Santander D Transformation And Growth In The U K Harvard Case Study Solution

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Santander D Transformation And Growth In The U K Case Study Solution and Analysis


Santander D Transformation And Growth In The U K Case Study Solution is a widely known worldwide brand name in technology industry, established in 1938 by Lee Byung Chul, in South Korea. Santander D Transformation And Growth In The U K handle a great deal of item categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the business's core clients include the Original Devices Manufacturers (OEMs), which utilized to offer Business items withtheir own brand. Till early 1990s, the core competency of Business depend on its low cost offerings than its competitors by producing existing items at economies of scale. Its client circle consists of Original Equipment Manufacturers (OEMs), who utilized to sell Santander D Transformation And Growth In The U K Case Study Analysis items with their own brand. Organization was not simply understood outside Korea. There were likewise no or little interest in building the brand worldwide. Marketing budget plan was controlled by production department with a prime focus on supplying inexpensive products.During the 1997 Asian Financial Crisis the company almost got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the leading 25 most valuable company worldwide. When Kim was worked with as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Corp as an international brand name and informed his divisional supervisors to understand marketing and its importance. Now their goal is to reach the top 10 by 2005.

Issue Statement

Business's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to integrate marketing effectively is still a major obstacle. Developing a constant brand identity across the whole world and utilizing marketing techniques that finest fits the local culture is no easy job. The M-net program analysis have actually been truly valuable in identifying the high and less possible development locations, however allotment of resources appropriately is not well gotten amongst the managers. There is no consensus amongst the hierarchy regarding the best matched future strategy.
Executive Summary
Situational Analysis

Yun had a quite clear image in his mind about how Santander D Transformation And Growth In The U K Case Study Solution can transform from a low end to a high end product company. He understood that change can only be done through positioning Organization as a business using high-end products and this could only be done through high level of marketing.

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

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

As specified above, marketing focus was very low in previous practices, therefore there were no proper marketing spending plans for each of the item on the portfolio. There was no marketing preparation done for the existing products. Together with it the item series of the business was increasing with the ripening of brand-new product concepts by the R&D sector of Company. Yun had a challenge to perform marketing preparation and to create marketing budgets for existing as well as for new items from the very start, and this would take a huge time.

A big shift would be required in present marketing expenditures to develop the Business brand. This would result in increased marketing expenditures for Org and could disrupt the administration relating to increased costs, as they were reluctant to marketing expenses previously and a sudden big shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Corporation strengths lie in its huge product portfolio. Organization has biggest number of patents in the industry with overall number of 15499 patents granted in US( USP). Large quantity of R&D costs has actually enabled the company to grow its product portfolio at a higher rate than its competitors. Santander D Transformation And Growth In The U K Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total earnings.

Another strength of Santander D Transformation And Growth In The U K Case Study Analysis is its ability to develop innovative items at a continuous rate. It major shows for the development and product developing of Enterprise is that the company has received so many awards for its development and item style.

Unlike Apple and other rivals, Corp is concentrated on producing gadgets which can be easily integrated with any type of open source Operating System (OS) and software. This offers Business an edge over Apple devices.
Porter's 5 Forces Analysis
Business's ability to produce luxury products at low expense of production is likewise among the significant strength of Company as it makes it possible for the company to record more market by offering quality products with expense control.

Weak points

Company's weak points are concealed in the company's dependence on outsourcing software for its devices due to business's inability in establishing software, unlike Sony. Santander D Transformation And Growth In The U K Case Study Help likewise has low revenue margins as compare to Apple due to huge distinction in the rates of Apple and Enterprise with a much lower difference in quality.


Opportunities for Venture lie in the growing Mobile phone market and the business's performance in the market. It can increase its market share and profits from cellular phone as the business is quite effective in cellular phone market. Org presently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to get patents. It would make it possible for the company to increase its item portfolio with a boost in its wealth.


The vibrant industry environment of innovation market position a serious threat on Organization's survival and require the company to invest much of its revenues share on R&D in order to make it through in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a huge hazard for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Santander D Transformation And Growth In The U K Case Study Analysis provides quality items and has a quite rich portfolio which deals with different sectors. Most of the items are in the leading three of their respective markets. LCD and mobile phones are the biggest items of Enterprise, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Corp:

• Laptops.
• Cellphone.
• Ac system.
• Desktop computer.
• Disk drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Santander D Transformation And Growth In The U K Case Study Analysis uses both market competitive and market skimming pricing methods for its wide variety of items. In competitive rates it adjusts the price according to the competitors in order to gain benefit, whereas, it uses market skimming technique where the product has actually an included value and by selling a couple of items it can reach break-even.


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

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

Value Chain Analysis.

It's an analytical framework for identifying business activities that include worth or competitive advantage for the business.

Incoming Logistics.

It has one of the most efficient and reliable supply chain network and has over 2700 providers across various markets worldwide. Almost 80% of which is based in Asia and the staying worldwide. For its incoming logistics it owns various logistics companies as it subsidiaries. It takes care of its suppliers and creates a harmonious relationship with them and even lowered their payment cycles to boost this relationship even more which includes value to their chain network.


Enterprise's core proficiency is its mass producing it produces 90% of its products internal. Divided into three various departments its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is preserving operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main reasons Santander D Transformation And Growth In The U K Case Study Help has the ability to compete with Apple. Organization's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Org.

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 advantage the item provides. Santander D Transformation And Growth In The U K Case Study Help marketing spending plan is constantly growing because they started their repositioning internationally and will continue to do so as they are continuously seeking to invest and broaden in high possible growth markets. The budget is invested in occasions, print and media ads, public relations and so on.

Corporation Service. Org put their customers on top and continually aim to deliver unmatchable customer care standards. As after sales service is ending up being exceptionally crucial to keep clients delighted and engaged, they even carry out studies through 3rd parties to find out their customer's feedback and implement it in the positive way to reduce or if possible completely remove their client concerns. By including a direct assistance line to contact them 24 hours they have actually further increased the added worth of Santander D Transformation And Growth In The U K Case Study Analysis service.


Santander D Transformation And Growth In The U K Case Study Solution has actually diversified market division, based upon its provision of large range of items to a great deal of customers. Org target customer segments can be divided into 3 categories i.e. Santander D Transformation And Growth In The U K Case Study Analysis IT and Mobile Communications, Organization Customer Electronics and Business Gadget options.


Santander D Transformation And Growth In The U K Case Study Analysis geographic segmentation is based upon 2 criteria i.e. region and density. Company serves about 80 countries worldwide with its items offered to Urban along with Backwoods of the nation. The Corp is also growing its international presence and the company's flexibility in finding its plants motivates international expansion of Venture.


The demographic segmentation of Santander D Transformation And Growth In The U K Case Study Help is based upon gender, age, life-cycle stage and occupation. Corp produces products that can be used by both women and males. The target clients for Company IT and mobile interaction products have an age range of 18-65 with majority at a young or newly married life cycle phase. They are primarily specialists, students and employees. Apart from it, Organization Consumer Electronic devices are targeted to a consumer segment with an age series of 25-65. They are primarily specialists and employees. Corporation Gadget Solutions are targeted at trainees, staff members and specialists with an age range of 25-65.


The psychographic division of Santander D Transformation And Growth In The U K Case Study Analysis s based upon the social class and the life style of the customer. Corp target clients on the basis of social class are generally upper middle, middle and working class customers, as Enterprise sell items like cellular phone not much cheaper i.e. Motorola as well as very little expensive i.e. Apple. It supplies quality products to middle level customers at a slightly high cost than others targeting the very same segment.


Santander D Transformation And Growth In The U K Case Study Analysis majority target clients have unique behavioural characteristics. They are drawn in towards Enterprise since of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Business 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 $. It has likewise minimized its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling classification of Enterprise with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Profits/ sales are increasing however net earnings is not increasing accordingly due to the fact that of the high overhead cost. New growths and hiring's were the primary reason of the increase in the overhead expenses, with china presently not offering any revenue to Company, however there is a lot capacity in the existing market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based upon the objective of Kim to target the more youthful audience and develop a worldwide brand name image of the company. Whereas, the core strength of the business is presently making but long gone are those days when good items were offering themselves. In the current age marketing is extremely essential and companies can not prosper without it. Kim has actually currently started to reinforce the marketing activities of Organization and soon it will turn into one of its core strength like manufacturing if not better.



Company operates designs, makes and offer a large portfolio of consumer electronics. It operates in a very competitive environment and has actually effectively positioned itself as the maker of quality items. The answer is yes.


As, said earlier that Santander D Transformation And Growth In The U K Case Study Help operates in an extremely competitive environment, which suggests all the companies have similar items. So, the response for rarity is no.


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


Chairman Lee has entirely turnaround Business, from going nearly insolvent throughout the Asian financial crisis of 1997 to the leading 25 business in the world. Absolutely yes there is proper company in the business and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. Nevertheless, it faces some political pressures in less developed nations where order circumstance is bad. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Santander D Transformation And Growth In The U K Case Study Analysis operations.


Purchasing power of customers is vital for business like Corporation to grow and be successful. Emerging markets like India, middle-eastern nations and so on supply development chances, whereas, due to economic crisis even the consumers of developed nations suffer badly. It is very crucial for the company to keep an eye on the continuous financial circumstance of the nation before entering the market.


Multinational business need to face numerous social and cultural concerns during its operations in a foreign nation. Corporation has actually likewise dealt with numerous problems but have embraced to the local environments of most of the countries extremely well. It has customized its items, practices, policies etc. accordingly in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research study & Development, and with continuous ingenious product launches, Santander D Transformation And Growth In The U K Case Study Solution is among the leading innovative companies of the world. With a clear objective to be ahead of the rest when it pertains to technological advancements, Business has actually increased to the no 25 of the leading successful business of the world.


Each country has their own laws and policies, being an international company Company have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal effects. It has to study or hire a local law specialist before starting its operations in a specific nation.


With the increasing awareness amongst customers about the ethical & environmental infractions of companies, Business needs to guarantee that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some nations the effects can be really severe. On the other hand it has to do some Business Social Duty practices to reveal the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Alternative

Danger of replacement for Corporation's each product category is rather significant. Running in an extremely dynamic market lead the company to face a high hazard of substitution. Aspects for high hazard of replacement for Santander D Transformation And Growth In The U K Case Study Solution Mobile phone include the existence of high variety of suppliers and Market saturation in industrialized nations, which make the cost of switching for consumers nearly no. Substitution dangers for Venture visual display depend on the altering lifestyle of clients. Clients can change to seeing visuals in your home towards outdoor activities. Along with it, Organization printing services items are threatened by the increasing tourist attraction of consumers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Corp and its close competitors is intense. The significant reason behind this is the technique of market saturation in numerous number of product classifications, requiring Venture to present more innovative features in existing products and new ingenious products to keep its growth. Other aspect for the extreme competition among the competitors is the little item differentiation amongst the items. The prominent players in the innovation market are quite knowledgeable about the importance of R&D spending for their survival and are encountering a race of marketing and R&D costs, to record the market. The significant competitors for Santander D Transformation And Growth In The U K Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the changing market shares which can be seen in Display F.

Bargaining Power of Suppliers:

( Enterprise Sustainability Report, 2016) Provider's bargaining power for Organization is low as Company runs economies of scale and its orders are of possible size and worth. Due to incapability of Santander D Transformation And Growth In The U K Case Study Analysis to construct its own software, it has to outsource its software advancement to Google, which ends up being a potential provider of software for Business, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Bargaining power of purchasers for numerous number of product classifications of Company is extreme. One of the element resulting in the intense bargaining power is the availability of large number of competitors in nearly each item classification i.e. competitors of Business Smart device, with a very little differentiation. The high accessibility of providers of Smartphones with minimum distinction, make the switching expense for buyers almost absolutely no, thus increasing the bargaining power of purchasers. Market saturation in the majority of the item categories likewise make the bargaining power of purchasers more intense in for Santander D Transformation And Growth In The U K Case Study Solution. In spite of igh bargaining power Org is rather efficient in selling its products at a higher cost than much of its rivals, due to luxury quality product and a reasonable brand image.

Risk of New Entrants:

Threat of brand-new entrants for Santander D Transformation And Growth In The U K Case Study Help is quite low. Along with it, requirement of huge expertise and research and development expenses for survival in the industry also make new entrants unwilling to go into in the market. Market saturation is also one of the barrier of entry in technology market.

Competitive Analysis

Business's high item diversification provides it distinction from its competitors. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Santander D Transformation And Growth In The U K Case Study Solution had a huge R&D costs on all of its product categories which allow the business to make prospective profits from sales of nearly all of its items.

The business ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to global market share, amongst 8 different item classifications. Organization was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Org incomes from chips was less than Intel but its profits from chips was growing faster than Intel and has grown close to the earnings levels of Intel, as offered in the case Exhibit 2.

In addition to the chips Corp mobile market was also thriving at a high rate than its rivals i.e. Motorola and Nokia. Business's cellular phone's sales development was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales growth. The major reson behind Org's high development despite of higher costs than Nokia and Motorola was the company's high-end quality mobile phone.

Corporation was also profiting from increasing market share of luxury LCDs as given up case Exhibition 3. The major factor, making the company enable to obtain the opportunity is its mass production at low cost. Sony was the greatest competitor for Santander D Transformation And Growth In The U K Case Study Analysis in LCD market, nevertheless, it had actually also begun joint endeavor with Business in 2003 for LCD producing, lessening the competition for Venture.

Porter's Competitive Method

Low Expense Management strategy of porter is completely implemented by Corporation the way they attain economies of scale by strengthening their core proficiencies of manufacturing. They constantly bring something ingenious and new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Santander D Transformation And Growth In The U K Case Study Analysis would produce a brand-new brand name image by targeting the younger generation of the particular nation. As, especially cellphones of Corp are very popular amongst the younger demographic.


1. It is the best strategy to construct Consumer Lifetime Value (CLV) by producing a long-term relationship with clients. Build commitment through delivering worth and profit for long-lasting, as research has revealed it is much cheaper to retain current consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread faster among more youthful people and which in turn will bring in brand-new customers for my items.


1. Old consumers who were associated with Enterprise prior to may not like this brand-new image the company is attempting to represent.
2 It will sustain additional expenditures to reposition some items and it might not even bring success as the patterns alter really rapidly among the younger group.

Alternative service 2.

Organization has made manufacturing its core competency for the most part of their business and due to which its supervisors are not scared to totally step out of their convenience zone. It would be done by setting up training workshops during which significance of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get demoted. Marketing environment ought to be produced internally initially as real marketing begins inside the corporation.


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


2. Its con can develop a very unhealthy environment in the office, as individuals frequently withstand modification since they fear it.

Recognize the very best option

Option is the best as it clearly has more pros since once a Client Life time Worth is constructed the business will benefit from it till that client is alive and has acquiring power. Plus, our target consumers are the younger generation which are bound to live longer than the present old age people. Corp's main objective is to create commitment among its consumers and make them redeemed it from them and even purchase their different items.

Execution Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations attainable and realistic.
• A group consisting of best marketing and sales experts should be put together, and both views must be taken into account before securing the resources required to implement the plan.
• Thorough communication of the plan ought to be done as it is really essential for everyone to be on the same page to make it work.
• Tasks and timelines need to be build and communicated appropriately to each person responsible.
• The manager ought to use a dashboard which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The manager should keep track of and keep a consistent look at the individual and general efficiency.
Due to the fact that any new trend or policy may come in due to which all the things currently prepared have actually to be adjusted, • Everybody need to be willing to adjust midway. It's better to have contingency strategies currently prepared.
• At the end of the project the supervisor should communicate the results and if successful need to celebrate with the team.


This change the budget plan allotment of lots of managers and various countries were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth possible merited a 35% allotment while they were receiving 45%. It actually helped to relatively disperse the resources and record more clients by investing more on advertisements on the high development capacity regions of the world.

Its continuous financial investment in R&D and ingenious practices have actually moved them to new heights however for them its' only the start and they desire to be among the top 3 brands in the world. Their marketing efforts must be directed towards more youthful market in the middle of the internal arguments about marketing and need to create Consumer Lifetime Worth as it will not just offer them advantages now however will continue to reap it till the consumer lifetime. As the expense of maintaining the customer is much less expensive than attracting a new one.