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Renault And Nissan A Marriage Of Reason Chinese Chinese Harvard Case Study Analysis

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Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution & Analysis


Introduction

Historically, the company's core customers include the Original Equipment Manufacturers (OEMs), which used to sell Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis products withtheir own brand name. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He repositioned Samsung as a worldwide brand name and educated his divisional supervisors to comprehend marketing and its significance.

Problem Statement

Samsung's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to integrate marketing successfully is still a major difficulty. Producing a constant brand name identity throughout the whole world and using marketing methods that finest fits the regional culture is no simple job.
Executive Summary
Situational Analysis

Yun had a rather clear picture in his mind about how Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis can transform from a low end to a high end product company. He knew that change can just be done through placing Samsung as a business using high-end products and this could just 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 faced numerous marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as exact same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the present marketing requirement was too much high, the space was too larger and to fill this gap with incorrect understandings about marketing was rather difficult for Yun.

Along with it the item variety of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had an obstacle to perform marketing preparation and to create marketing budget plans for existing as well as for new items from the very start, and this would take a substantial time.

A huge shift would be required in current marketing expenditures to build the Samsung brand. This would result in increased marketing expenditures for Samsung and could disrupt the administration relating to increased expenses, as they were hesitant to marketing expenditures previously and a sudden huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Samsung strengths depend on its big item portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents given in US( USP). Large amount of R&D spending has actually enabled the business to grow its item portfolio at a higher rate than its competitors. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall revenues.

Another strength of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is its capability to establish innovative items at a constant rate. It significant shows for the innovation and product creating of Samsung is that the business has actually received many awards for its innovation and product style.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be easily integrated with any type of open source Os (OS) and software. This provides Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury products at low cost of production is likewise among the major strength of Samsung as it makes it possible for the company to catch more market by supplying quality products with expense control.

Weak points

Samsung's weaknesses are concealed in the company's reliance on outsourcing software application for its gadgets due to company's inability in establishing software application, unlike Sony. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution also has low earnings margins as compare to Apple due to big difference in the costs of Apple and Samsung with a much lesser difference in quality.

Opportunities

Opportunities for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help lie in the growing Mobile phone market and the business's effectiveness in the market. Samsung presently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.

Risks

The vibrant industry environment of innovation industry pose a serious hazard on Samsung's survival and force the company to spend much of its incomes share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a big hazard for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis
Product

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis offers quality items and has a quite abundant portfolio which deals with various segments. Most of the items are in the leading three of their particular markets. LCD and cellphones are the biggest products of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the product line of Samsung:

• LCD/ TELEVISION
• Laptops.
• Cellphone.
• A/c.
• Computer.
• Hard disk drives.
• Washing machines.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution uses both market competitive and market skimming pricing methods for its wide variety of products. In competitive rates it changes the rate according to the competitors in order to get benefit, whereas, it uses market skimming strategy where the item has an added worth and by offering a couple of items it can reach break-even.

Location.

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

Promotion.
Vrio Analysis
It uses both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital ads are utilizes to develop awareness about Samsung items.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most efficient and reliable supply chain network and has more than 2700 suppliers across various markets around the globe. Almost 80% of which is based in Asia and the staying around the globe. For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and creates a harmonious relationship with them and even reduced their payment cycles to improve this relationship further which includes worth to their chain network.

Operations.

Samsung's core proficiency is its mass manufacturing it produces 90% of its items internal. Divided into 3 different departments its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is preserving operation centers worldwide to further add worth to its value chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the primary reasons Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is able to compete with Apple. Samsung's own Electronic Logitec system plays a major 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.

Bring in target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the product provides. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis advertising spending plan is continuously rising since they began their rearranging globally and will continue to do so as they are constantly looking to invest and expand in high potential growth markets. The spending plan is invested in events, print and media advertisements, public relations etc.

Samsung put their customers at the top and constantly strive to deliver unmatchable consumer service requirements. By adding a direct assistance line to contact them 24 hours they have even more increased the included value of Samsung service.

Division.

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help has diversified market division, based upon its arrangement of wide range of items to a great deal of consumers. Samsung target consumer sectors can be divided into 3 classifications i.e. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device options.

Geographic.

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help geographic segmentation is based upon 2 criteria i.e. region and density. Samsung serves about 80 nations worldwide with its products supplied to Urban in addition to Rural areas of the nation. The Samsung is likewise growing its worldwide presence and the company's versatility in finding its plants encourages worldwide expansion of Samsung.

Demographic.

The demographic division of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Samsung produces products that can be utilized by both males and females. The target consumers for Samsung IT and mobile communication items have an age range of 18-65 with bulk at a young or newly married life process phase. They are mostly staff members, students and specialists. Apart from it, Samsung Consumer Electronics are targeted to a consumer segment with an age variety of 25-65. They are mostly experts and staff members. Nevertheless Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help Gadget Solutions are targeted at students, workers and professionals with an age range of 25-65.

Psychographic.

The psychographic segmentation of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution 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 offer items like mobile phone not much cheaper i.e. Motorola along with very little expensive i.e. Apple. It offers quality products to middle level customers at a slightly high cost than others targeting the same sector.

Behavioural.

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis bulk target consumers have unique behavioural qualities. They are brought in towards Samsung because of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Renault And Nissan A Marriage Of Reason Chinese Chinese 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 upon the mission of Kim to target the younger audience and produce a global brand name image of the business. Whereas, the core strength of the company is presently manufacturing but long gone are those days when good items were selling themselves. In the current age marketing is really important and companies can not be successful without it. Kim has actually already begun to enhance the marketing activities of Samsung and soon it will turn into one of its core strength like making if not much better.

VRIO.

Worth.

Samsung runs designs, produces and offer a huge portfolio of consumer electronics. It runs in an incredibly competitive environment and has successfully placed itself as the maker of quality items. The response is yes.

Rarity.

As, stated previously that Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis runs in an extremely competitive environment, which implies all the companies have similar items. The response for rarity is no.

Imitability.

Due to the nature of the industry, it is really easy for competitors to understand the functionality of the items and quickly make their own designs. Yes, Samsung is just behind IBM in registering new patents each year, but the benefit is very short-term in this industry.

Organization.

Chairman Lee has totally turn-around Samsung, from going nearly insolvent throughout the Asian financial crisis of 1997 to the leading 25 business worldwide. Certainly yes there is proper organization in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being a multinational 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. It faces some political pressures in less industrialized countries where law and order circumstance is not great. Latin American, African and some Asian nations fall in this category, where political instability do have a result on Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution operations.

Economic

Purchasing power of clients is important for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries etc. provide development chances, whereas, due to recession even the consumers of industrialized countries suffer severely. It is extremely important for the company to keep an eye on the ongoing financial scenario of the nation before going into the market.

Socio-Cultural

International companies need to face different social and cultural concerns during its operations in a foreign nation. Samsung has likewise faced many issues however have embraced to the regional environments of most of the nations exceptionally well. It has tailored its items, practices, policies and so on appropriately in order to succeed.

Technological

With an annual expenditure of 2.4 billion dollars in Research & Development, and with continuous ingenious product launches, Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is one of the leading innovative companies of the world. With a clear objective to be ahead of the rest when it pertains to technological developments, Samsung has increased to the no 25 of the top effective business of the world.

Legal

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

Environmental

With the rising awareness amongst consumers about the ethical & environmental offenses of companies, Samsung needs to ensure that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some nations the effects can be very extreme. On the other hand it needs to do some Business Social Obligation practices to reveal the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Risk of Alternative

Risk of alternative for Samsung's each item category is rather considerable. Running in an exceptionally dynamic market lead the business to deal with a high threat of replacement. Aspects for high danger of substitution for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis Smartphone consist of the existence of high number of suppliers and Market saturation in developed countries, that make the expense of changing for customers nearly absolutely no. Alternative dangers for Samsung visual display screen depend on the changing life style of customers. Customers can change to seeing visuals at home towards outside activities. In addition to it, Samsung printing services products are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close rivals is extreme. The significant reason behind this is the approach of market saturation in various number of item categories, forcing Samsung to introduce more ingenious features in existing items and new innovative items to maintain its development. Other factor for the extreme rivalry amongst the competitors is the little product distinction amongst the products. The prominent players in the technology market are rather knowledgeable about the value of R&D costs for their survival and are running into a race of marketing and R&D costs, to capture the market. The major rivals for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the varying market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution has a vast supply chain including about 2700 providers across the world.( 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. These substantial orders enable Samsung to work out costs with its providers. Due to incapability of Samsung to develop its own software application, it has to outsource its software application development to Google, which becomes a potential supplier of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to work out rates, however it provide considerable costs to its suppliers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Market saturation in most of the product classifications likewise make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its products at a higher rate than much of its rivals, due to high end quality product and a reasonable brand name image.

Hazard of New Entrants:

Risk of brand-new entrants for Samsung is quite low. Among the major element for low threat of brand-new entrants is the high competition in the market. The requirement of substantial quantity of capital to enter in the marketplace is also among the prospective barrier to entry. Together with it, requirement of huge competence and research and advancement expenses for survival in the market likewise make new entrants reluctant to go into in the marketplace. Market saturation is likewise one of the barrier of entry in innovation market. High bargaining power of providers require the gamers in the industry to charge as low prices as possible and this can only be achieved by production effectiveness. Brand-new companies, in bulk cases, do not have the production efficiency, thus increasing the dangers for entrance in the innovation market.

Competitive Analysis

Samsung's high item diversification provides it differentiation from its rivals. It is one of the three leading brands by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on consumer electronic devices, Nokia on cellular phone and Intel on chips, Samsung had a big R&D costs on all of its item classifications which allow the business to make prospective earnings from sales of practically all of its items. (See Exhibit) However, due to the broad item range the company deals with high number of competitors.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of worldwide market share, amongst 8 various product categories. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown close to the income levels of Intel, as given in the case Exhibit 2.

Together with the chips Samsung mobile market was likewise thriving 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 only 4% and Nokia with absolutely no sales growth. The major reson behind Samsung's high development despite of higher rates than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was also profiting from increasing market share of high-end LCDs as given up case Display 3. The significant reason, making the company allow to avail the chance is its mass production at low cost. Sony was the greatest competitor for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis in LCD market, however, it had likewise begun joint endeavor with Samsung in 2003 for LCD producing, minimizing the competition for Samsung.

Porter's Competitive Method

Low Expense Management method of porter is totally executed by Samsung the way they accomplish economies of scale by reinforcing their core proficiencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to produce for them, because they were unable to take on them on low expense. Differentiation is another technique well carried out by Samsung by continuous financial investment in the R&D and remaining ahead of the competition. They constantly bring something brand-new and ingenious whether it's a service or an item.

Alternatives

Alternative Solution 1

The Chief Marketing Officer (CMO) of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution would develop a brand-new brand image by targeting the more youthful generation of the specific nation. As, specifically mobile phones of Samsung are very popular amongst the more youthful market.

Pros

1. It is the best technique to develop Consumer Life time Worth (CLV) by producing a long-term relationship with consumers. Develop commitment through delivering value and profit for long-term, as research study has revealed it is much cheaper to retain existing clients than to draw in new ones.
2. Another pro of this option is that word of mouth spread faster among more youthful individuals and which in turn will bring in brand-new clients for my products.

Cons

1. Old consumers who were connected with Samsung prior to might not like this new image the business is attempting to depict.
2 It will sustain further expenses to reposition some products and it might not even bring success as the trends alter really quickly among the more youthful demographic.

Alternative service 2.

It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be provided. Marketing environment should be developed internally first as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can create an extremely unhealthy environment in the workplace, as individuals often resist change due to the fact that they fear it.

Determine the very best alternative

Alternative is the finest as it plainly has more pros since when a Consumer Lifetime Worth is developed the business will benefit from it till that consumer is alive and has buying power. Plus, our target customers are the younger generation which are bound to live longer than the current aging people. Nonetheless, Samsung's main objective is to create commitment amongst its clients and make them redeemed it from them and even purchase their various items too.

Application Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations attainable and reasonable.
• A group consisting of finest marketing and sales experts ought to be assemble, and both views must be taken into consideration prior to securing the resources needed to implement the plan.
• Thorough communication of the strategy must be done as it is very important for everybody to be on the same page to make it work.
• Tasks and timelines need to be construct and interacted accordingly to each person responsible.
• The manager should use a dashboard 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 track of and keep a constant look at the specific and overall performance.
• Everyone ought to be willing to adjust midway because any new pattern or policy may be available in due to which all the important things currently prepared have to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the project the manager need to communicate the results and if effective must commemorate with the group.

Budget

This modification the spending plan allocation of many managers and various nations were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective warranted a 35% allotment while they were getting 45%. It actually helped to relatively disperse the resources and catch more customers by investing more on ads on the high development capacity regions of the world.
Recommendations
Conclusion

Its constant investment in R&D and ingenious practices have moved them to brand-new heights but for them its' only the start and they want to be amongst the leading 3 brands in the world. Their marketing efforts ought to be directed towards younger demographic amidst the internal arguments about marketing and should create Customer Lifetime Worth as it will not just give them benefits now however will continue to reap it till the consumer lifetime. As the cost of maintaining the client is much more affordable than bring in a new one.