Santander F Rebranding The Business Harvard Case Study Analysis

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Santander F Rebranding The Business Case Study Solution and Analysis


Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which utilized to offer Santander F Rebranding The Business Case Study Analysis items withtheir own brand name. Its customer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Samsung items with their own brand name. He repositioned Samsung as an international brand name and informed his divisional supervisors to understand marketing and its importance.

Problem Statement

Samsung's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to integrate marketing successfully is still a significant difficulty. Producing a constant brand name identity throughout the entire world and utilizing marketing methods that best fits the local culture is no easy job. The M-net program analysis have been really helpful in identifying the high and less possible growth areas, but allocation of resources accordingly is not well gotten amongst the supervisors. There is no agreement among the hierarchy concerning the best fit future method.

Situational Analysis

Santander F Rebranding The Business Case Study Help efforts for constructing its brand across the world was started after presenting the "brand-new management effort" by Chairman Lee in 1993. The objective was to transform Samsung from a low-cost OEM to a high value-added item service provider. To make the vision of Samsung a truth, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Samsung can transform from a low end to a high end product supplier. He knew that transformation can just be done through placing Samsung as a business offering high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a potential 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 thought about marketing and selling as same tools and thought that quality products do not required 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 larger and to fill this space with incorrect perceptions about marketing was quite tough for Yun.

As specified above, marketing focus was really low in previous practices, for that reason there were no proper marketing spending plans for each of the product on the portfolio. There was no marketing preparation done for the existing items. In addition to it the item series of the business was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had a challenge to carry out marketing preparation and to develop marketing budgets for existing in addition to for new products from the very beginning, and this would take a big time.

A substantial shift would be required in existing marketing expenses to build the Santander F Rebranding The Business Case Study Solution brand. This would result in increased marketing expenditures for Samsung and could disrupt the administration relating to increased expenditures, as they hesitated to marketing expenditures previously and a sudden huge shiftwould make them disrupt. This could result in decreasing executive assistance for international marketing. In this scenario, Yun faces a challenge for justifying increased marketing expenditures by demonstrating the long term worth of big marketing expenses.

Internal Analysis
SWOT Analysis

Santander F Rebranding The Business Case Study Solution strengths lie in its substantial item portfolio. Samsung has largest number of patents in the industry with total number of 15499 patents approved in United States( USP).

Another strength of Santander F Rebranding The Business Case Study Help is its capability to establish innovative items at a constant rate. It major proves for the development and product designing of Samsung is that the company has actually received so many awards for its innovation and item style.

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

Samsung's capability to produce luxury products at low expense of production is likewise one of the significant strength of Samsung as it makes it possible for the business to record more market by supplying quality products with expense control.

Weak points

Samsung's weaknesses are concealed in the business's reliance on outsourcing software for its devices due to company's inability in establishing software, unlike Sony. Santander F Rebranding The Business Case Study Solution likewise has low earnings margins as compare to Apple due to substantial difference in the costs of Apple and Samsung with a much lower difference in quality.


Opportunities for Samsung lie in the growing Mobile phone market and the company's performance in the market. It can increase its market share and incomes from cell phone as the company is rather efficient in mobile phone market. Samsung currently runs in about 80 nations and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would enable the company to increase its product portfolio with an increase in its wealth.


The vibrant industry environment of technology industry present a severe hazard on Samsung's survival and force the business to spend much of its revenues share on R&D in order to survive in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a huge risk for the business's growth in the presence of strong competitors like Apple.

4 P's of Marketing


Samsung provides quality items and has a rather rich portfolio which caters to different sections. LCD and mobile phones are the greatest products of Samsung, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Smart phone.
• Air conditioner.
• Personal computers.
• Hard disk drives.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Santander F Rebranding The Business Case Study Analysis utilizes both market competitive and market skimming rates techniques for its wide array of items. In competitive prices it changes the cost according to the competitors in order to gain benefit, whereas, it utilizes market skimming technique where the product has an added worth 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 suppliers, E commerce channels like Amazon and so on. All its items are timely provided to the selling place/ delivered to the customers straight in case of online order.


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

Value Chain Analysis.

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

Inbound Logistics.

For its incoming logistics it owns different logistics firms as it subsidiaries. It looks after its providers and develops an unified relationship with them and even reduced their payment cycles to improve this relationship further which includes worth to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its items internal. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is keeping operation hubs worldwide to further include worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the main factors Santander F Rebranding The Business Case Study Help is able to take on Apple. Samsung's own Electronic Logitec system plays a significant function 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.

Bring in target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the item provides. Santander F Rebranding The Business Case Study Help advertising budget plan is constantly rising considering that they began their repositioning globally and will continue to do so as they are continually seeking to invest and expand in high possible development markets. The budget is spent on events, print and media ads, public relations and so on.

Samsung Service. Samsung put their clients on top and constantly make every effort to deliver unmatchable customer service requirements. As after sales service is ending up being very crucial to keep customers delighted and engaged, they even carry out surveys through third parties to discover their customer's feedback and execute it in the positive method to decrease or if possible entirely eliminate their consumer concerns. By adding a direct assistance line to call them 24 hours they have further increased the added value of Santander F Rebranding The Business Case Study Solution service.


Santander F Rebranding The Business Case Study Solution has diversified market segmentation, based upon its provision of wide variety of products to large number of customers. Samsung target consumer sections can be divided into 3 classifications i.e. Santander F Rebranding The Business Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device services.


Santander F Rebranding The Business Case Study Analysis geographical division is based upon 2 requirements i.e. area and density. Samsung serves about 80 countries worldwide with its items provided 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 encourages global expansion of Samsung.


Samsung produces items that can be utilized by both women and males. The target customers for Samsung IT and mobile interaction products have an age variety of 18-65 with majority at a young or freshly married life cycle phase. Apart from it, Samsung Consumer Electronics are targeted to a client section with an age variety of 25-65.


The psychographic division of Santander F Rebranding The Business Case Study Analysis s based upon the social class and the lifestyle of the customer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung offer items like mobile phone very little more affordable i.e. Motorola in addition to not much expensive i.e. Apple. It offers quality products to middle level consumers at a somewhat high price than others targeting the very same sector.


Santander F Rebranding The Business Case Study Solution majority target consumers have distinct behavioural qualities. They are drawn in towards Samsung since of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Santander F Rebranding The Business Case Study Solution has actually increased astonishingly 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 classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the company is presently manufacturing however long gone are those days when excellent products were offering themselves. Kim has currently started to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not better.



Samsung operates designs, produces and offer a vast portfolio of consumer electronics. It runs in a very competitive environment and has successfully placed itself as the maker of quality products. The response is yes.


As, said earlier that Santander F Rebranding The Business Case Study Solution runs in a highly competitive environment, which indicates all the companies have comparable products. So, the answer for rarity is no.


Due to the nature of the market, it is very simple for rivals to understand the functionality of the products and quickly make their own models. Yes, Samsung is just behind IBM in registering new patents every year, but the benefit is very short-term in this market.


Chairman Lee has entirely turnaround Samsung, from going practically insolvent during the Asian financial crisis of 1997 to the top 25 business in the world. Definitely yes there is proper company in the business and the results promote 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 very conductive for its operations. Nevertheless, it faces some political pressures in less industrialized countries where law and order circumstance is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Santander F Rebranding The Business Case Study Help operations.


Purchasing power of customers is important for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern countries and so on offer development chances, whereas, due to economic crisis even the customers of industrialized nations suffer terribly. For this reason it is really important for the company to watch on the continuous financial scenario of the country prior to going into the marketplace.


International companies need to deal with various social and cultural problems during its operations in a foreign country. Samsung has also dealt with many concerns however have embraced to the local environments of most of the countries exceptionally well. It has actually customized its items, practices, policies and so on accordingly in order to be successful.


With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with continuous innovative product launches, Santander F Rebranding The Business Case Study Help is among the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Samsung has increased to the no 25 of the leading successful companies of the world.


Each country has their own laws and policies, being a multinational company 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 work with a local law specialist prior to starting its operations in a specific nation.


With the increasing awareness amongst customers about the environmental & ethical offenses of business, Samsung needs to guarantee that it follows all the security standards. Ecological damages, ethical misbehaviors are not appropriate and in some nations the consequences can be very severe. On the other hand it has to do some Business Social Obligation practices to reveal the residents that it cares about their environment and individuals.

Porter's Five Forces

Hazard of Substitution

Danger of replacement for Samsung's each item category is rather considerable. Factors for high danger of replacement for Santander F Rebranding The Business Case Study Help Smart device consist of the existence of high number of suppliers and Market saturation in industrialized countries, which make the cost of switching for customers practically zero. Along with it, Samsung printing options items are threatened by the increasing destination of consumers towards cloud storage.

Competition Among Existing Firms:

The rivaly among Samsung and its close competitors is extreme. The significant reason behind this is the technique of market saturation in different number of item categories, forcing Samsung to introduce more ingenious features in existing products and brand-new ingenious products to preserve its development. The major competitors for Santander F Rebranding The Business Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

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

Bargaining Power of Buyers:

Bargaining power of purchasers for numerous number of product classifications of Samsung is extreme. One of the element resulting in the intense bargaining power is the schedule of a great deal of competitors in almost each product category i.e. rivals of Samsung Smart device, with a really little distinction. The high schedule of suppliers of Smart devices with minimum distinction, make the changing expense for purchasers almost zero, hence increasing the bargaining power of buyers. Market saturation in most of the item classifications likewise make the bargaining power of buyers more extreme in for Santander F Rebranding The Business Case Study Solution. In spite of igh bargaining power Samsung is quite capable of offering its products at a higher price than much of its competitors, due to luxury quality product and a reasonable brand image.

Risk of New Entrants:

Risk of brand-new entrants for Samsung is quite low. One of the significant aspect for low threat of new entrants is the high competitors in the market. The requirement of substantial quantity of capital to go into in the marketplace is also among the prospective barrier to entry. Together with it, requirement of huge competence and research study and development expenditures for survival in the industry likewise make new entrants reluctant to go into in the marketplace. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of providers require the players in the market to charge as low prices as possible and this can just be achieved by production efficiency. New companies, in majority cases, lack the production efficiency, hence increasing the risks for entrance in the innovation industry.

Competitive Analysis

Samsung's high item diversity provides it distinction from its competitors. It is among the three leading brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on customer electronics, Nokia on cellular phone and Intel on chips, Samsung had a huge R&D costs on all of its product categories which enable the business to earn prospective income from sales of nearly all of its items. (See Display) However, due to the wide item range the company deals with high variety of rivals.

The business ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to worldwide market share, among 8 different product categories. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its profits from chips was growing much faster than Intel and has grown close to the income levels of Intel, as offered in the case Display 2.

Along with the chips Samsung mobile market was also growing 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 zero sales growth. The significant reson behind Samsung's high growth despite of greater prices than Nokia and Motorola was the business's high-end quality mobile phone.

Samsung was likewise profiting from increasing market share of high-end LCDs as given in case Exhibition 3. The major reason, making the company make it possible for to avail the opportunity is its mass production at low cost. Sony was the biggest rival for Santander F Rebranding The Business Case Study Help in LCD market, however, it had likewise begun joint endeavor with Samsung in 2003 for LCD manufacturing, reducing the competition for Samsung.

Porter's Competitive Method

Low Expense Management strategy of porter is completely carried out by Samsung the way they achieve economies of scale by strengthening their core competencies of manufacturing. Even to the point that their competitor SONY decided to form an alliance with them to make for them, due to the fact that they were not able to take on them on low expense. Differentiation is another strategy well executed by Samsung by constant financial investment in the R&D and remaining ahead of the competitors. They constantly bring something ingenious and brand-new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Santander F Rebranding The Business Case Study Solution would produce a new brand name image by targeting the more youthful generation of the specific nation. As, specifically mobile phones of Samsung are very popular amongst the more youthful market.


1. It is the best technique to develop Consumer Lifetime Worth (CLV) by creating a long-lasting relationship with customers. Construct commitment through delivering worth and reap the benefits for long-lasting, as research has revealed it is more affordable to keep existing customers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread quicker among younger individuals and which in turn will bring in new clients for my products.


1. Old customers who were associated with Samsung prior to might not like this brand-new image the company is trying to represent.
2 It will sustain more costs to rearrange some items and it might not even bring success as the trends change extremely quickly among the more youthful group.

Alternative option 2.

Samsung has made making its core proficiency for the many part of their service and due to which its supervisors are not afraid to fully step out of their convenience zone. It would be done by setting up training workshops during which importance of marketing will be taught and numbers will be given. Failure to get the passing ratings will get demoted. Marketing environment must be produced internally first as real marketing begins inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the work environment, as individuals typically withstand modification since they fear it.

Identify the best alternative

First option is the very best as it plainly has more pros since when a Customer Life time Value is built the company will profit from it till that client lives and has acquiring power too. Plus, our target consumers are the more youthful generation which are bound to live longer than the present old age people. Samsung's primary objective is to create loyalty amongst its customers and make them redeemed it from them and even buy their various products.

Implementation Strategy

• Targeting younger generation through social marketing, developing a relate to them like Pepsi make with music. And set the expectations possible and realistic.
• A group including best marketing and sales specialists need to be assemble, and both views ought to be considered prior to protecting the resources needed to implement the strategy.
• Thorough interaction of the plan should be done as it is very crucial for everyone to be on the very same page to make it work.
• Tasks and timelines need to be develop and interacted accordingly to each person accountable.
• The manager need to utilize a control panel which shows the development of all the tasks which have been done or about to be done and by whom.
• The supervisor must keep track of and keep a constant look at the general and private efficiency.
• Everyone need to be willing to adjust midway due to the fact that any brand-new trend or policy may be available in due to which all the important things already prepared have to be changed. It's better to have contingency strategies currently prepared.
• At the end of the project the manager ought to communicate the outcomes and if effective should celebrate with the team.


This change the spending plan allotment of various countries and numerous managers were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth prospective merited a 35% allotment while they were getting 45%. It actually helped to fairly disperse the resources and catch more consumers by spending more on advertisements on the high development capacity areas of the world.


Its constant financial investment in R&D and innovative practices have actually propelled them to new heights however for them its' just the start and they desire to be amongst the leading 3 brands in the world. Their marketing efforts should be directed towards more youthful demographic amidst the internal arguments about marketing and ought to develop Client Life time Worth as it will not only provide them benefits now but will continue to gain it till the client lifetime. As the cost of retaining the client is much less expensive than attracting a new one.