Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Harvard Case Study Help

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Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution & Analysis


Historically, the company's core consumers consist of the Original Devices Manufacturers (OEMs), which utilized to offer Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution products withtheir own brand name. Its consumer circle consists of Original Devices Manufacturers (OEMs), who utilized to sell Company items with their own brand name. He rearranged Venture as an international brand name and educated his divisional supervisors to comprehend marketing and its value.

Problem Declaration

Corporation's shift from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to integrate marketing successfully is still a significant challenge. Creating a consistent brand name identity across the whole world and utilizing marketing strategies that finest fits the local culture is no easy task. The M-net program analysis have actually been actually helpful in identifying the high and less prospective growth areas, however allotment of resources appropriately is not well gotten among the supervisors. There is no agreement among the hierarchy regarding the best matched future technique.
Executive Summary
Situational Analysis

Yun had a quite clear photo in his mind about how Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis can transform from a low end to a high end product supplier. He understood that improvement can only be done through placing Corp as a business offering high-end items and this could only be done through high level of marketing.

In spite of having a clear vision about how to build Corporation brand name, with a possible assistance of its executives, Yun faced a number of marketing difficulties in early years of its efforts.

Among the marketing obstacles for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and believed that quality items do not required marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the existing marketing requirement was too much high, the space was too wider and to fill this gap with incorrect understandings about marketing was rather difficult for Yun.

As specified above, marketing focus was very low in previous practices, therefore there were no proper marketing budgets for each of the product on the portfolio. There was no marketing preparation done for the existing items. Along with it the item series of the business was increasing with the ripening of new product ideas by the R&D sector of Company. Yun had a challenge to carry out marketing planning and to produce marketing spending plans for existing as well as for new items from the very beginning, and this would take a substantial time.

A substantial shift would be required in present marketing expenses to develop the Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help brand name. This would lead to increased marketing expenses for Corporation and might disrupt the administration relating to increased expenditures, as they were reluctant to marketing expenses formerly and a sudden big shiftwould make them interrupt. This might lead to declining executive support for global marketing. In this situation, Yun faces an obstacle for validating increased marketing expenditures by demonstrating the long term worth of huge marketing expenses.

Internal Analysis
SWOT Analysis

Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help strengths lie in its huge item portfolio. Venture has largest number of patents in the market with overall number of 15499 patents given in United States( USP).

Another strength of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution is its capability to develop innovative products at a constant rate. It major proves for the development and item developing of Corp is that the business has actually received numerous awards for its innovation and item design.

Unlike Apple and other competitors, Venture is concentrated on producing devices which can be easily integrated with any kind of open source Operating System (OS) and software. This provides Corp an edge over Apple devices.
Porter's 5 Forces Analysis
Organization's capability to produce luxury products at low expense of production is also one of the significant strength of Organization as it enables the company to catch more market by supplying quality products with cost control.


Org's weak points are hidden in the business's reliance on outsourcing software application for its gadgets due to business's failure in establishing software application, unlike Sony. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help likewise has low profit margins as compare to Apple due to big difference in the rates of Apple and Enterprise with a much lesser difference in quality.


Opportunities for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution lie in the growing Smart device market and the company's effectiveness in the market. Business presently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The vibrant market environment of innovation market present a serious threat on Enterprise's survival and require the business to spend much of its revenues share on R&D in order to endure in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a huge danger for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Organization uses quality items and has a quite abundant portfolio which caters to different segments. LCD and mobile phones are the biggest products of Company, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Cellphone.
• Air conditioning unit.
• Computer.
• Hard drives.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution utilizes both market competitive and market skimming prices techniques for its wide range of products. In competitive prices it changes the cost according to the competition in order to gain benefit, whereas, it utilizes market skimming method where the item has an included value and by selling a couple of products it can reach break-even.


It has among the best supply chain networks, with retail distributors, their own sole distributors, E commerce channels like Amazon and so on. All its items are prompt provided to the selling location/ provided to the consumers directly in case of online order.

Vrio Analysis
It wasn't a popular company beyond Korea till 1993. The management initiative taken by their CEO has pushed them to market more efficiently outside the borders and now it has actually gotten in the league of leading 25 companies in the world in just 9 years. This is an exceptional accomplishment regardless of the continuous arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promotion to market their products. Paid product ads, social promotion and digital ads are uses to develop awareness about Org items.

Value Chain Analysis.

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

Inbound Logistics.

It has one of the most reliable and effective supply chain network and has over 2700 suppliers across various industries worldwide. Almost 80% of which is based in Asia and the remaining around the world. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It takes care of its providers and creates an unified relationship with them and even decreased their payment cycles to enhance this relationship further which adds value to their chain network.


Corporation's core competency is its mass making it produces 90% of its products internal. Divided into three different divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Customer Electronics. It is keeping operation centers worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the primary reasons Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis has the ability to take on Apple. Corp's own Electronic Logitec system plays a major role in the outbound logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Venture.

Marketing and Sales.

Bring in target consumer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the product uses. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help advertising budget is constantly on the rise because they began their rearranging internationally and will continue to do so as they are constantly looking to expand and invest in high prospective growth markets. The spending plan is spent on events, print and media ads, public relations etc.

Enterprise Service. Corporation put their consumers at the top and continuously strive to deliver unmatchable customer support standards. As after sales service is becoming exceptionally crucial to keep clients happy and engaged, they even conduct studies through third parties to find out their customer's feedback and execute it in the favorable method to lower or if possible completely eliminate their consumer issues. By including a direct support line to call them 24 hours they have further increased the added value of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution service.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution has actually diversified market segmentation, based upon its arrangement of vast array of products to a great deal of customers. Corp target client sectors can be divided into 3 classifications i.e. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help IT and Mobile Communications, Business Consumer Electronics and Business Device solutions.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis geographic division is based upon two requirements i.e. area and density. Business serves about 80 countries worldwide with its items offered to Urban along with Rural areas of the nation. The Enterprise is also growing its worldwide presence and the company's flexibility in finding its plants encourages worldwide expansion of Company.


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


The psychographic segmentation of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help s based upon the social class and the lifestyle of the consumer. Corp target consumers on the basis of social class are mainly upper middle, middle and working class customers, as Corp sell products like mobile phone very little more affordable i.e. Motorola along with not much pricey i.e. Apple. It supplies quality items to middle level consumers at a slightly high cost than others targeting the exact same segment.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis bulk target consumers have unique behavioural qualities. It has customers with an enthusiastic, stylish and figured out personality with moderate level of commitment towards the brand. Its consumers have some degree of shift towards other prominent brand names i.e. Apple. The majority of Company customers want quality in addition to expense control. Due to the fact that of its moderate prices with an extent of quality, they are attracted towards Corp.

Quantitative analysis.

Sales of Corp 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 $. It has actually also lowered its debt from 15 billion $ to 4.6 billion $. Digital media is the largest selling category of Corporation with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing but net profit is not increasing accordingly because of the high overhead expense. New expansions and hiring's were the primary reason of the increase in the overhead expenses, with china presently not offering any earnings to Company, however there is so much capacity in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based upon the objective of Kim to target the younger audience and develop a worldwide brand picture of the company. Whereas, the core strength of the company is presently making but long gone are those days when good items were selling themselves. In the present age marketing is extremely important and companies can not be successful without it. Kim has actually currently begun to strengthen the marketing activities of Company and very soon it will become one of its core strength like making if not better.



Enterprise operates styles, manufactures and sell a vast portfolio of consumer electronics. It runs in a very competitive environment and has successfully placed itself as the maker of quality items. So, the answer is yes.


As, said previously that Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis operates in an extremely competitive environment, which implies all the companies have similar products. So, the response for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to comprehend the functionality of the products and quickly make their own models. Yes, Company is only behind IBM in signing up brand-new patents each year, however the advantage is extremely short term in this industry.


Chairman Lee has entirely turnaround Business, from going almost insolvent during the Asian financial crisis of 1997 to the leading 25 business worldwide. Definitely yes there appertains company in the company and the results promote 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 and so on, are really conductive for its operations. Nevertheless, it faces some political pressures in less industrialized countries where law and order situation is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution operations.


Buying power of consumers is crucial for business like Enterprise to grow and succeed. Emerging markets like India, middle-eastern nations etc. provide development opportunities, whereas, due to economic crisis even the clients of industrialized nations suffer badly. Hence it is really crucial for the business to keep an eye on the continuous economic scenario of the country prior to getting in the marketplace.


International business need to face numerous social and cultural problems throughout its operations in a foreign country. Enterprise has likewise dealt with many concerns but have adopted to the regional environments of the majority of the countries remarkably well. It has tailored its products, practices, policies and so on appropriately in order to be successful.


With a yearly expenditure of 2.4 billion dollars in Research & Development, and with constant ingenious product launches, Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis is among the leading innovative companies of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Company has increased to the no 25 of the top successful business of the world.


Each country has their own laws and policies, being an international company Enterprise have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal repercussions. It has to study or hire a regional law expert before starting its operations in a particular nation.


With the increasing awareness amongst customers about the ethical & environmental infractions of companies, Company needs to ensure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some nations the consequences can be very serious. On the other hand it has to do some Business Social Duty practices to reveal the residents that it cares about their environment and people.

Porter's Five Forces

Hazard of Substitution

Hazard of substitution for Business's each product classification is quite significant. Factors for high threat of substitution for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution Smartphone include the presence of high number of suppliers and Market saturation in developed countries, which make the cost of switching for consumers almost absolutely no. Along with it, Enterprise printing solutions products are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Firms:

The rivaly amongst Enterprise and its close rivals is extreme. The significant reason behind this is the method of market saturation in various number of product classifications, forcing Company to introduce more ingenious functions in existing items and new innovative items to maintain its growth. Other factor for the extreme competition amongst the rivals is the little product differentiation among the products. The popular gamers in the technology industry are quite aware of the significance of R&D costs for their survival and are encountering a race of marketing and R&D spending, to record the marketplace. The significant rivals for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the varying market shares which can be seen in Display F.

Bargaining Power of Providers:

Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution has a huge supply chain including about 2700 providers throughout the world.( Company Sustainability Report, 2016) Supplier's bargaining power for Org is low as Enterprise runs economies of scale and its orders are of potential size and worth. These huge orders enable Venture to work out costs with its suppliers. Due to incapability of Company to develop its own software, it has to outsource its software application development to Google, which ends up being a possible provider of software for Enterprise, resulting in high bargaining power of Google. Although, in the majority of cases Venture has a power to work out prices, however it offer considerable prices to its suppliers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Bargaining power of purchasers for numerous variety of product categories of Org is extreme. One of the factor leading to the intense bargaining power is the schedule of a great deal of competitors in almost each product classification i.e. rivals of Org Smart device, with an extremely little distinction. The high schedule of providers of Smartphones with minimum differentiation, make the switching expense for buyers almost absolutely no, thus increasing the bargaining power of buyers. Market saturation in most of the item classifications also make the bargaining power of purchasers more intense in for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution. In spite of igh bargaining power Corporation is quite capable of selling its products at a higher rate than much of its competitors, due to high-end quality product and a fair brand name image.

Hazard of New Entrants:

Risk of new entrants for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help is quite low. Along with it, requirement of substantial proficiency and research study and advancement expenditures for survival in the industry likewise make brand-new entrants reluctant to go into in the market. Market saturation is likewise one of the barrier of entry in technology market.

Competitive Analysis

Business's high product diversification provides it distinction from its rivals. It is among the three leading brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product classification with Sony concentrating on consumer electronic devices, Nokia on cellular phone and Intel on chips, Corp had a substantial R&D costs on all of its item categories which make it possible for the company to earn prospective earnings from sales of nearly all of its items. (See Exhibit) Nevertheless, due to the broad product range the business deals with high variety of competitors.

The business ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema TVs and Microwave, in terms of global market share, among 8 various product categories. Corporation was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Business incomes from chips was less than Intel however its incomes from chips was growing quicker than Intel and has grown close to the earnings levels of Intel, as offered in the case Exhibition 2.

Together with the chips Venture mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Corporation's cellular phone's sales development was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales development. The major reson behind Organization's high growth despite of greater costs than Nokia and Motorola was the company's high-end quality mobile phone.

Corp was likewise reaping the benefits from increasing market share of luxury LCDs as given up case Exhibition 3. The significant reason, making the company allow to get the chance is its mass production at low expense. Sony was the most significant rival for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help in LCD market, nevertheless, it had also started joint endeavor with Business in 2003 for LCD making, minimizing the competitors for Organization.

Porter's Competitive Strategy

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


Alternative Option 1

The Chief Marketing Officer (CMO) of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution would create a new brand name image by targeting the younger generation of the particular country. As, particularly smart phones of Company are very popular among the more youthful group.


1. It is the very best strategy to construct Customer Lifetime Value (CLV) by developing a long-lasting relationship with consumers. Build commitment through delivering worth and reap the benefits for long-term, as research study has actually revealed it is more affordable to keep present consumers than to attract new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst more youthful people and which in turn will bring in new clients for my items.


1. Old consumers who were associated with Corp prior to might not like this new image the business is attempting to depict.
2 It will sustain more expenditures to reposition some items and it may not even bring success as the patterns alter extremely rapidly amongst the younger demographic.

Alternative option 2.

Org has actually made making its core proficiency for the most part of their organisation and due to which its supervisors are not afraid to totally get out of their comfort zone. It would be done by arranging training workshops during which significance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get benched. Marketing environment should be created internally initially as genuine marketing starts inside the corporation.


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


2. Its con can create an extremely unhealthy environment in the work environment, as individuals typically resist change since they fear it.

Determine the very best option

Very first option is the best as it plainly has more pros because once a Consumer Life time Value is constructed the company will make money from it till that client is alive and has acquiring power as well. Plus, our target clients are the younger generation which are bound to live longer than the current aging individuals. Organization's primary objective is to develop loyalty amongst its customers and make them repurchase it from them and even purchase their various products.

Execution Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations possible and realistic.
• A group including best marketing and sales experts ought to be put together, and both views should be taken into account prior to protecting the resources needed to execute the strategy.
• Thorough communication of the plan should be done as it is extremely important for everybody to be on the exact same page to make it work.
• Jobs and timelines should be develop and communicated appropriately to each individual accountable.
• The supervisor must utilize a control panel which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The supervisor must keep track of and keep a continuous examine the private and general performance.
• Everybody ought to be willing to adapt midway due to the fact that any brand-new pattern or policy might can be found in due to which all the things currently planned need to be adjusted. It's better to have contingency strategies currently prepared.
• At the end of the campaign the supervisor should communicate the outcomes and if effective ought to celebrate with the group.

Budget plan

This modification the budget plan allotment of lots of managers and different nations were dissatisfied and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth potential warranted a 35% allotment while they were receiving 45%. It really assisted to fairly distribute the resources and record more customers by spending more on advertisements on the high growth capacity regions of the world.

Its constant financial investment in R&D and innovative 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 brands in the world. Their marketing efforts need to be directed towards younger demographic in the middle of the internal arguments about marketing and ought to develop Consumer Lifetime Value as it will not just offer them benefits now however will continue to enjoy it till the consumer lifetime. As the cost of maintaining the customer is much less expensive than drawing in a new one.