Socio Economic Analysis For Dibi Milano Company Harvard Case Study Analysis

Home >> Hrm >> Socio Economic Analysis For Dibi Milano Company

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


Historically, the company's core consumers consist of 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 consumer circle includes Original Devices Manufacturers (OEMs), who utilized to sell Org items with their own brand name. He rearranged Venture as a worldwide brand name and educated his divisional supervisors to understand marketing and its significance.

Issue Statement

Enterprise's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional supervisors to include marketing successfully is still a significant obstacle. Developing a constant brand identity throughout the whole world and employing marketing techniques that best fits the regional culture is no easy job. The M-net program analysis have actually been really valuable in determining the high and less possible development areas, however allotment of resources accordingly is not well gotten among the supervisors. There is no agreement among the hierarchy regarding the best fit future method.
Executive Summary
Situational Analysis

Socio Economic Analysis For Dibi Milano Company Case Study Solution efforts for developing its brand name throughout the world was started after introducing the "new management initiative" by Chairman Lee in 1993. The goal was to change Organization from a low-cost OEM to a high value-added product supplier. To make the vision of Organization a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear image in his mind about how Organization can change from a low end to a high end item service provider. He knew that transformation can only be done through placing Company as a company using high-end products and this could just be done through high level of marketing.

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

Among 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 needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was excessive high, the gap was too larger and to fill this gap with incorrect understandings about marketing was quite difficult for Yun.

As stated above, marketing focus was very low in previous practices, for that reason there were no appropriate marketing budgets for each of the item on the portfolio. There was no marketing planning provided for the existing products. Together with it the item variety of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Enterprise. Yun had a challenge to carry out marketing planning and to develop marketing budgets for existing along with for new products from the very start, and this would take a huge time.

A substantial shift would be required in current marketing expenditures to build the Organization brand name. This would result in increased marketing expenses for Company and might disrupt the administration concerning increased expenditures, as they were unwilling to marketing expenditures previously and a sudden huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

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

Another strength of Socio Economic Analysis For Dibi Milano Company Case Study Analysis is its capability to establish innovative items at a continuous rate. It significant shows for the innovation and item creating of Organization is that the business has gotten a lot of awards for its development and product design.

Unlike Apple and other competitors, Org 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 devices.
Porter's 5 Forces Analysis
Company's capability to produce luxury items at low expense of production is likewise one of the major strength of Enterprise as it makes it possible for the company to catch more market by supplying quality items with cost control.

Weak points

Organization's weaknesses are hidden in the business's reliance on outsourcing software application for its gadgets due to business's inability in establishing software, unlike Sony. Socio Economic Analysis For Dibi Milano Company Case Study Analysis likewise has low revenue margins as compare to Apple due to substantial difference in the rates of Apple and Business with a much lower difference in quality.


Opportunities for Organization lie in the growing Smart device market and the business's effectiveness in the market. It can increase its market share and revenues from cellular phone as the company is rather effective in smart phone market. Business presently runs in about 80 countries and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Corp can move towards acquisitions to obtain patents. It would allow the company to increase its product portfolio with a boost in its wealth.


The vibrant market environment of innovation market present an extreme danger on Business's survival and require the business to invest much of its profits share on R&D in order to make it through in the long run. The market saturation in developed countries i.e. saturation of mobile company is also a huge hazard for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Organization provides quality products and has a quite rich portfolio which caters to various segments. LCD and mobile phones are the greatest products of Corporation, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Smart phone.
• Ac system.
• Computer.
• Hard drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis utilizes both market competitive and market skimming pricing techniques for its wide variety of items. In competitive pricing it adjusts the cost according to the competitors in order to gain advantage, whereas, it utilizes market skimming method where the product has an added value and by offering a couple of 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 customers straight in case of online order.

Vrio Analysis
It wasn't a widely known business outside of Korea until 1993. But the management effort taken by their CEO has pressed them to market more efficiently outside the borders and now it has entered the league of leading 25 business on the planet in simply 9 years. This is an impressive achievement despite the ongoing arguments amongst the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their products. Paid product ads, social promotion and digital advertisements are utilizes to produce awareness about Corporation products.

Worth Chain Analysis.

It's an analytical structure for determining business activities that include worth or competitive advantage for the business.

Incoming Logistics.

It has among the most efficient and effective supply chain network and has over 2700 providers across different industries around the world. Practically 80% of which is based in Asia and the staying worldwide. For its inbound logistics it owns different logistics companies as it subsidiaries. It looks after its suppliers and produces an unified relationship with them and even lowered their payment cycles to enhance this relationship further which adds worth to their chain network.


Corporation's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into three different departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is maintaining operation centers worldwide to further include worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main factors Socio Economic Analysis For Dibi Milano Company Case Study Help is able to compete with Apple. Enterprise'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 claims, etc. on behalf of Enterprise.

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to communicate with them the worth and competitive advantage the product offers. Socio Economic Analysis For Dibi Milano Company Case Study Analysis marketing budget is continuously rising since they began their repositioning internationally and will continue to do so as they are continually wanting to invest and broaden in high possible development markets. The spending plan is spent on occasions, print and media advertisements, public relations and so on.

Org put their customers at the leading and constantly aim to deliver unmatchable client service standards. By adding a direct assistance line to call them 24 hours they have even more increased the included value of Venture service.


Socio Economic Analysis For Dibi Milano Company Case Study Analysis has diversified market segmentation, based upon its arrangement of wide range of items to a great deal of consumers. Company target client segments can be divided into 3 classifications i.e. Socio Economic Analysis For Dibi Milano Company Case Study Analysis IT and Mobile Communications, Corporation Customer Electronics and Business Gadget solutions.


Socio Economic Analysis For Dibi Milano Company Case Study Help geographical segmentation is based upon two criteria i.e. region and density. Corporation serves about 80 countries worldwide with its products offered to Urban in addition to Rural areas of the country. The Enterprise is likewise growing its worldwide existence and the business's flexibility in finding its plants encourages international growth of Enterprise.


The group segmentation of Socio Economic Analysis For Dibi Milano Company Case Study Solution is based upon gender, age, life-cycle stage and occupation. Organization produces products that can be utilized by both males and women. The target clients for Corp IT and mobile communication products have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. They are mainly staff members, students and specialists. Apart from it, Enterprise Customer Electronics are targeted to a customer segment with an age variety of 25-65. They are mostly specialists and workers. However Socio Economic Analysis For Dibi Milano Company Case Study Solution Gadget Solutions are targeted at students, workers and experts with an age range 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. Org target clients on the basis of social class are mainly upper middle, middle and working class customers, as Business offer items like cellular phone not much more affordable i.e. Motorola in addition to not much costly i.e. Apple. It provides quality products to middle level customers at a slightly high price than others targeting the exact same sector.


Socio Economic Analysis For Dibi Milano Company Case Study Help bulk target customers have special behavioural characteristics. It has customers with an ambitious, trendy and figured out character with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other renowned brands i.e. Apple. Most of Company customers desire quality as well as cost control. They are drawn in towards Org because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Business has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings of.48 billion $ to 5.9 billion $. It has actually also reduced its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Revenues/ sales are increasing but net profit is not increasing appropriately since of the high overhead cost. New expansions and hiring's were the primary reason of the increase in the overhead costs, with china currently not offering any profit to Company, however there is so much capacity in the current market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the more youthful audience and create an international brand image of the company. Whereas, the core strength of the business is currently manufacturing but long gone are those days when good products were offering themselves. In the existing age marketing is extremely crucial and business can not prosper without it. Kim has currently begun to reinforce the marketing activities of Company and very soon it will turn into one of its core strength like producing if not much better.



Org runs designs, produces and sell a large portfolio of customer electronics. It operates in an extremely competitive environment and has actually effectively positioned itself as the maker of quality products. So, the answer is yes.


As, stated earlier that Socio Economic Analysis For Dibi Milano Company Case Study Analysis operates in an extremely competitive environment, which means all the business have similar products. The response for rarity is no.


Due to the nature of the industry, it is extremely easy for competitors to understand the performance of the items and easily make their own designs. Yes, Organization is only behind IBM in registering new patents annually, but the advantage is very short-term in this industry.


Chairman Lee has completely turn-around Org, from going nearly bankrupt throughout the Asian financial crisis of 1997 to the leading 25 business in the world. Definitely yes there is proper company in the business and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are really conductive for its operations. It faces some political pressures in less industrialized nations where law and order situation is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have a result on Socio Economic Analysis For Dibi Milano Company Case Study Solution operations.


Buying power of consumers is important for business like Company to succeed and grow. Emerging markets like India, middle-eastern nations and so on supply development chances, whereas, due to recession even the consumers of industrialized countries suffer terribly. Thus it is really crucial for the business to watch on the continuous economic circumstance of the nation prior to entering the marketplace.


Multinational business need to deal with various social and cultural concerns during its operations in a foreign country. Venture has likewise faced numerous issues but have actually adopted to the regional environments of most of the nations exceptionally well. It has customized its products, practices, policies etc. accordingly in order to succeed.


With a yearly expenditure of 2.4 billion dollars in Research study & Advancement, and with continuous innovative item launches, Socio Economic Analysis For Dibi Milano Company Case Study Analysis is among the leading ingenious business of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Org has actually increased to the no 25 of the leading effective business of the world.


Each nation has their own laws and policies, being a multinational company Organization have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal repercussions. It has to study or work with a local law expert prior to beginning its operations in a specific nation.


With the increasing awareness among consumers about the ethical & environmental violations of business, Org has to make sure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some nations the consequences can be really serious. On the other hand it needs to do some Business Social Responsibility practices to reveal the residents that it cares about their environment and individuals.

Porter's 5 Forces

Danger of Replacement

Threat of substitution for Organization's each item category is quite considerable. Running in an incredibly vibrant industry lead the company to deal with a high risk of replacement. Aspects for high danger of replacement for Socio Economic Analysis For Dibi Milano Company Case Study Solution Mobile phone consist of the existence of high variety of suppliers and Market saturation in developed nations, that make the expense of changing for consumers practically zero. Substitution hazards for Business visual display depend on the changing lifestyle of consumers. Consumers can switch to enjoying visuals in your home towards outdoor activities. Together with it, Org printing solutions products are threatened by the increasing tourist attraction of consumers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Business and its close competitors is extreme. The significant reason behind this is the method of market saturation in numerous variety of product categories, forcing Company to introduce more ingenious features in existing items and new innovative items to preserve its development. Other element for the extreme competition amongst the competitors is the little item distinction amongst the items. The popular gamers in the technology market are rather aware of the importance of R&D costs for their survival and are running into a race of marketing and R&D spending, to record the market. The significant rivals for Socio Economic Analysis For Dibi Milano Company Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry results in the changing market shares which can be seen in Exhibition F.

Bargaining Power of Suppliers:

Socio Economic Analysis For Dibi Milano Company Case Study Analysis has a huge supply chain consisting of about 2700 providers throughout the world.( Corporation Sustainability Report, 2016) Provider's bargaining power for Business is low as Organization runs economies of scale and its orders are of potential size and worth. These big orders enable Business to negotiate prices with its suppliers. Due to incapability of Enterprise to construct its own software application, it has to outsource its software application development to Google, which ends up being a prospective supplier of software application for Corp, resulting in high bargaining power of Google. In most of Socio Economic Analysis For Dibi Milano Company Case Study Help has a power to work out rates, however it supply considerable rates to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Market saturation in many of the product classifications also make the bargaining power of buyers more extreme in for Corp. In spite of igh bargaining power Organization 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 name image.

Threat of New Entrants:

Danger of brand-new entrants for Company is quite low. One of the major element for low threat of brand-new entrants is the high competition in the market. The requirement of big amount of capital to enter in the marketplace is also one of the potential barrier to entry. Along with it, requirement of huge knowledge and research study and development expenses for survival in the market likewise make brand-new entrants reluctant to enter in the marketplace. Market saturation is also among the barrier of entry in technology industry. High bargaining power of suppliers require the players in the market to charge as low prices as possible and this can just be accomplished by production performance. New firms, in majority cases, do not have the production performance, for this reason increasing the dangers for entryway in the technology market.

Competitive Analysis

Enterprise's high product diversification offers it differentiation from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Socio Economic Analysis For Dibi Milano Company Case Study Help had a huge R&D spending on all of its item classifications which allow the business to make possible income from sales of nearly all of its items.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in regards to international market share, among 8 various product classifications. Org was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Company earnings from chips was less than Intel however its profits from chips was growing much faster than Intel and has actually grown near the income levels of Intel, as given up the case Exhibit 2.

In addition to the chips Business mobile market was also thriving at a high rate than its competitors i.e. Motorola and Nokia. Company's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Business's high development despite of greater rates than Nokia and Motorola was the business's high-end quality cellular phone.

Org was also profiting from increasing market share of high-end LCDs as given in case Exhibition 3. The significant factor, making the business make it possible for to avail 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 actually likewise started joint venture with Company in 2003 for LCD producing, reducing the competitors for Business.

Porter's Competitive Technique

Low Expense Management technique of porter is fully carried out by Enterprise the way they achieve economies of scale by enhancing their core competencies of production. They constantly bring something ingenious and new 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 Solution would create a brand-new brand image by targeting the more youthful generation of the particular country. As, particularly mobile phones of Venture are preferred amongst the younger market.


1. It is the very best technique to develop Customer Life time Value (CLV) by developing a long-term relationship with clients. Build loyalty through delivering worth and profit for long-term, as research has revealed it is more affordable to keep existing clients than to attract new ones.
2. Another pro of this option is that word of mouth spread more quickly among younger people and which in turn will generate brand-new customers for my items.


1. Old clients who were related to Corporation before 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 really quickly amongst the more youthful market.

Alternative service 2.

It would be done by organizing training workshops throughout which value of marketing will be taught and numbers will be offered. Marketing environment ought to be created internally initially as genuine marketing begins inside the corporation.


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


2. Its con can create a really unhealthy environment in the office, as people often resist change because they fear it.

Identify the very best alternative

Very first option is the best as it plainly has more pros due to the fact that when a Consumer Lifetime Value is constructed the company will profit from it till that client is alive and has acquiring power as well. Plus, our target clients are the younger generation which are bound to live longer than the existing old age people. Nonetheless, Corporation's primary objective is to produce loyalty amongst its customers and make them redeemed it from them and even buy their different items also.

Execution Plan

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi make with music. And set the expectations sensible and achievable.
• A group including best marketing and sales specialists need to be put together, and both views should be taken into account before protecting the resources required to carry out the plan.
• Thorough communication of the plan should be done as it is extremely crucial for everybody to be on the same page to make it work.
• Jobs and timelines must 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 track of and keep a consistent examine the general and private performance.
Because any new pattern or policy might come in due to which all the things already prepared have to be adjusted, • Everyone need to be ready to adjust midway. It's much better to have contingency strategies already prepared.
• At the end of the campaign the supervisor must communicate the outcomes and if successful ought to celebrate with the team.

Budget plan

The M-net program revealed compelling analysis about the low and high development prospective locations and how much advertising budget plan ought to be assigned accordingly. This modification the budget allowance of different countries and many supervisors were dissatisfied and argued however the analysis done by the program was accurate and showed figures like The United States and Canada and Russia development possible warranted a 35% allowance while they were getting 45%. Whereas, China and Europe should be getting 42% however were rather given 31%. It really assisted to fairly disperse the resources and capture more clients by investing more on advertisements on the high growth capacity areas of the world.

Socio Economic Analysis For Dibi Milano Company Case Study Solution is a top 25 business in the world now and plans to get ahead of Sony who sits presently at no. 20. Its continuous investment in R&D and ingenious practices have actually moved them to brand-new heights but for them its' only the start and they wish to be amongst the top 3 brand names worldwide. They entirely turn-around from nearly going bankrupt throughout the Asian Financial Crisis to a world distinguished brand, known for quality and innovation. Their value chain and their core competency their production capability, along-with worldwide brand name image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts must be directed towards more youthful market amid the internal arguments about marketing and must produce Consumer Life time Worth as it will not just provide benefits now however will continue to gain it till the consumer life time. As the expense of keeping the consumer is more affordable than drawing in a brand-new one.