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

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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 Help is a well-known global brand in innovation industry, founded in 1938 by Lee Byung Chul, in South Korea. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A handle a great deal of item categories including Semiconductors, Telecom, Digital Media, Digital Appliances and much more other electronic products. Historically, the company's core customers include the Original Equipment Manufacturers (OEMs), which used to offer Samsung products withtheir own brand name. Till early 1990s, the core proficiency of Samsung depend on its low rate offerings than its competitors by producing existing products at economies of scale. Its customer circle consists of Original Devices Manufacturers (OEMs), who utilized to sell Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis items with their own brand name. Samsung was not simply understood outside Korea. There were likewise no or little interest in building the trademark name worldwide. Marketing budget plan was managed by production department with a prime focus on providing 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 on the planet. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even listed. He rearranged Samsung as a worldwide brand name and educated his divisional supervisors to understand marketing and its importance. Now their objective is to arrive 10 by 2005.

Problem Statement

Samsung's shift from a product based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing effectively is still a major difficulty. Creating a constant brand identity across the entire world and utilizing marketing methods that best fits the local culture is no simple job.

Situational Analysis

Yun had a rather clear picture in his mind about how Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution can change from a low end to a high end product supplier. He knew that improvement can only be done through positioning Samsung as a company offering high-end items and this might just be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand, with a potential support of its executives, Yun faced numerous 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 thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices, and the current marketing requirement was too much high, the space was too broader and to fill this gap with incorrect understandings about marketing was rather tough for Yun.

Along with it the item variety of the business was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had an obstacle to carry out marketing preparation and to produce marketing budget plans for existing as well as for new items from the very beginning, and this would take a big time.

A huge shift would be needed in current marketing expenditures to develop the Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution brand. This would result in increased marketing expenses for Samsung and could disrupt the administration regarding increased expenses, as they were reluctant to marketing expenses formerly and a sudden big shiftwould make them interrupt. This might lead to declining executive assistance for worldwide marketing. In this scenario, Yun deals with a challenge for justifying increased marketing expenditures by showing the long term value of big marketing expenses.

Internal Analysis
SWOT Analysis

Samsung strengths lie in its substantial item portfolio. Samsung has biggest variety of patents in the industry with overall variety of 15499 patents approved in US( USP). Large quantity of R&D spending 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 total earnings.

Another strength of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help is its ability to develop innovative products at a constant rate. It major shows for the innovation and product designing of Samsung is that the business has actually gotten a lot of awards for its innovation and item style.

Unlike Apple and other competitors, Samsung is focused on producing gadgets which can be easily integrated with any type of open source Os (OS) and software. This supplies Samsung an edge over Apple gadgets.

Samsung's ability to produce high end items at low cost of production is likewise among the major strength of Samsung as it makes it possible for the business to catch more market by providing quality products with expense control.

Weak points

Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution weak points are hidden in the company's dependence on outsourcing software for its gadgets due to company's failure in developing software application, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to substantial difference in the rates of Apple and Samsung with a much lower distinction in quality. The diverse focus of the business due to a great deal of items in its portfolio, result in the less effective production and make the company unable to charge higher rates like Apple. The company is also ineffective in handling its patents and regularly faces the problem of patent offense.


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


The vibrant market environment of technology market position a severe hazard on Samsung's survival and require the business to invest much of its incomes share on R&D in order to make it through in the long run. The marketplace saturation in developed countries i.e. saturation of mobile company is likewise a big risk for the company's development in the existence of strong rivals like Apple.

4 P's of Marketing


Samsung provides quality items and has a quite rich portfolio which caters to various sectors. LCD and mobile phones are the biggest products of Samsung, whereas DRAM is also not far behind in contrast of them.

• Laptops.
• Smart phone.
• Air conditioning system.
• Desktop computer.
• Hard drives.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis uses both market competitive and market skimming pricing strategies for its wide range of products. In competitive rates it changes the price according to the competitors in order to get advantage, whereas, it uses market skimming strategy where the product has actually an added worth and by offering a couple of items it can reach break-even.


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


It wasn't a popular business beyond Korea until 1993. But the management initiative taken by their CEO has pushed them to market more efficiently outside the borders and now it has actually gone into the league of top 25 companies on the planet in just 9 years. This is an amazing achievement in spite of the ongoing arguments amongst the managers about embracing marketing practices. It uses both offline & online channels of promo to market their products. Paid product ads, social promo and digital advertisements are uses to produce awareness about Samsung products.

Value Chain Analysis.

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

Inbound Logistics.

It has one of the most efficient and effective supply chain network and has more than 2700 suppliers throughout numerous industries worldwide. Practically 80% of which is based in Asia and the remaining all over the world. For its incoming logistics it owns various logistics companies as it subsidiaries. It cares for its providers and develops a harmonious relationship with them and even minimized 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 in-house. Divided into 3 various divisions its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronics. It is keeping operation centers worldwide to even more include worth 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 Solution is able to compete with Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive advantage the product offers. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis advertising budget plan is continuously growing considering that they began their repositioning internationally and will continue to do so as they are constantly wanting to expand and invest in high potential development markets. The spending plan is spent on occasions, print and media ads, public relations and so on.

Samsung Service. Samsung put their clients at the top and constantly make every effort to deliver unmatchable customer care requirements. As after sales service is ending up being exceptionally crucial to keep customers happy and engaged, they even perform surveys through 3rd parties to find out their customer's feedback and execute it in the positive method to lower or if possible entirely eliminate their client issues. By adding a direct assistance line to contact them 24 hr they have further increased the included 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 Help has diversified market division, based upon its arrangement of wide range of items to a great deal of customers. Samsung target customer sectors can be divided into 3 categories i.e. Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget solutions.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help geographic segmentation is based upon 2 criteria i.e. region and density. Samsung serves about 80 countries worldwide with its items offered to Urban as well as Rural areas of the nation. The Samsung is also growing its international existence and the business's flexibility in finding its plants encourages worldwide expansion of Samsung.


The demographic division of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis is based upon gender, age, life-cycle stage and occupation. Samsung produces products that can be used by both males and females. The target consumers for Samsung IT and mobile communication products have an age series of 18-65 with bulk at a young or freshly married life process phase. They are primarily staff members, experts and trainees. Apart from it, Samsung Customer Electronics are targeted to a customer section with an age series of 25-65. They are mainly specialists and workers. However Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis Device Solutions are targeted at students, staff members and specialists with an age series 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 lifestyle of the customer. Samsung target clients on the basis of social class are generally upper middle, middle and working class clients, as Samsung offer items like mobile phone very little less expensive i.e. Motorola as well as very little expensive 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 Solution majority target consumers have distinct behavioural qualities. They are brought in towards Samsung since of its moderate prices with an extent of quality.

Quantitative analysis.

Sales of Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis has actually increased amazingly 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 biggest selling category of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this decision is based upon the mission of Kim to target the more youthful audience and develop an international brand picture of the company. Whereas, the core strength of the business is currently manufacturing but long gone are those days when great products were selling themselves. In the current age marketing is very important and business can not prosper without it. Kim has currently started to strengthen the marketing activities of Samsung and soon it will become one of its core strength like producing if not better.



Samsung operates styles, makes and offer a huge portfolio of customer electronics. It runs in a very competitive environment and has actually effectively placed itself as the maker of quality items. So, the response is yes.


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


Due to the nature of the industry, it is really simple for rivals to comprehend the performance of the products and easily make their own models. Yes, Samsung is only behind IBM in signing up brand-new patents annually, but the benefit is very short-term in this industry.


Chairman Lee has totally turn-around Samsung, from going almost bankrupt during the Asian monetary crisis of 1997 to the top 25 business worldwide. Definitely yes there is proper company in the business and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every nation worldwide, bulk of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less developed countries where law and order scenario is not good. Latin American, African and some Asian countries fall in this category, 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 important for business like Samsung to grow and be successful. Emerging markets like India, middle-eastern nations and so on offer development chances, whereas, due to economic crisis even the clients of industrialized nations suffer badly. It is extremely crucial for the business to keep an eye on the ongoing economic scenario of the nation before getting in the market.


International companies need to face various social and cultural concerns throughout its operations in a foreign nation. Samsung has actually also dealt with numerous problems however have adopted to the local environments of the majority of the countries incredibly well. It has tailored its products, practices, policies and so on appropriately in order to succeed.


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


Each country has their own laws and policies, being a multinational company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal repercussions. So, it has to study or employ a regional law expert before starting its operations in a particular nation.


With the rising awareness among customers about the environmental & ethical violations of companies, Samsung has to make sure that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some countries the effects can be extremely severe. On the other hand it has to do some Business Social Duty practices to show the residents that it appreciates their environment and people.

Porter's 5 Forces

Threat of Substitution

Risk of replacement for Samsung's each product classification is quite considerable. Factors for high hazard of replacement 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 expense of switching for customers almost absolutely no. Along with it, Samsung printing services products are threatened by the increasing destination of clients towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly among Samsung and its close competitors is extreme. The significant reason behind this is the technique of market saturation in different number of item classifications, forcing Samsung to present more innovative functions in existing items and new innovative items to maintain its growth. The major competitors for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Analysis samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Samsung Sustainability Report, 2016) Provider's bargaining power for Samsung is low as Samsung 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 Help to develop its own software, it has to outsource its software advancement to Google, which becomes a prospective supplier of software for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Haggling power of buyers for different variety of product classifications of Samsung is intense. Among the element resulting in the intense bargaining power is the schedule of a great deal of rivals in practically each product classification i.e. competitors of Samsung Smartphone, with an extremely little distinction. The high schedule of suppliers of Smart devices with minimum differentiation, make the changing expense for purchasers almost absolutely no, hence increasing the bargaining power of buyers. Market saturation in the majority of the product 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 Analysis. In spite of igh bargaining power Samsung is quite efficient in offering its products at a greater price than much of its competitors, due to high end quality item and a fair brand image.

Danger of New Entrants:

Hazard of brand-new entrants for Samsung is rather low. One of the significant element for low hazard of new entrants is the high competitors in the market. The requirement of huge amount of capital to enter in the market is likewise among the potential barrier to entry. Together with it, requirement of big proficiency and research study and development expenditures for survival in the market also make new entrants hesitant to enter in the market. Market saturation is likewise among the barrier of entry in innovation market. High bargaining power of providers require the gamers in the market to charge as low prices as possible and this can just be accomplished by production effectiveness. Brand-new firms, in majority cases, do not have the production effectiveness, hence increasing the threats for entryway in the technology market.

Competitive Analysis

Samsung's high item diversity provides it distinction from its rivals. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product 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 Analysis had a substantial R&D spending on all of its product categories which allow the business to earn possible earnings 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 regards to international market share, among 8 different item classifications. Samsung was the international leader in producing DRAM, SRAM and NAND flash chips. Samsung incomes from chips was less than Intel but its earnings from chips was growing much faster than Intel and has actually grown close to the earnings levels of Intel, as provided in the case Exhibit 2.

Together with the chips Samsung mobile market was also thriving 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 no sales growth. The major reson behind Samsung's high development despite of higher prices than Nokia and Motorola was the business's high-end quality mobile phone.

Samsung was also profiting from increasing market share of high-end LCDs as given up case Display 3. The significant factor, making the company enable to get the chance is its mass production at low cost. Sony was the most significant rival for Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Help in LCD market, however, it had likewise started joint venture with Samsung in 2003 for LCD producing, minimizing the competition for Samsung.

Porter's Competitive Technique

Low Cost Leadership strategy of porter is completely implemented by Samsung the method they accomplish economies of scale by strengthening their core competencies of production. They constantly bring something brand-new and ingenious whether it's an item or a service.


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 brand-new brand name image by targeting the more youthful generation of the particular nation. As, specifically smart phones of Samsung are incredibly popular amongst the younger group.


1. It is the best method to construct Customer Life time Worth (CLV) by producing a long-term relationship with clients. Build commitment through providing value and profit for long-term, as research has actually showed it is more affordable to maintain current consumers than to bring in brand-new ones.
2. Another pro of this option is that word of mouth spread more quickly amongst younger individuals and which in turn will bring in new clients for my products.


1. Old consumers who were associated with Samsung before might not like this brand-new image the company is attempting to depict.
2 It will sustain more expenses to reposition some items and it may not even bring success as the patterns alter very quickly amongst the more youthful group.

Alternative option 2.

Samsung has actually made producing its core competency for the a lot of part of their service and due to which its managers are not afraid to totally step out of their convenience zone. It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get demoted. Marketing environment ought to be developed 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 develop a very unhealthy environment in the workplace, as people often resist modification because they fear it.

Determine the very best alternative

Alternative is the best as it plainly has more pros since when a Client Life time Worth is built the company will benefit from it till that consumer is alive and has purchasing power. Plus, our target clients are the younger generation which are bound to live longer than the existing old age people. Samsung's primary goal is to create commitment amongst its customers and make them redeemed it from them and even buy their various items.

Execution Strategy

• Targeting more youthful generation through social marketing, developing a link with them like Pepsi finish with music. And set the expectations realistic and possible.
• A team consisting of best marketing and sales professionals must be put together, and both views must be considered prior to securing the resources needed to execute the plan.
• Thorough interaction of the plan must be done as it is very important for everyone to be on the very same page to make it work.
• Jobs and timelines must be construct and communicated appropriately to each person accountable.
• The supervisor need to utilize a control panel which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The manager ought to monitor and keep a continuous check on the overall and specific performance.
Due to the fact that any new pattern or policy may come in due to which all the things currently prepared have to be adjusted, • Everyone must be ready to adapt midway. It's much better to have contingency plans currently prepared.
• At the end of the campaign the manager must communicate the results and if successful need to commemorate with the group.

Spending plan

The M-net program exposed engaging analysis about the low and high development possible areas and just how much marketing budget need to be designated appropriately. This change the budget plan allocation of lots of supervisors and different countries were dissatisfied and argued however the analysis done by the program was accurate and showed figures like The United States and Canada and Russia growth possible warranted a 35% allotment while they were getting 45%. Whereas, China and Europe must be getting 42% but were instead given 31%. It truly assisted to fairly distribute the resources and catch more consumers by spending more on advertisements on the high growth potential regions of the world.


Taj Hotels Resorts Palaces To Pierre Or Not To Pierre A Case Study Solution is a top 25 business on the planet now and plans to get ahead of Sony who sits presently at no. 20. Its continuous investment in R&D and ingenious practices have moved them to brand-new heights however for them its' only the start and they want to be amongst the leading 3 brands worldwide. They totally turnaround from nearly going bankrupt throughout the Asian Financial Crisis to a world renowned brand, understood for quality and innovation. Their value chain and their core proficiency their production ability, along-with worldwide brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts ought to be directed towards more youthful demographic in the middle of the internal arguments about marketing and ought to create Client Life time Worth as it will not just give them benefits now however will continue to gain it till the customer life time. As the cost of keeping the customer is much cheaper than drawing in a new one.