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


Survival Of The Fittest Sipro Plastics Industries Case Study Analysis is a popular international brand in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Survival Of The Fittest Sipro Plastics Industries handle a great deal of product categories including Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic items. Historically, the company's core clients include the Original Equipment Manufacturers (OEMs), which used to offer Org items withtheir own trademark name. Till early 1990s, the core proficiency of Company lie in its low price offerings than its rivals by producing existing items at economies of scale. Its customer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell Survival Of The Fittest Sipro Plastics Industries Case Study Help products with their own trademark name. Corp was not simply known outside Korea. There were likewise no or little interest in building the brand name globally. Marketing budget plan was managed by production department with a prime focus on offering inexpensive products.During the 1997 Asian Financial Crisis the company practically got insolvent, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the top 25 most valuable business worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Company as a worldwide brand and informed his divisional supervisors to comprehend marketing and its importance. Now their objective is to arrive 10 by 2005.

Issue Declaration

Corporation's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional managers to include marketing effectively is still a significant difficulty. Developing a constant brand identity across the entire world and employing marketing techniques that best fits the regional culture is no simple task. The M-net program analysis have actually been truly handy in identifying the high and less prospective development areas, however allocation of resources accordingly is not well received among the managers. There is no consensus amongst the hierarchy concerning the best matched future strategy.
Executive Summary
Situational Analysis

Survival Of The Fittest Sipro Plastics Industries Case Study Analysis efforts for developing its trademark name across the world was started after introducing the "new management initiative" by Chairman Lee in 1993. The goal was to change Organization from a cheap OEM to a high value-added product provider. To make the vision of Corp a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Corporation can transform from a low end to a luxury product provider. He knew that transformation can just be done through positioning Corp as a business providing high-end items and this might only be done through high level of marketing.

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

Among the marketing obstacles for Yun was the understandings of executives about the value of marketing. They considered marketing and selling as same tools and thought that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the present marketing requirement was excessive high, the gap was too broader and to fill this space with wrong perceptions about marketing was quite tough for Yun.

Along with it the item range of the company was increasing with the ripening of new product ideas by the R&D sector of Venture. Yun had a challenge to carry out marketing planning and to create marketing spending plans for existing as well as for brand-new products from the very start, and this would take a big time.

A substantial shift would be needed in current marketing expenses to construct the Survival Of The Fittest Sipro Plastics Industries Case Study Solution brand name. This would result in increased marketing expenses for Org and could disrupt the administration concerning increased costs, as they were reluctant to marketing expenditures previously and an abrupt big shiftwould make them disturb. This could lead to declining executive support for global marketing. In this circumstance, Yun deals with an obstacle for validating increased marketing expenses by demonstrating the long term value of big marketing expenditures.

Internal Analysis
SWOT Analysis

Corporation strengths depend on its substantial item portfolio. Organization has biggest variety of patents in the market with overall number of 15499 patents granted in United States( USP). Big amount of R&D spending has made it possible for the business to grow its item portfolio at a greater rate than its competitors. Survival Of The Fittest Sipro Plastics Industries Case Study Help spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its total incomes.

Another strength of Survival Of The Fittest Sipro Plastics Industries Case Study Analysis is its ability to develop innovative items at a constant rate. It major shows for the development and product creating of Corporation is that the business has received a lot of awards for its innovation and product style.

Unlike Apple and other rivals, Organization is focused on producing gadgets which can be quickly integrated with any type of open source Os (OS) and software application. This provides Business an edge over Apple devices.
Porter's 5 Forces Analysis
Business's capability to produce high end items at low cost of production is likewise among the major strength of Org as it enables the business to capture more market by providing quality items with cost control.


Organization's weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to company's inability in establishing software application, unlike Sony. Survival Of The Fittest Sipro Plastics Industries Case Study Help also has low profit margins as compare to Apple due to big difference in the prices of Apple and Corp with a much lower distinction in quality.


Opportunities for Survival Of The Fittest Sipro Plastics Industries Case Study Solution lie in the growing Smart device market and the business's performance in the market. Corp currently runs in about 80 nations and the company has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of innovation market position a severe risk on Corp's survival and require the company to spend much of its incomes share on R&D in order to endure in the long run. The market saturation in developed countries i.e. saturation of mobile business is also a big hazard for the company's development in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Org offers quality items and has a rather rich portfolio which caters to different sections. LCD and mobile phones are the greatest products of Venture, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Smart phone.
• Air conditioning unit.
• Personal computers.
• Hard disks.
• Washing machines.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Survival Of The Fittest Sipro Plastics Industries Case Study Analysis utilizes both market competitive and market skimming prices strategies for its wide array of products. In competitive prices it adjusts the rate according to the competition in order to gain benefit, whereas, it uses market skimming method where the item has an included worth and by offering a few items it can reach break-even.


It has one of the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its products are prompt provided 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 till 1993. However the management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has gone into the league of leading 25 companies worldwide in just 9 years. This is an amazing achievement regardless of the ongoing arguments amongst the managers about adopting marketing practices. It uses both offline & online channels of promotion to market their products. Paid item advertisements, social promotion and digital advertisements are utilizes to create awareness about Org items.

Worth Chain Analysis.

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

Inbound Logistics.

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


Organization's core competency is its mass making it produces 90% of its products in-house. Divided into 3 various divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is preserving operation centers worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the main factors Survival Of The Fittest Sipro Plastics Industries Case Study Solution has the ability to take on Apple. Corp's own Electronic Logitec system plays a major function in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Org.

Marketing and Sales.

Bring in target customer attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the product uses. Survival Of The Fittest Sipro Plastics Industries Case Study Solution advertising budget plan is continually on the rise since they began their repositioning internationally and will continue to do so as they are continually seeking to expand and invest in high prospective development markets. The budget plan is spent on occasions, print and media advertisements, public relations and so on.

Organization Service. Corp put their consumers on top and continuously aim to deliver unmatchable customer care requirements. As after sales service is ending up being exceptionally crucial to keep consumers delighted and engaged, they even perform studies through third parties to find out their client's feedback and execute it in the positive way to lower or if possible totally eliminate their customer issues. By including a direct support line to contact them 24 hours they have further increased the included worth of Survival Of The Fittest Sipro Plastics Industries Case Study Analysis service.


Survival Of The Fittest Sipro Plastics Industries Case Study Help has diversified market division, based upon its arrangement of wide range of products to large number of customers. Corp target consumer sectors can be divided into 3 classifications i.e. Survival Of The Fittest Sipro Plastics Industries Case Study Analysis IT and Mobile Communications, Organization Consumer Electronic Devices and Company Gadget solutions.


Survival Of The Fittest Sipro Plastics Industries Case Study Analysis geographical segmentation is based upon two criteria i.e. region and density. Corporation serves about 80 countries worldwide with its products supplied to Urban as well as Backwoods of the country. The Business is also growing its worldwide existence and the company's versatility in finding its plants encourages global growth of Org.


Organization produces items that can be used by both females and males. The target clients for Business IT and mobile interaction items have an age range of 18-65 with bulk at a young or newly married life cycle phase. Apart from it, Enterprise Consumer Electronics are targeted to a client segment with an age range of 25-65.


The psychographic division of Survival Of The Fittest Sipro Plastics Industries Case Study Help s based upon the social class and the life style of the customer. Corporation target clients on the basis of social class are generally upper middle, middle and working class consumers, as Corp sell products like cellular phone not much less expensive i.e. Motorola along with very little pricey i.e. Apple. It provides quality items to middle level customers at a somewhat high rate than others targeting the exact same sector.


Survival Of The Fittest Sipro Plastics Industries Case Study Analysis bulk target consumers have distinct behavioural attributes. They are brought in towards Corporation since 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 profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Corporation 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 a worldwide brand name image of the company. Whereas, the core strength of the business is currently making but long gone are those days when excellent products were selling themselves. In the present age marketing is very important and business can not be successful without it. Kim has already started to strengthen the marketing activities of Org and very soon it will turn into one of its core strength like manufacturing if not much better.



Org operates styles, makes and sell a huge portfolio of customer electronic devices. It runs in a very competitive environment and has effectively positioned itself as the maker of quality items. So, the answer is yes.


As, said previously that Survival Of The Fittest Sipro Plastics Industries Case Study Analysis operates in a highly competitive environment, which implies all the business have similar products. The response for rarity is no.


Due to the nature of the market, it is really easy for rivals to comprehend the performance of the products and easily make their own models. Yes, Organization is only behind IBM in signing up new patents yearly, but the advantage is extremely short term in this market.


Chairman Lee has totally turn-around Organization, from going practically bankrupt during the Asian financial crisis of 1997 to the leading 25 company on the planet. Definitely yes there is proper company in the company and the results speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread practically 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 countries where law and order scenario is not great. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Survival Of The Fittest Sipro Plastics Industries Case Study Help operations.


Purchasing power of customers is essential for business like Enterprise to be successful and grow. Emerging markets like India, middle-eastern nations etc. offer development chances, whereas, due to economic crisis even the customers of developed countries suffer severely. It is extremely crucial for the company to keep an eye on the continuous financial scenario of the nation before going into the market.


Multinational business have to deal with different social and cultural problems during its operations in a foreign nation. Organization has also faced lots of concerns but have actually adopted to the regional environments of most of the countries extremely well. It has actually tailored its products, practices, policies and so on appropriately in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with consistent innovative item launches, Survival Of The Fittest Sipro Plastics Industries Case Study Analysis is one of the leading ingenious companies of the world. With a clear mission to be ahead of the rest when it comes to technological advancements, Organization has actually risen to the no 25 of the leading effective business of the world.


Each nation has their own laws and policies, being a multinational company Enterprise have to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. It has to study or employ a regional law expert before starting its operations in a specific country.


With the increasing awareness among customers about the ethical & environmental infractions of business, Enterprise needs to guarantee that it follows all the security standards. Environmental damages, ethical misconducts are not acceptable and in some nations the repercussions can be very severe. On the other hand it needs to do some Corporate Social Duty practices to show the residents that it appreciates their environment and people.

Porter's Five Forces

Risk of Substitution

Risk of substitution for Org's each item category is rather considerable. Elements for high danger of substitution for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis Smartphone consist of the presence of high number of suppliers and Market saturation in developed nations, which make the cost of switching for consumers almost no. Along with it, Corporation printing solutions items are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly among Enterprise and its close rivals is intense. The significant factor behind this is the approach of market saturation in different number of item categories, forcing Corporation to introduce more innovative features in existing products and new ingenious items to preserve its development. The significant rivals for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Survival Of The Fittest Sipro Plastics Industries Case Study Analysis has a large supply chain consisting of about 2700 providers throughout the world.( Organization Sustainability Report, 2016) Provider's bargaining power for Company is low as Org runs economies of scale and its orders are of prospective size and worth. These huge orders allow Corporation to work out costs with its providers. Due to incapability of Enterprise to construct its own software, it has to outsource its software development to Google, which ends up being a potential provider of software application for Business, resulting in high bargaining power of Google. In most of Survival Of The Fittest Sipro Plastics Industries Case Study Analysis has a power to negotiate rates, but it supply substantial costs to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

Bargaining power of purchasers for numerous number of product categories of Corporation is intense. One of the factor resulting in the intense bargaining power is the availability of large number of rivals in nearly each item category i.e. competitors of Org Smartphone, with a very little differentiation. The high availability of providers of Smartphones with minimum differentiation, make the switching cost for buyers almost absolutely no, hence increasing the bargaining power of buyers. Market saturation in most of the product categories likewise make the bargaining power of purchasers more intense in for Survival Of The Fittest Sipro Plastics Industries Case Study Help. In spite of igh bargaining power Org is quite capable of offering its products at a higher rate than much of its competitors, due to luxury quality item and a reasonable brand image.

Hazard of New Entrants:

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

Competitive Analysis

Org's high item diversity supplies it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, Survival Of The Fittest Sipro Plastics Industries Case Study Analysis had a big R&D costs on all of its item categories which allow the business to earn prospective income from sales of almost all of its products.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of international market share, among 8 different product classifications. Company was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Business incomes from chips was less than Intel but its profits from chips was growing much faster than Intel and has grown close to the revenue levels of Intel, as given in the case Exhibit 2.

Together with the chips Org mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Company's cellular phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with no sales growth. The significant reson behind Business's high development despite of higher costs than Nokia and Motorola was the company's high-end quality cell phones.

Corporation was also profiting from increasing market share of high-end LCDs as given up case Exhibition 3. The significant reason, making the business enable to obtain the chance is its mass production at low expense. Sony was the greatest rival for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis in LCD market, however, it had also started joint endeavor with Organization in 2003 for LCD making, lessening the competitors for Organization.

Porter's Competitive Strategy

Low Cost Management strategy of porter is totally carried out by Corp the method they accomplish economies of scale by reinforcing their core proficiencies of manufacturing. They constantly bring something ingenious and brand-new whether it's an item or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Survival Of The Fittest Sipro Plastics Industries Case Study Solution would develop a brand-new brand name image by targeting the younger generation of the specific country. As, particularly cellphones of Organization are preferred amongst the younger demographic.


1. It is the best method to construct Consumer Lifetime Worth (CLV) by developing a long-term relationship with clients. Construct commitment through delivering value and profit for long-term, as research has actually showed it is more affordable to retain current customers than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly amongst younger people and which in turn will generate new clients for my products.


1. Old customers who were connected with Business prior to might not like this new image the business is trying to represent.
2 It will sustain further expenses to rearrange some items and it might not even bring success as the trends alter really rapidly amongst the younger market.

Alternative service 2.

It would be done by setting up training workshops during which value of marketing will be taught and numbers will be provided. Marketing environment must be created internally first as real marketing starts 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 create a very unhealthy environment in the work environment, as individuals often resist change since they fear it.

Identify the best alternative

First option is the very best as it plainly has more pros since once a Customer Lifetime Value is constructed the company will benefit from it till that consumer is alive and has acquiring power also. Plus, our target clients are the more youthful generation which are bound to live longer than the existing aging people. Nonetheless, Enterprise's main goal is to develop commitment among its consumers and make them redeemed it from them and even buy their different items too.

Implementation Plan

• Targeting younger generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations practical and possible.
• A group consisting of finest marketing and sales professionals need to be put together, and both views need to be taken into consideration before protecting the resources needed to carry out the plan.
• Thorough interaction of the plan ought to be done as it is very important for everyone to be on the exact same page to make it work.
• Jobs and timelines ought to be construct and interacted accordingly to each individual accountable.
• The manager should use a control panel which shows the progress of all the jobs which have been done or about to be done and by whom.
• The manager need to monitor and keep a consistent examine the individual and general efficiency.
Since any new trend or policy may come in due to which all the things already planned have to be adjusted, • Everyone must be willing to adjust midway. It's much better to have contingency plans already prepared.
• At the end of the campaign the manager must interact the outcomes and if effective need to celebrate with the team.

Spending plan

This change the budget allocation of lots of 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 development possible merited a 35% allowance while they were getting 45%. It actually assisted to relatively disperse the resources and catch more customers by investing more on advertisements on the high development potential regions of the world.

Its constant investment in R&D and ingenious practices have actually propelled them to brand-new heights but for them its' just the start and they want to be among the top 3 brand names in the world. Their marketing efforts ought to be directed towards more youthful market amid the internal arguments about marketing and must create Client Lifetime Value as it will not only give them benefits now but will continue to enjoy it till the client life time. As the cost of keeping the consumer is much less expensive than drawing in a new one.