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


Historically, the company's core customers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Socio Economic Analysis For Dibi Milano Company Case Study Analysis items withtheir own brand name. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He repositioned Samsung as a global brand name and educated his divisional supervisors to understand marketing and its value.

Problem Statement

Samsung's transition from an item based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to incorporate marketing efficiently is still a major difficulty. Creating a constant brand identity across the whole world and utilizing marketing methods that finest fits the local culture is no simple job. The M-net program analysis have been actually valuable in identifying the high and less prospective development areas, however allowance of resources accordingly is not well gotten amongst the supervisors. There is no consensus amongst the hierarchy regarding the best suited future method.
Executive Summary
Situational Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Solution efforts for building its brand across the world was begun after introducing the "brand-new management initiative" by Chairman Lee in 1993. The objective was to transform Samsung from an inexpensive OEM to a high value-added item company. To make the vision of Samsung a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Samsung can change from a low end to a luxury item company. He knew that improvement can just be done through positioning Samsung as a company offering high-end items and this could just be done through high level of marketing.

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

One of the marketing difficulties for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as exact same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the present marketing requirement was excessive high, the gap was too broader and to fill this gap with wrong understandings about marketing was quite challenging for Yun.

Along with it the item range of the company was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing preparation and to develop marketing budget plans for existing as well as for new products from the very beginning, and this would take a huge time.

A huge shift would be required in present marketing expenditures to develop the Socio Economic Analysis For Dibi Milano Company Case Study Analysis brand. This would result in increased marketing expenses for Samsung and might disturb the administration concerning increased expenses, as they hesitated to marketing expenditures previously and an abrupt huge shiftwould make them disrupt. This could result in decreasing executive support for global marketing. In this situation, Yun deals with a challenge for validating increased marketing costs by showing the long term value of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Help strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents given in US( USP).

Another strength of Socio Economic Analysis For Dibi Milano Company Case Study Help is its capability to establish ingenious products at a constant rate. It major proves for the innovation and product designing of Samsung is that the company has received so many awards for its development and product style.

Unlike Apple and other rivals, Samsung is concentrated on producing devices which can be easily integrated with any type of open source Os (OS) and software. This provides Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury products at low cost of production is likewise one of the major strength of Samsung as it enables the business to capture more market by supplying quality products with expense control.

Weak points

Samsung's weaknesses are concealed in the company's dependence on outsourcing software for its devices due to company's failure in developing software, unlike Sony. Socio Economic Analysis For Dibi Milano Company Case Study Analysis also has low profit margins as compare to Apple due to huge distinction in the rates of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Socio Economic Analysis For Dibi Milano Company Case Study Solution lie in the growing Smartphone market and the business's performance in the market. Samsung presently 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 innovation industry posture a serious risk on Samsung's survival and require the company to invest much of its earnings share on R&D in order to survive in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a big danger for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Solution provides quality products and has a quite rich portfolio which deals with different segments. Most of the products remain in the leading three of their respective markets. LCD and smart phones are the greatest items of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the line of product of Samsung:

• Laptops.
• Smart phone.
• A/c unit.
• Desktop computer.
• Hard disks.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis uses both market competitive and market skimming rates strategies for its wide range of items. In competitive prices it changes the rate according to the competitors in order to get benefit, whereas, it uses market skimming method where the product has an added value and by offering a few items it can reach break-even.


It has among the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its products are prompt supplied to the selling location/ provided to the clients directly in case of online order.

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

Worth Chain Analysis.

It's an analytical framework for determining company activities that include value or competitive advantage for the company.

Inbound Logistics.

For its inbound logistics it owns various logistics firms as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even minimized their payment cycles to increase this relationship even more which adds worth to their chain network.


Samsung's core competency is its mass manufacturing it produces 90% of its products in-house. Divided into three different divisions its operations are particularly IT & Mobile Communications, Device Solutions and Customer Electronics. It is preserving operation hubs worldwide to further include worth to its worth chain network.

Outbound Logistics.

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

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the item offers. Socio Economic Analysis For Dibi Milano Company Case Study Analysis marketing budget plan is continuously increasing since they started their repositioning worldwide and will continue to do so as they are continuously looking to expand and invest in high potential growth markets. The budget is invested in events, print and media ads, public relations and so on.

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


Socio Economic Analysis For Dibi Milano Company Case Study Analysis has diversified market segmentation, based upon its arrangement of vast array of products to large number of consumers. Samsung target client sectors can be divided into 3 categories i.e. Socio Economic Analysis For Dibi Milano Company Case Study Solution IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device options.


Socio Economic Analysis For Dibi Milano Company Case Study Solution geographical division is based upon two requirements i.e. area and density. Samsung serves about 80 countries worldwide with its products provided to Urban in addition to Rural areas of the nation. The Samsung is also growing its global existence and the company's flexibility in locating its plants motivates worldwide growth of Samsung.


The market division of Socio Economic Analysis For Dibi Milano Company Case Study Solution is based upon gender, age, life-cycle stage and profession. Samsung produces items that can be used by both males and females. The target consumers for Samsung IT and mobile interaction products have an age range of 18-65 with majority at a young or newly wed life process phase. They are primarily trainees, specialists and employees. Apart from it, Samsung Customer Electronic devices are targeted to a customer segment with an age variety of 25-65. They are mainly employees and specialists. Samsung Device Solutions are targeted at trainees, workers and specialists 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 life style of the consumer. Samsung target customers on the basis of social class are primarily upper middle, middle and working class clients, as Samsung sell products like cellular phone very little more affordable i.e. Motorola in addition to not much pricey i.e. Apple. It provides quality products to middle level customers at a slightly high rate than others targeting the exact same sector.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis bulk target customers have special behavioural qualities. It has customers with an ambitious, fashionable and identified personality with moderate level of loyalty towards the brand. Its clients have some degree of shift towards other renowned brand names i.e. Apple. Most of Samsun clients desire quality along with cost control. They are drawn in towards Samsung because of its moderate costs with a level of quality.

Quantitative analysis.

Sales of Socio Economic Analysis For Dibi Milano Company Case Study Analysis has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the company is currently producing but long gone are those days when great items were offering themselves. Kim has actually already begun to enhance the marketing activities of Samsung and extremely soon it will become one of its core strength like making if not better.



Samsung operates styles, makes and sell a huge portfolio of customer electronics. It runs in a very competitive environment and has actually successfully placed itself as the maker of quality products. So, the answer is yes.


As, stated previously that Socio Economic Analysis For Dibi Milano Company Case Study Solution operates in a highly competitive environment, which indicates all the business have comparable products. 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, Samsung is only behind IBM in registering brand-new patents yearly, but the benefit is really short-term in this market.


Chairman Lee has completely turnaround Samsung, from going almost bankrupt during the Asian financial crisis of 1997 to the leading 25 company worldwide. Certainly yes there appertains company in the company and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are really conductive for its operations. Nevertheless, it faces some political pressures in less developed nations where order circumstance is bad. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Socio Economic Analysis For Dibi Milano Company Case Study Solution operations.


Buying power of consumers is essential for companies like Samsung to grow and prosper. Emerging markets like India, middle-eastern countries and so on offer growth chances, whereas, due to economic crisis even the clients of developed nations suffer terribly. It is extremely crucial for the business to keep an eye on the continuous financial scenario of the country before entering the market.


Multinational business have to deal with various social and cultural concerns during its operations in a foreign country. Samsung has likewise dealt with numerous issues however have embraced to the local environments of most of the countries remarkably well. It has customized its items, practices, policies etc. accordingly in order to achieve success.


With an annual expense of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Socio Economic Analysis For Dibi Milano Company Case Study Analysis 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, Samsung has risen to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being a multinational business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal repercussions. So, it has to study or hire a local law professional prior to beginning its operations in a particular nation.


With the rising awareness amongst consumers about the ethical & ecological infractions of business, Samsung needs to guarantee that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some nations the effects can be very serious. 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

Risk of Replacement

Threat of replacement for Samsung's each item classification is quite considerable. Aspects for high danger of replacement for Socio Economic Analysis For Dibi Milano Company Case Study Analysis Smartphone consist of the presence of high number of providers and Market saturation in industrialized nations, which make the expense of switching for consumers almost no. Along with it, Samsung printing options items are threatened by the increasing destination of clients towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Samsung and its close rivals is intense. The major factor behind this is the method of market saturation in different variety of product categories, forcing Samsung to introduce more innovative features in existing products and new innovative items to preserve its development. Other factor for the extreme rivalry amongst the rivals is the little product distinction amongst the items. The prominent players in the innovation market are rather aware of the importance of R&D costs for their survival and are encountering a race of marketing and R&D costs, to catch the market. The significant rivals for Socio Economic Analysis For Dibi Milano Company Case Study Help samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry results in the varying market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. Due to incapability of Socio Economic Analysis For Dibi Milano Company Case Study Help to develop its own software application, it has to outsource its software application development to Google, which becomes a potential supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Haggling power of purchasers for different variety of product categories of Samsung is intense. Among the factor causing the intense bargaining power is the availability of a great deal of rivals in almost each item category i.e. competitors of Samsung Smartphone, with a very little differentiation. The high availability of suppliers of Smartphones with minimum differentiation, make the changing expense for purchasers practically zero, hence increasing the bargaining power of purchasers. Market saturation in most of the item classifications likewise make the bargaining power of purchasers more intense in for Socio Economic Analysis For Dibi Milano Company Case Study Analysis. In spite of igh bargaining power Samsung is rather efficient in offering its products at a higher cost than much of its rivals, due to luxury quality item and a reasonable brand image.

Threat of New Entrants:

Risk of new entrants for Socio Economic Analysis For Dibi Milano Company Case Study Help is rather low. Along with it, requirement of big expertise and research study and development expenses for survival in the market likewise make new entrants hesitant to go into in the market. Market saturation is likewise one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high product diversity offers it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single item 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 Solution had a big R&D costs on all of its product classifications which allow the company to earn potential earnings from sales of nearly all of its items.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to global market share, among 8 various item classifications. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its revenues from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as given in the case Display 2.

In addition to the chips Samsung mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with only 4% and Nokia with no sales growth. The major reson behind Samsung's high development despite of greater costs than Nokia and Motorola was the company's high-end quality mobile phone.

Samsung was likewise reaping the benefits from increasing market share of high end LCDs as given in case Display 3. The major reason, making the company allow to get the opportunity is its mass production at low expense. Sony was the most significant competitor for Socio Economic Analysis For Dibi Milano Company Case Study Solution in LCD market, however, it had likewise begun joint venture with Samsung in 2003 for LCD producing, reducing the competition for Samsung.

Porter's Competitive Strategy

Low Cost Management technique of porter is completely carried out by Samsung the method they achieve economies of scale by strengthening their core competencies of production. Even to the point that their competitor SONY decided to form an alliance with them to manufacture for them, because they were not able to take on them on low cost. Distinction is another technique well implemented by Samsung by continuous financial investment in the R&D and remaining ahead of the competition. They constantly bring something brand-new and innovative whether it's a service or an item.


Alternative Option 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 more youthful generation of the particular nation. As, specifically cellphones of Samsung are popular amongst the more youthful group.


1. It is the best method to build Client Life time Worth (CLV) by creating a long-lasting relationship with consumers. Construct commitment through providing worth and reap the benefits for long-lasting, as research has revealed it is more affordable to retain present clients than to bring in new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful people and which in turn will generate brand-new customers for my items.


1. Old clients who were connected with Samsung prior to might not like this new image the company is attempting to represent.
2 It will sustain further expenses to reposition some products and it may not even bring success as the trends change really quickly amongst the younger group.

Alternative option 2.

Samsung has actually made making its core proficiency for the a lot of part of their service and due to which its supervisors are not scared to totally get out of their comfort zone. It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be given. Failure to get the passing ratings will get benched. Marketing environment should 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 likewise the opposite ones.


2. Its con can produce a very unhealthy environment in the workplace, as individuals frequently resist change because they fear it.

Determine the best alternative

Option is the best as it clearly has more pros because as soon as a Customer Lifetime Value is constructed the company will profit from it till that client is alive and has acquiring power. Plus, our target clients are the more youthful generation which are bound to live longer than the present aging people. Nevertheless, Samsung's primary goal is to create loyalty among its customers and make them redeemed it from them and even purchase their different items too.

Application Plan

• Targeting younger generation through social marketing, producing a link with them like Pepsi make with music. And set the expectations achievable and practical.
• A team including finest marketing and sales specialists must be put together, and both views should be taken into consideration prior to securing the resources required to carry out the plan.
• Thorough communication of the strategy ought to be done as it is extremely crucial for everyone to be on the same page to make it work.
• Tasks and timelines must be build and interacted appropriately to each person accountable.
• The supervisor need to use a control panel which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The manager must keep track of and keep a constant examine the private and overall performance.
Because any brand-new pattern or policy might come in due to which all the things currently prepared have to be adjusted, • Everyone must be prepared to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the campaign the manager ought to communicate the results and if effective must commemorate with the group.


The M-net program exposed compelling analysis about the high and low growth possible areas and how much marketing budget must be assigned accordingly. This change the budget allowance of many supervisors and different countries were dissatisfied and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth possible merited a 35% allowance while they were receiving 45%. Whereas, China and Europe should be getting 42% however were instead given 31%. It actually helped to relatively distribute the resources and catch more consumers by investing more on ads on the high growth capacity areas of the world.

Its constant financial investment in R&D and ingenious practices have moved them to brand-new heights however for them its' just the start and they want to be amongst the leading 3 brands in the world. Their marketing efforts need to be directed towards more youthful demographic amidst the internal arguments about marketing and should produce Consumer Life time Worth as it will not only provide them advantages now however will continue to reap it till the customer lifetime. As the cost of retaining the customer is much less expensive than attracting a new one.