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


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution is a popular global brand name in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A handle large number of item categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic items. Historically, the company's core consumers include the Original Equipment Manufacturers (OEMs), which used to offer Organization items withtheir own brand name. Till early 1990s, the core proficiency of Business depend on its low price offerings than its rivals by manufacturing existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis items with their own trademark name. Venture was not merely understood outside Korea. There were also no or little interest in developing the trademark name internationally. Marketing budget was controlled by production department with a focal point on supplying low-cost products.During the 1997 Asian Financial Crisis the company nearly got bankrupt, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the top 25 most important company in the world. When Kim was hired as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Org as a global brand name and informed his divisional managers to understand marketing and its importance. Now their objective is to arrive 10 by 2005.

Issue Statement

Org's shift from an item based to a marketing company is not going as efficiently as planned.Overcoming the unwillingness of divisional managers to integrate marketing efficiently is still a significant challenge. Developing a constant brand identity throughout the whole world and employing marketing methods that finest fits the local culture is no easy task.
Executive Summary
Situational Analysis

Yun had a quite clear picture in his mind about how Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help can transform from a low end to a high end product company. He knew that transformation can only be done through positioning Corporation as a business providing high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to construct Org brand name, with a possible assistance of its executives, Yun dealt with several marketing obstacles in early years of its efforts.

Among the marketing difficulties for Yun was the perceptions of executives about the value of marketing. They considered marketing and selling as same tools and thought 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 too much high, the space was too larger and to fill this space with wrong understandings about marketing was quite challenging for Yun.

Along with it the item variety of the business was increasing with the ripening of brand-new product ideas by the R&D sector of Business. Yun had a challenge to perform marketing planning and to produce marketing spending plans for existing as well as for brand-new items from the very start, and this would take a substantial time.

A big shift would be required in present marketing expenses to build the Organization brand. This would result in increased marketing expenditures for Corporation and could interrupt the administration concerning increased expenses, as they were unwilling to marketing expenses previously and a sudden huge shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution strengths lie in its substantial product portfolio. Venture has biggest number of patents in the market with overall number of 15499 patents approved in US( USP).

Another strength of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis is its capability to establish ingenious items at a continuous rate. It significant shows for the development and item creating of Organization is that the business has actually gotten numerous awards for its development and item design.

Unlike Apple and other rivals, Company is concentrated on producing devices which can be easily integrated with any kind of open source Os (OS) and software application. This supplies Venture an edge over Apple devices.
Porter's 5 Forces Analysis
Company's capability to produce high end products at low cost of production is likewise among the significant strength of Organization as it enables the company to catch more market by providing quality products with cost control.

Weak points

Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis weaknesses are hidden in the business's reliance on outsourcing software application for its gadgets due to business's inability in establishing software, unlike Sony. Corp also has low earnings margins as compare to Apple due to big difference in the prices of Apple and Corporation with a much lesser difference in quality. The varied focus of the company due to a great deal of products in its portfolio, lead to the less efficient production and make the company unable to charge higher costs like Apple. The business is likewise ineffective in handling its patents and regularly faces the problem of patent infraction.


Opportunities for Organization lie in the growing Smart device market and the company's efficiency in the market. It can increase its market share and earnings from cell phone as the business is rather effective in smart phone market. Corporation presently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Organization can move towards acquisitions to obtain patents. It would enable the business to increase its item portfolio with an increase in its wealth.


The vibrant market environment of innovation industry pose a severe hazard on Corporation's survival and force the company to spend much of its profits share on R&D in order to survive in the long run. The marketplace saturation in developed nations i.e. saturation of mobile company is also a big risk for the business's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

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

• Laptops.
• Cellphone.
• A/c.
• Desktop computer.
• Hard disks.
• Washing machines.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution uses both market competitive and market skimming pricing techniques for its wide range of items. In competitive rates it adjusts the cost according to the competition in order to get advantage, whereas, it uses market skimming strategy where the item has an included value and by selling a couple of items it can reach break-even.


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

Vrio Analysis
It uses both offline & online channels of promo to market their items. Paid item ads, social promotion and digital ads are utilizes to produce awareness about Org products.

Value Chain Analysis.

It's an analytical framework for recognizing service activities that add value or competitive benefit for the company.

Inbound Logistics.

For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its suppliers and creates an unified relationship with them and even lowered their payment cycles to boost this relationship further which includes value to their chain network.


Enterprise's core proficiency is its mass making it produces 90% of its products internal. Divided into 3 different divisions its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronics. It is preserving operation centers worldwide to further add value to its value chain network.

Outbound Logistics.

Its outgoing logistics system performance is among the main factors Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help is able to compete with Apple. Enterprise's own Electronic Logitec system plays a significant function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Org.

Marketing and Sales.

Attracting target customer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the item uses. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis marketing spending plan is continuously rising given that they began their rearranging worldwide and will continue to do so as they are continually wanting to invest and broaden in high potential development markets. The budget plan is spent on events, print and media advertisements, public relations etc.

Corporation Service. Corporation put their customers on top and continually aim to provide unmatchable customer care requirements. As after sales service is ending up being incredibly crucial to keep consumers delighted and engaged, they even perform surveys through third parties to learn their consumer's feedback and execute it in the positive way to decrease or if possible completely eliminate their consumer concerns. By adding a direct assistance line to contact them 24 hours they have further increased the included value of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis service.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis has actually diversified market division, based upon its provision of large range of products to large number of consumers. Venture target client sectors can be divided into 3 categories i.e. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution IT and Mobile Communications, Org Customer Electronic Devices and Organization Device options.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help geographical division is based upon two requirements i.e. area and density. Venture serves about 80 countries worldwide with its products supplied to Urban as well as Backwoods of the nation. The Venture is also growing its global presence and the company's versatility in finding its plants encourages international expansion of Org.


Corp produces products that can be utilized by both women and males. The target consumers for Enterprise IT and mobile communication items have an age variety of 18-65 with majority at a young or freshly wed life cycle stage. Apart from it, Organization Consumer Electronics are targeted to a consumer sector with an age range of 25-65.


The psychographic division of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis s based upon the social class and the life style of the consumer. Business target clients on the basis of social class are mainly upper middle, middle and working class customers, as Enterprise offer products like cellular phone very little less expensive i.e. Motorola as well as not much expensive i.e. Apple. It provides quality products to middle level customers at a somewhat high rate than others targeting the very same sector.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution bulk target customers have distinct behavioural attributes. It has clients with an enthusiastic, stylish and figured out character with moderate level of commitment towards the brand. Its customers have some degree of shift towards other renowned brand names i.e. Apple. The majority of Business customers desire quality as well as cost control. Due to the fact that of its moderate costs with a level of quality, they are attracted towards Corporation.

Quantitative analysis.

Sales of Business has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has also lowered its financial obligation from 15 billion $ to 4.6 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. Earnings/ sales are increasing but net revenue is not increasing accordingly because of the high overhead expense. New growths and employing's were the main factor of the increase in the overhead expenses, with china currently not offering any profit to Venture, but there is so much potential in the present market with 75 % yet to be explored.

Qualitative analysis.

Whereas, the core strength of the company is presently producing however long gone are those days when great items were offering themselves. Kim has currently started to strengthen the marketing activities of Corporation and very soon it will end up being one of its core strength like manufacturing if not better.



Enterprise operates designs, makes and sell a large portfolio of customer electronic devices. It operates in an incredibly competitive environment and has actually effectively positioned itself as the maker of quality items. So, the response is yes.


As, said earlier that Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution runs in a highly competitive environment, which means all the companies have similar products. The answer for rarity is no.


Due to the nature of the market, it is really easy for rivals to understand the functionality of the products and easily make their own designs. Yes, Company is only behind IBM in signing up new patents yearly, but the benefit is very short term in this market.


Chairman Lee has entirely turnaround Venture, from going nearly insolvent during the Asian monetary crisis of 1997 to the top 25 company on the planet. Certainly yes there is proper organization in the business and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand spread practically in every country worldwide, majority of the environments like USA, Europe, China etc., are extremely conductive for its operations. Nevertheless, it deals with some political pressures in less developed countries where order circumstance is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution operations.


Purchasing power of customers is crucial for companies like Venture to grow and succeed. Emerging markets like India, middle-eastern nations and so on supply growth chances, whereas, due to economic crisis even the clients of developed countries suffer badly. For this reason it is extremely crucial for the business to watch on the continuous financial scenario of the country before getting in the marketplace.


International business have to deal with numerous social and cultural issues during its operations in a foreign nation. Corp has actually also faced lots of problems but have actually embraced to the regional environments of most of the countries remarkably well. It has actually customized its items, practices, policies and so on appropriately in order to be successful.


With an annual expenditure of 2.4 billion dollars in Research & Development, and with consistent innovative item launches, Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution is among the leading innovative companies of the world. With a clear mission to be ahead of the rest when it pertains to technological developments, Enterprise has actually increased to the no 25 of the top effective companies of the world.


Each nation has their own laws and policies, being a multinational business Business need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. It has to study or work with a local law professional prior to beginning its operations in a particular nation.


With the rising awareness among consumers about the ethical & ecological violations of business, Corporation needs to make sure that it follows all the security standards. Ecological damages, ethical misconducts are not acceptable and in some nations the effects can be extremely severe. On the other hand it has to do some Business Social Obligation practices to reveal the residents that it cares about their environment and people.

Porter's 5 Forces

Threat of Alternative

Hazard of alternative for Business's each item category is rather substantial. Factors for high risk of alternative for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help Smartphone include the presence of high number of suppliers and Market saturation in industrialized countries, which make the expense of switching for consumers almost absolutely no. Along with it, Business printing solutions items are threatened by the increasing destination of clients towards cloud storage.

Competition Amongst Existing Companies:

The rivaly amongst Enterprise and its close rivals is intense. The major factor behind this is the method of market saturation in various number of item categories, forcing Corp to present more innovative functions in existing products and brand-new ingenious products to maintain its development. Other aspect for the extreme rivalry amongst the competitors is the little product differentiation amongst the items. The popular gamers in the technology industry are rather aware of the significance of R&D costs for their survival and are encountering a race of marketing and R&D spending, to capture the marketplace. The major competitors for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the changing market shares which can be seen in Display F.

Bargaining Power of Providers:

( Corp Sustainability Report, 2016) Supplier's bargaining power for Company is low as Corporation runs economies of scale and its orders are of possible size and worth. Due to incapability of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis to construct its own software, it has to outsource its software advancement to Google, which ends up being a possible supplier of software for Venture, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Haggling power of buyers for various number of product classifications of Venture is intense. One of the aspect resulting in the extreme bargaining power is the schedule of a great deal of competitors in nearly each product classification i.e. rivals of Organization Smartphone, with a very little differentiation. The high schedule of suppliers of Mobile phones with minimum distinction, make the switching expense for buyers almost absolutely no, for this reason increasing the bargaining power of buyers. Market saturation in most of the item categories likewise make the bargaining power of buyers more intense in for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis. In spite of igh bargaining power Company is rather capable of selling its products at a higher price than much of its rivals, due to luxury quality product and a reasonable brand name image.

Threat of New Entrants:

Risk of new entrants for Business is rather low. Among the major element for low risk of brand-new entrants is the high competition in the market. The requirement of huge amount of capital to go into in the marketplace is also one of the possible barrier to entry. In addition to it, requirement of substantial proficiency and research study and advancement expenses for survival in the market likewise make new entrants reluctant to enter in the marketplace. Market saturation is also among the barrier of entry in technology market. High bargaining power of providers require the players in the market to charge as low rates as possible and this can only be achieved by production effectiveness. New firms, in bulk cases, lack the production effectiveness, thus increasing the risks for entrance in the technology market.

Competitive Analysis

Business's high item diversity provides it differentiation from its competitors. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis had a big R&D costs on all of its product classifications which enable the company to make possible earnings from sales of practically all of its items.

The company ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of worldwide market share, amongst 8 different item categories. Venture was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Business revenues from chips was less than Intel however its revenues from chips was growing much faster than Intel and has grown close to the profits levels of Intel, as offered in the case Exhibition 2.

Along with the chips Company mobile market was also thriving at a high rate than its rivals i.e. Motorola and Nokia. Venture's mobile phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales development. The significant reson behind Corporation's high growth despite of higher rates than Nokia and Motorola was the business's high-end quality cell phones.

Enterprise was likewise profiting from increasing market share of high end LCDs as given in case Exhibit 3. The significant factor, making the company make it possible for to avail the opportunity is its mass production at low cost. Sony was the greatest rival for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help in LCD market, however, it had actually likewise begun joint endeavor with Org in 2003 for LCD manufacturing, reducing the competitors for Enterprise.

Porter's Competitive Method

Low Cost Leadership method of porter is totally implemented by Business the way they achieve economies of scale by enhancing their core proficiencies of production. Even to the point that their rival SONY decided to form an alliance with them to make for them, because they were unable to compete with them on low expense. Distinction is another strategy well executed by Corporation by constant investment in the R&D and staying ahead of the competitors. They always bring something brand-new and ingenious whether it's a product or a service.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis would produce a brand-new brand image by targeting the more youthful generation of the particular nation. As, especially mobile phones of Venture are preferred amongst the more youthful group.


1. It is the very best method to develop Consumer Life time Value (CLV) by producing a long-lasting relationship with clients. Build loyalty through providing worth and profit for long-lasting, as research study has revealed it is much cheaper to maintain present clients than to attract brand-new ones.
2. Another pro of this option is that word of mouth spread faster among younger people and which in turn will bring in brand-new customers for my products.


1. Old customers who were related to Corporation 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 patterns alter really rapidly amongst the more youthful demographic.

Alternative solution 2.

It would be done by setting up training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment ought to be developed internally first as real 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 develop a very unhealthy environment in the work environment, as people typically withstand change due to the fact that they fear it.

Determine the best alternative

First alternative is the best as it clearly has more pros due to the fact that when a Consumer Life time Value is developed the company will profit from it till that customer lives and has buying power as well. Plus, our target customers are the more youthful generation which are bound to live longer than the present aging people. Corporation's primary objective is to produce commitment amongst its clients and make them repurchase it from them and even purchase their different products.

Application Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi do with music. And set the expectations realistic and attainable.
• A team consisting of best marketing and sales professionals must be assemble, and both views should be taken into consideration before securing the resources required to implement the strategy.
• Thorough communication of the strategy ought to be done as it is extremely essential for everybody to be on the exact same page to make it work.
• Jobs and timelines need to be build and interacted appropriately to each individual responsible.
• The manager must utilize a control panel which shows the development of all the jobs which have been done or about to be done and by whom.
• The manager should keep track of and keep a consistent look at the specific and general performance.
• Everybody must be willing to adjust midway due to the fact that any brand-new trend or policy might come in due to which all the important things already planned have to be adjusted. It's much better to have contingency plans currently prepared.
• At the end of the project the supervisor need to communicate the outcomes and if successful must commemorate with the team.


This modification the budget plan allotment of different nations and numerous supervisors were dissatisfied and argued but the analysis done by the program was precise and showed figures like North America and Russia growth possible warranted a 35% allowance while they were getting 45%. It truly assisted to relatively disperse the resources and catch more clients by investing more on advertisements on the high growth capacity areas of the world.

Its continuous investment in R&D and innovative practices have actually propelled them to brand-new heights but for them its' only the start and they want to be amongst the leading 3 brands in the world. Their marketing efforts ought to be directed towards more youthful group in the middle of the internal arguments about marketing and must create Customer Life time Worth as it will not just offer them benefits now but will continue to gain it till the consumer life time. As the cost of maintaining the consumer is much less expensive than attracting a new one.