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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 sell Santander F Rebranding The Business Case Study Solution products withtheir own brand name. Its client circle consists of Original Devices Manufacturers (OEMs), who utilized to sell Org products with their own brand name. He rearranged Org as an international brand and educated his divisional supervisors to understand marketing and its significance.

Problem Statement

Company's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to incorporate marketing effectively is still a significant challenge. Developing a constant brand name identity throughout the entire world and employing marketing strategies that best fits the local culture is no simple job.
Executive Summary
Situational Analysis

Santander F Rebranding The Business Case Study Help efforts for building its brand throughout the world was begun after presenting the "new management effort" by Chairman Lee in 1993. The goal was to transform Organization from a cheap OEM to a high value-added product service provider. To make the vision of Business a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Business can transform from a low end to a luxury product company. He knew that improvement can only be done through positioning Company as a company 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 Venture brand, with a potential assistance of its executives, Yun dealt with several marketing challenges in early years of its efforts.

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

As specified above, marketing focus was extremely low in previous practices, therefore there were no proper marketing budgets for each of the item on the portfolio. There was no marketing planning done for the existing items. Together with it the product series of the company was increasing with the ripening of new item ideas by the R&D sector of Org. Yun had a difficulty to carry out marketing preparation and to create marketing budgets for existing as well as for new items from the very beginning, and this would take a huge time.

A huge shift would be needed in current marketing expenses to develop the Business brand name. This would result in increased marketing expenses for Corporation and might interrupt the administration concerning increased expenses, as they were unwilling to marketing expenditures formerly and an unexpected big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Corporation strengths depend on its substantial item portfolio. Org has largest variety of patents in the market with overall variety of 15499 patents granted in United States( USP). Big amount of R&D spending has actually made it possible for the company to grow its product portfolio at a greater rate than its competitors. Santander F Rebranding The Business Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Santander F Rebranding The Business Case Study Analysis is its capability to establish innovative products at a constant rate. It significant shows for the development and item designing of Enterprise is that the business has actually received many awards for its innovation and product design.

Unlike Apple and other rivals, Enterprise is concentrated on producing gadgets which can be quickly incorporated with any kind of open source Os (OS) and software application. This offers Corp an edge over Apple gadgets.
Porter's 5 Forces Analysis
Corporation's capability to produce high-end items at low expense of production is also one of the major strength of Corp as it makes it possible for the company to capture more market by offering quality items with cost control.


Santander F Rebranding The Business Case Study Help weaknesses are hidden in the company's reliance on outsourcing software application for its gadgets due to company's inability in establishing software, unlike Sony. Organization also has low earnings margins as compare to Apple due to big distinction in the prices of Apple and Corp with a much lower distinction in quality. The varied focus of the company due to a great deal of products in its portfolio, lead to the less efficient production and make the business unable to charge higher prices like Apple. The company is likewise inefficient in handling its patents and frequently faces the problem of patent violation.


Opportunities for Organization lie in the growing Smartphone market and the company's performance in the market. It can increase its market share and earnings from cell phone as the company is rather effective in cell phone market. Venture 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. Company can move towards acquisitions to get patents. It would allow the business to increase its item portfolio with an increase in its wealth.


The dynamic market environment of technology industry posture an extreme risk on Corporation's survival and force the company to invest much of its incomes share on R&D in order to make it through in the long run. The marketplace saturation in developed countries i.e. saturation of mobile business is likewise a huge danger for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Santander F Rebranding The Business Case Study Analysis offers quality items and has a quite rich portfolio which caters to different sectors. Most of the items remain in the leading three of their respective markets. LCD and cellphones are the biggest products of Corporation, whereas DRAM is also not far behind in comparison of them. Following is the product line of Corporation:

• Laptops.
• Mobile phones.
• Ac system.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Santander F Rebranding The Business Case Study Help uses both market competitive and market skimming pricing techniques for its wide variety of products. In competitive prices it adjusts the price according to the competitors in order to get advantage, whereas, it utilizes market skimming technique where the product has an included worth 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 items are timely provided to the selling place/ delivered to the consumers directly in case of online order.

Vrio Analysis
It wasn't a well-known company outside of Korea till 1993. However the management initiative taken by their CEO has pushed them to market more effectively outside the borders and now it has gone into the league of leading 25 companies in the world in simply 9 years. This is an amazing achievement despite the continuous arguments among the managers about embracing marketing practices. It uses both offline & online channels of promo to market their products. Paid item advertisements, social promo and digital ads are uses to produce awareness about Organization items.

Worth Chain Analysis.

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

Incoming Logistics.

For its inbound logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even lowered their payment cycles to enhance this relationship further which adds worth to their chain network.


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

Outbound Logistics.

Its outbound logistics system performance is one of the main factors Santander F Rebranding The Business Case Study Help has the ability to compete with Apple. Org's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Enterprise.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive advantage the product provides. Santander F Rebranding The Business Case Study Analysis advertising spending plan is continuously rising given that they started their rearranging internationally and will continue to do so as they are constantly aiming to broaden and invest in high prospective growth markets. The spending plan is invested in events, print and media ads, public relations and so on.

Company Service. Venture put their consumers at the top and continuously make every effort to deliver unmatchable customer care requirements. As after sales service is becoming extremely important to keep clients happy and engaged, they even conduct studies through third parties to learn their customer's feedback and implement it in the favorable way to reduce or if possible entirely eliminate their customer 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 Help service.


Santander F Rebranding The Business Case Study Analysis has actually diversified market segmentation, based upon its provision of wide variety of items to large number of consumers. Org target customer sections can be divided into 3 classifications i.e. Santander F Rebranding The Business Case Study Solution IT and Mobile Communications, Corporation Customer Electronics and Venture Device solutions.


Santander F Rebranding The Business Case Study Help geographical segmentation is based upon two criteria i.e. region and density. Business serves about 80 nations worldwide with its items offered to Urban as well as Backwoods of the country. The Company is likewise growing its global existence and the business's versatility in finding its plants encourages international expansion of Venture.


Corp produces products that can be used by both males and females. The target customers for Organization IT and mobile communication items have an age variety of 18-65 with majority at a young or recently married life cycle stage. Apart from it, Organization Customer Electronic devices are targeted to a consumer section with an age range of 25-65.


The psychographic segmentation of Santander F Rebranding The Business Case Study Analysis s based upon the social class and the lifestyle of the consumer. Corporation target clients on the basis of social class are generally upper middle, middle and working class clients, as Business sell items like cellular phone very little less expensive i.e. Motorola in addition to very little pricey i.e. Apple. It provides quality items to middle level customers at a slightly high price than others targeting the exact same sector.


Santander F Rebranding The Business Case Study Help bulk target customers have unique behavioural attributes. They are brought in towards Company due to the fact that of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Santander F Rebranding The Business Case Study Help has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Business with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based on the mission of Kim to target the more youthful audience and develop a worldwide brand name image of the company. Whereas, the core strength of the business is currently producing but long gone are those days when good products were selling themselves. In the existing age marketing is very essential and companies can not prosper without it. Kim has actually already started to enhance the marketing activities of Enterprise and soon it will turn into one of its core strength like making if not better.



Org runs styles, manufactures and offer a huge portfolio of customer electronics. It runs in an incredibly competitive environment and has effectively positioned itself as the maker of quality items. The answer is yes.


As, said previously that Santander F Rebranding The Business Case Study Analysis operates in an extremely competitive environment, which implies all the business have comparable products. The answer for rarity is no.


Due to the nature of the market, it is really simple for rivals to understand the performance of the items and easily make their own models. Yes, Corp is only behind IBM in signing up new patents yearly, however the advantage is very short-term in this market.


Chairman Lee has completely turnaround Organization, from going practically bankrupt during the Asian monetary crisis of 1997 to the leading 25 business in the world. Definitely yes there is proper company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand spread almost in every nation worldwide, majority of the environments like USA, Europe, China and so on, are really conductive for its operations. It deals with some political pressures in less developed nations where law and order circumstance is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Santander F Rebranding The Business Case Study Help operations.


Buying power of customers is vital for companies like Company to succeed and grow. Emerging markets like India, middle-eastern countries and so on supply development chances, whereas, due to recession even the consumers of developed countries suffer terribly. It is really essential for the business to keep an eye on the continuous financial scenario of the nation before entering the market.


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


With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with constant innovative product launches, Santander F Rebranding The Business Case Study Solution is one of the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it concerns technological advancements, Company has actually increased to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being an international business Enterprise need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. So, it has to study or work with a local law specialist prior to starting its operations in a specific country.


With the increasing awareness among customers about the ethical & environmental offenses of business, Corporation has to make sure that it follows all the safety guidelines. Ecological damages, ethical misconducts are not appropriate and in some countries the consequences can be really severe. On the other hand it needs to do some Corporate Social Responsibility practices to show the residents that it cares about their environment and individuals.

Porter's Five Forces

Hazard of Replacement

Danger of replacement for Company's each product classification is quite significant. Running in an extremely dynamic market lead the business to face a high hazard of replacement. Aspects for high risk of substitution for Santander F Rebranding The Business Case Study Analysis Mobile phone include the presence of high variety of suppliers and Market saturation in developed countries, which make the cost of switching for customers practically absolutely no. Replacement threats for Corporation visual display depend on the altering lifestyle of customers. Clients can change to seeing visuals at home towards outside activities. Along with it, Enterprise printing options items are threatened by the increasing destination of clients towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Corporation and its close rivals is extreme. The major reason behind this is the method of market saturation in numerous variety of item classifications, requiring Business to introduce more ingenious functions in existing products and new innovative items to keep its development. Other aspect for the intense competition among the competitors is the little product differentiation amongst the products. The popular players in the innovation industry are quite knowledgeable about the value of R&D spending for their survival and are running into a race of marketing and R&D spending, to catch the market. The major rivals for Santander F Rebranding The Business Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

( Venture Sustainability Report, 2016) Supplier's bargaining power for Enterprise is low as Business runs economies of scale and its orders are of prospective size and worth. Due to incapability of Santander F Rebranding The Business Case Study Solution to develop its own software application, it has to outsource its software application advancement to Google, which becomes a possible provider of software for Organization, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in many of the item categories likewise make the bargaining power of buyers more intense in for Business. In spite of igh bargaining power Organization is rather capable of offering its products at a greater price than much of its rivals, due to high end quality product and a fair brand image.

Danger of New Entrants:

Danger of new entrants for Corp is quite low. Among the major element for low risk of brand-new entrants is the high competition in the market. The requirement of substantial amount of capital to go into in the marketplace is also among the prospective barrier to entry. Together with it, requirement of substantial know-how and research and development expenses for survival in the market likewise make brand-new entrants unwilling to go into in the marketplace. Market saturation is likewise one of the barrier of entry in innovation market. High bargaining power of suppliers force the players in the market to charge as low prices as possible and this can just be attained by production effectiveness. Brand-new companies, in majority cases, lack the production efficiency, for this reason increasing the dangers for entryway in the technology industry.

Competitive Analysis

Company's high product diversification provides it differentiation from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Santander F Rebranding The Business Case Study Solution had a big R&D costs on all of its product classifications which enable the company to make possible income from sales of practically all of its items.

The company ranks first in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of global market share, amongst 8 different product classifications. Corporation was the worldwide leader in producing DRAM, SRAM and NAND flash chips. Although, Enterprise revenues from chips was less than Intel however its incomes from chips was growing faster than Intel and has grown near the earnings levels of Intel, as given in the case Display 2.

Along with the chips Corporation mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Venture's cellular phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The major reson behind Business's high growth despite of higher costs than Nokia and Motorola was the company's high-end quality mobile phone.

Business was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The significant reason, making the company enable to get the opportunity is its mass production at low expense. Sony was the most significant rival for Santander F Rebranding The Business Case Study Analysis in LCD market, however, it had actually likewise started joint endeavor with Venture in 2003 for LCD manufacturing, reducing the competition for Venture.

Porter's Competitive Technique

Low Cost Leadership method of porter is completely implemented by Corp the way they accomplish economies of scale by enhancing their core competencies of manufacturing. Even to the point that their competitor SONY chose to form an alliance with them to manufacture for them, since they were unable to compete with them on low cost. Differentiation is another method well implemented by Organization by constant investment in the R&D and staying ahead of the competitors. They constantly bring something new and ingenious whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Santander F Rebranding The Business Case Study Help would produce a brand-new brand image by targeting the younger generation of the particular nation. As, specifically mobile phones of Enterprise are preferred amongst the younger demographic.


1. It is the best strategy to develop Customer Lifetime Worth (CLV) by developing a long-lasting relationship with customers. Construct commitment through providing value and profit for long-lasting, as research study has showed it is more affordable to keep current clients than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker amongst younger individuals and which in turn will bring in new customers for my items.


1. Old clients who were related to Corp before might not like this new image the company is attempting to depict.
2 It will sustain more expenditures to rearrange some products and it may not even bring success as the trends alter extremely rapidly among the more youthful market.

Alternative solution 2.

Organization has made making its core proficiency for the many part of their company and due to which its supervisors are not scared to completely step out of their convenience zone. It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get benched. Marketing environment ought to be produced internally initially as real marketing begins inside the corporation.


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


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

Determine the very best alternative

First option is the very best as it clearly has more pros because as soon as a Customer Lifetime Worth is developed the business will make money from it till that client lives and has acquiring power too. Plus, our target consumers are the younger generation which are bound to live longer than the current old age individuals. Venture's main objective is to develop commitment amongst its customers and make them bought it from them and even buy their various items.

Application Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi finish with music. And set the expectations practical and attainable.
• A team consisting of finest marketing and sales experts must be assemble, and both views should be taken into consideration prior to securing the resources required to implement the strategy.
• Thorough communication of the strategy need to be done as it is very important for everyone to be on the exact same page to make it work.
• Tasks and timelines ought to be construct and communicated accordingly to each individual responsible.
• The supervisor ought to utilize a dashboard which reveals the progress of all the tasks which have actually been done or about to be done and by whom.
• The manager need to keep an eye on and keep a consistent check on the total and individual performance.
• Everyone must want to adapt midway due to the fact that any brand-new trend or policy might be available in due to which all the things already prepared have to be changed. It's better to have contingency strategies already prepared.
• At the end of the project the manager should communicate the outcomes and if effective must celebrate with the team.

Spending plan

The M-net program revealed engaging analysis about the low and high growth possible locations and just how much advertising budget should be allocated accordingly. This modification the budget plan allocation of numerous supervisors and various nations were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia development prospective merited a 35% allocation while they were receiving 45%. Whereas, China and Europe ought to be receiving 42% however were instead offered 31%. It truly helped to fairly distribute the resources and catch more customers by spending more on ads on the high development potential regions of the world.

Santander F Rebranding The Business Case Study Solution is a leading 25 business on the planet now and plans to get ahead of Sony who sits currently at no. 20. Its continuous financial investment in R&D and innovative practices have propelled them to brand-new heights however for them its' only the start and they wish to be among the leading 3 brand names in the world. They totally turn-around from nearly declaring bankruptcy throughout the Asian Financial Crisis to a world distinguished brand name, understood for quality and development. Their value chain and their core competency their production capability, along-with global brand image structure have actually 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 must be directed towards younger demographic amidst the internal arguments about marketing and should create Client Life time Worth as it will not just give them advantages now but will continue to reap it till the client life time. As the cost of keeping the client is much cheaper than bring in a brand-new one.