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


Survival Of The Fittest Sipro Plastics Industries Case Study Help is a well-known worldwide brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. Survival Of The Fittest Sipro Plastics Industries handle large number of product categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the business's core consumers consist of the Original Devices Manufacturers (OEMs), which used to offer Samsung items withtheir own trademark name. Till early 1990s, the core proficiency of Samsung lie in its low rate offerings than its rivals by manufacturing existing items at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to sell Survival Of The Fittest Sipro Plastics Industries Case Study Solution products with their own trademark name. Samsung was not simply known outside Korea. There were likewise no or little interest in constructing the trademark name internationally. Marketing budget was controlled by production department with a prime focus on supplying cheap products.During the 1997 Asian Financial Crisis the company nearly got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the top 25 most valuable company on the planet. When Kim was worked with as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Samsung as an international brand name and informed his divisional supervisors to comprehend marketing and its value. Now their objective is to arrive 10 by 2005.

Problem Statement

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 challenge. Producing a consistent brand name identity across the entire world and utilizing marketing techniques that finest fits the regional culture is no simple job. The M-net program analysis have actually been actually valuable in determining the high and less possible growth areas, however allowance of resources accordingly is not well gotten amongst the supervisors. There is no agreement among the hierarchy regarding the best matched future technique.

Situational Analysis

Survival Of The Fittest Sipro Plastics Industries Case Study Analysis efforts for developing its trademark name throughout the world was begun after introducing the "new management initiative" by Chairman Lee in 1993. The goal was to transform Samsung from a cheap OEM to a high value-added item company. To make the vision of Samsung a reality, Chairman Lee appointed Yun as a vice chairman in 1997. Yun had a rather clear picture in his mind about how Samsung can change from a low end to a luxury product supplier. He knew that improvement can just be done through positioning Samsung as a business offering high-end products and this might only be done through high level of marketing.

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

One of the marketing difficulties 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 items do not required 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 space was too larger and to fill this gap with incorrect understandings about marketing was rather challenging for Yun.

Along with it the item variety of the business was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to produce marketing spending plans for existing as well as for new products from the very start, and this would take a big time.

A huge shift would be needed in present marketing expenditures to build the Samsung brand. This would result in increased marketing expenditures for Samsung and could disturb the administration regarding increased costs, as they were reluctant to marketing expenditures previously and a sudden big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Samsung strengths depend on its substantial item portfolio. Samsung has biggest variety of patents in the market with total variety of 15499 patents approved in US( USP). Large amount of R&D spending has actually 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 Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall profits.

Another strength of Survival Of The Fittest Sipro Plastics Industries Case Study Solution is its ability to develop innovative products at a constant rate. It major proves for the development and product developing of Samsung is that the business has actually gotten so many awards for its innovation and item style.

Unlike Apple and other rivals, Samsung is focused on producing gadgets which can be easily incorporated with any type of open source Os (OS) and software application. This offers Samsung an edge over Apple devices.

Samsung's capability to produce luxury products at low cost of production is also one of the significant strength of Samsung as it enables the business to capture more market by providing quality products with expense control.

Weak points

Samsung's weak points are hidden in the business's dependence on outsourcing software application for its gadgets due to business's inability in developing software application, unlike Sony. Survival Of The Fittest Sipro Plastics Industries Case Study Analysis likewise has low earnings margins as compare to Apple due to huge distinction in the rates of Apple and Samsung with a much lower distinction in quality.


Opportunities for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis lie in the growing Mobile phone market and the business's effectiveness in the market. Samsung currently runs in about 80 nations and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant industry environment of technology market posture a serious danger on Samsung's survival and force the business to spend 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 likewise a huge risk for the business's growth in the existence of strong rivals like Apple.

4 P's of Marketing


Survival Of The Fittest Sipro Plastics Industries Case Study Solution provides quality products and has a rather abundant portfolio which caters to different sections. The majority of the items remain in the top 3 of their particular markets. LCD and cellphones are the most significant products of Samsung, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Samsung:

• Laptops.
• Smart phone.
• Air conditioner.
• Computer.
• Disk drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Survival Of The Fittest Sipro Plastics Industries Case Study Solution utilizes both market competitive and market skimming pricing techniques for its variety of products. In competitive prices it adjusts the price according to the competition in order to acquire advantage, whereas, it uses market skimming method where the product has actually an included worth 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 suppliers, E commerce channels like Amazon etc. All its items are prompt provided to the selling place/ delivered to the customers straight in case of online order.


It wasn't a well-known company outside of Korea until 1993. 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 in the world in just 9 years. This is a remarkable achievement despite the continuous arguments among the managers about embracing marketing practices. It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promotion and digital advertisements are uses to produce awareness about Samsung items.

Value Chain Analysis.

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

Incoming Logistics.

It has one of the most reliable and efficient supply chain network and has more than 2700 suppliers across various industries around the world. Practically 80% of which is based in Asia and the staying all over the world. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its suppliers and develops an unified relationship with them and even reduced their payment cycles to boost this relationship further which adds worth to their chain network.


Samsung's core proficiency is its mass manufacturing it produces 90% of its products internal. Divided into 3 different departments its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronic Devices. It is preserving operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the primary factors 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 role in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target client attention towards the item is done through marketing and sales to communicate with them the worth and competitive advantage the product offers. Survival Of The Fittest Sipro Plastics Industries Case Study Analysis advertising spending plan is constantly on the rise considering that they started their repositioning globally and will continue to do so as they are constantly wanting to invest and expand in high potential development markets. The spending plan is invested in events, print and media advertisements, public relations etc.

Samsung Service. Samsung put their customers at the top and continually make every effort to provide unmatchable customer service requirements. As after sales service is becoming extremely essential to keep customers happy and engaged, they even carry out surveys through 3rd parties to discover their consumer's feedback and execute it in the favorable way to lower or if possible completely eliminate their consumer concerns. By including a direct assistance line to contact them 24 hours they have actually even more increased the included worth of Survival Of The Fittest Sipro Plastics Industries Case Study Help 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. Samsung target customer sectors can be divided into 3 categories i.e. Survival Of The Fittest Sipro Plastics Industries Case Study Analysis IT and Mobile Communications, Samsung Customer Electronics and Samsung Device services.


Survival Of The Fittest Sipro Plastics Industries Case Study Help geographical division is based upon two criteria 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 existence and the business's flexibility in finding its plants encourages worldwide expansion of Samsung.


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


The psychographic segmentation of Survival Of The Fittest Sipro Plastics Industries Case Study Analysis s based upon the social class and the life style of the customer. Samsung target customers on the basis of social class are generally upper middle, middle and working class customers, as Samsung offer items like mobile phone very little less expensive i.e. Motorola as well as very little pricey i.e. Apple. It offers quality products to middle level consumers at a somewhat high cost than others targeting the exact same section.


Survival Of The Fittest Sipro Plastics Industries Case Study Help majority target customers have special behavioural qualities. It has customers with an enthusiastic, fashionable and figured out character with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other prominent brands i.e. Apple. The majority of Samsun consumers want quality as well as expense control. They are brought in towards Samsung due to the fact that of its moderate rates with a level of quality.

Quantitative analysis.

Sales of Survival Of The Fittest Sipro Plastics Industries Case Study Help has actually increased astonishingly 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.

Whereas, the core strength of the company is presently manufacturing however long gone are those days when great products were selling themselves. Kim has currently begun to enhance the marketing activities of Samsung and extremely quickly it will end up being one of its core strength like producing if not much better.



Samsung operates styles, makes and sell a large portfolio of consumer electronic devices. It operates in an extremely competitive environment and has effectively placed itself as the maker of quality items. So, the response is yes.


As, said earlier that Survival Of The Fittest Sipro Plastics Industries Case Study Analysis runs in a highly competitive environment, which indicates all the companies have comparable products. So, the response for rarity is no.


Due to the nature of the industry, it is extremely simple for competitors to understand the functionality of the items and easily make their own models. Yes, Samsung is just behind IBM in signing up new patents annually, however the benefit is really short term in this industry.


Chairman Lee has entirely turnaround Samsung, from going almost insolvent during the Asian monetary crisis of 1997 to the top 25 company worldwide. Certainly yes there appertains company in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are really conductive for its operations. However, it deals with some political pressures in less developed nations where order situation is not good. Latin American, African and some Asian countries fall in this category, where political instability do have a result on Survival Of The Fittest Sipro Plastics Industries Case Study Solution operations.


Buying power of customers is essential for companies like Samsung to be successful and grow. Emerging markets like India, middle-eastern countries etc. supply development opportunities, whereas, due to recession even the customers of developed nations suffer severely. It is very important for the business to keep an eye on the continuous economic scenario of the nation prior to going into the market.


Multinational business need to deal with different social and cultural problems throughout its operations in a foreign country. Samsung has likewise faced lots of problems however have actually embraced to the regional environments of the majority of the countries extremely well. It has tailored its items, practices, policies and so on appropriately in order to succeed.


With an annual expenditure 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 leading innovative business of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Samsung has actually increased to the no 25 of the leading successful business of the world.


Each country has their own laws and policies, being a multinational business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. So, it needs to study or hire a regional law professional before starting its operations in a specific nation.


With the rising awareness amongst customers about the environmental & ethical offenses of companies, Samsung needs to make sure that it follows all the safety guidelines. Environmental damages, ethical misconducts are not acceptable and in some nations the consequences can be really extreme. On the other hand it needs to do some Business Social Obligation practices to reveal the residents that it cares about their environment and people.

Porter's 5 Forces

Danger of Replacement

Risk of substitution for Samsung's each item category is quite considerable. Running in a very dynamic market lead the company to face a high danger of alternative. Factors for high hazard of replacement for Survival Of The Fittest Sipro Plastics Industries Case Study Analysis Smartphone include the existence of high variety of providers and Market saturation in developed countries, that make the cost of switching for consumers practically absolutely no. Replacement threats for Samsung visual display screen depend on the changing life style of consumers. Consumers can change to watching visuals in your home towards outdoor activities. Together with it, Samsung printing options items are threatened by the increasing tourist attraction of clients towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Samsung and its close rivals is extreme. The significant reason behind this is the method of market saturation in various variety of item classifications, forcing Samsung to present more ingenious functions in existing products and brand-new innovative products to keep its growth. Other aspect for the intense rivalry amongst the competitors is the little item distinction among the products. The popular gamers in the technology market are quite aware of the significance of R&D spending 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 Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry results in the varying market shares which can be seen in Exhibit F.

Bargaining Power of Providers:

( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. Due to incapability of Survival Of The Fittest Sipro Plastics Industries Case Study Solution to develop its own software, it has to outsource its software advancement to Google, which becomes a prospective supplier of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Market saturation in many of the product classifications likewise make the bargaining power of buyers more extreme in for Samsung. In spite of igh bargaining power Samsung is quite capable of selling its products at a higher price than much of its rivals, due to high end quality item and a reasonable brand name image.

Hazard of New Entrants:

Danger of new entrants for Survival Of The Fittest Sipro Plastics Industries Case Study Solution is quite low. Along with it, requirement of big expertise and research and advancement expenditures for survival in the market also make new entrants hesitant to go into in the market. Market saturation is also one of the barrier of entry in technology industry.

Competitive Analysis

Samsung's high product diversification provides it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Survival Of The Fittest Sipro Plastics Industries Case Study Analysis had a big R&D spending on all of its item categories which make it possible for the company to earn prospective revenue from sales of nearly all of its products.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave ovens, in terms of international market share, among 8 various product categories. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown near to the earnings levels of Intel, as given up the case Display 2.

Along with the chips Samsung mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Samsung's mobile phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The major reson behind Samsung's high growth despite of greater prices than Nokia and Motorola was the company's high-end quality cellular phone.

Samsung was likewise reaping the benefits from increasing market share of high end LCDs as given in case Exhibit 3. The major reason, making the company allow to obtain the opportunity is its mass production at low expense. Sony was the greatest rival for Survival Of The Fittest Sipro Plastics Industries Case Study Solution in LCD market, however, it had also begun joint venture with Samsung in 2003 for LCD making, reducing the competitors for Samsung.

Porter's Competitive Technique

Low Expense Leadership technique of porter is totally carried out by Samsung the method they attain economies of scale by reinforcing their core competencies of manufacturing. They constantly bring something innovative and brand-new whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Survival Of The Fittest Sipro Plastics Industries Case Study Help would produce a brand-new brand image by targeting the more youthful generation of the specific nation. As, especially cellphones of Samsung are incredibly popular among the younger market.


1. It is the best technique to build Customer Life time Value (CLV) by producing a long-lasting relationship with customers. Build loyalty through delivering worth and profit for long-term, as research has actually revealed it is more affordable to keep current consumers than to bring in new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst more youthful people and which in turn will generate new clients for my items.


1. Old consumers who were associated with Samsung prior to may not like this new image the business is trying to portray.
2 It will incur additional expenditures to rearrange some items and it might not even bring success as the trends change extremely rapidly among the younger market.

Alternative service 2.

Samsung has made making its core proficiency for the a lot of part of their organisation and due to which its supervisors are not afraid to totally step out of their comfort zone. It would be done by organizing training workshops throughout which importance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment should be created internally first as genuine marketing starts inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the office, as individuals often resist modification because they fear it.

Determine the very best option

Option is the finest as it clearly has more pros due to the fact that when a Customer Lifetime Worth is developed the company will profit from it till that consumer is alive and has acquiring power. Plus, our target customers are the more youthful generation which are bound to live longer than the existing old age people. However, Samsung's primary goal is to develop loyalty amongst its consumers and make them repurchase it from them and even buy their various items also.

Implementation Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations practical and possible.
• A group consisting of finest marketing and sales professionals ought to be assemble, and both views should be taken into account before protecting the resources needed to carry out the strategy.
• Thorough interaction of the plan must be done as it is very essential for everybody to be on the exact same page to make it work.
• Tasks and timelines must be build and interacted accordingly to each person responsible.
• The supervisor need to utilize a control panel which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a constant examine the total and specific efficiency.
• Everyone ought to want to adjust midway since any brand-new trend or policy may can be found in due to which all the things already prepared need to be changed. It's much better to have contingency strategies currently prepared.
• At the end of the campaign the manager ought to interact the results and if effective ought to commemorate with the team.

Budget plan

This modification the spending plan allowance of different nations and many managers were unhappy and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth potential merited a 35% allocation while they were getting 45%. It actually assisted to relatively disperse the resources and capture more consumers by investing more on ads on the high growth capacity regions of the world.


Survival Of The Fittest Sipro Plastics Industries Case Study Solution is a top 25 business worldwide now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and innovative practices have actually moved them to new heights but for them its' just the start and they want to be amongst the leading 3 brands on the planet. They totally turnaround from practically declaring bankruptcy during the Asian Financial Crisis to a world distinguished brand, understood for quality and development. Their value chain and their core competency their production ability, along-with worldwide brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional growth in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts must be directed towards more youthful market amidst the internal arguments about marketing and need to develop Customer Lifetime Value as it will not only give them benefits now however will continue to gain it till the consumer lifetime. As the cost of retaining the customer is more affordable than bring in a brand-new one.