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The Walt Disney Company And Pixar Inc Harvard Case Study Analysis

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The Walt Disney Company And Pixar Inc Case Study Solution and Analysis


Intro

The Walt Disney Company And Pixar Inc Case Study Help is a well-known worldwide brand name in technology market, established in 1938 by Lee Byung Chul, in South Korea. The Walt Disney Company And Pixar Inc handle a great deal of item categories including Semiconductors, Telecom, 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 Samsung products withtheir own brand name. Till early 1990s, the core competency of Samsung depend on its low cost offerings than its rivals by producing existing products at economies of scale. Its customer circle includes Original Devices Manufacturers (OEMs), who used to sell The Walt Disney Company And Pixar Inc Case Study Analysis products with their own brand. Samsung was not merely known outside Korea. There were also no or little interest in developing the brand name internationally. Marketing spending plan was managed by production department with a prime focus on providing low-cost products.During the 1997 Asian Financial Crisis the business nearly got bankrupt, however with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the leading 25 most important company in the world. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even listed. He repositioned Samsung as an international brand and informed his divisional supervisors to understand marketing and its value. Now their goal is to arrive 10 by 2005.

Issue Statement

Samsung's transition from an item based to a marketing business is not going as efficiently as planned.Overcoming the unwillingness of divisional supervisors to incorporate marketing efficiently is still a major difficulty. Developing a consistent brand name identity throughout the entire world and utilizing marketing methods that finest fits the regional culture is no simple task.

Situational Analysis

Yun had a quite clear photo in his mind about how The Walt Disney Company And Pixar Inc Case Study Help can transform from a low end to a high end product service provider. He understood that transformation can only be done through positioning Samsung as a business providing high-end products and this might just be done through high level of marketing.

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

Among the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They thought about marketing and selling as very same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous business practices, and the existing marketing requirement was too much high, the space was too broader and to fill this gap with wrong understandings about marketing was rather tough for Yun.

Along with it the item variety of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing planning and to create marketing spending plans for existing as well as for new items from the very start, and this would take a substantial time.

A big shift would be needed in current marketing expenses to build the Samsung brand name. This would result in increased marketing expenditures for Samsung and might disrupt the administration concerning increased expenditures, as they were reluctant to marketing expenditures previously and an abrupt big shiftwould make them disrupt.

Internal Analysis
SWOT Analysis
Strengths


Samsung strengths lie in its substantial product portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents granted in United States( USP). Large amount of R&D costs has made it possible for the company to grow its item portfolio at a higher rate than its competitors. The Walt Disney Company And Pixar Inc 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 The Walt Disney Company And Pixar Inc Case Study Solution is its ability to develop ingenious products at a constant rate. It major shows for the innovation and product designing of Samsung is that the business has actually received numerous awards for its development and product style.

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

Samsung's capability to produce high-end items at low cost of production is likewise one of the significant strength of Samsung as it allows the business to catch more market by providing quality items with expense control.

Weak points

The Walt Disney Company And Pixar Inc Case Study Analysis weak points are concealed in the business's reliance on outsourcing software for its devices due to company's failure in developing software, unlike Sony. Samsung likewise has low profit margins as compare to Apple due to substantial distinction in the costs of Apple and Samsung with a much lower distinction in quality. The diverse focus of the company due to large number of items in its portfolio, result in the less efficient production and make the company not able to charge greater prices like Apple. The business is likewise inefficient in managing its patents and regularly faces the problem of patent infraction.

Opportunities

Opportunities for The Walt Disney Company And Pixar Inc Case Study Help lie in the growing Smart device market and the company's performance in the market. Samsung presently runs in about 80 countries and the company has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.

Risks

The dynamic industry environment of innovation market pose an extreme risk on Samsung'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 market saturation in developed countries i.e. saturation of mobile company is likewise a big threat for the business's development in the presence of strong competitors like Apple.

4 P's of Marketing

Product

The Walt Disney Company And Pixar Inc Case Study Solution offers quality products and has a rather abundant portfolio which accommodates different sections. Most of the items are in the leading three of their respective industries. LCD and cellphones are the greatest items of Samsung, whereas DRAM is also not far behind in contrast of them. Following is the line of product of Samsung:

• LCD/ TV
• Laptops.
• Cellphone.
• A/c.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Electronic cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price.

The Walt Disney Company And Pixar Inc Case Study Analysis uses both market competitive and market skimming rates techniques for its wide array of items. In competitive rates it adjusts the price according to the competition in order to get advantage, whereas, it uses market skimming strategy where the product has an added worth and by offering a few items it can reach break-even.

Place.

It has one of the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its products are timely supplied to the selling place/ delivered to the consumers directly in case of online order.

Promo.

It wasn't a widely known business beyond Korea till 1993. The management effort taken by their CEO has actually pressed them to market more effectively outside the borders and now it has entered the league of leading 25 business in the world in just 9 years. This is an amazing achievement in spite of the ongoing arguments amongst the supervisors about embracing marketing practices. It utilizes both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital ads are utilizes to create awareness about Samsung items.

Value Chain Analysis.

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

Inbound Logistics.

For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even decreased their payment cycles to improve this relationship even more which includes worth to their chain network.

Operations.

Samsung's core competency is its mass producing it produces 90% of its items in-house. Divided into three different divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary factors The Walt Disney Company And Pixar Inc Case Study Analysis is able to compete with Apple. Samsung's own Electronic Logitec system plays a major role 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 customer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the item offers. The Walt Disney Company And Pixar Inc Case Study Solution marketing budget is constantly rising considering that they began their rearranging globally and will continue to do so as they are continuously looking to invest and expand in high possible growth markets. The budget is spent on occasions, print and media advertisements, public relations etc.

Samsung put their consumers at the top and continually aim to provide unmatchable consumer service requirements. By adding a direct support line to call them 24 hours they have actually even more increased the added value of Samsung service.

Division.

The Walt Disney Company And Pixar Inc Case Study Solution has diversified market division, based upon its arrangement of wide range of products to large number of consumers. Samsung target customer sectors can be divided into 3 categories i.e. The Walt Disney Company And Pixar Inc Case Study Help IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget options.

Geographic.

The Walt Disney Company And Pixar Inc Case Study Solution geographic division is based upon 2 criteria i.e. area and density. Samsung serves about 80 countries worldwide with its items offered to Urban in addition to Backwoods of the country. The Samsung is likewise growing its global presence and the business's versatility in locating its plants motivates global growth of Samsung.

Market.

Samsung produces items that can be utilized by both males and women. The target customers for Samsung IT and mobile interaction products have an age range of 18-65 with majority at a young or freshly wed life cycle stage. Apart from it, Samsung Customer Electronic devices are targeted to a client section with an age range of 25-65.

Psychographic.

The psychographic division of The Walt Disney Company And Pixar Inc Case Study Analysis s based upon the social class and the life style of the consumer. Samsung target consumers on the basis of social class are mainly upper middle, middle and working class customers, as Samsung sell items like cell phones very little cheaper i.e. Motorola in addition to not much pricey i.e. Apple. It provides quality products to middle level customers at a slightly high price than others targeting the same segment.

Behavioural.

The Walt Disney Company And Pixar Inc Case Study Help majority target clients have distinct behavioural qualities. It has clients with an ambitious, stylish and determined character with moderate level of loyalty towards the brand. Its clients have some degree of shift towards other prominent brand names i.e. Apple. Most of Samsun consumers desire quality as well as cost control. They are attracted towards Samsung because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of The Walt Disney Company And Pixar Inc Case Study Solution has increased remarkably 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 classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is currently manufacturing however long gone are those days when great items were offering themselves. Kim has actually already started to enhance the marketing activities of Samsung and extremely soon it will end up being one of its core strength like manufacturing if not much better.

VRIO.

Value.

Samsung operates designs, manufactures and sell a vast portfolio of consumer electronics. It runs in an extremely competitive environment and has actually effectively positioned itself as the maker of quality items. The answer is yes.

Rarity.

As, stated previously that The Walt Disney Company And Pixar Inc Case Study Analysis operates in a highly competitive environment, which suggests all the companies have similar products. The response for rarity is no.

Imitability.

Due to the nature of the industry, it is very easy for rivals to comprehend the performance of the items and quickly make their own models. Yes, Samsung is only behind IBM in signing up new patents every year, but the advantage is very short term in this industry.

Company.

Chairman Lee has entirely turnaround Samsung, from going almost insolvent throughout the Asian financial crisis of 1997 to the leading 25 company worldwide. Definitely yes there is proper company in the company and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand spread practically in every country worldwide, majority of the environments like USA, Europe, China and so on, are very conductive for its operations. Nevertheless, it deals with some political pressures in less developed countries where order situation is not good. Latin American, African and some Asian countries fall in this classification, where political instability do have an impact on The Walt Disney Company And Pixar Inc Case Study Analysis operations.

Economic

Purchasing power of clients is important for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations and so on offer growth chances, whereas, due to economic crisis even the customers of industrialized nations suffer badly. For this reason it is extremely important for the business to keep an eye on the ongoing economic situation of the nation prior to getting in the marketplace.

Socio-Cultural

Multinational companies need to deal with numerous social and cultural issues throughout its operations in a foreign nation. Samsung has actually likewise faced many problems but have embraced to the local environments of most of the countries exceptionally well. It has actually customized its items, practices, policies etc. appropriately in order to be successful.

Technological

With a yearly expenditure of 2.4 billion dollars in Research study & Development, and with constant innovative item launches, The Walt Disney Company And Pixar Inc Case Study Solution is one of the leading innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Samsung has risen to the no 25 of the leading successful business of the world.

Legal

Each nation 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 major legal consequences. It has to study or hire a local law professional before beginning its operations in a specific country.

Environmental

With the rising awareness among consumers about the ethical & ecological infractions of companies, Samsung has to ensure that it follows all the safety standards. Ecological damages, ethical misconducts are not appropriate and in some countries the effects can be extremely severe. On the other hand it has to do some Corporate Social Duty practices to show the residents that it appreciates their environment and individuals.

Porter's Five Forces

Threat of Substitution

Threat of alternative for Samsung's each product category is quite significant. Factors for high risk of alternative for The Walt Disney Company And Pixar Inc Case Study Solution Smartphone include the existence of high number of suppliers and Market saturation in industrialized countries, which make the expense of changing for consumers practically zero. Along with it, Samsung printing options products are threatened by the increasing destination of consumers towards cloud storage.

Competition Amongst Existing Companies:

The rivaly among Samsung and its close rivals is intense. The significant reason behind this is the method of market saturation in different number of product classifications, forcing Samsung to present more ingenious functions in existing products and brand-new ingenious items to preserve its development. Other factor for the intense rivalry amongst the competitors is the little item differentiation amongst the products. The prominent players in the innovation market are rather familiar with the importance of R&D spending for their survival and are facing a race of marketing and R&D spending, to capture the marketplace. The significant rivals for The Walt Disney Company And Pixar Inc Case Study Solution samrtphones include Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the varying market shares which can be seen in Display F.

Bargaining Power of Suppliers:

The Walt Disney Company And Pixar Inc Case Study Analysis has a vast supply chain consisting of about 2700 suppliers throughout the world.( 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. These huge orders enable Samsung to work out costs with its suppliers. Nevertheless, due to incapability of The Walt Disney Company And Pixar Inc Case Study Analysis to build its own software application, it has to outsource its software advancement to Google, which ends up being a potential provider of software application for Samsung, resulting in high bargaining power of Google. In many of The Walt Disney Company And Pixar Inc Case Study Solution has a power to negotiate costs, however it supply considerable rates to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Bargaining power of purchasers for various variety of product classifications of Samsung is intense. One of the factor resulting in the intense bargaining power is the availability of a great deal of competitors in practically each product category i.e. competitors of Samsung Smartphone, with an extremely little differentiation. The high accessibility of suppliers of Smart devices with minimum distinction, make the changing cost for purchasers practically no, for this reason increasing the bargaining power of purchasers. Market saturation in the majority of the product categories also make the bargaining power of purchasers more extreme in for The Walt Disney Company And Pixar Inc Case Study Help. In spite of igh bargaining power Samsung 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 image.

Risk of New Entrants:

Threat of new entrants for The Walt Disney Company And Pixar Inc Case Study Solution is rather low. Along with it, requirement of huge proficiency and research and advancement expenditures for survival in the industry also make new entrants unwilling to go into in the market. Market saturation is also one of the barrier of entry in innovation market.

Competitive Analysis

Samsung's high product diversification supplies it differentiation from its competitors. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single product category with Sony focusing on consumer electronics, Nokia on cell phones and Intel on chips, The Walt Disney Company And Pixar Inc Case Study Solution had a big R&D costs on all of its product categories which allow the business to make potential income from sales of almost all of its products.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in terms of international market share, among 8 various item classifications. Samsung was the international leader in manufacturing DRAM, SRAM and NAND flash chips. Although, Samsung incomes from chips was less than Intel but its profits from chips was growing quicker than Intel and has grown near the income levels of Intel, as given up the case Exhibition 2.

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

Samsung was also reaping the benefits from increasing market share of luxury LCDs as given in case Display 3. The major reason, making the company enable to avail the opportunity is its mass production at low expense. Sony was the most significant rival for The Walt Disney Company And Pixar Inc Case Study Analysis in LCD market, however, it had actually likewise started joint endeavor with Samsung in 2003 for LCD manufacturing, minimizing the competitors for Samsung.

Porter's Competitive Strategy

Low Expense Leadership technique of porter is totally implemented by Samsung the way they attain economies of scale by strengthening their core proficiencies of production. Even to the point that their competitor SONY decided to form an alliance with them to manufacture for them, because they were unable to compete with them on low expense. Distinction is another method well implemented by Samsung by continuous investment in the R&D and staying ahead of the competitors. They constantly bring something new and innovative whether it's a product or a service.

Alternatives

Alternative Service 1

The Chief Marketing Officer (CMO) of The Walt Disney Company And Pixar Inc Case Study Analysis would create a new brand image by targeting the more youthful generation of the particular country. As, especially smart phones of Samsung are incredibly popular amongst the younger demographic.

Pros

1. It is the best strategy to develop Client Lifetime Worth (CLV) by producing a long-lasting relationship with clients. Construct loyalty through providing worth and reap the benefits for long-lasting, as research has actually revealed it is much cheaper to retain current consumers than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst more youthful individuals and which in turn will generate brand-new consumers for my items.

Cons

1. Old customers who were related to Samsung before may not like this new image the company is trying to depict.
2 It will sustain more expenditures to reposition some products and it may not even bring success as the trends change extremely quickly among the younger demographic.

Alternative option 2.

Samsung has actually made manufacturing its core proficiency for the a lot of part of their company and due to which its supervisors are not scared to totally get out of their comfort zone. It would be done by organizing training workshops throughout 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 produced internally first as genuine marketing begins inside the corporation.

Pros

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

Cons

2. Its con can develop a very unhealthy environment in the workplace, as people typically withstand change due to the fact that they fear it.

Identify the very best alternative

Very first alternative is the very best as it plainly has more pros because when a Customer Lifetime Value is built the business will make money from it till that customer is alive and has buying power as well. Plus, our target customers are the more youthful generation which are bound to live longer than the existing aging individuals. Samsung's main objective is to develop loyalty amongst its customers and make them bought it from them and even purchase their different products.

Application Strategy

• Targeting younger generation through social marketing, producing a relate to them like Pepsi finish with music. And set the expectations sensible and achievable.
• A group consisting of best marketing and sales specialists should be put together, and both views must be taken into consideration prior to securing the resources required to carry out the plan.
• Thorough communication of the strategy should be done as it is extremely important for everybody to be on the very same page to make it work.
• Tasks and timelines should be construct and interacted appropriately to each individual accountable.
• The supervisor should use a dashboard which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The supervisor ought to keep an eye on and keep a continuous check on the individual and general performance.
• Everybody need to be willing to adjust midway since any new pattern or policy may can be found in due to which all the important things already prepared need to be changed. It's much better to have contingency strategies already prepared.
• At the end of the campaign the manager need to interact the results and if effective need to commemorate with the group.

Budget

This modification the budget plan allocation of lots of managers and different nations were unhappy and argued however the analysis done by the program was accurate and showed figures like North America and Russia growth prospective warranted a 35% allowance while they were receiving 45%. It truly helped to relatively disperse the resources and capture more clients by spending more on advertisements on the high growth potential areas of the world.

Conclusion

The Walt Disney Company And Pixar Inc Case Study Solution is a top 25 business on the planet now and prepares to get ahead of Sony who sits presently at no. 20. Its continuous financial investment in R&D and innovative practices have actually moved them to new heights however for them its' only the start and they want to be among the top 3 brand names on the planet. They completely turn-around from almost declaring bankruptcy throughout the Asian Financial Crisis to a world renowned brand, understood for quality and development. Their worth chain and their core competency their production capability, along-with global brand name image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts need to be directed towards younger market amid the internal arguments about marketing and ought to produce Client Lifetime Worth as it will not just give them benefits now but will continue to enjoy it till the customer life time. As the cost of maintaining the client is much cheaper than drawing in a brand-new one.