Santander C The Integration Of Abbey Harvard Case Study Analysis

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Santander C The Integration Of Abbey Case Study Solution and Analysis


Historically, the business's core customers consist of the Original Equipment Manufacturers (OEMs), which used to sell Santander C The Integration Of Abbey Case Study Solution items 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 a worldwide brand and educated his divisional managers to comprehend marketing and its significance.

Issue Statement

Samsung's shift from a product based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to include marketing effectively is still a significant obstacle. Developing a consistent brand identity throughout the entire world and employing marketing methods that finest fits the regional culture is no easy task.

Situational Analysis

Santander C The Integration Of Abbey Case Study Help efforts for constructing its trademark name throughout the world was begun after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from an inexpensive OEM to a high value-added product service provider. To make the vision of Samsung a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Samsung can change from a low end to a high end product service provider. He knew that transformation can just be done through positioning Samsung as a business providing high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to build Samsung brand, with a prospective assistance of its executives, Yun dealt with several marketing challenges in early years of its efforts.

One of the marketing challenges for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as very same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was too much high, the space was too broader and to fill this space with wrong perceptions about marketing was rather challenging for Yun.

As mentioned above, marketing focus was really low in previous practices, therefore there were no correct marketing budget plans for each of the product on the portfolio. There was no marketing planning provided for the existing items. Together with it the item variety of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had an obstacle to perform marketing planning and to develop marketing budget plans for existing in addition to for brand-new products from the very beginning, and this would take a substantial time.

A big shift would be required in current marketing expenditures to construct the Santander C The Integration Of Abbey Case Study Analysis brand name. This would lead to increased marketing expenditures for Samsung and might disrupt the administration relating to increased expenditures, as they hesitated to marketing expenditures previously and a sudden huge shiftwould make them interrupt. This could result in decreasing executive assistance for global marketing. In this circumstance, Yun deals with a challenge for justifying increased marketing costs by showing the long term worth of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Santander C The Integration Of Abbey Case Study Analysis strengths lie in its big product portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents approved in US( USP).

Another strength of Santander C The Integration Of Abbey Case Study Analysis is its capability to develop innovative items at a constant rate. It major shows for the innovation and item creating of Samsung is that the business has received numerous 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 Operating System (OS) and software application. This supplies Samsung an edge over Apple devices.

Samsung's ability to produce high-end items at low cost of production is also among the major strength of Samsung as it allows the business to catch more market by providing quality items with cost control.


Samsung's weak points are concealed in the business's dependence on outsourcing software for its devices due to company's failure in developing software, unlike Sony. Santander C The Integration Of Abbey Case Study Solution likewise has low profit margins as compare to Apple due to big distinction in the rates of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Samsung lie in the growing Mobile phone market and the company's effectiveness in the market. It can increase its market share and incomes from cellular phone as the business is rather efficient in cellular phone market. Samsung currently runs in about 80 nations and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would make it possible for the company to increase its item portfolio with an increase in its wealth.


The dynamic industry environment of technology industry posture a severe threat on Samsung's survival and require the business to spend much of its earnings share on R&D in order to make it through in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is also a big hazard for the business's growth in the existence of strong rivals like Apple.

4 P's of Marketing


Santander C The Integration Of Abbey Case Study Solution provides quality items and has a quite abundant portfolio which accommodates different sectors. The majority of the products are in the leading three of their particular industries. LCD and smart phones are the greatest items of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the line of product of Samsung:

• Laptops.
• Smart phone.
• Air conditioning system.
• Personal computers.
• Hard disks.
• Washing machines.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Santander C The Integration Of Abbey Case Study Analysis utilizes both market competitive and market skimming pricing strategies for its wide range of products. In competitive prices it adjusts the rate according to the competitors in order to acquire benefit, whereas, it utilizes market skimming method where the item has an added value and by selling a few products it can reach break-even.


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


It wasn't a well-known business outside of Korea till 1993. The management effort taken by their CEO has pushed them to market more effectively outside the borders and now it has actually gotten in the league of top 25 companies in the world in just 9 years. This is an amazing accomplishment despite the continuous arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promo to market their items. Paid product advertisements, social promotion and digital advertisements are uses to produce awareness about Samsung products.

Value Chain Analysis.

It's an analytical framework for recognizing organisation activities that add worth or competitive advantage for the business.

Inbound Logistics.

It has one of the most effective and efficient supply chain network and has over 2700 providers across various industries around the world. Nearly 80% of which is based in Asia and the staying around the globe. For its incoming logistics it owns various logistics companies as it subsidiaries. It cares for its providers and produces a harmonious relationship with them and even minimized their payment cycles to enhance this relationship even more which includes worth to their chain network.


Samsung's core competency is its mass producing it produces 90% of its products in-house. Divided into three different divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is keeping operation hubs worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the primary factors Santander C The Integration Of Abbey Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to communicate with them the value and competitive advantage the product offers. Santander C The Integration Of Abbey Case Study Solution marketing budget plan is constantly increasing considering that they started their rearranging worldwide 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 occasions, print and media advertisements, public relations and so on.

Samsung put their customers at the top and constantly aim to deliver unmatchable customer service requirements. By including a direct assistance line to call them 24 hours they have actually even more increased the included value of Samsung service.


Santander C The Integration Of Abbey Case Study Solution has diversified market division, based upon its provision of wide variety of products to large number of customers. Samsung target client sections can be divided into 3 categories i.e. Santander C The Integration Of Abbey Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device services.


Santander C The Integration Of Abbey Case Study Help geographic segmentation is based upon two requirements i.e. region and density. Samsung serves about 80 nations worldwide with its products supplied to Urban as well as Backwoods of the nation. The Samsung is also growing its worldwide existence and the company's versatility in finding its plants motivates global expansion of Samsung.


Samsung produces items that can be utilized by both males and women. The target clients for Samsung IT and mobile communication products have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. Apart from it, Samsung Customer Electronic devices are targeted to a client sector with an age range of 25-65.


The psychographic division of Santander C The Integration Of Abbey Case Study Solution s based upon the social class and the life style of the customer. Samsung target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Samsung offer products like cellular phone very little more affordable i.e. Motorola as well as not much pricey i.e. Apple. It offers quality items to middle level customers at a slightly high cost than others targeting the very same sector.


Santander C The Integration Of Abbey Case Study Analysis bulk target clients have distinct behavioural characteristics. It has clients with an ambitious, fashionable and determined character with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other renowned brand names i.e. Apple. Most of Samsun consumers want quality as well as cost control. They are brought in towards Samsung because of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Santander C The Integration Of Abbey Case Study Solution has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings 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 more youthful audience and create a global brand name image of the company. Whereas, the core strength of the company is currently manufacturing however long gone are those days when excellent products were offering themselves. In the existing age marketing is really essential and companies can not succeed without it. Kim has currently begun to strengthen the marketing activities of Samsung and soon it will turn into one of its core strength like producing if not much better.



Samsung operates designs, makes and offer a vast portfolio of consumer electronic devices. It runs in an extremely competitive environment and has actually successfully placed itself as the maker of quality items. So, the response is yes.


As, said previously that Santander C The Integration Of Abbey Case Study Solution runs in a highly competitive environment, which means all the companies have comparable products. So, the answer for rarity is no.


Due to the nature of the industry, it is very easy for rivals to comprehend the functionality of the products and quickly make their own designs. Yes, Samsung is just behind IBM in registering brand-new patents every year, however the benefit is really short term in this market.


Chairman Lee has completely turnaround Samsung, from going nearly bankrupt during the Asian monetary crisis of 1997 to the top 25 business on the planet. Definitely yes there appertains company in the business and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread almost in every country worldwide, majority of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. It faces some political pressures in less developed countries where law and order situation is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Santander C The Integration Of Abbey Case Study Analysis operations.


Purchasing power of clients is important for business like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations etc. supply development chances, whereas, due to economic crisis even the consumers of developed nations suffer severely. For this reason it is very essential for the company to watch on the continuous economic scenario of the nation before entering the marketplace.


International business need to deal with different social and cultural problems during its operations in a foreign country. Samsung has actually also faced many problems however have actually adopted to the local environments of the majority of the countries exceptionally well. It has actually tailored its items, practices, policies and so on appropriately in order to be successful.


With an annual expense of 2.4 billion dollars in Research study & Development, and with consistent innovative product launches, Santander C The Integration Of Abbey Case Study Help is one of the top innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Samsung has increased to the no 25 of the leading effective business of the world.


Each country has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. It has to study or hire a local law professional prior to beginning its operations in a specific country.


With the rising awareness among customers about the environmental & ethical infractions of companies, Samsung has to make sure that it follows all the security guidelines. Ecological damages, ethical misconducts are not acceptable and in some countries the repercussions can be very extreme. On the other hand it has to do some Business Social Duty practices to reveal the locals that it appreciates their environment and individuals.

Porter's Five Forces

Threat of Substitution

Hazard of replacement for Samsung's each item classification is rather significant. Running in a very dynamic market lead the business to deal with a high risk of substitution. Factors for high danger of replacement for Santander C The Integration Of Abbey Case Study Solution Mobile phone consist of the existence of high variety of suppliers and Market saturation in industrialized countries, that make the cost of switching for customers nearly zero. Replacement dangers for Samsung visual screen lie in the altering life style of clients. Customers can switch to viewing visuals in your home towards outside activities. In addition to it, Samsung printing services products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly amongst Samsung and its close rivals is intense. The significant factor behind this is the method of market saturation in various variety of product categories, requiring Samsung to present more ingenious functions in existing items and new innovative products to keep its growth. Other factor for the intense competition amongst the competitors is the little item distinction among the products. The prominent players in the innovation market are quite knowledgeable about the importance of R&D costs for their survival and are running into a race of marketing and R&D costs, to catch the market. The significant rivals for Santander C The Integration Of Abbey Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the varying market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. Due to incapability of Santander C The Integration Of Abbey Case Study Analysis to build its own software, it has to outsource its software advancement to Google, which ends up being a possible provider of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Bargaining power of buyers for numerous variety of product classifications of Samsung is intense. One of the factor causing the intense bargaining power is the availability of large number of competitors in almost each item category i.e. rivals of Samsung Smart device, with a really little distinction. The high availability of suppliers of Smart devices with minimum differentiation, make the changing expense for purchasers almost absolutely no, hence increasing the bargaining power of buyers. Market saturation in the majority of the item categories likewise make the bargaining power of purchasers more extreme in for Santander C The Integration Of Abbey Case Study Help. In spite of igh bargaining power Samsung is rather capable of selling its products at a greater price than much of its rivals, due to luxury quality item and a fair brand image.

Threat of New Entrants:

Hazard of new entrants for Santander C The Integration Of Abbey Case Study Analysis is quite low. Along with it, requirement of big know-how and research and advancement expenses for survival in the market likewise make brand-new entrants unwilling to go into in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Samsung's high item diversification offers it differentiation from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Santander C The Integration Of Abbey Case Study Solution had a substantial R&D costs on all of its item classifications which allow the company to make potential profits from sales of nearly all of its products.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in terms of global market share, among 8 different item categories. Samsung was the international leader in making DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its incomes from chips was growing much faster than Intel and has grown close to the income levels of Intel, as given in the case Display 2.

In addition to the chips Samsung mobile market was likewise flourishing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cell phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The significant reson behind Samsung's high growth despite of higher costs 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 up case Exhibition 3. The major reason, making the company allow to get the opportunity is its mass production at low expense. Sony was the greatest rival for Santander C The Integration Of Abbey Case Study Analysis in LCD market, nevertheless, it had also begun joint endeavor with Samsung in 2003 for LCD manufacturing, decreasing the competition for Samsung.

Porter's Competitive Strategy

Low Expense Management method of porter is totally executed by Samsung the method they achieve economies of scale by reinforcing their core competencies of manufacturing. They always bring something ingenious and new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Santander C The Integration Of Abbey Case Study Solution would develop a new brand name image by targeting the younger generation of the specific nation. As, specifically mobile phones of Samsung are preferred amongst the more youthful market.


1. It is the best method to develop Consumer Lifetime Value (CLV) by creating a long-term relationship with customers. Construct loyalty through delivering worth and profit for long-term, as research study has actually revealed it is much cheaper to maintain present clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will bring in new clients for my products.


1. Old consumers who were connected with Samsung before might not like this new image the business is trying to portray.
2 It will sustain further expenses to reposition some products and it might not even bring success as the trends change really rapidly among the younger market.

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 produced internally initially as genuine marketing starts inside the corporation.


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


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

Determine the very best option

Option is the finest as it clearly has more pros due to the fact that when a Client Life time Worth is developed the business will benefit from it till that client is alive and has acquiring power. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. However, Samsung's primary goal is to develop loyalty among its customers and make them redeemed it from them and even buy their various items as well.

Implementation Plan

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations attainable and realistic.
• A group consisting of finest marketing and sales specialists should be assemble, and both views need to be taken into consideration prior to protecting the resources required to execute the plan.
• Thorough communication of the strategy must be done as it is very essential for everybody to be on the very same page to make it work.
• Tasks and timelines ought to be construct and communicated accordingly to each individual accountable.
• The supervisor must use a control panel which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a constant check on the general and specific performance.
Due to the fact that any brand-new trend or policy may come in due to which all the things currently prepared have actually to be adjusted, • Everyone should be willing to adapt midway. It's much better to have contingency strategies already prepared.
• At the end of the campaign the supervisor need to communicate the outcomes and if successful should celebrate with the team.


The M-net program revealed engaging analysis about the low and high development potential areas and how much advertising budget need to be assigned accordingly. This change the spending plan allowance of various countries and many supervisors were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia development prospective warranted a 35% allotment while they were getting 45%. Whereas, China and Europe ought to be getting 42% however were instead provided 31%. It truly assisted to relatively disperse the resources and record more clients by investing more on advertisements on the high growth capacity regions of the world.


Santander C The Integration Of Abbey Case Study Help is a top 25 company worldwide now and plans to get ahead of Sony who sits currently at no. 20. Its consistent investment in R&D and innovative practices have actually moved them to new heights however for them its' just the start and they wish to be amongst the top 3 brand names in the world. They totally turn-around from practically declaring bankruptcy during the Asian Financial Crisis to a world prominent brand, understood for quality and development. Their worth chain and their core proficiency their manufacturing capability, along-with worldwide brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts should be directed towards younger market amidst the internal arguments about marketing and ought to develop Consumer Life time Worth as it will not only provide advantages now however will continue to gain it till the client life time. As the cost of maintaining the client is more affordable than bring in a new one.