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Steeltech Competing In Chinas Auto Market Case Study Solution and Analysis


Historically, the business's core customers include the Original Devices Manufacturers (OEMs), which used to sell Steeltech Competing In Chinas Auto Market Case Study Solution products 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 rearranged Samsung as a worldwide brand name and informed his divisional managers to comprehend marketing and its importance.

Problem Declaration

Samsung's shift from an item based to a marketing business is not going as efficiently as planned.Overcoming the reluctance of divisional managers to include marketing successfully is still a significant difficulty. Developing a constant brand name identity across the whole world and employing marketing strategies that finest fits the regional culture is no simple task.

Situational Analysis

Yun had a quite clear photo in his mind about how Steeltech Competing In Chinas Auto Market Case Study Help can change from a low end to a high end product provider. He knew that transformation can just be done through positioning Samsung as a business providing high-end items and this could just be done through high level of marketing.

In spite of having a clear vision about how to construct Samsung brand, with a prospective support of its executives, Yun faced numerous marketing obstacles in early years of its efforts.

Among the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as very 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 current marketing requirement was too much high, the space was too larger and to fill this gap with wrong perceptions about marketing was quite challenging for Yun.

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

A substantial shift would be required in current marketing expenditures to build the Steeltech Competing In Chinas Auto Market Case Study Solution brand name. This would result in increased marketing expenditures for Samsung and might disrupt the administration concerning increased expenditures, as they hesitated to marketing expenses previously and an abrupt big shiftwould make them disrupt. This could result in decreasing executive support for global marketing. In this circumstance, Yun deals with a difficulty for validating increased marketing costs by showing the long term value of substantial marketing expenses.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its huge item portfolio. Samsung has largest number of patents in the industry with overall number of 15499 patents given in US( USP). Big quantity of R&D spending has actually enabled the company to grow its item portfolio at a higher rate than its rivals. Steeltech Competing In Chinas Auto Market Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall profits.

Another strength of Steeltech Competing In Chinas Auto Market Case Study Help is its capability to establish innovative items at a continuous rate. It major proves for the development and item designing of Samsung is that the business has gotten many awards for its innovation and item design.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be quickly integrated 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 cost of production is also one of the significant strength of Samsung as it allows the company to catch more market by supplying quality products with expense control.


Samsung's weak points are hidden in the company's reliance on outsourcing software for its devices due to company's failure in developing software application, unlike Sony. Steeltech Competing In Chinas Auto Market Case Study Solution likewise has low profit margins as compare to Apple due to big distinction in the costs of Apple and Samsung with a much lower difference in quality.


Opportunities for Samsung lie in the growing Mobile phone market and the company's efficiency in the market. It can increase its market share and incomes from cellular phone as the company is rather effective in cellular phone market. Samsung currently runs in about 80 nations and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to obtain patents. It would allow the company to increase its product portfolio with an increase in its wealth.


The vibrant market environment of technology industry posture a severe risk on Samsung's survival and force the business to invest much of its revenues share on R&D in order to make it through in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile company is also a big risk for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing


Steeltech Competing In Chinas Auto Market Case Study Help uses quality products and has a quite abundant portfolio which caters to different sectors. The majority of the products remain in the top 3 of their particular industries. LCD and cellphones are the most significant items of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the line of product of Samsung:

• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Hard disks.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.


Steeltech Competing In Chinas Auto Market Case Study Analysis uses both market competitive and market skimming prices methods for its wide range of items. In competitive pricing it changes the cost according to the competition in order to get advantage, whereas, it uses market skimming technique where the product has actually 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 distributors, their own sole distributors, E commerce channels like Amazon etc. All its products are timely provided to the selling location/ delivered to the consumers straight in case of online order.


It wasn't a popular business outside of Korea until 1993. The management effort taken by their CEO has pushed them to market more effectively outside the borders and now it has entered the league of top 25 business in the world in just 9 years. This is an amazing achievement in spite of the ongoing arguments amongst the supervisors about embracing marketing practices. It utilizes both offline & online channels of promotion to market their products. Paid item ads, social promo and digital advertisements are uses to develop awareness about Samsung products.

Worth Chain Analysis.

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

Incoming Logistics.

It has one of the most effective and reliable supply chain network and has more than 2700 providers across numerous markets around the world. Nearly 80% of which is based in Asia and the staying all over the world. For its inbound logistics it owns numerous logistics firms as it subsidiaries. It takes care of its providers and develops an unified relationship with them and even reduced their payment cycles to increase this relationship further which includes value to their chain network.


Samsung's core competency is its mass making it produces 90% of its items in-house. Divided into 3 various departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation centers worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the primary factors Steeltech Competing In Chinas Auto Market Case Study Analysis has the ability to take on Apple. Samsung'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 claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target consumer attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the product provides. Steeltech Competing In Chinas Auto Market Case Study Analysis marketing spending plan is constantly on the rise considering that they began their repositioning worldwide and will continue to do so as they are constantly seeking to expand and invest in high possible development markets. The spending plan is spent on events, print and media advertisements, public relations etc.

Samsung Service. Samsung put their clients on top and continually make every effort to deliver unmatchable client service standards. As after sales service is ending up being incredibly essential to keep consumers delighted and engaged, they even conduct surveys through 3rd parties to find out their consumer's feedback and execute it in the favorable way to minimize or if possible entirely remove their consumer issues. By including a direct assistance line to call them 24 hours they have actually even more increased the added worth of Steeltech Competing In Chinas Auto Market Case Study Solution service.


Steeltech Competing In Chinas Auto Market Case Study Analysis has actually diversified market division, based upon its arrangement of wide range of products to a great deal of consumers. Samsung target consumer segments can be divided into 3 categories i.e. Steeltech Competing In Chinas Auto Market Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device solutions.


Steeltech Competing In Chinas Auto Market Case Study Help geographic division is based upon two criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items supplied to Urban as well as Backwoods of the nation. The Samsung is likewise growing its international existence and the business's versatility in finding its plants encourages international expansion of Samsung.


Samsung produces products that can be utilized by both males and females. The target clients for Samsung IT and mobile communication items have an age range of 18-65 with majority at a young or recently wed life cycle stage. Apart from it, Samsung Consumer Electronics are targeted to a customer section with an age variety of 25-65.


The psychographic segmentation of Steeltech Competing In Chinas Auto Market Case Study Help s based upon the social class and the lifestyle of the consumer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class clients, as Samsung sell items like mobile phone very little cheaper i.e. Motorola as well as very little expensive i.e. Apple. It provides quality items to middle level consumers at a slightly high rate than others targeting the same segment.


Steeltech Competing In Chinas Auto Market Case Study Analysis majority target consumers have unique behavioural characteristics. They are drawn in towards Samsung because of its moderate costs with a degree of quality.

Quantitative analysis.

Sales of Steeltech Competing In Chinas Auto Market Case Study Analysis has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net earnings 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.

Yes, this decision is based upon the mission of Kim to target the more youthful audience and develop an international brand name image of the company. Whereas, the core strength of the business is presently producing however long gone are those days when excellent products were selling themselves. In the present age marketing is really crucial and business can not prosper without it. Kim has currently begun to enhance the marketing activities of Samsung and very soon it will become one of its core strength like manufacturing if not much better.



Samsung operates styles, makes and sell a large portfolio of consumer electronics. It operates in an exceptionally competitive environment and has actually successfully placed itself as the maker of quality items. The response is yes.


As, said earlier that Steeltech Competing In Chinas Auto Market Case Study Help runs in a highly competitive environment, which means all the business have similar items. The answer for rarity is no.


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


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

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every country worldwide, bulk of the environments like USA, Europe, China etc., are extremely conductive for its operations. It faces some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian nations fall in this classification, where political instability do have an effect on Steeltech Competing In Chinas Auto Market Case Study Help operations.


Purchasing power of consumers is essential for business like Samsung to grow and be successful. Emerging markets like India, middle-eastern countries etc. supply growth chances, whereas, due to recession even the customers of industrialized nations suffer badly. For this reason it is really crucial for the company to watch on the continuous financial situation of the country before going into the market.


International business have to deal with various social and cultural issues throughout its operations in a foreign nation. Samsung has also dealt with numerous concerns but have adopted to the regional environments of most of the nations incredibly well. It has tailored its products, practices, policies etc. appropriately in order to be successful.


With an annual expense of 2.4 billion dollars in Research & Development, and with continuous innovative item launches, Steeltech Competing In Chinas Auto Market Case Study Solution is among the top innovative business of the world. With a clear mission to be ahead of the rest when it concerns technological advancements, Samsung has actually risen to the no 25 of the top successful business of the world.


Each nation has their own laws and policies, being a multinational company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal effects. So, it needs to study or employ a local law professional before beginning its operations in a specific nation.


With the rising awareness amongst consumers about the ethical & ecological violations of business, Samsung needs to guarantee that it follows all the safety standards. Ecological damages, ethical misbehaviors are not acceptable and in some nations the consequences can be extremely serious. On the other hand it needs to do some Business Social Duty practices to show the residents that it cares about their environment and individuals.

Porter's 5 Forces

Threat of Alternative

Hazard of alternative for Samsung's each item category is quite substantial. Aspects for high hazard of replacement for Steeltech Competing In Chinas Auto Market Case Study Analysis Mobile phone consist of the presence of high number of suppliers and Market saturation in industrialized countries, which make the expense of switching for customers nearly no. Along with it, Samsung printing services products are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Among Existing Firms:

The rivaly among Samsung and its close competitors is extreme. The major reason behind this is the technique of market saturation in various number of product categories, forcing Samsung to introduce more ingenious functions in existing items and brand-new innovative items to keep its growth. The major competitors for Steeltech Competing In Chinas Auto Market Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Steeltech Competing In Chinas Auto Market Case Study Solution has a huge supply chain consisting of about 2700 suppliers throughout the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of possible size and worth. These big orders enable Samsung to negotiate rates with its providers. Nevertheless, due to incapability of Steeltech Competing In Chinas Auto Market Case Study Analysis to develop its own software, it needs to outsource its software application advancement to Google, which becomes a potential supplier of software for Samsung, leading to high bargaining power of Google. In many of Steeltech Competing In Chinas Auto Market Case Study Analysis has a power to work out prices, however it provide considerable rates to its suppliers to construct a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications also make the bargaining power of buyers more extreme in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its items at a greater cost than much of its rivals, due to high end quality product and a fair brand image.

Danger of New Entrants:

Threat of brand-new entrants for Samsung is quite low. One of the major element for low danger of new entrants is the high competitors in the market. The requirement of huge quantity of capital to go into in the marketplace is likewise one of the possible barrier to entry. Together with it, requirement of big proficiency and research and advancement expenditures for survival in the industry also make brand-new entrants reluctant to enter in the marketplace. Market saturation is also among the barrier of entry in technology market. High bargaining power of providers require the gamers in the market to charge as low rates as possible and this can only be attained by production performance. New firms, in majority cases, do not have the production efficiency, for this reason increasing the threats for entryway in the innovation industry.

Competitive Analysis

Samsung's high item diversification provides it differentiation from its rivals. It is among the 3 leading brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on consumer electronics, Nokia on cell phones and Intel on chips, Samsung had a substantial R&D spending on all of its product categories which allow the business to earn potential revenue from sales of almost all of its products. (See Exhibit) However, due to the wide item range the business faces high variety of rivals.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in regards to global market share, amongst 8 different item classifications. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its incomes from chips was growing much faster than Intel and has actually grown close to the earnings levels of Intel, as given up the case Exhibit 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 growth was 51% as compare to Motorola with just 4% and Nokia with zero sales development. The significant reson behind Samsung's high growth despite of greater rates than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given up case Exhibition 3. The major factor, making the business enable to get the opportunity is its mass production at low cost. Sony was the greatest rival for Steeltech Competing In Chinas Auto Market Case Study Analysis in LCD market, however, it had actually likewise begun joint venture with Samsung in 2003 for LCD producing, reducing the competitors for Samsung.

Porter's Competitive Strategy

Low Cost Management strategy of porter is fully executed by Samsung the method they accomplish economies of scale by reinforcing their core proficiencies of production. They always bring something innovative and brand-new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Steeltech Competing In Chinas Auto Market Case Study Analysis would create a brand-new brand name image by targeting the more youthful generation of the particular nation. As, particularly cellphones of Samsung are preferred among the younger market.


1. It is the best technique to develop Customer Life time Worth (CLV) by developing a long-term relationship with consumers. Develop loyalty through delivering worth and profit for long-lasting, as research study has revealed it is more affordable to keep present customers than to bring in new ones.
2. Another pro of this option is that word of mouth spread quicker among younger people and which in turn will generate new consumers for my products.


1. Old consumers who were associated with Samsung prior to may not like this brand-new image the business is trying to represent.
2 It will sustain additional expenses to rearrange some products and it might not even bring success as the trends change very rapidly among the younger demographic.

Alternative solution 2.

It would be done by organizing training workshops throughout which significance of marketing will be taught and numbers will be offered. Marketing environment ought to be developed internally initially as genuine 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 develop a really unhealthy environment in the workplace, as people typically withstand modification due to the fact that they fear it.

Identify the very best alternative

First alternative is the very best as it clearly has more pros because once a Customer Lifetime Worth is developed the company will profit from it till that client is alive and has acquiring power also. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging people. Samsung's main goal is to produce commitment among its consumers and make them repurchase it from them and even purchase their different items.

Execution Strategy

• Targeting younger generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations possible and sensible.
• A group consisting of finest marketing and sales professionals must be assemble, and both views must be taken into account prior to protecting the resources needed to execute the strategy.
• Thorough interaction of the strategy must be done as it is extremely essential for everyone to be on the exact same page to make it work.
• Tasks and timelines should be develop and communicated accordingly to each person responsible.
• The supervisor need to utilize a control panel which shows the development of all the jobs which have been done or about to be done and by whom.
• The manager ought to keep an eye on and keep a continuous look at the individual and general efficiency.
• Everyone should want to adjust midway due to the fact that any brand-new pattern or policy might be available in due to which all the important things already planned need to be adjusted. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor should interact the results and if successful must commemorate with the team.


The M-net program exposed compelling analysis about the high and low development possible locations and just how much marketing spending plan should be allocated appropriately. This modification the budget plan allocation of various countries and numerous managers were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia development possible warranted a 35% allowance while they were receiving 45%. Whereas, China and Europe should be receiving 42% however were rather provided 31%. It actually assisted to fairly disperse the resources and record more clients by investing more on advertisements on the high development potential areas of the world.


Steeltech Competing In Chinas Auto Market Case Study Help is a top 25 business on the planet now and plans to get ahead of Sony who sits currently at no. 20. Its consistent financial investment in R&D and innovative practices have actually moved them to new heights however for them its' just the start and they wish to be amongst the leading 3 brand names in the world. They entirely turnaround from practically declaring bankruptcy throughout the Asian Financial Crisis to a world distinguished brand, understood for quality and innovation. Their worth chain and their core proficiency their manufacturing ability, along-with international brand name image building 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 only increase further in the future. Their marketing efforts must be directed towards more youthful market amid the internal arguments about marketing and must create Consumer Lifetime Worth as it will not only give them benefits now but will continue to enjoy it till the consumer lifetime. As the expense of maintaining the customer is more affordable than drawing in a brand-new one.