat for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing

Product

Rappi Case Study Help offers quality items and has a quite rich portfolio which accommodates different sectors. Most of the products remain in the leading three of their particular industries. LCD and smart phones 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/ TELEVISION
• Laptops.
• Cellphone.
• Air conditioner.
• Computer.
• Hard disk drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.

Rate.

Rappi Case Study Analysis uses both market competitive and market skimming pricing strategies for its wide range of items. In competitive prices it changes the rate according to the competitors in order to acquire benefit, whereas, it uses market skimming strategy where the item has actually an added worth and by selling a couple of products it can reach break-even.

Place.

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

Promotion.

It wasn't a well-known company outside of Korea up until 1993. But the management effort taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has actually entered the league of leading 25 companies on the planet in just 9 years. This is an impressive accomplishment regardless of the ongoing arguments amongst the supervisors about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid item ads, social promotion and digital advertisements are utilizes to develop awareness about Samsung items.

Value Chain Analysis.

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

Inbound Logistics.

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

Operations.

Samsung's core competency is its mass manufacturing it produces 90% of its products in-house. Divided into three various divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is preserving operation centers worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main factors Rappi Case Study Analysis has the ability to take on Apple. Samsung'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 coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target client attention towards the product is done through marketing and sales to communicate with them the worth and competitive advantage the item uses. Rappi Case Study Solution advertising budget is continually growing because they started their rearranging internationally and will continue to do so as they are continually seeking to invest and broaden in high prospective growth markets. The budget plan is invested in occasions, print and media ads, public relations and so on.

Samsung Service. Samsung put their consumers on top and continuously make every effort to deliver unmatchable customer care requirements. As after sales service is ending up being incredibly important to keep customers delighted and engaged, they even carry out surveys through third parties to find out their customer's feedback and execute it in the favorable method to lower or if possible totally remove their consumer issues. By adding a direct support line to call them 24 hr they have actually further increased the included worth of Rappi Case Study Help service.

Division.

Rappi Case Study Analysis has diversified market division, based upon its arrangement of wide variety of items to large number of consumers. Samsung target consumer sectors can be divided into 3 classifications i.e. Rappi Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget options.

Geographic.

Rappi Case Study Solution geographic segmentation is based upon 2 criteria i.e. region and density. Samsung serves about 80 countries worldwide with its products provided to Urban as well as Rural areas of the nation. The Samsung is also growing its global presence and the company's versatility in locating its plants encourages worldwide growth of Samsung.

Demographic.

Samsung produces products that can be used by both males and females. The target customers for Samsung IT and mobile communication products have an age variety of 18-65 with majority at a young or recently married life cycle phase. Apart from it, Samsung Customer Electronic devices are targeted to a client section with an age range of 25-65.

Psychographic.

The psychographic division of Rappi 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 mainly upper middle, middle and working class customers, as Samsung offer products like mobile phone very little more affordable i.e. Motorola in addition to very little costly i.e. Apple. It offers quality products to middle level customers at a somewhat high rate than others targeting the exact same sector.

Behavioural.

Rappi Case Study Solution bulk target customers have special behavioural characteristics. They are drawn in towards Samsung due to the fact that of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Rappi Case Study Help has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 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.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the more youthful audience and develop a global brand image of the company. Whereas, the core strength of the business is currently producing but long gone are those days when good products were selling themselves. In the current age marketing is very crucial and companies can not be successful without it. Kim has currently begun to strengthen the marketing activities of Samsung and very soon it will turn into one of its core strength like manufacturing if not much better.

VRIO.

Worth.

Samsung operates styles, makes and offer a huge portfolio of customer electronic devices. It operates in a very competitive environment and has actually effectively placed itself as the maker of quality items. The response is yes.

Rarity.

As, stated earlier that Rappi Case Study Help operates in an extremely competitive environment, which means all the companies have similar products. So, the answer for rarity is no.

Imitability.

Due to the nature of the industry, it is really simple for competitors to understand the performance of the items and quickly make their own designs. Yes, Samsung is only behind IBM in signing up brand-new patents each year, however the advantage is really short term in this market.

Organization.

Chairman Lee has entirely turnaround Samsung, from going practically bankrupt during the Asian monetary crisis of 1997 to the top 25 company worldwide. Definitely yes there is proper company in the company and the outcomes promote themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being a multinational brand spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. Nevertheless, it faces some political pressures in less industrialized nations where order situation is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Rappi Case Study Analysis operations.

Economic

Buying power of customers is crucial for companies like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations etc. supply growth opportunities, whereas, due to economic crisis even the customers of industrialized countries suffer badly. It is extremely crucial for the business to keep an eye on the continuous economic situation of the country before getting in the market.

Socio-Cultural

International companies have to deal with numerous social and cultural concerns during its operations in a foreign nation. Samsung has likewise dealt with lots of problems but have adopted to the local environments of most of the countries exceptionally well. It has actually tailored its products, practices, policies etc. accordingly in order to achieve success.

Technological

With an annual expenditure of 2.4 billion dollars in Research & Development, and with consistent ingenious item launches, Rappi Case Study Help is among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it pertains to technological developments, Samsung has actually risen to the no 25 of the top effective business 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 major legal repercussions. It has to study or hire a local law professional before beginning its operations in a specific nation.

Environmental

With the rising awareness among consumers about the ethical & environmental violations of business, Samsung has to make sure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not acceptable and in some nations the repercussions can be very severe. On the other hand it needs to do some Business Social Responsibility practices to reveal the residents that it cares about their environment and individuals.

Porter's Five Forces

Threat of Replacement

Danger of substitution for Samsung's each product classification is quite significant. Running in an exceptionally dynamic industry lead the company to face a high risk of alternative. Elements for high hazard of alternative for Rappi Case Study Analysis Mobile phone consist of the existence of high number of suppliers and Market saturation in industrialized nations, that make the expense of changing for customers almost absolutely no. Replacement dangers for Samsung visual display lie in the altering lifestyle of customers. Customers can change to enjoying visuals in the house towards outdoor activities. Together with it, Samsung printing options products are threatened by the increasing tourist attraction of consumers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly amongst Samsung and its close competitors is extreme. The major reason behind this is the approach of market saturation in various number of item categories, requiring Samsung to introduce more innovative functions in existing products and brand-new ingenious products to maintain its growth. The major rivals for Rappi Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of possible size and worth. Due to incapability of Rappi Case Study Solution to construct its own software, it has to outsource its software application development to Google, which becomes a possible provider of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Negotiating power of purchasers for various number of product categories of Samsung is intense. One of the factor leading to the extreme bargaining power is the accessibility of large number of competitors in almost each item classification i.e. competitors of Samsung Smartphone, with an extremely little distinction. The high availability of suppliers of Mobile phones with minimum differentiation, make the switching expense for purchasers nearly no, hence increasing the bargaining power of buyers. Market saturation in most of the product categories likewise make the bargaining power of buyers more extreme in for Rappi Case Study Analysis. In spite of igh bargaining power Samsung is rather capable of selling its products at a greater price than much of its competitors, due to high-end quality product and a fair brand image.

Threat of New Entrants:

Threat of new entrants for Samsung is rather low. One of the significant factor for low hazard of brand-new entrants is the high competition in the market. The requirement of big quantity of capital to enter in the market is likewise among the prospective barrier to entry. In addition to it, requirement of big knowledge and research study and advancement expenses for survival in the industry likewise make brand-new entrants reluctant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of suppliers force the gamers in the market to charge as low prices as possible and this can just be attained by production performance. Brand-new firms, in bulk cases, lack the production efficiency, hence increasing the dangers for entryway in the innovation industry.

Competitive Analysis

Samsung's high item diversification provides it distinction from its competitors. 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 cell phones and Intel on chips, Rappi Case Study Solution had a big R&D costs on all of its item classifications which make it possible for the business to make possible income from sales of practically all of its items.

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

Together with the chips Samsung mobile market was likewise growing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The significant reson behind Samsung's high development despite of higher prices than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was likewise reaping the benefits from increasing market share of high end LCDs as given in case Exhibit 3. The significant factor, making the business make it possible for to get the chance is its mass production at low expense. Sony was the biggest competitor for Rappi Case Study Help in LCD market, nevertheless, it had also started joint endeavor with Samsung in 2003 for LCD making, reducing the competition for Samsung.

Porter's Competitive Strategy

Low Expense Leadership strategy of porter is fully carried out by Samsung the method they attain economies of scale by reinforcing their core competencies of production. Even to the point that their rival SONY chose to form an alliance with them to make for them, since they were not able to compete with them on low expense. Differentiation is another strategy well executed by Samsung by continuous financial investment in the R&D and remaining ahead of the competitors. They always bring something new and ingenious whether it's a product or a service.

Alternatives

Alternative Option 1

The Chief Marketing Officer (CMO) of Rappi Case Study Help would develop a new brand name image by targeting the younger generation of the particular country. As, especially mobile phones of Samsung are incredibly popular among the younger group.

Pros

1. It is the best strategy to develop Consumer Lifetime Worth (CLV) by developing a long-term relationship with consumers. Build commitment through providing worth and profit for long-lasting, as research has showed it is more affordable to retain current consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread quicker amongst more youthful people and which in turn will generate brand-new consumers for my products.

Cons

1. Old clients who were connected with Samsung before might not like this new image the business is trying to depict.
2 It will sustain further costs to reposition some products and it might not even bring success as the patterns alter very rapidly amongst the more youthful demographic.

Alternative option 2.

It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment must be developed internally initially as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can produce a really unhealthy environment in the office, as individuals typically resist modification since they fear it.

Identify the best alternative

Alternative is the best as it clearly has more pros since when a Client Life time Worth is built the business 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 current old age individuals. Samsung's primary objective is to create loyalty amongst its clients and make them bought it from them and even buy their various products.

Application Plan

• Targeting younger generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations reasonable and achievable.
• A team consisting of finest marketing and sales experts need to be put together, and both views ought to be taken into consideration before protecting the resources needed to implement the strategy.
• Thorough communication of the plan must 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 build and communicated appropriately to each individual responsible.
• The manager need to use a control panel which reveals the progress of all the jobs which have been done or about to be done and by whom.
• The manager need to keep an eye on and keep a continuous examine the overall and individual performance.
• Everybody need to want to adjust midway due to the fact that any brand-new trend or policy may come in due to which all the important things currently prepared need to be adjusted. It's much better to have contingency strategies currently prepared.
• At the end of the project the manager ought to communicate the results and if successful ought to commemorate with the group.

Spending plan

This change the budget plan allowance of various countries and lots of supervisors were unhappy and argued but the analysis done by the program was precise and revealed figures like North America and Russia development potential merited a 35% allowance while they were receiving 45%. It truly assisted to relatively distribute the resources and catch more clients by spending more on ads on the high development capacity areas of the world.

Conclusion

Its constant financial investment in R&D and innovative practices have moved them to brand-new heights but for them its' just the start and they desire to be among the leading 3 brands in the world. Their marketing efforts should be directed towards younger market amidst the internal arguments about marketing and should produce Consumer Lifetime Worth as it will not just give them advantages now but will continue to enjoy it till the customer life time. As the cost of maintaining the consumer is much more affordable than drawing in a new one.