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


Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which utilized to sell Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help products withtheir own brand name. Its consumer circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Samsung items with their own brand name. He rearranged Samsung as an international brand and informed his divisional supervisors to comprehend marketing and its importance.

Problem Statement

Samsung's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to include marketing effectively is still a major difficulty. Creating a consistent brand name identity across the entire world and using marketing strategies that finest fits the local culture is no simple job. The M-net program analysis have been actually helpful in figuring out the high and less potential growth areas, but allowance of resources accordingly is not well received amongst the supervisors. There is no consensus among the hierarchy relating to the best fit future technique.

Situational Analysis

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis efforts for developing its brand across the world was started after presenting the "brand-new management effort" by Chairman Lee in 1993. The goal was to transform Samsung from a cheap OEM to a high value-added item service provider. To make the vision of Samsung a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Samsung can change from a low end to a high-end item provider. He knew that transformation can just be done through positioning Samsung as a company offering high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand name, with a prospective support of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as very same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the current marketing requirement was excessive high, the gap was too broader and to fill this gap with incorrect perceptions about marketing was quite challenging for Yun.

As stated above, marketing focus was very low in previous practices, for that reason there were no correct marketing budgets for each of the item on the portfolio. There was no marketing planning provided for the existing products. Along with it the item series of the business was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing planning and to produce marketing spending plans for existing along with for new products from the very beginning, and this would take a huge time.

A huge shift would be needed in present marketing expenses to develop the Samsung brand. This would result in increased marketing expenses for Samsung and might interrupt the administration relating to increased expenses, as they were hesitant to marketing expenses formerly and an unexpected huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis strengths lie in its substantial product portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents granted in United States( USP).

Another strength of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution is its capability to establish ingenious products at a constant rate. It major shows for the innovation and item developing of Samsung is that the business has actually gotten many awards for its innovation and product design.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be quickly incorporated with any type of open source Operating System (OS) and software. This offers Samsung an edge over Apple gadgets.

Samsung's capability to produce luxury products at low expense of production is also among the significant strength of Samsung as it makes it possible for the company to record more market by offering quality products with expense control.


Samsung's weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to business's failure in developing 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 substantial distinction in the costs of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Samsung lie in the growing Smart device market and the company's efficiency in the market. It can increase its market share and earnings from cellular phone as the company is rather effective in cellular phone market. Samsung currently runs in about 80 countries 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 obtain patents. It would make it possible for the business to increase its product portfolio with an increase in its wealth.


The vibrant market environment of technology market present an extreme threat 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 industrialized nations i.e. saturation of mobile business is also a huge risk for the company's development in the existence of strong competitors like Apple.

4 P's of Marketing


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution offers quality products and has a rather rich portfolio which accommodates different segments. Most of the items remain in the leading three of their particular markets. LCD and cellphones are the greatest products of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Computer.
• Hard drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution utilizes both market competitive and market skimming prices methods for its wide range of products. In competitive pricing it adjusts the rate according to the competition in order to gain advantage, whereas, it utilizes market skimming technique where the product has an added value and by selling a couple of items it can reach break-even.


It has one of the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon etc. All its items are prompt provided to the selling place/ provided to the customers straight in case of online order.


It utilizes both offline & online channels of promo to market their products. Paid product advertisements, social promo and digital ads are utilizes to create awareness about Samsung products.

Worth Chain Analysis.

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

Incoming Logistics.

It has among the most efficient and efficient supply chain network and has more than 2700 suppliers throughout numerous industries all over the world. Nearly 80% of which is based in Asia and the remaining all over the world. For its incoming logistics it owns various logistics firms as it subsidiaries. It looks after its providers and creates a harmonious relationship with them and even lowered their payment cycles to increase this relationship even more which adds value to their chain network.


Samsung's core competency is its mass producing it produces 90% of its items internal. Divided into three different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is maintaining operation centers worldwide to further add value to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the main factors Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution is able to take on Apple. Samsung's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target client attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item uses. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution advertising budget plan is continually on the rise considering that they began their repositioning internationally and will continue to do so as they are continuously wanting to expand and invest in high possible growth markets. The spending plan is spent on occasions, print and media ads, public relations etc.

Samsung put their clients at the top and continuously aim to deliver unmatchable consumer service requirements. By including a direct support line to contact them 24 hours they have further increased the added worth of Samsung service.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution has diversified market segmentation, based upon its arrangement of wide range of products to a great deal of customers. Samsung target client sections can be divided into 3 classifications i.e. Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget options.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help geographical division is based upon two criteria i.e. region and density. Samsung serves about 80 countries worldwide with its products offered to Urban in addition to Backwoods of the nation. The Samsung is also growing its international existence and the business's versatility in finding its plants motivates worldwide expansion of Samsung.


The market segmentation of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help is based upon gender, age, life-cycle stage and profession. Samsung produces products that can be used by both women and males. The target clients for Samsung IT and mobile interaction products have an age series of 18-65 with majority at a young or recently married life process stage. They are mainly trainees, professionals and employees. Apart from it, Samsung Consumer Electronic devices are targeted to a customer segment with an age variety of 25-65. They are mainly employees and specialists. However Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution Device Solutions are targeted at trainees, staff members and professionals with an age series of 25-65.


The psychographic segmentation of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help s based upon the social class and the life style of the customer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung offer products like cellular phone not much less expensive i.e. Motorola in addition to very little expensive i.e. Apple. It supplies quality products to middle level consumers at a slightly high cost than others targeting the very same sector.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis majority target consumers have special behavioural characteristics. They are drawn in towards Samsung since of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis has actually increased remarkably 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 classification 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 more youthful audience and create a global brand name picture of the business. Whereas, the core strength of the business is presently manufacturing however long gone are those days when good products were offering themselves. In the current age marketing is very important and business can not succeed without it. Kim has actually already started to enhance the marketing activities of Samsung and soon it will turn into one of its core strength like making if not better.



Samsung operates styles, manufactures and sell a huge portfolio of customer electronic devices. It operates in an extremely competitive environment and has actually successfully placed itself as the maker of quality products. The response is yes.


As, said earlier that Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help operates in an extremely competitive environment, which implies all the business have similar items. So, the answer for rarity is no.


Due to the nature of the industry, it is very simple for rivals to comprehend the performance of the products and easily make their own designs. Yes, Samsung is just behind IBM in signing up brand-new patents every year, but the benefit is extremely short-term in this market.


Chairman Lee has totally turnaround Samsung, from going almost insolvent throughout the Asian monetary crisis of 1997 to the leading 25 business in the world. Definitely yes there appertains company in the company and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. However, it faces some political pressures in less industrialized countries where order scenario is bad. 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 Analysis operations.


Purchasing power of customers is vital for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations etc. provide growth opportunities, whereas, due to economic crisis even the consumers of industrialized countries suffer badly. It is very essential for the business to keep an eye on the ongoing financial scenario of the country before entering the market.


International business need to deal with different social and cultural problems throughout its operations in a foreign nation. Samsung has actually likewise dealt with lots of concerns however have actually adopted to the local environments of most of the countries exceptionally well. It has actually customized its products, practices, policies and so on accordingly in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with constant innovative item launches, Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution is one of the leading innovative companies of the world. With a clear mission to be ahead of the rest when it pertains to technological developments, Samsung 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 company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal repercussions. It has to study or work with a regional law specialist before beginning its operations in a particular country.


With the rising awareness among consumers about the ethical & ecological offenses of companies, Samsung has to ensure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some countries the repercussions can be extremely extreme. On the other hand it needs to do some Business Social Obligation practices to reveal the locals that it cares about their environment and people.

Porter's Five Forces

Danger of Alternative

Threat of substitution for Samsung's each item classification is quite considerable. Running in a very vibrant market lead the business to deal with a high risk of alternative. Factors for high hazard of substitution for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution Mobile phone consist of the presence of high variety of suppliers and Market saturation in industrialized nations, that make the cost of changing for customers practically zero. Alternative hazards for Samsung visual screen depend on the changing lifestyle of clients. Customers can switch to viewing visuals in the house towards outside activities. In addition to it, Samsung printing services products are threatened by the increasing attraction of customers towards cloud storage.

Competition Among Existing Companies:

The rivaly among Samsung and its close competitors is intense. The major reason behind this is the approach of market saturation in various number of product classifications, forcing Samsung to present more innovative features in existing items and new ingenious products to maintain its development. Other element for the extreme rivalry among the rivals is the little item differentiation amongst the items. The prominent players in the technology industry are rather familiar with the significance of R&D spending for their survival and are facing a race of marketing and R&D costs, to capture the market. The significant competitors for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the changing market shares which can be seen in Display F.

Bargaining Power of Providers:

Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis has a huge supply chain including about 2700 providers across the world.( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of potential size and worth. These substantial orders enable Samsung to work out costs with its suppliers. However, due to incapability of Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution to construct its own software application, it has to outsource its software advancement to Google, which ends up being a potential supplier of software for Samsung, leading to high bargaining power of Google. Although, in most of cases Samsung has a power to negotiate rates, but it supply substantial costs to its suppliers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Market saturation in many of the product categories also make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of selling its items at a greater price than much of its rivals, due to high end quality product and a fair brand image.

Danger of New Entrants:

Hazard of brand-new entrants for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Solution is rather low. Along with it, requirement of big competence and research and advancement expenditures for survival in the industry likewise make new entrants unwilling to enter in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high item diversification supplies it distinction from its competitors. It is one of the three leading brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronic devices, Nokia on mobile phone and Intel on chips, Samsung had a big R&D costs on all of its item classifications which enable the company to make prospective profits from sales of practically all of its items. (See Exhibition) However, due to the wide product variety the business deals with high variety of competitors.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in regards to worldwide market share, amongst 8 various product categories. Samsung was the global leader in making DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown close to the revenue levels of Intel, as offered in 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 cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales growth. The significant reson behind Samsung's high growth despite of higher rates than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The major reason, making the company make it possible for to avail the chance is its mass production at low expense. Sony was the biggest rival for Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Help in LCD market, nevertheless, it had also started joint venture with Samsung in 2003 for LCD manufacturing, decreasing the competition for Samsung.

Porter's Competitive Method

Low Expense Leadership strategy of porter is completely implemented by Samsung the method they achieve economies of scale by strengthening their core competencies of production. They always bring something ingenious and brand-new whether it's a service or a product.


Alternative Option 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 name image by targeting the younger generation of the specific nation. As, particularly mobile phones of Samsung are preferred among the younger group.


1. It is the best method to develop Customer Lifetime Worth (CLV) by developing a long-lasting relationship with consumers. Build commitment through providing worth and profit for long-lasting, as research has actually showed it is more affordable to keep current customers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly among more youthful people and which in turn will bring in new clients for my products.


1. Old consumers who were connected with Samsung prior to might not like this brand-new image the business is attempting to depict.
2 It will incur further expenses to reposition some products and it may not even bring success as the trends change extremely rapidly among the younger group.

Alternative option 2.

Samsung has made producing its core proficiency for the many part of their company and due to which its supervisors are not afraid to fully step out of their convenience zone. It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be given. Failure to get the passing scores will get demoted. Marketing environment ought to be developed internally initially as real marketing starts inside the corporation.


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


2. Its con can produce a very unhealthy environment in the work environment, as individuals typically withstand modification due to the fact that they fear it.

Determine the best alternative

Very first alternative is the very best as it clearly has more pros due to the fact that when a Customer Life time Value is developed the company will make money from it till that client is alive and has purchasing power too. Plus, our target customers are the more youthful generation which are bound to live longer than the current aging individuals. Nevertheless, Samsung's main objective is to produce loyalty among its clients and make them redeemed it from them and even buy their various products as well.

Application Plan

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations sensible and attainable.
• A group including finest marketing and sales experts ought to be put together, and both views must be taken into consideration before protecting the resources required to execute the strategy.
• Thorough communication of the plan need to 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 develop and interacted accordingly to each person accountable.
• The supervisor need to utilize a dashboard which shows the progress of all the jobs which have actually been done or about to be done and by whom.
• The manager ought to monitor and keep a continuous check on the general and private performance.
• Everyone need to want to adapt midway since any brand-new pattern or policy may can be found in due to which all the important things already planned need to be adjusted. It's much better to have contingency strategies already prepared.
• At the end of the project the manager need to interact the outcomes and if effective need to commemorate with the group.

Budget plan

The M-net program revealed compelling analysis about the high and low development prospective locations and just how much advertising spending plan should be allocated appropriately. This change the budget plan allowance of various countries and many supervisors were dissatisfied and argued but the analysis done by the program was precise and revealed figures like North America and Russia growth possible merited a 35% allocation while they were receiving 45%. Whereas, China and Europe need to be receiving 42% however were rather provided 31%. It actually helped to relatively disperse the resources and record more clients by investing more on advertisements on the high growth capacity areas of the world.


Renault And Nissan A Marriage Of Reason Chinese Chinese Case Study Analysis is a leading 25 business in the world now and plans to get ahead of Sony who sits currently at no. 20. Its constant investment in R&D and ingenious practices have moved them to brand-new heights however for them its' only the start and they want to be amongst the leading 3 brand names worldwide. They totally turnaround from practically going bankrupt throughout the Asian Financial Crisis to a world renowned brand, known for quality and development. Their value chain and their core competency their production ability, along-with global brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further expansion in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts need to be directed towards more youthful demographic amid the internal arguments about marketing and must produce Customer Life time Value as it will not only give them advantages now however will continue to enjoy it till the consumer lifetime. As the expense of keeping the consumer is more affordable than drawing in a brand-new one.