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Santander F Rebranding The Business Case Study Solution and Analysis


Historically, the business's core clients include the Original Equipment Manufacturers (OEMs), which used to offer Santander F Rebranding The Business Case Study Analysis products withtheir own brand name. Its client circle includes Original Devices Manufacturers (OEMs), who used to sell Company items with their own brand name. He repositioned Enterprise as a global brand name and educated his divisional managers to understand marketing and its significance.

Issue Declaration

Corp's transition from a product based to a marketing business is not going as smoothly as planned.Overcoming the hesitation of divisional managers to incorporate marketing effectively is still a major obstacle. Creating a constant brand identity across the entire world and employing marketing strategies that best fits the local culture is no simple task.
Executive Summary
Situational Analysis

Santander F Rebranding The Business Case Study Analysis efforts for constructing its brand across the world was begun after introducing the "new management effort" by Chairman Lee in 1993. The objective was to transform Corp from an inexpensive OEM to a high value-added product service provider. To make the vision of Enterprise a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Business can change from a low end to a high end item service provider. He understood that improvement can only be done through positioning Venture as a business providing high-end products and this might just be done through high level of marketing.

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

One of the marketing difficulties for Yun was the understandings of executives about the value 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 service practices, and the current marketing requirement was excessive high, the gap was too broader and to fill this space with wrong perceptions about marketing was rather difficult for Yun.

As stated above, marketing focus was really low in previous practices, for that reason there were no proper marketing budgets for each of the item on the portfolio. There was no marketing preparation provided for the existing products. Together with it the product variety of the company was increasing with the ripening of new product concepts by the R&D sector of Corp. Yun had an obstacle to perform marketing planning and to develop marketing spending plans for existing as well as for new items from the very start, and this would take a big time.

A substantial shift would be required in existing marketing expenses to construct the Organization brand. This would result in increased marketing expenses for Organization and could disrupt the administration regarding increased costs, as they were reluctant to marketing expenses previously and an unexpected huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Santander F Rebranding The Business Case Study Analysis strengths lie in its substantial item portfolio. Venture has biggest number of patents in the market with total number of 15499 patents granted in US( USP).

Another strength of Santander F Rebranding The Business Case Study Analysis is its ability to develop innovative products at a continuous rate. It major shows for the development and item designing of Corporation is that the business has gotten so many awards for its innovation and item style.

Unlike Apple and other competitors, Enterprise is focused on producing gadgets which can be easily integrated with any type of open source Operating System (OS) and software. This supplies Corporation an edge over Apple devices.
Porter's 5 Forces Analysis
Enterprise's capability to produce luxury products at low cost of production is also one of the significant strength of Company as it allows the business to catch more market by offering quality items with expense control.

Weak points

Venture's weak points are hidden in the company's reliance on outsourcing software for its gadgets due to company's failure in establishing software, unlike Sony. Santander F Rebranding The Business Case Study Help likewise has low profit margins as compare to Apple due to big distinction in the prices of Apple and Venture with a much lesser distinction in quality.


Opportunities for Santander F Rebranding The Business Case Study Help lie in the growing Mobile phone market and the business's efficiency in the market. Organization currently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of technology industry position an extreme threat on Corporation's survival and force the company to spend much of its profits 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 risk for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Organization provides quality items and has a quite abundant portfolio which caters to different segments. LCD and mobile phones are the most significant products of Org, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Cellphone.
• A/c.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Santander F Rebranding The Business Case Study Analysis utilizes both market competitive and market skimming prices techniques for its wide variety of items. In competitive prices it adjusts the rate according to the competition in order to get advantage, whereas, it uses market skimming method where the product has actually an added 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 and so on. All its products are prompt supplied to the selling place/ delivered to the consumers directly in case of online order.

Vrio Analysis
It uses both offline & online channels of promotion to market their products. Paid item ads, social promotion and digital ads are uses to develop awareness about Business products.

Value Chain Analysis.

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

Incoming Logistics.

It has one of the most efficient and effective supply chain network and has over 2700 suppliers throughout numerous markets around the globe. Almost 80% of which is based in Asia and the remaining all over the world. For its incoming logistics it owns different logistics companies as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even reduced their payment cycles to increase this relationship further which adds value to their chain network.


Corporation's core proficiency is its mass producing it produces 90% of its items in-house. Divided into three various divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronics. It is preserving operation hubs worldwide to even more include worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is among the main factors Santander F Rebranding The Business Case Study Solution has the ability to take on Apple. Org'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 Company.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive advantage the item provides. Santander F Rebranding The Business Case Study Help advertising budget plan is constantly growing given that they started their rearranging internationally and will continue to do so as they are constantly aiming to broaden and invest in high possible growth markets. The budget plan is spent on occasions, print and media ads, public relations and so on.

Enterprise put their customers at the top and constantly strive to deliver unmatchable consumer service standards. By adding a direct support line to call them 24 hours they have actually further increased the included worth of Venture service.


Santander F Rebranding The Business Case Study Analysis has actually diversified market division, based upon its arrangement of wide variety of items to large number of customers. Business target customer sections can be divided into 3 categories i.e. Santander F Rebranding The Business Case Study Solution IT and Mobile Communications, Enterprise Customer Electronics and Corporation Device services.


Santander F Rebranding The Business Case Study Help geographical division is based upon 2 requirements i.e. region and density. Business serves about 80 nations worldwide with its items provided to Urban in addition to Rural areas of the country. The Organization is also growing its international existence and the company's versatility in finding its plants encourages international expansion of Org.


The market segmentation of Santander F Rebranding The Business Case Study Solution is based upon gender, age, life-cycle phase and occupation. Corp produces products that can be utilized by both males and females. The target consumers for Org IT and mobile communication products have an age series of 18-65 with majority at a young or newly wed life process phase. They are primarily specialists, staff members and students. Apart from it, Organization Customer Electronics are targeted to a customer sector with an age variety of 25-65. They are mainly employees and professionals. However Santander F Rebranding The Business Case Study Analysis Device Solutions are targeted at students, employees and professionals with an age variety of 25-65.


The psychographic segmentation of Santander F Rebranding The Business Case Study Solution s based upon the social class and the life style of the consumer. Company target clients on the basis of social class are mainly upper middle, middle and working class customers, as Org offer items like cellular phone not much more affordable i.e. Motorola along with not much costly i.e. Apple. It supplies quality products to middle level consumers at a slightly high rate than others targeting the exact same sector.


Santander F Rebranding The Business Case Study Help bulk target clients have unique behavioural qualities. They are brought in towards Venture because of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Venture has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Organization with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing however net profit is not increasing appropriately because of the high overhead expense. New growths and employing's were the main factor of the boost in the overhead costs, with china currently not providing any profit to Organization, but there is a lot potential 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 younger audience and produce a global brand name picture of the company. Whereas, the core strength of the company is presently making but long gone are those days when great items were offering themselves. In the present age marketing is really crucial and business can not be successful without it. Kim has actually currently started to reinforce the marketing activities of Corp and very soon it will turn into one of its core strength like manufacturing if not much better.



Business runs designs, makes and offer a large portfolio of consumer electronic devices. It operates in an incredibly competitive environment and has actually effectively placed itself as the maker of quality items. The response is yes.


As, said earlier that Santander F Rebranding The Business Case Study Analysis operates in a highly competitive environment, which suggests all the companies have similar items. The answer for rarity is no.


Due to the nature of the industry, it is really simple for rivals to comprehend the functionality of the products and quickly make their own designs. Yes, Corporation is just behind IBM in registering brand-new patents each year, but the benefit is extremely short term in this industry.


Chairman Lee has totally turnaround Corp, from going nearly bankrupt throughout 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 outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, bulk of the environments like USA, Europe, China etc., are extremely conductive for its operations. It deals with some political pressures in less industrialized countries where law and order situation is not great. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Santander F Rebranding The Business Case Study Solution operations.


Buying power of clients is important for companies like Corp to succeed and grow. Emerging markets like India, middle-eastern countries and so on supply development chances, whereas, due to economic crisis even the clients of industrialized nations suffer severely. Thus it is very essential for the company to keep an eye on the ongoing economic scenario of the country before going into the market.


International business have to face various social and cultural concerns during its operations in a foreign nation. Org has actually also dealt with numerous problems but have actually embraced to the regional environments of most of the nations remarkably well. It has tailored its products, practices, policies etc. appropriately in order to achieve success.


With an annual expenditure of 2.4 billion dollars in Research study & Advancement, and with continuous innovative item launches, Santander F Rebranding The Business Case Study Solution is one of the top innovative companies of the world. With a clear mission to be ahead of the rest when it comes to technological developments, Venture has actually risen to the no 25 of the leading effective business of the world.


Each nation has their own laws and policies, being an international company Organization have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. So, it needs to study or employ a regional law professional before beginning its operations in a specific country.


With the increasing awareness amongst customers about the ecological & ethical infractions of business, Corporation needs to make sure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be extremely severe. On the other hand it needs to do some Business Social Responsibility practices to show the locals that it appreciates their environment and people.

Porter's Five Forces

Hazard of Alternative

Hazard of replacement for Company's each item classification is rather substantial. Running in an extremely dynamic market lead the company to face a high hazard of replacement. Aspects for high risk of alternative for Santander F Rebranding The Business Case Study Help Mobile phone include the existence of high number of suppliers and Market saturation in industrialized countries, that make the cost of switching for consumers nearly absolutely no. Substitution threats for Organization visual display screen lie in the changing life style of clients. Customers can change to seeing visuals in your home towards outdoor activities. Together with it, Business printing options items are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Business and its close competitors is extreme. The major reason behind this is the approach of market saturation in numerous variety of item categories, forcing Enterprise to present more ingenious functions in existing items and new ingenious items to keep its development. Other element for the extreme rivalry among the competitors is the little item differentiation amongst the products. The popular gamers in the technology industry are rather knowledgeable about the value of R&D spending for their survival and are encountering a race of marketing and R&D costs, to record the marketplace. The significant rivals for Santander F Rebranding The Business Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the changing market shares which can be seen in Display F.

Bargaining Power of Providers:

Santander F Rebranding The Business Case Study Analysis has a huge supply chain including about 2700 suppliers throughout the world.( Enterprise Sustainability Report, 2016) Supplier's bargaining power for Organization is low as Company runs economies of scale and its orders are of possible size and worth. These big orders make it possible for Venture to work out rates with its suppliers. However, due to incapability of Santander F Rebranding The Business Case Study Help to develop its own software, it has to outsource its software application development to Google, which becomes a prospective supplier of software for Venture, leading to high bargaining power of Google. Although, in the majority of cases Organization has a power to negotiate costs, however it provide substantial costs to its providers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in most of the item categories likewise make the bargaining power of buyers more intense in for Corp. In spite of igh bargaining power Org is quite capable of offering its products at a higher rate than much of its rivals, due to high end quality product and a fair brand name image.

Threat of New Entrants:

Threat of new entrants for Santander F Rebranding The Business Case Study Analysis is rather low. Along with it, requirement of big expertise and research and advancement expenses for survival in the market also make brand-new entrants hesitant to go into in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Corp's high product diversity supplies it differentiation from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Santander F Rebranding The Business Case Study Analysis had a big R&D costs on all of its item categories which enable the company to make prospective revenue from sales of almost all of its items.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of worldwide market share, among 8 various item categories. Corp was the international leader in making DRAM, SRAM and NAND flash chips. Organization profits from chips was less than Intel but its earnings from chips was growing quicker than Intel and has grown close to the income levels of Intel, as provided in the case Exhibition 2.

Together with the chips Company mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Business's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales development. The major reson behind Venture's high growth despite of higher costs than Nokia and Motorola was the company's high-end quality cellular phone.

Venture was likewise reaping the benefits from increasing market share of high-end LCDs as given in case Exhibit 3. The significant reason, making the business allow to get the opportunity is its mass production at low expense. Sony was the greatest competitor for Santander F Rebranding The Business Case Study Solution in LCD market, however, it had likewise begun joint venture with Corporation in 2003 for LCD making, decreasing the competitors for Business.

Porter's Competitive Technique

Low Cost Management strategy of porter is totally executed by Enterprise the way they attain economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their rival SONY chose to form an alliance with them to manufacture for them, since they were not able to compete with them on low expense. Distinction is another method well implemented by Organization by continuous investment in the R&D and staying ahead of the competition. They always bring something ingenious and brand-new whether it's a product or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Santander F Rebranding The Business Case Study Solution would develop a new brand name image by targeting the more youthful generation of the particular country. As, especially smart phones of Company are very popular amongst the more youthful demographic.


1. It is the best technique to build Consumer Life time Value (CLV) by producing a long-lasting relationship with clients. Develop commitment through delivering value and reap the benefits for long-lasting, as research has revealed it is more affordable to keep existing clients than to bring in brand-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 consumers for my products.


1. Old consumers who were related to Venture prior to might not like this new image the company is trying to represent.
2 It will sustain further expenditures to rearrange some items and it might not even bring success as the patterns alter extremely quickly among the more youthful group.

Alternative solution 2.

It would be done by organizing training workshops during which importance of marketing will be taught and numbers will be given. Marketing environment must be created internally first as real marketing begins inside the corporation.


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


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

Identify the best alternative

Very first option is the very best as it clearly has more pros due to the fact that once a Client Lifetime Worth is constructed the company will make money from it till that consumer is alive and has buying power too. Plus, our target customers are the younger generation which are bound to live longer than the current aging individuals. Business's main goal is to produce loyalty amongst its consumers and make them repurchase it from them and even purchase their various products.

Execution Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi make with music. And set the expectations attainable and sensible.
• A team including best marketing and sales specialists ought to be assemble, and both views should be taken into account prior to protecting the resources needed to execute the strategy.
• Thorough communication of the plan ought to be done as it is really essential for everybody to be on the exact same page to make it work.
• Tasks and timelines ought to be build and interacted accordingly to each individual responsible.
• The supervisor should use a control panel which reveals the development of all the jobs which have actually been done or about to be done and by whom.
• The manager need to monitor and keep a constant look at the general and private efficiency.
Since any brand-new pattern or policy may come in due to which all the things already planned have to be adjusted, • Everyone should be prepared to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the project the supervisor need to interact the outcomes and if successful ought to celebrate with the team.

Spending plan

The M-net program exposed engaging analysis about the low and high development potential areas and how much marketing spending plan need to be allocated accordingly. This change the spending plan allotment of many supervisors and various countries were unhappy and argued however the analysis done by the program was precise and showed figures like North America and Russia growth prospective warranted a 35% allowance while they were receiving 45%. Whereas, China and Europe must be getting 42% but were instead offered 31%. It actually assisted to fairly disperse the resources and capture more customers by spending more on advertisements on the high growth potential regions of the world.

Its consistent investment in R&D and ingenious practices have propelled them to new heights however for them its' only the start and they desire to be among the leading 3 brand names in the world. Their marketing efforts must be directed towards more youthful group amid the internal arguments about marketing and must develop Consumer Life time Worth as it will not only give them advantages now however will continue to reap it till the client life time. As the cost of keeping the consumer is much less expensive than bring in a brand-new one.