Survival Of The Fittest Sipro Plastics Industries Harvard Case Study Analysis

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Survival Of The Fittest Sipro Plastics Industries Case Study Solution & Analysis


Historically, the business's core clients consist of the Original Equipment Manufacturers (OEMs), which utilized to offer Survival Of The Fittest Sipro Plastics Industries Case Study Solution products withtheir own brand name. Its client circle consists of Original Devices Manufacturers (OEMs), who used to offer Samsung products with their own brand name. He rearranged Samsung as an international brand and educated his divisional managers to comprehend marketing and its significance.

Issue Statement

Samsung'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 efficiently is still a significant challenge. Creating a consistent brand name identity across the whole world and using marketing strategies that finest fits the regional culture is no simple task. The M-net program analysis have been truly valuable in determining the high and less prospective growth areas, however allocation of resources appropriately is not well gotten amongst the supervisors. There is no agreement among the hierarchy concerning the best matched future strategy.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Survival Of The Fittest Sipro Plastics Industries Case Study Help can change from a low end to a high end product supplier. He understood that improvement can just be done through positioning Samsung as a company offering high-end items and this might just be done through high level of marketing.

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

Among the marketing challenges for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the existing marketing requirement was excessive high, the gap was too larger and to fill this space with wrong perceptions about marketing was rather difficult for Yun.

Along with it the item variety of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had a challenge to perform marketing preparation and to develop marketing budget plans for existing as well as for new products from the very start, and this would take a big time.

A big shift would be needed in present marketing expenses to construct the Samsung brand name. This would result in increased marketing expenditures for Samsung and might disturb the administration concerning increased expenses, as they were hesitant to marketing expenses previously and a sudden big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Survival Of The Fittest Sipro Plastics Industries Case Study Solution strengths lie in its huge item portfolio. Samsung has largest number of patents in the market with total number of 15499 patents granted in United States( USP).

Another strength of Survival Of The Fittest Sipro Plastics Industries Case Study Solution is its ability to develop ingenious items at a constant rate. It significant shows for the innovation and item designing of Samsung is that the company has actually gotten numerous awards for its innovation and product design.

Unlike Apple and other competitors, Samsung is focused on producing devices which can be easily incorporated with any type of open source Operating System (OS) and software. This supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce high end items at low expense of production is also one of the major strength of Samsung as it makes it possible for the company to catch more market by providing quality items with expense control.

Weak points

Samsung's weaknesses are concealed in the company's dependence on outsourcing software application for its gadgets due to business's failure in establishing software application, unlike Sony. Survival Of The Fittest Sipro Plastics Industries Case Study Analysis also has low earnings margins as compare to Apple due to substantial difference in the rates of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Samsung depend on the growing Mobile phone market and the business's effectiveness in the market. It can increase its market share and incomes from cellular phone as the business is quite efficient in smart phone market. Samsung presently runs in about 80 nations and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to acquire patents. It would make it possible for the company to increase its item portfolio with a boost in its wealth.


The vibrant market environment of technology industry pose a severe risk on Samsung's survival and require the business to spend much of its earnings share on R&D in order to survive in the long run. The market saturation in industrialized nations i.e. saturation of mobile business is likewise a big danger for the business's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Survival Of The Fittest Sipro Plastics Industries Case Study Analysis uses quality products and has a quite rich portfolio which accommodates different segments. Most of the products remain in the leading 3 of their respective markets. LCD and mobile phones are the most significant items of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Samsung:

• Laptops.
• Cellphone.
• Air conditioning unit.
• Desktop computer.
• Hard drives.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Survival Of The Fittest Sipro Plastics Industries Case Study Solution utilizes both market competitive and market skimming rates techniques for its variety of items. In competitive rates it changes the price according to the competitors in order to get advantage, whereas, it utilizes market skimming technique where the product has actually an added value and by offering a few products it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon etc. All its items are timely supplied to the selling location/ delivered to the clients directly in case of online order.

Vrio Analysis
It wasn't a well-known company beyond Korea until 1993. The management initiative taken by their CEO has actually pushed them to market more effectively outside the borders and now it has gotten in the league of leading 25 business in the world in simply 9 years. This is an exceptional accomplishment in spite of the continuous arguments among the supervisors about adopting marketing practices. It utilizes both offline & online channels of promotion to market their items. Paid item advertisements, social promo and digital ads are utilizes to develop awareness about Samsung items.

Value Chain Analysis.

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

Incoming Logistics.

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


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

Outbound Logistics.

Its outbound logistics system efficiency is among the main reasons Survival Of The Fittest Sipro Plastics Industries Case Study Analysis is able to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target client attention towards the item is done through marketing and sales to communicate with them the value and competitive benefit the product offers. Survival Of The Fittest Sipro Plastics Industries Case Study Solution marketing spending plan is continuously growing considering that they started their repositioning internationally and will continue to do so as they are continuously wanting to invest and broaden in high potential development markets. The budget plan is invested in occasions, print and media ads, public relations and so on.

Samsung put their customers at the top and constantly make every effort to deliver unmatchable customer service requirements. By adding a direct assistance line to contact them 24 hours they have even more increased the included value of Samsung service.


Survival Of The Fittest Sipro Plastics Industries Case Study Solution has actually diversified market segmentation, based upon its provision of wide range of products to large number of consumers. Samsung target customer segments can be divided into 3 classifications i.e. Survival Of The Fittest Sipro Plastics Industries Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Gadget solutions.


Survival Of The Fittest Sipro Plastics Industries Case Study Analysis geographical segmentation is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its products provided to Urban along with Backwoods of the country. The Samsung is likewise growing its worldwide presence and the business's flexibility in locating its plants motivates worldwide expansion of Samsung.


The demographic segmentation of Survival Of The Fittest Sipro Plastics Industries Case Study Help is based upon gender, age, life-cycle stage and occupation. Samsung produces items that can be utilized by both women and males. The target clients for Samsung IT and mobile interaction products have an age range of 18-65 with majority at a young or recently wed life process phase. They are mostly staff members, professionals and students. Apart from it, Samsung Customer Electronic devices are targeted to a customer section with an age variety of 25-65. They are mainly employees and specialists. However Survival Of The Fittest Sipro Plastics Industries Case Study Analysis Device Solutions are targeted at students, employees and professionals with an age variety of 25-65.


The psychographic segmentation of Survival Of The Fittest Sipro Plastics Industries Case Study Help s based upon the social class and the life style of the consumer. Samsung target customers on the basis of social class are generally upper middle, middle and working class consumers, as Samsung sell items like mobile phone not much cheaper i.e. Motorola along with not much costly i.e. Apple. It supplies quality products to middle level consumers at a slightly high price than others targeting the very same sector.


Survival Of The Fittest Sipro Plastics Industries Case Study Help bulk target clients have distinct behavioural attributes. They are brought in towards Samsung because of its moderate rates with a degree of quality.

Quantitative analysis.

Sales of Survival Of The Fittest Sipro Plastics Industries 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 business is presently producing however long gone are those days when great items were offering themselves. Kim has actually already started to strengthen the marketing activities of Samsung and very quickly 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 electronic devices. It operates in an incredibly competitive environment and has effectively positioned itself as the maker of quality products. The response is yes.


As, stated earlier that Survival Of The Fittest Sipro Plastics Industries Case Study Help operates in an extremely competitive environment, which means all the business have comparable products. 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 easily make their own designs. Yes, Samsung is only behind IBM in signing up new patents yearly, but the benefit 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 top 25 company worldwide. Absolutely yes there appertains organization in the company and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread practically in every country worldwide, bulk of the environments like USA, Europe, China and so on, are really conductive for its operations. It deals with some political pressures in less industrialized countries where law and order circumstance is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on Survival Of The Fittest Sipro Plastics Industries Case Study Analysis operations.


Buying power of clients is essential for companies like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations etc. offer development opportunities, whereas, due to economic crisis even the customers of industrialized nations suffer severely. It is very important for the company to keep an eye on the continuous financial scenario of the nation before going into the market.


International companies have to deal with various social and cultural problems throughout its operations in a foreign country. Samsung has actually also faced many issues however have adopted to the regional environments of most of the nations exceptionally well. It has customized its products, practices, policies and so on accordingly in order to be successful.


With an annual expense of 2.4 billion dollars in Research study & Development, and with continuous innovative product launches, Survival Of The Fittest Sipro Plastics Industries Case Study Solution is among the top ingenious business of the world. With a clear objective to be ahead of the rest when it pertains to technological developments, Samsung has risen to the no 25 of the top successful companies of the world.


Each country has their own laws and policies, being a multinational company Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal repercussions. It has to study or hire a local law specialist prior to beginning its operations in a particular nation.


With the increasing awareness amongst consumers about the ethical & ecological infractions of business, Samsung has to make sure that it follows all the safety standards. Ecological damages, ethical misbehaviors are not appropriate and in some nations the effects can be extremely extreme. On the other hand it needs to do some Business Social Duty practices to reveal the residents that it cares about their environment and people.

Porter's Five Forces

Danger of Substitution

Threat of substitution for Samsung's each product category is quite significant. Factors for high danger of replacement for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis Mobile phone consist of the existence of high number of providers and Market saturation in developed countries, which make the cost of changing for customers almost zero. Along with it, Samsung printing options products are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close rivals is intense. The major factor behind this is the approach of market saturation in numerous number of product categories, requiring Samsung to present more innovative features in existing products and new ingenious products to maintain its development. Other element for the intense competition among the competitors is the little item distinction amongst the products. The prominent players in the technology market are quite familiar with the significance of R&D costs for their survival and are facing a race of marketing and R&D spending, to record the marketplace. The significant competitors for Survival Of The Fittest Sipro Plastics Industries Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the varying market shares which can be seen in Exhibit F.

Bargaining Power of Suppliers:

Survival Of The Fittest Sipro Plastics Industries Case Study Analysis has a large supply chain including about 2700 providers across 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 prospective size and worth. These big orders enable Samsung to work out costs with its providers. Nevertheless, due to incapability of Survival Of The Fittest Sipro Plastics Industries Case Study Solution to build its own software application, it has to outsource its software advancement to Google, which ends up being a possible provider of software for Samsung, resulting in high bargaining power of Google. In most of Survival Of The Fittest Sipro Plastics Industries Case Study Help has a power to work out prices, but it supply significant rates to its providers to develop a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

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

Danger of New Entrants:

Threat of new entrants for Survival Of The Fittest Sipro Plastics Industries Case Study Help is quite low. Along with it, requirement of substantial expertise and research and advancement expenditures for survival in the industry likewise make brand-new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high item diversification provides it differentiation from its competitors. It is one of the three top brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on consumer electronics, Nokia on cellular phone and Intel on chips, Samsung had a huge R&D costs on all of its item categories which make it possible for the business to earn possible income from sales of nearly all of its items. (See Exhibit) However, due to the large item variety the business deals with high number of competitors.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in terms of global market share, amongst 8 different item classifications. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Although, Samsung profits from chips was less than Intel but its profits from chips was growing much faster than Intel and has grown near the earnings levels of Intel, as given in the case Exhibition 2.

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

Samsung was also reaping the benefits from increasing market share of high end LCDs as given in case Display 3. The major reason, making the company enable to avail the opportunity is its mass production at low expense. Sony was the biggest rival for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis in LCD market, however, it had also started joint venture with Samsung in 2003 for LCD manufacturing, decreasing the competitors for Samsung.

Porter's Competitive Method

Low Cost Management strategy of porter is fully executed by Samsung the way they accomplish economies of scale by strengthening their core competencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to produce for them, since they were unable to take on them on low expense. Differentiation is another strategy well executed by Samsung by continuous financial investment in the R&D and remaining ahead of the competitors. They always bring something ingenious and brand-new whether it's a service or a product.


Alternative Option 1

The Chief Marketing Officer (CMO) of Survival Of The Fittest Sipro Plastics Industries Case Study Analysis would develop a brand-new brand name image by targeting the more youthful generation of the specific country. As, especially cellphones of Samsung are popular amongst the more youthful demographic.


1. It is the best method to develop Customer Lifetime Value (CLV) by creating a long-lasting relationship with consumers. Build commitment through delivering value and profit for long-term, as research study has actually revealed it is much cheaper to keep present clients than to bring in new ones.
2. Another pro of this option is that word of mouth spread quicker amongst more youthful people and which in turn will generate new consumers for my items.


1. Old clients who were associated with Samsung before may not like this new image the business is attempting to portray.
2 It will incur additional expenditures to rearrange some products and it may not even bring success as the trends change extremely quickly among the more youthful demographic.

Alternative solution 2.

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


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


2. Its con can produce a very unhealthy environment in the office, as individuals typically resist change since they fear it.

Determine the very best alternative

Alternative is the best as it plainly has more pros due to the fact that once a Client Lifetime Value is built the company will profit from it till that customer is alive and has acquiring power. Plus, our target clients are the younger generation which are bound to live longer than the current aging people. However, Samsung's main goal is to develop commitment among its clients and make them bought it from them and even purchase their various items too.

Implementation Strategy

• Targeting more youthful generation through social marketing, creating a relate to them like Pepsi do with music. And set the expectations attainable and sensible.
• A team consisting of finest marketing and sales professionals must be assemble, and both views ought to be taken into consideration prior to securing the resources needed to carry out the plan.
• Thorough interaction of the strategy need to be done as it is very important for everyone to be on the same page to make it work.
• Jobs and timelines need to be build and communicated accordingly to each person responsible.
• The supervisor ought to use a dashboard which shows the progress of all the tasks which have actually been done or about to be done and by whom.
• The supervisor ought to monitor and keep a constant look at the private and overall performance.
• Everybody need to want to adapt midway due to the fact that any new trend or policy might can be found in due to which all the important things currently prepared have to be changed. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor must interact the outcomes and if effective need to celebrate with the team.

Spending plan

The M-net program exposed engaging analysis about the low and high development possible locations and just how much advertising budget should be assigned accordingly. This change the budget allocation of many supervisors and various nations were dissatisfied and argued however the analysis done by the program was precise and revealed figures like The United States and Canada and Russia growth prospective warranted a 35% allotment while they were getting 45%. Whereas, China and Europe ought to be receiving 42% however were instead given 31%. It really assisted to relatively disperse the resources and catch more customers by investing more on ads on the high development capacity areas of the world.

Its consistent financial investment in R&D and innovative practices have propelled them to brand-new heights but for them its' only the start and they desire to be among the leading 3 brands in the world. Their marketing efforts must be directed towards more youthful group amid the internal arguments about marketing and ought to develop Client Lifetime Value as it will not only offer them benefits now however will continue to gain it till the customer life time. As the cost of maintaining the consumer is much cheaper than attracting a new one.