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Santander A Forging A Global Bank Case Study Solution & Analysis


Santander A Forging A Global Bank Case Study Solution is a widely known worldwide brand in technology industry, established in 1938 by Lee Byung Chul, in South Korea. Santander A Forging A Global Bank deals in a great deal of item categories consisting of Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic items. Historically, the business's core clients consist of the Original Devices Manufacturers (OEMs), which used to sell Enterprise items withtheir own trademark name. Till early 1990s, the core proficiency of Corporation depend on its low price offerings than its competitors by manufacturing existing items at economies of scale. Its customer circle includes Original Devices Manufacturers (OEMs), who used to offer Santander A Forging A Global Bank Case Study Analysis items with their own brand name. Corporation was not merely understood outside Korea. There were likewise no or little interest in constructing the brand name worldwide. Marketing budget was controlled by production department with a prime focus on providing low-cost products.During the 1997 Asian Financial Crisis the company practically got bankrupt, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was noted the leading 25 most valuable company on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Corp as a worldwide brand name and educated his divisional supervisors to comprehend marketing and its significance. Now their objective is to reach the top 10 by 2005.

Problem Statement

Corp's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional managers to integrate marketing effectively is still a major challenge. Creating a consistent brand name identity across the entire world and employing marketing strategies that best fits the regional culture is no simple task.
Executive Summary
Situational Analysis

Santander A Forging A Global Bank Case Study Analysis efforts for constructing its brand name across the world was started after introducing the "brand-new management initiative" by Chairman Lee in 1993. The objective was to transform Organization from a cheap OEM to a high value-added item company. To make the vision of Venture a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Company can transform from a low end to a high-end item supplier. He knew that improvement can just be done through placing Venture as a business using high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to build Corporation brand name, with a possible assistance of its executives, Yun dealt with numerous marketing challenges in early years of its efforts.

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

Along with it the item variety of the company was increasing with the ripening of brand-new product concepts by the R&D sector of Org. Yun had a challenge to carry out marketing planning and to develop marketing spending plans for existing as well as for brand-new items from the very beginning, and this would take a huge time.

A big shift would be needed in existing marketing expenses to build the Org brand. This would result in increased marketing expenditures for Org and might disrupt the administration concerning increased expenses, as they were hesitant to marketing expenditures previously and an unexpected huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Santander A Forging A Global Bank Case Study Solution strengths lie in its huge item portfolio. Org has biggest number of patents in the industry with overall number of 15499 patents given in US( USP).

Another strength of Santander A Forging A Global Bank Case Study Solution is its ability to develop innovative products at a continuous rate. It major shows for the development and product developing of Org is that the business has actually received a lot of awards for its development and item design.

Unlike Apple and other competitors, Enterprise is concentrated on producing gadgets which can be easily integrated with any type of open source Operating System (OS) and software. This provides Venture an edge over Apple devices.
Porter's 5 Forces Analysis
Corporation's capability to produce high-end products at low cost of production is likewise one of the major strength of Org as it makes it possible for the company to record more market by offering quality items with cost control.

Weak points

Santander A Forging A Global Bank Case Study Analysis weak points are concealed in the company's dependence on outsourcing software application for its devices due to business's inability in developing software, unlike Sony. Enterprise likewise has low revenue margins as compare to Apple due to big distinction in the rates of Apple and Company with a much lesser distinction in quality. The varied focus of the company due to large number of items in its portfolio, lead to the less effective production and make the business unable to charge greater costs like Apple. The company is likewise inefficient in handling its patents and often faces the issue of patent violation.


Opportunities for Enterprise lie in the growing Smartphone market and the company's effectiveness in the market. It can increase its market share and earnings from cell phone as the business is rather efficient in mobile phone market. Venture currently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Corp can move towards acquisitions to get 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 innovation market present a severe danger on Venture's survival and require the company to invest much of its profits share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile business is likewise a huge threat for the business's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Enterprise provides quality items and has a quite rich portfolio which caters to different sectors. LCD and mobile phones are the most significant items of Venture, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Air conditioning unit.
• Desktop computer.
• Hard disks.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Santander A Forging A Global Bank Case Study Help utilizes both market competitive and market skimming prices methods for its variety of products. In competitive pricing it adjusts the rate according to the competitors in order to gain advantage, whereas, it utilizes market skimming method where the product has an added worth and by offering a few items it can reach break-even.


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

Vrio Analysis
It utilizes both offline & online channels of promotion to market their products. Paid product advertisements, social promo and digital advertisements are utilizes to create awareness about Company items.

Value Chain Analysis.

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

Incoming Logistics.

It has among the most efficient and effective supply chain network and has over 2700 suppliers throughout numerous industries around the world. Practically 80% of which is based in Asia and the staying all over the world. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It takes care of its suppliers and develops an unified relationship with them and even lowered their payment cycles to improve this relationship even more which adds value to their chain network.


Business's core competency is its mass producing it produces 90% of its items in-house. Divided into 3 different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is preserving operation centers worldwide to even more add worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the main reasons Santander A Forging A Global Bank Case Study Help has the ability to compete with Apple. Business's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Corp.

Marketing and Sales.

Drawing in target client attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the item offers. Santander A Forging A Global Bank Case Study Help advertising budget plan is continually on the rise considering that they started their repositioning internationally and will continue to do so as they are continuously seeking to broaden and invest in high potential growth markets. The budget is invested in events, print and media advertisements, public relations etc.

Company put their consumers at the leading and constantly make every effort to deliver unmatchable client service standards. By adding a direct assistance line to call them 24 hours they have further increased the included value of Company service.


Santander A Forging A Global Bank Case Study Analysis has actually diversified market division, based upon its arrangement of vast array of products to large number of consumers. Organization target consumer sections can be divided into 3 categories i.e. Santander A Forging A Global Bank Case Study Solution IT and Mobile Communications, Company Customer Electronic Devices and Organization Device services.


Santander A Forging A Global Bank Case Study Help geographical division is based upon 2 requirements i.e. region and density. Enterprise serves about 80 countries worldwide with its items supplied to Urban along with Rural areas of the country. The Venture is also growing its worldwide presence and the company's flexibility in finding its plants motivates worldwide expansion of Org.


Corp produces items that can be utilized by both males and females. The target consumers for Company IT and mobile interaction products have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. Apart from it, Venture Consumer Electronics are targeted to a consumer segment with an age variety of 25-65.


The psychographic division of Santander A Forging A Global Bank Case Study Solution s based upon the social class and the life style of the consumer. Corporation target clients on the basis of social class are generally upper middle, middle and working class clients, as Corp sell items like cell phones not much less expensive i.e. Motorola along with not much pricey i.e. Apple. It supplies quality items to middle level customers at a slightly high price than others targeting the very same sector.


Santander A Forging A Global Bank Case Study Help majority target consumers have unique behavioural qualities. They are attracted towards Org due to the fact that of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Santander A Forging A Global Bank Case Study Help has 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 Enterprise 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 mission of Kim to target the younger audience and produce a worldwide brand name picture of the business. Whereas, the core strength of the company is currently making but long gone are those days when good items were offering themselves. In the present age marketing is very crucial and business can not succeed without it. Kim has actually already started to enhance the marketing activities of Enterprise and very soon it will become one of its core strength like making if not much better.



Org runs designs, produces and sell a huge portfolio of consumer electronics. It operates in a very competitive environment and has effectively placed itself as the maker of quality items. So, the answer is yes.


As, stated previously that Santander A Forging A Global Bank Case Study Help runs in a highly competitive environment, which means all the business have similar products. So, the response for rarity is no.


Due to the nature of the market, it is very simple for competitors to understand the functionality of the items and quickly make their own designs. Yes, Venture is just behind IBM in registering new patents yearly, however the advantage is extremely short term in this industry.


Chairman Lee has totally turn-around Enterprise, from going practically insolvent during the Asian financial crisis of 1997 to the leading 25 business on the planet. Definitely yes there appertains company in the business and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread nearly in every nation worldwide, majority of the environments like USA, Europe, China etc., are extremely conductive for its operations. Nevertheless, it faces some political pressures in less developed nations where order scenario is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Santander A Forging A Global Bank Case Study Analysis operations.


Buying power of consumers is vital for companies like Organization to be successful and grow. Emerging markets like India, middle-eastern nations etc. provide development opportunities, whereas, due to economic crisis even the clients of developed nations suffer severely. It is really essential for the company to keep an eye on the ongoing economic circumstance of the country prior to going into the market.


Multinational companies need to face numerous social and cultural concerns during its operations in a foreign nation. Business has actually also faced numerous issues but have actually embraced to the local environments of most of the nations remarkably well. It has customized its items, practices, policies etc. accordingly in order to be successful.


With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with constant ingenious product launches, Santander A Forging A Global Bank Case Study Help is one of the leading ingenious business of the world. With a clear mission to be ahead of the rest when it pertains to technological advancements, Corp has actually risen to the no 25 of the leading effective companies of the world.


Each nation has their own laws and policies, being an international company Org need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. So, it has to study or work with a local law professional prior to beginning its operations in a particular country.


With the increasing awareness among customers about the environmental & ethical violations of companies, Venture needs to make sure that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some nations the effects can be really severe. On the other hand it needs to do some Business Social Responsibility practices to show the residents that it appreciates their environment and individuals.

Porter's Five Forces

Risk of Replacement

Threat of substitution for Business's each product classification is rather significant. Factors for high hazard of alternative for Santander A Forging A Global Bank Case Study Analysis Mobile phone consist of the presence of high number of providers and Market saturation in developed nations, which make the expense of switching for customers practically absolutely no. Along with it, Corporation printing options items are threatened by the increasing tourist attraction of consumers towards cloud storage.

Competition Among Existing Companies:

The rivaly among Corporation and its close competitors is intense. The major reason behind this is the method of market saturation in various number of item categories, requiring Organization to introduce more innovative functions in existing items and new ingenious products to maintain its growth. The major competitors for Santander A Forging A Global Bank Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Venture Sustainability Report, 2016) Supplier's bargaining power for Corp is low as Business runs economies of scale and its orders are of potential size and worth. Due to incapability of Santander A Forging A Global Bank Case Study Solution to construct its own software application, it has to outsource its software development to Google, which ends up being a prospective supplier of software for Business, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Bargaining power of buyers for various number of item classifications of Org is extreme. Among the aspect causing the extreme bargaining power is the availability of large number of competitors in practically each product classification i.e. competitors of Corp Smart device, with a very little distinction. The high accessibility of providers of Smartphones with minimum differentiation, make the changing expense for purchasers nearly no, thus increasing the bargaining power of purchasers. Market saturation in most of the product classifications also make the bargaining power of buyers more extreme in for Santander A Forging A Global Bank Case Study Analysis. In spite of igh bargaining power Corporation is rather efficient in offering its products at a greater cost than much of its competitors, due to high end quality product and a fair brand image.

Hazard of New Entrants:

Risk of new entrants for Company is quite low. Among the major aspect for low danger of new entrants is the high competitors in the market. The requirement of substantial amount of capital to enter in the market is also one of the potential barrier to entry. Along with it, requirement of big proficiency and research and development expenses for survival in the market likewise make new entrants unwilling to go into in the market. Market saturation is likewise among the barrier of entry in technology industry. High bargaining power of suppliers require the players in the market to charge as low costs as possible and this can only be attained by production effectiveness. Brand-new companies, in bulk cases, do not have the production effectiveness, hence increasing the risks for entrance in the innovation market.

Competitive Analysis

Company's high item diversity offers it distinction from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Santander A Forging A Global Bank Case Study Solution had a substantial R&D spending on all of its product categories which enable the business to make possible income from sales of practically all of its items.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to global market share, amongst 8 different product categories. Company was the worldwide leader in making DRAM, SRAM and NAND flash chips. Company profits from chips was less than Intel however its earnings from chips was growing much faster than Intel and has actually grown close to the income levels of Intel, as provided in the case Exhibit 2.

In addition to the chips Corp mobile market was likewise flourishing at a high rate than its competitors i.e. Motorola and Nokia. Organization's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The major reson behind Enterprise's high development despite of greater costs than Nokia and Motorola was the business's high-end quality cell phones.

Enterprise was also profiting from increasing market share of high-end LCDs as given up case Exhibition 3. The significant factor, making the company enable to get the opportunity is its mass production at low cost. Sony was the greatest rival for Santander A Forging A Global Bank Case Study Analysis in LCD market, however, it had actually likewise started joint venture with Business in 2003 for LCD making, lessening the competition for Org.

Porter's Competitive Strategy

Low Cost Management method of porter is totally implemented by Corp the method they attain economies of scale by reinforcing their core competencies of manufacturing. Even to the point that their rival SONY decided 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 Enterprise by constant financial investment in the R&D and staying ahead of the competitors. They always bring something ingenious and new whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Santander A Forging A Global Bank Case Study Solution would produce a new brand name image by targeting the younger generation of the particular country. As, especially cellphones of Enterprise are popular amongst the more youthful group.


1. It is the best strategy to construct Customer Life time Worth (CLV) by creating a long-term relationship with consumers. Build loyalty through providing worth and profit for long-term, as research study has actually revealed it is more affordable to keep existing customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst younger people and which in turn will generate brand-new customers for my products.


1. Old customers who were connected with Business before may not like this new image the business is attempting to portray.
2 It will incur additional expenses to reposition some items and it might not even bring success as the patterns change very rapidly among the more youthful market.

Alternative service 2.

Corporation has made making its core proficiency for the a lot of part of their business and due to which its supervisors are not scared to fully step out of their comfort zone. It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get benched. 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 also the opposite ones.


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

Determine the very best option

Very first option is the best as it clearly has more pros because when a Client Lifetime Worth is built the business will profit from it till that client lives and has buying power too. Plus, our target customers are the younger generation which are bound to live longer than the present aging individuals. Corporation's main objective is to produce commitment among its clients and make them redeemed it from them and even buy their different items.

Implementation Strategy

• Targeting more youthful generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations possible and reasonable.
• A group including best marketing and sales specialists need to be assemble, and both views should be taken into consideration prior to protecting the resources needed to implement the strategy.
• Thorough interaction of the plan must be done as it is extremely important for everybody to be on the very same page to make it work.
• Jobs and timelines must be build and communicated accordingly to each person accountable.
• The manager need to utilize a control panel which reveals the progress of all the tasks 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 overall and private efficiency.
Because any brand-new pattern or policy may come in due to which all the things currently prepared have actually to be changed, • Everybody must be prepared to adapt midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the manager must communicate the results and if successful ought to commemorate with the team.

Spending plan

The M-net program revealed compelling analysis about the low and high development prospective locations and how much marketing budget ought to be designated appropriately. This modification the budget plan allotment of different countries and lots of supervisors were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia growth prospective merited a 35% allotment while they were receiving 45%. Whereas, China and Europe ought to be receiving 42% but were instead given 31%. It actually helped to fairly distribute the resources and record more consumers by spending more on advertisements on the high development capacity regions of the world.

Its continuous investment in R&D and ingenious practices have moved them to brand-new heights but for them its' just the start and they want to be amongst the leading 3 brand names in the world. Their marketing efforts ought to be directed towards more youthful group in the middle of the internal arguments about marketing and should develop Client Life time Worth as it will not just give them advantages now but will continue to enjoy it till the client life time. As the cost of maintaining the consumer is much more affordable than drawing in a brand-new one.