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Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which used to sell Socio Economic Analysis For Dibi Milano Company Case Study Analysis products withtheir own brand name. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He rearranged Samsung as an international brand name and educated his divisional managers to understand marketing and its value.

Issue Declaration

Samsung's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the reluctance of divisional managers to include marketing successfully is still a major challenge. Creating a consistent brand identity throughout the entire world and utilizing marketing strategies that finest fits the local culture is no easy task. The M-net program analysis have actually been really helpful in identifying the high and less possible growth locations, but allotment of resources accordingly is not well received amongst the managers. There is no consensus amongst the hierarchy relating to the best fit future technique.

Situational Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Solution efforts for developing its trademark name across the world was started after presenting the "new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from a low-cost OEM to a high value-added product provider. To make the vision of Samsung a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear image 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 providing high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand, with a possible assistance of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the existing marketing requirement was too much high, the space was too larger and to fill this space with incorrect understandings about marketing was quite tough for Yun.

Along with it the product range of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had an obstacle to perform marketing planning and to produce marketing budgets for existing as well as for new products from the very start, and this would take a huge time.

A huge shift would be needed in present marketing expenditures to construct the Socio Economic Analysis For Dibi Milano Company Case Study Help brand name. This would result in increased marketing expenses for Samsung and could disrupt the administration concerning increased costs, as they were reluctant to marketing expenditures formerly and a sudden huge shiftwould make them disturb. This might result in declining executive assistance for global marketing. In this situation, Yun faces an obstacle for justifying increased marketing expenses by demonstrating the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its big product portfolio. Samsung has largest number of patents in the market with overall variety of 15499 patents granted in United States( USP). Big amount of R&D costs has allowed the company to grow its product portfolio at a higher rate than its competitors. Socio Economic Analysis For Dibi Milano Company Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall incomes.

Another strength of Socio Economic Analysis For Dibi Milano Company Case Study Solution is its capability to develop ingenious products at a constant rate. It major shows for the innovation and product creating of Samsung is that the business has actually gotten a lot of awards for its development and item style.

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

Samsung's ability to produce high end items at low expense of production is also among the significant strength of Samsung as it makes it possible for the company to record more market by offering quality products with expense control.


Samsung's weaknesses are hidden in the business's reliance on outsourcing software for its gadgets due to business's failure in developing software, unlike Sony. Socio Economic Analysis For Dibi Milano Company Case Study Help also has low revenue margins as compare to Apple due to huge difference in the costs of Apple and Samsung with a much lesser difference in quality.


Opportunities for Samsung depend on the growing Smart device market and the business's effectiveness in the market. It can increase its market share and revenues from mobile phone as the business is rather efficient in cell phone market. Samsung presently runs in about 80 countries 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 acquire patents. It would allow the company to increase its product portfolio with a boost in its wealth.


The dynamic industry environment of technology market present a severe risk on Samsung's survival and force the business to spend much of its profits share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile company is also a huge danger for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing


Samsung uses quality items and has a rather abundant portfolio which caters to different sectors. LCD and mobile phones are the most significant products of Samsung, whereas DRAM is likewise not far behind in contrast of them.

• Laptops.
• Mobile phones.
• A/c.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Socio Economic Analysis For Dibi Milano Company Case Study Solution uses both market competitive and market skimming rates methods for its wide variety of items. In competitive prices it adjusts the cost according to the competitors in order to get advantage, whereas, it uses market skimming method where the item has an added worth and by selling a couple of products 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 and so on. All its items are prompt supplied to the selling place/ provided to the consumers directly in case of online order.


It uses both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital advertisements are utilizes to produce awareness about Samsung items.

Value Chain Analysis.

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

Incoming Logistics.

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


Samsung's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into three different departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is preserving operation hubs worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the primary reasons Socio Economic Analysis For Dibi Milano Company Case Study Analysis is able to compete with Apple. Samsung's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item uses. Socio Economic Analysis For Dibi Milano Company Case Study Analysis marketing spending plan is continuously on the rise given that they started their rearranging worldwide and will continue to do so as they are constantly seeking to invest and broaden in high potential growth markets. The spending plan is spent on occasions, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their customers on top and constantly aim to provide unmatchable customer service standards. As after sales service is becoming exceptionally essential to keep clients delighted and engaged, they even carry out surveys through third parties to learn their client's feedback and implement it in the positive way to reduce or if possible completely eliminate their client issues. By adding a direct assistance line to call them 24 hr they have actually even more increased the included worth of Socio Economic Analysis For Dibi Milano Company Case Study Solution service.


Socio Economic Analysis For Dibi Milano Company Case Study Help has actually diversified market division, based upon its provision of large range of items to a great deal of customers. Samsung target consumer sectors can be divided into 3 classifications i.e. Socio Economic Analysis For Dibi Milano Company Case Study Help IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device options.


Socio Economic Analysis For Dibi Milano Company Case Study Help geographical division is based upon 2 requirements i.e. area and density. Samsung serves about 80 countries worldwide with its items supplied to Urban along with Backwoods of the nation. The Samsung is also growing its worldwide presence and the business's versatility in finding its plants motivates global expansion of Samsung.


The demographic segmentation of Socio Economic Analysis For Dibi Milano Company Case Study Solution is based upon gender, age, life-cycle stage and occupation. Samsung produces items that can be utilized by both females and males. The target customers for Samsung IT and mobile communication items have an age series of 18-65 with bulk at a young or freshly wed life cycle phase. They are mainly employees, students and specialists. Apart from it, Samsung Consumer Electronics are targeted to a customer segment with an age series of 25-65. They are mostly experts and workers. Nevertheless Socio Economic Analysis For Dibi Milano Company Case Study Solution Device Solutions are targeted at students, employees and specialists with an age series 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. Samsung target clients on the basis of social class are generally upper middle, middle and working class consumers, as Samsung sell products like cell phones very little less expensive i.e. Motorola in addition to very little costly i.e. Apple. It supplies quality items to middle level customers at a somewhat high price than others targeting the very same section.


Socio Economic Analysis For Dibi Milano Company Case Study Solution bulk target clients have special behavioural attributes. It has customers with an ambitious, fashionable and figured out personality with moderate level of loyalty towards the brand. Its consumers have some degree of shift towards other renowned brands i.e. Apple. Most of Samsun clients want quality in addition to cost control. Because of its moderate prices with an extent of quality, they are attracted towards Samsung.

Quantitative analysis.

Sales of Socio Economic Analysis For Dibi Milano Company Case Study Help has actually 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 Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based on the mission of Kim to target the younger audience and develop a global brand picture of the business. Whereas, the core strength of the company is presently manufacturing however long gone are those days when excellent products were offering themselves. In the existing age marketing is very essential and companies can not prosper without it. Kim has currently started to strengthen the marketing activities of Samsung and very soon it will turn into one of its core strength like manufacturing if not better.



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


As, stated previously that Socio Economic Analysis For Dibi Milano Company Case Study Help runs in an extremely competitive environment, which indicates all the companies have comparable products. So, the response for rarity is no.


Due to the nature of the market, it is very simple for rivals to comprehend the performance of the items and easily make their own designs. Yes, Samsung is only behind IBM in registering new patents yearly, however the benefit is extremely short-term in this industry.


Chairman Lee has completely turnaround Samsung, from going nearly bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 business in the world. Certainly yes there appertains organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread practically in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are very conductive for its operations. It faces some political pressures in less industrialized nations where law and order circumstance is not excellent. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Socio Economic Analysis For Dibi Milano Company Case Study Help operations.


Purchasing power of consumers is crucial for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern countries etc. offer development chances, whereas, due to economic crisis even the clients of industrialized countries suffer badly. It is really essential for the company to keep an eye on the ongoing economic situation of the nation before going into the market.


International companies need to deal with various social and cultural issues during its operations in a foreign country. Samsung has likewise dealt with numerous concerns however have actually adopted to the regional environments of most of the countries remarkably well. It has actually customized its products, practices, policies and so on appropriately in order to be successful.


With a yearly expenditure of 2.4 billion dollars in Research & Development, and with continuous innovative item launches, Socio Economic Analysis For Dibi Milano Company Case Study Analysis is among the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Samsung has increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal repercussions. So, it needs to study or work with a regional law specialist before starting its operations in a specific country.


With the increasing awareness among customers about the environmental & ethical offenses of companies, Samsung has to guarantee that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some nations the repercussions 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 people.

Porter's 5 Forces

Risk of Substitution

Threat of alternative for Samsung's each item category is quite considerable. Elements for high threat of substitution for Socio Economic Analysis For Dibi Milano Company Case Study Analysis Smart device include the presence of high number of providers and Market saturation in developed countries, which make the cost of changing for consumers nearly no. Along with it, Samsung printing options items are threatened by the increasing destination of consumers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Samsung and its close rivals is extreme. The significant factor behind this is the approach of market saturation in various number of item categories, forcing Samsung to introduce more innovative features in existing items and brand-new innovative products to keep its development. The major competitors for Socio Economic Analysis For Dibi Milano Company Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Samsung Sustainability Report, 2016) Provider'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 Socio Economic Analysis For Dibi Milano Company 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 buyers for numerous number of product categories of Samsung is extreme. Among the aspect leading to the intense bargaining power is the schedule of a great deal of rivals in nearly each item category i.e. competitors of Samsung Smart device, with a really little distinction. The high schedule of suppliers of Mobile phones with minimum distinction, make the switching cost for purchasers practically no, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product categories also make the bargaining power of purchasers more extreme in for Socio Economic Analysis For Dibi Milano Company Case Study Solution. In spite of igh bargaining power Samsung is rather capable of selling its items at a higher price than much of its competitors, due to high end quality item and a reasonable brand image.

Risk of New Entrants:

Hazard of new entrants for Samsung is rather low. Among the significant element for low risk of new entrants is the high competition in the market. The requirement of substantial quantity of capital to enter in the market is also among the possible barrier to entry. In addition to it, requirement of huge know-how and research and advancement expenses for survival in the industry also make brand-new entrants hesitant to enter in the market. Market saturation is likewise among the barrier of entry in innovation industry. High bargaining power of suppliers force the gamers in the market to charge as low rates as possible and this can only be accomplished by production performance. Brand-new companies, in majority cases, lack the production effectiveness, thus increasing the risks for entryway in the innovation market.

Competitive Analysis

Samsung's high item diversification provides it distinction from its competitors. It is one of the 3 leading brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single product category with Sony concentrating on customer electronic devices, Nokia on cellular phone and Intel on chips, Samsung had a big R&D costs on all of its item classifications which allow the business to earn potential income from sales of nearly all of its items. (See Exhibition) However, due to the broad product variety the business deals with high number of rivals.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of international market share, among 8 various product categories. Samsung was the global leader in producing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its earnings from chips was growing faster than Intel and has grown near to the revenue levels of Intel, as given up the case Display 2.

Along with the chips Samsung mobile market was also growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Samsung's high growth despite of greater costs than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was also profiting from increasing market share of high end LCDs as given in case Exhibition 3. The significant reason, making the business allow to obtain the chance is its mass production at low expense. Sony was the biggest rival for Socio Economic Analysis For Dibi Milano Company Case Study Solution in LCD market, however, it had actually likewise begun joint venture with Samsung in 2003 for LCD making, minimizing the competitors for Samsung.

Porter's Competitive Technique

Low Cost Leadership method of porter is totally implemented by Samsung the method they attain economies of scale by enhancing their core competencies of manufacturing. They constantly bring something brand-new and ingenious 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 Solution would produce a brand-new brand image by targeting the more youthful generation of the specific nation. As, especially mobile phones of Samsung are very popular among the more youthful market.


1. It is the very best method to construct Consumer Lifetime Value (CLV) by producing a long-lasting relationship with consumers. Build commitment through providing worth and profit for long-lasting, as research has actually showed it is more affordable to maintain existing clients than to draw in brand-new ones.
2. Another pro of this option is that word of mouth spread faster among younger people and which in turn will generate new customers for my items.


1. Old consumers who were connected with Samsung prior to may not like this brand-new image the company is attempting to portray.
2 It will sustain more costs to reposition some products and it may not even bring success as the trends alter extremely quickly among the younger market.

Alternative service 2.

It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment should be developed internally first as real marketing begins inside the corporation.


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


2. Its con can produce a really unhealthy environment in the office, as individuals typically withstand change due to the fact that they fear it.

Determine the very best alternative

Very first alternative is the very best as it clearly has more pros due to the fact that as soon as a Customer Life time Worth is built the business will profit from it till that client is alive and has buying power too. Plus, our target clients are the more youthful generation which are bound to live longer than the current aging people. Samsung's main objective is to develop commitment among its clients and make them bought it from them and even buy their different items.

Execution Plan

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations realistic and attainable.
• A team consisting of finest marketing and sales specialists should be assemble, and both views should be taken into account prior to protecting the resources required to implement the plan.
• Thorough communication of the strategy must be done as it is very crucial for everyone to be on the exact same page to make it work.
• Jobs and timelines should be build and communicated appropriately to each person responsible.
• The supervisor need to use a control panel which shows the progress 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 individual and total performance.
Since any brand-new trend or policy may come in due to which all the things currently planned have actually to be adjusted, • Everyone must be prepared to adjust midway. It's better to have contingency strategies currently prepared.
• At the end of the project the supervisor need to interact the results and if effective need to celebrate with the team.

Spending plan

This modification the spending plan allocation of different countries and lots of supervisors were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia development possible merited a 35% allowance while they were receiving 45%. It actually helped to fairly disperse the resources and catch more customers by spending more on ads on the high development capacity areas of the world.


Its constant investment in R&D and ingenious practices have moved them to brand-new heights but for them its' only the start and they want to be among the leading 3 brand names in the world. Their marketing efforts need to be directed towards younger market in the middle of the internal arguments about marketing and should develop Client Life time Value as it will not only offer them advantages now but will continue to enjoy it till the client life time. As the expense of retaining the consumer is much more affordable than attracting a brand-new one.