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

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


Historically, the company's core customers include the Original Equipment Manufacturers (OEMs), which utilized to offer Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis items withtheir own brand name. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Samsung products with their own brand name. He repositioned Samsung as an international brand name and educated his divisional supervisors to comprehend marketing and its importance.

Issue Declaration

Samsung's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the reluctance of divisional supervisors to incorporate marketing efficiently is still a major obstacle. Developing a consistent brand identity throughout the whole world and using marketing methods that best fits the regional culture is no simple job. The M-net program analysis have been actually useful in identifying the high and less possible growth areas, however allocation of resources accordingly is not well gotten amongst the managers. There is no consensus among the hierarchy relating to the very best matched future technique.
Executive Summary
Situational Analysis

Yun had a rather 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 item company. He knew that change can only be done through positioning Samsung as a company using high-end products and this could only be done through high level of marketing.

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

One of the marketing difficulties for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as very 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 business practices, and the current marketing requirement was too much high, the space was too wider and to fill this space with wrong perceptions about marketing was rather challenging for Yun.

Along with it the item range of the business was increasing with the ripening of new product concepts by the R&D sector of Samsung. Yun had a difficulty to carry out marketing planning and to create marketing budgets for existing as well as for new items from the very beginning, and this would take a big time.

A substantial shift would be needed in current marketing expenses to construct 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 Samsung and might disturb the administration regarding increased expenditures, as they hesitated to marketing expenditures formerly and a sudden big shiftwould make them disturb. This might lead to decreasing executive support for global marketing. In this scenario, Yun faces a challenge for justifying increased marketing expenses by demonstrating the long term worth of substantial marketing expenditures.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the market with overall number of 15499 patents approved in United States( USP). Big quantity of R&D costs has enabled the company to grow its item portfolio at a greater rate than its competitors. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall earnings.

Another strength of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis is its capability to establish ingenious products at a continuous rate. It major shows for the innovation and product designing of Samsung is that the business has actually received so many awards for its innovation and product style.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be easily integrated with any kind of open source Operating System (OS) and software. This offers Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce high-end items at low cost of production is likewise among the significant strength of Samsung as it enables the company to catch more market by supplying quality products with expense control.


Samsung's weak points are hidden in the business's dependence on outsourcing software application for its devices due to business's failure in developing software application, unlike Sony. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution also has low profit margins as compare to Apple due to big difference in the prices of Apple and Samsung with a much lesser distinction in quality.


Opportunities for Samsung depend on the growing Smart device market and the company's performance in the market. It can increase its market share and earnings from cellular phone as the business is rather effective in mobile phone market. Samsung currently runs in about 80 nations and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would enable the business to increase its item portfolio with a boost in its wealth.


The dynamic market environment of innovation industry present a severe risk on Samsung's survival and force the company to spend much of its revenues 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 likewise a huge hazard for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Samsung uses quality items and has a rather rich portfolio which caters to various segments. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is likewise not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Ac system.
• Desktop computer.
• Hard disks.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis utilizes both market competitive and market skimming rates methods for its wide variety of products. In competitive prices it adjusts the price according to the competition in order to get advantage, whereas, it utilizes market skimming strategy where the product has actually an added value and by selling a few items it can reach break-even.


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

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

Worth Chain Analysis.

It's an analytical structure for recognizing service activities that add worth 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 a harmonious relationship with them and even decreased their payment cycles to enhance this relationship further which includes worth to their chain network.


Samsung's core competency is its mass making it produces 90% of its items internal. Divided into three different divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further add value to its worth chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the primary reasons Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis is able to compete with Apple. Samsung'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 coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Drawing in target client attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the product offers. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis marketing budget is continually increasing given that they started their rearranging worldwide and will continue to do so as they are continually looking to expand and invest in high potential growth markets. The budget plan is spent on events, print and media advertisements, public relations etc.

Samsung put their customers at the top and continuously strive to provide unmatchable client service requirements. By adding a direct support line to contact them 24 hours they have further increased the included value of Samsung service.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help has diversified market segmentation, based upon its arrangement of vast array of products to large number of customers. Samsung target customer sections can be divided into 3 categories i.e. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Gadget options.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help geographical division is based upon two criteria i.e. region and density. Samsung serves about 80 nations worldwide with its products provided to Urban as well as Backwoods of the country. The Samsung is likewise growing its international existence and the business's versatility in finding its plants encourages global growth of Samsung.


Samsung produces items that can be utilized by both males and females. The target clients for Samsung IT and mobile interaction items have an age variety of 18-65 with bulk at a young or recently wed life cycle phase. Apart from it, Samsung Consumer Electronics are targeted to a client 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 Analysis s based upon the social class and the lifestyle of the consumer. Samsung target clients on the basis of social class are primarily upper middle, middle and working class clients, as Samsung sell products like cellular phone very little cheaper i.e. Motorola as well as not much costly i.e. Apple. It supplies quality products to middle level consumers at a slightly high price than others targeting the exact same segment.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help majority target consumers have special behavioural qualities. They are brought in towards Samsung since of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Samsung has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has also decreased its debt from 15 billion $ to 4.6 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. Profits/ sales are increasing but net earnings is not increasing accordingly due to the fact that of the high overhead cost. New growths and hiring's were the main reason of the increase in the overhead costs, with china currently not supplying any earnings to Samsung, but there is so much capacity in the current market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this choice is based on the objective of Kim to target the younger audience and create an international brand picture of the company. Whereas, the core strength of the business is presently producing but long gone are those days when great products were offering themselves. In the current age marketing is really crucial and business can not be successful without it. Kim has already begun to reinforce the marketing activities of Samsung and very soon it will become one of its core strength like producing if not better.



Samsung operates designs, makes and offer a huge portfolio of customer electronic devices. It operates in a very competitive environment and has effectively positioned itself as the maker of quality products. The response 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 indicates all the business have similar products. The response for rarity is no.


Due to the nature of the market, it is really simple for rivals to comprehend the performance of the items and easily make their own models. Yes, Samsung is only behind IBM in signing up brand-new patents every year, however the advantage is extremely short-term in this industry.


Chairman Lee has entirely turn-around Samsung, from going nearly insolvent during the Asian financial crisis of 1997 to the leading 25 company on the planet. Absolutely yes there appertains organization in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand spread nearly in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. It deals with some political pressures in less developed countries where law and order scenario is not great. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis operations.


Buying power of clients is crucial for business like Samsung to prosper and grow. Emerging markets like India, middle-eastern nations and so on supply development chances, whereas, due to economic crisis even the clients of developed countries suffer badly. For this reason it is very crucial for the company to keep an eye on the ongoing financial circumstance of the country before entering the marketplace.


Multinational companies have to deal with numerous social and cultural problems during its operations in a foreign country. Samsung has likewise faced lots of issues however have actually adopted to the local environments of the majority of the countries exceptionally well. It has actually customized its items, practices, policies and so on accordingly in order to achieve success.


With a yearly expenditure of 2.4 billion dollars in Research & Development, and with continuous ingenious product launches, Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution is one of the top ingenious companies of the world. With a clear mission to be ahead of the rest when it pertains to technological improvements, Samsung has risen to the no 25 of the top effective business of the world.


Each nation 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 repercussions. So, it needs to study or employ a local law professional before starting its operations in a particular nation.


With the increasing awareness among consumers about the ecological & ethical violations of business, Samsung needs to ensure that it follows all the security standards. Ecological damages, ethical misbehaviors are not appropriate and in some countries the effects can be very serious. On the other hand it needs to do some Business Social Duty practices to reveal the locals that it appreciates their environment and people.

Porter's Five Forces

Threat of Alternative

Risk of alternative for Samsung's each product classification is quite considerable. Running in an incredibly dynamic market lead the company to deal with a high risk of substitution. Aspects for high risk of alternative for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help Mobile phone consist of the presence of high variety of suppliers and Market saturation in developed countries, which make the expense of changing for customers almost absolutely no. Replacement hazards for Samsung visual display screen depend on the altering lifestyle of clients. Customers can switch to viewing visuals in your home towards outside activities. In addition to it, Samsung printing options products are threatened by the increasing tourist attraction of customers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Samsung and its close rivals is extreme. The major reason behind this is the approach of market saturation in different number of product classifications, forcing Samsung to introduce more ingenious functions in existing products and brand-new ingenious items to preserve its development. The major rivals for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO and so on.

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

Bargaining Power of Buyers:

Bargaining power of buyers for different variety of item classifications of Samsung is intense. One of the aspect leading to the intense bargaining power is the availability of a great deal of rivals in nearly each item category i.e. rivals of Samsung Smartphone, with a really little distinction. The high availability of suppliers of Smart devices with minimum differentiation, make the changing cost for purchasers nearly absolutely no, hence increasing the bargaining power of buyers. Market saturation in most of the item classifications likewise make the bargaining power of purchasers more extreme in for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis. In spite of igh bargaining power Samsung is rather capable of offering its products at a greater rate than much of its competitors, due to luxury quality item and a fair brand image.

Hazard of New Entrants:

Risk of new entrants for Samsung is quite low. One of the significant factor for low hazard of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to enter in the market is likewise among the possible barrier to entry. Together with it, requirement of big expertise and research and development expenses for survival in the market likewise make brand-new entrants reluctant to enter in the market. Market saturation is also among the barrier of entry in innovation industry. High bargaining power of suppliers require the gamers in the industry to charge as low prices as possible and this can only be accomplished by production performance. New firms, in bulk cases, lack the production performance, thus increasing the dangers for entrance in the innovation market.

Competitive Analysis

Samsung's high product diversification provides it differentiation from its rivals. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help had a big R&D spending on all of its product classifications which allow the business to earn possible revenue from sales of nearly all of its products.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave ovens, in terms of international market share, amongst 8 different product categories. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its incomes from chips was growing faster than Intel and has grown close to the revenue levels of Intel, as given in the case Exhibit 2.

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

Samsung was also reaping the benefits from increasing market share of high end LCDs as given in case Display 3. The significant reason, making the business make it possible for to obtain the chance is its mass production at low expense. Sony was the greatest rival for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis in LCD market, nevertheless, it had also started joint endeavor with Samsung in 2003 for LCD producing, minimizing the competitors for Samsung.

Porter's Competitive Technique

Low Cost Leadership strategy of porter is fully carried out by Samsung the way they achieve economies of scale by enhancing their core competencies of manufacturing. They constantly bring something innovative and new whether it's a product or a service.


Alternative Service 1

The Chief Marketing Officer (CMO) of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help would develop a brand-new brand image by targeting the more youthful generation of the specific nation. As, particularly mobile phones of Samsung are popular amongst the younger demographic.


1. It is the best technique to build Customer Life time Worth (CLV) by creating a long-lasting relationship with customers. Build commitment through providing worth and reap the benefits for long-lasting, as research has actually showed it is more affordable to maintain present customers than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful people and which in turn will generate new consumers for my items.


1. Old customers who were associated with Samsung before may not like this brand-new image the business is attempting to represent.
2 It will incur more costs to rearrange some products and it might not even bring success as the trends alter really quickly among the more youthful group.

Alternative solution 2.

Samsung has actually made producing its core proficiency for the a lot of part of their business and due to which its supervisors are not scared to fully get out of their convenience zone. It would be done by organizing training workshops during which significance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment must be developed internally first as genuine marketing starts inside the corporation.


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


2. Its con can produce an extremely unhealthy environment in the workplace, as individuals frequently withstand modification since they fear it.

Identify the very best option

Option is the finest as it clearly has more pros because when a Client Life time Worth is constructed the company will profit from it till that client is alive and has buying power. Plus, our target clients are the more youthful generation which are bound to live longer than the present old age people. Nonetheless, Samsung's primary goal is to develop commitment amongst its clients and make them redeemed it from them and even buy their different products as well.

Implementation Strategy

• Targeting younger generation through social marketing, producing a link with them like Pepsi finish with music. And set the expectations attainable and reasonable.
• A group including best marketing and sales specialists need to be put together, and both views must be taken into account prior to securing the resources needed to implement the plan.
• Thorough communication of the strategy must be done as it is very crucial for everybody to be on the very same page to make it work.
• Tasks and timelines ought to be develop and interacted appropriately to each person accountable.
• The manager must use a dashboard which shows the development 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 check on the total and specific efficiency.
• Everyone need to want to adjust midway because any brand-new pattern or policy may be available in due to which all the things currently prepared have to be adjusted. It's better to have contingency plans already prepared.
• At the end of the project the supervisor must communicate the outcomes and if effective ought to commemorate with the group.


The M-net program revealed engaging analysis about the low and high growth prospective locations and how much marketing budget ought to be allocated appropriately. This change the budget plan allotment of lots of managers and various countries were unhappy and argued however the analysis done by the program was accurate and revealed figures like The United States and Canada and Russia growth potential warranted a 35% allowance while they were getting 45%. Whereas, China and Europe should be getting 42% but were instead given 31%. It really assisted to fairly disperse the resources and capture more customers by investing more on advertisements on the high growth capacity regions of the world.

Its consistent investment in R&D and ingenious practices have actually moved them to brand-new heights but for them its' only the start and they desire to be among the top 3 brands in the world. Their marketing efforts need to be directed towards younger market amid the internal arguments about marketing and must produce Customer Life time Worth as it will not just provide them benefits now however will continue to gain it till the customer life time. As the expense of retaining the consumer is much cheaper than drawing in a new one.