Socio Economic Analysis For Dibi Milano Company Harvard Case Study Solution

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Socio Economic Analysis For Dibi Milano Company Case Study Solution & Analysis


Socio Economic Analysis For Dibi Milano Company Case Study Solution is a well-known international brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Socio Economic Analysis For Dibi Milano Company handle large number of product classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and much more other electronic items. Historically, the company's core consumers consist of the Original Equipment Manufacturers (OEMs), which used to sell Org items withtheir own trademark name. Till early 1990s, the core competency of Organization depend on its low price offerings than its competitors by making existing items at economies of scale. Its client circle consists of Original Devices Manufacturers (OEMs), who used to sell Socio Economic Analysis For Dibi Milano Company Case Study Solution items with their own trademark name. Enterprise was not merely understood outside Korea. There were likewise no or little interest in building the brand name globally. Marketing budget plan was controlled by production department with a focal point on providing cheap products.During the 1997 Asian Financial Crisis the company practically got insolvent, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was noted the leading 25 most valuable business on the planet. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He repositioned Organization as a global brand and educated his divisional managers to understand marketing and its importance. Now their goal is to reach the top 10 by 2005.

Issue Statement

Corp's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing effectively is still a significant challenge. Producing a constant brand name identity throughout the whole world and employing marketing techniques that finest fits the regional culture is no simple task. The M-net program analysis have been actually helpful in determining the high and less possible growth locations, however allowance of resources accordingly is not well gotten amongst the supervisors. There is no agreement amongst the hierarchy regarding the very best fit future technique.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Socio Economic Analysis For Dibi Milano Company Case Study Solution can transform from a low end to a high end item service provider. He knew that transformation can just be done through positioning Org as a business using high-end items and this might only be done through high level of marketing.

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

One of the marketing obstacles for Yun was the understandings 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 quite low in their previous business practices, and the present marketing requirement was excessive high, the space was too wider and to fill this space with incorrect perceptions about marketing was quite difficult for Yun.

As stated above, marketing focus was extremely low in previous practices, therefore there were no proper marketing budget plans for each of the item on the portfolio. There was no marketing preparation provided for the existing products. Along with it the product variety of the business was increasing with the ripening of new item ideas by the R&D sector of Enterprise. Yun had a difficulty to perform marketing planning and to create marketing spending plans for existing along with for new items from the very beginning, and this would take a big time.

A huge shift would be needed in present marketing expenditures to build the Organization brand name. This would result in increased marketing expenditures for Corporation and could disturb the administration regarding increased costs, as they were unwilling to marketing expenditures previously and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Solution strengths lie in its huge product portfolio. Org has largest number of patents in the industry with total number of 15499 patents approved in United States( USP).

Another strength of Socio Economic Analysis For Dibi Milano Company Case Study Analysis is its capability to establish innovative products at a continuous rate. It significant proves for the innovation and item developing of Corporation is that the business has received many awards for its innovation and item style.

Unlike Apple and other rivals, Org is concentrated on producing devices which can be easily incorporated with any type of open source Os (OS) and software. This offers Company an edge over Apple gadgets.
Porter's 5 Forces Analysis
Business's capability to produce high end products at low cost of production is also one of the significant strength of Corp as it enables the business to capture more market by supplying quality products with expense control.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis weak points are concealed in the business's reliance on outsourcing software for its gadgets due to company's inability in establishing software application, unlike Sony. Corp likewise has low earnings margins as compare to Apple due to huge difference in the prices of Apple and Business with a much lesser distinction in quality. The diverse focus of the company due to large number of products in its portfolio, lead to the less effective production and make the company not able to charge higher rates like Apple. The company is likewise ineffective in handling its patents and often deals with the problem of patent infraction.


Opportunities for Corporation depend on the growing Smartphone market and the business's efficiency in the market. It can increase its market share and earnings from cell phone as the company is quite efficient in cell phone market. Business currently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Business can move towards acquisitions to obtain patents. It would make it possible for the company to increase its product portfolio with a boost in its wealth.


The vibrant market environment of innovation industry present a severe hazard on Corporation's survival and require the company to invest much of its revenues share on R&D in order to endure in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a huge danger for the business's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Solution offers quality items and has a quite rich portfolio which deals with various segments. The majority of the items remain in the top three of their respective markets. LCD and smart phones are the most significant products of Org, whereas DRAM is also not far behind in contrast of them. Following is the product line of Org:

• Laptops.
• Cellphone.
• Air conditioner.
• Desktop computer.
• Disk drives.
• Washer.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.


Socio Economic Analysis For Dibi Milano Company Case Study Help utilizes both market competitive and market skimming rates techniques for its wide array of items. In competitive pricing it adjusts the rate according to the competitors in order to gain benefit, whereas, it utilizes market skimming strategy where the item has actually an added value and by selling a few items it can reach break-even.


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

Vrio Analysis
It utilizes both offline & online channels of promo to market their items. Paid item advertisements, social promo and digital ads are utilizes to develop awareness about Company items.

Worth Chain Analysis.

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

Incoming Logistics.

For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and produces a harmonious relationship with them and even lowered their payment cycles to enhance this relationship even more which includes worth to their chain network.


Business's core competency is its mass making it produces 90% of its items internal. Divided into 3 various departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation hubs worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is among the primary factors Socio Economic Analysis For Dibi Milano Company Case Study Analysis has the ability to take on Apple. Company's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Venture.

Marketing and Sales.

Bring in target client attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item provides. Socio Economic Analysis For Dibi Milano Company Case Study Solution advertising spending plan is continually growing since they started their rearranging worldwide and will continue to do so as they are constantly wanting to expand and invest in high potential growth markets. The budget plan is invested in events, print and media ads, public relations and so on.

Organization put their clients at the leading and continuously make every effort to provide unmatchable customer service requirements. By adding a direct assistance line to contact them 24 hours they have further increased the included worth of Venture service.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis has diversified market segmentation, based upon its arrangement of large range of products to a great deal of consumers. Organization target consumer sectors can be divided into 3 categories i.e. Socio Economic Analysis For Dibi Milano Company Case Study Help IT and Mobile Communications, Corporation Consumer Electronic Devices and Organization Device solutions.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis geographic segmentation is based upon 2 criteria i.e. area and density. Enterprise serves about 80 nations worldwide with its items supplied to Urban along with Rural areas of the country. The Venture is likewise growing its international existence and the company's versatility in finding its plants motivates international growth of Enterprise.


The market division of Socio Economic Analysis For Dibi Milano Company Case Study Solution is based upon gender, age, life-cycle stage and occupation. Corp produces products that can be used by both females and males. The target consumers for Org IT and mobile communication items have an age variety of 18-65 with majority at a young or recently married life process stage. They are mainly staff members, professionals and students. Apart from it, Org Consumer Electronic devices are targeted to a client sector with an age range of 25-65. They are primarily professionals and staff members. Enterprise Gadget Solutions are targeted at students, employees and experts with an age variety of 25-65.


The psychographic segmentation of Socio Economic Analysis For Dibi Milano Company Case Study Solution s based upon the social class and the lifestyle of the customer. Business target customers on the basis of social class are generally upper middle, middle and working class consumers, as Enterprise offer items like cell phones not much more affordable i.e. Motorola as well as not much expensive i.e. Apple. It provides quality products to middle level consumers at a somewhat high price than others targeting the exact same segment.


Socio Economic Analysis For Dibi Milano Company Case Study Help bulk target customers have distinct behavioural qualities. It has clients with an enthusiastic, stylish and determined personality with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other popular brand names i.e. Apple. The majority of Org clients want quality in addition to expense control. Due to the fact that of its moderate prices with an extent of quality, they are brought in towards Venture.

Quantitative analysis.

Sales of Venture has actually 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 also decreased its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the biggest selling category of Corporation with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Due to the fact that of the high overhead cost, revenues/ sales are increasing however net revenue is not increasing appropriately. New expansions and employing's were the main reason of the increase in the overhead costs, with china presently not supplying any earnings to Org, however there is so much potential in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the younger audience and develop a worldwide brand name image of the company. Whereas, the core strength of the business is presently producing but long gone are those days when excellent items were selling themselves. In the current age marketing is very crucial and companies can not succeed without it. Kim has already started to reinforce the marketing activities of Organization and very soon it will become one of its core strength like producing if not better.



Corp operates styles, manufactures and sell a large portfolio of consumer electronic devices. It runs in an exceptionally competitive environment and has successfully placed itself as the maker of quality products. The response is yes.


As, stated earlier that Socio Economic Analysis For Dibi Milano Company Case Study Analysis operates in an extremely competitive environment, which implies all the business have comparable items. So, the response for rarity is no.


Due to the nature of the industry, it is really simple for rivals to understand the functionality of the items and quickly make their own designs. Yes, Business is just behind IBM in signing up new patents every year, however the benefit is very short-term in this market.


Chairman Lee has totally turn-around Corp, from going practically insolvent during the Asian financial crisis of 1997 to the leading 25 business on the planet. Definitely yes there is proper company in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread nearly in every country worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized nations where law and order scenario is not great. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Socio Economic Analysis For Dibi Milano Company Case Study Solution operations.


Purchasing power of consumers is essential for companies like Corp to grow and prosper. Emerging markets like India, middle-eastern nations and so on supply growth chances, whereas, due to economic crisis even the customers of developed nations suffer badly. It is really important for the business to keep an eye on the continuous financial scenario of the country before going into the market.


International business have to deal with different social and cultural issues throughout its operations in a foreign country. Corp has actually likewise faced lots of concerns however have adopted to the regional environments of the majority of the nations extremely well. It has customized its items, practices, policies etc. accordingly in order to succeed.


With a yearly expense of 2.4 billion dollars in Research study & Advancement, and with constant ingenious item launches, Socio Economic Analysis For Dibi Milano Company Case Study Solution is among the top ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological developments, Corporation has increased to the no 25 of the leading successful business of the world.


Each nation has their own laws and policies, being an international company Corp have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. It has to study or employ a local law specialist prior to beginning its operations in a particular country.


With the rising awareness among customers about the ethical & ecological infractions of business, Corporation needs to ensure that it follows all the safety guidelines. Ecological damages, ethical misconducts are not acceptable and in some countries the repercussions can be extremely severe. On the other hand it has to do some Business Social Responsibility practices to show the locals that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Substitution

Hazard of alternative for Corporation's each product category is rather considerable. Running in an extremely vibrant market lead the company to deal with a high risk of alternative. Factors for high threat of substitution for Socio Economic Analysis For Dibi Milano Company Case Study Solution Smartphone include the presence of high number of suppliers and Market saturation in developed nations, that make the expense of switching for customers almost zero. Replacement risks for Company visual display screen lie in the altering life style of customers. Consumers can change to watching visuals in the house towards outdoor activities. In addition to it, Enterprise printing options products are threatened by the increasing tourist attraction of consumers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Org and its close competitors is intense. The major factor behind this is the technique of market saturation in numerous number of product categories, forcing Organization to present more ingenious functions in existing items and new ingenious products to maintain its development. Other factor for the intense competition amongst the competitors is the little item differentiation among the products. The popular players in the technology market are quite familiar with the importance of R&D costs for their survival and are facing a race of marketing and R&D costs, to capture the marketplace. The significant competitors for Socio Economic Analysis For Dibi Milano Company Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

Socio Economic Analysis For Dibi Milano Company Case Study Help has a large supply chain including about 2700 suppliers across the world.( Company Sustainability Report, 2016) Supplier's bargaining power for Enterprise is low as Venture runs economies of scale and its orders are of potential size and worth. These substantial orders allow Business to negotiate prices with its suppliers. However, due to incapability of Socio Economic Analysis For Dibi Milano Company Case Study Analysis to construct its own software, it has to outsource its software application advancement to Google, which ends up being a potential provider of software application for Venture, resulting in high bargaining power of Google. In many of Socio Economic Analysis For Dibi Milano Company Case Study Help has a power to work out costs, however it supply substantial rates to its suppliers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in many of the product categories likewise make the bargaining power of purchasers more intense in for Org. In spite of igh bargaining power Organization is rather capable of offering its items at a higher price than much of its competitors, due to high end quality item and a fair brand name image.

Threat of New Entrants:

Threat of brand-new entrants for Venture is rather low. Among the major aspect for low risk of new entrants is the high competitors in the market. The requirement of big amount of capital to go into in the market is likewise one of the prospective barrier to entry. Together with it, requirement of substantial knowledge and research study and advancement expenses for survival in the industry likewise make brand-new entrants unwilling to go into in the market. Market saturation is also among the barrier of entry in innovation market. High bargaining power of providers require the players in the industry to charge as low costs as possible and this can only be attained by production performance. Brand-new firms, in majority cases, lack the production efficiency, thus increasing the risks for entryway in the innovation industry.

Competitive Analysis

Company's high item diversification supplies it distinction from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Socio Economic Analysis For Dibi Milano Company Case Study Analysis had a huge R&D spending on all of its item categories which allow the company to make prospective profits from sales of almost all of its products.

The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of global market share, amongst 8 different product categories. Corporation was the global leader in producing DRAM, SRAM and NAND flash chips. Although, Corp revenues from chips was less than Intel however its profits from chips was growing faster than Intel and has actually grown near the profits levels of Intel, as given in the case Exhibit 2.

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

Venture was also profiting from increasing market share of high end LCDs as given up case Display 3. The major reason, making the business allow to get the chance is its mass production at low cost. Sony was the biggest competitor for Socio Economic Analysis For Dibi Milano Company Case Study Analysis in LCD market, nevertheless, it had actually also begun joint venture with Company in 2003 for LCD manufacturing, minimizing the competitors for Organization.

Porter's Competitive Strategy

Low Expense Management technique of porter is completely carried out by Venture the way they attain economies of scale by reinforcing their core competencies of production. They always bring something innovative and brand-new whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Socio Economic Analysis For Dibi Milano Company Case Study Help would develop a brand-new brand name image by targeting the younger generation of the specific nation. As, particularly mobile phones of Business are very popular among the younger group.


1. It is the best method to construct Consumer Lifetime Worth (CLV) by producing a long-lasting relationship with consumers. Develop commitment through delivering worth and profit for long-lasting, as research has actually showed it is more affordable to keep present consumers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread quicker among more youthful people and which in turn will generate new clients for my items.


1. Old consumers who were associated with Enterprise before might not like this new image the company is trying to represent.
2 It will incur more expenses to rearrange some products and it may not even bring success as the patterns change very quickly amongst the more youthful market.

Alternative solution 2.

Org has made making its core competency for the most part of their organisation and due to which its supervisors are not afraid to totally get out of their convenience zone. It would be done by organizing training workshops during which value of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be created internally first as real marketing starts inside the corporation.


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


2. Its con can produce an extremely unhealthy environment in the work environment, as individuals often 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 Customer Life time Value is built the company will profit from it till that client lives and has acquiring power too. Plus, our target customers are the more youthful generation which are bound to live longer than the current old age individuals. Organization's primary goal is to produce loyalty among its customers and make them bought it from them and even purchase their various products.

Implementation Strategy

• Targeting younger generation through social marketing, creating a link with them like Pepsi make with music. And set the expectations possible and sensible.
• A team including finest marketing and sales professionals must be assemble, and both views need to be taken into account prior to securing the resources needed to execute the plan.
• Thorough interaction of the strategy ought to be done as it is extremely essential for everyone to be on the exact same page to make it work.
• Jobs and timelines must be develop and interacted accordingly to each individual accountable.
• The manager need to use a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor should keep track of and keep a continuous check on the private and general performance.
• Everyone should be willing to adjust midway due to the fact that any new trend or policy may come in due to which all the important things already prepared need to be changed. It's much better to have contingency plans already prepared.
• At the end of the project the manager ought to interact the results and if effective should commemorate with the team.


This change the spending plan allocation of various nations and lots of managers were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth potential warranted a 35% allotment while they were receiving 45%. It really helped to relatively disperse the resources and catch more customers by investing more on ads on the high development capacity regions of the world.

Its consistent financial investment in R&D and innovative practices have moved them to new heights but for them its' only the start and they desire to be among the leading 3 brands in the world. Their marketing efforts should be directed towards younger group in the middle of the internal arguments about marketing and need to produce Customer Lifetime Value as it will not only give them benefits now but will continue to gain it till the consumer life time. As the cost of maintaining the consumer is much more affordable than bring in a brand-new one.