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Total Productive Management And The Role Of Employee Involvement Case Study Solution and Analysis


Total Productive Management And The Role Of Employee Involvement Case Study Help is a widely known international brand in innovation market, established in 1938 by Lee Byung Chul, in South Korea. Total Productive Management And The Role Of Employee Involvement deals in a great deal of item classifications including Semiconductors, Telecommunications, Digital Media, Digital Appliances and a lot more other electronic items. Historically, the business's core clients consist of the Original Devices Manufacturers (OEMs), which used to sell Samsung products withtheir own trademark name. Till early 1990s, the core proficiency of Samsung depend on its low price offerings than its competitors by making existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who used to offer Total Productive Management And The Role Of Employee Involvement Case Study Solution items with their own trademark name. Samsung was not simply known outside Korea. There were likewise no or little interest in developing the trademark name globally. Marketing budget plan was controlled by production department with a prime focus on providing inexpensive products.During the 1997 Asian Financial Crisis the business almost got insolvent, but with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was listed the top 25 most valuable company in the world. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even noted. He rearranged Samsung as an international brand and educated his divisional managers to understand marketing and its significance. Now their goal is to reach the top 10 by 2005.

Issue Statement

Samsung's shift from a product based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to integrate marketing effectively is still a significant obstacle. Creating a consistent brand identity throughout the whole world and utilizing marketing strategies that best fits the regional culture is no easy task.

Situational Analysis

Total Productive Management And The Role Of Employee Involvement Case Study Solution efforts for constructing its brand across the world was begun after introducing the "new management effort" by Chairman Lee in 1993. The objective was to transform Samsung from a low-cost OEM to a high value-added product service provider. To make the vision of Samsung a reality, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear photo in his mind about how Samsung can change from a low end to a high end product supplier. He understood that improvement can just be done through placing Samsung as a business using high-end items 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 prospective support of its executives, Yun faced several marketing obstacles 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 exact 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 organisation practices, and the present marketing requirement was too much high, the gap was too larger and to fill this space with incorrect perceptions about marketing was rather challenging for Yun.

As stated above, marketing focus was really low in previous practices, therefore there were no correct marketing spending plans for each of the product on the portfolio. There was no marketing planning provided for the existing products. In addition to it the product variety of the company was increasing with the ripening of new product ideas by the R&D sector of Samsung. Yun had a difficulty to carry out marketing planning and to create marketing budget plans for existing in addition to for brand-new products from the very beginning, and this would take a huge time.

A huge shift would be required in present marketing expenses to construct the Samsung brand. This would result in increased marketing expenditures for Samsung and might disturb the administration relating to increased expenditures, as they were unwilling to marketing expenses formerly and an abrupt huge shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Total Productive Management And The Role Of Employee Involvement Case Study Help strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the market with total number of 15499 patents given in US( USP).

Another strength of Total Productive Management And The Role Of Employee Involvement Case Study Analysis is its capability to establish ingenious items at a constant rate. It major proves for the innovation and item creating of Samsung is that the company has actually received so many awards for its development and item style.

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

Samsung's capability to produce luxury products at low expense of production is likewise one of the major strength of Samsung as it makes it possible for the company to capture more market by offering quality items with expense control.


Samsung's weak points are hidden in the company's dependence on outsourcing software application for its gadgets due to company's inability in establishing software, unlike Sony. Total Productive Management And The Role Of Employee Involvement Case Study Help also has low earnings margins as compare to Apple due to substantial distinction in the costs of Apple and Samsung with a much lower distinction in quality.


Opportunities for Total Productive Management And The Role Of Employee Involvement Case Study Help lie in the growing Smartphone market and the company's efficiency in the 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.


The dynamic industry environment of innovation market present a serious danger on Samsung's survival and require the business to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a huge hazard for the business's development in the presence of strong rivals like Apple.

4 P's of Marketing


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

• Laptops.
• Cellphone.
• Ac system.
• Personal computers.
• Hard drives.
• Washing machines.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Total Productive Management And The Role Of Employee Involvement Case Study Analysis utilizes both market competitive and market skimming rates strategies for its wide variety of products. In competitive pricing it adjusts the price according to the competition in order to get advantage, whereas, it uses market skimming strategy where the item has 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 items are prompt supplied to the selling location/ provided to the customers straight in case of online order.


It wasn't a well-known business outside of Korea until 1993. The management initiative taken by their CEO has actually pushed them to market more effectively outside the borders and now it has actually gotten in the league of leading 25 companies in the world in simply 9 years. This is an exceptional accomplishment despite the ongoing arguments among the supervisors about embracing marketing practices. It utilizes both offline & online channels of promo to market their items. Paid product advertisements, social promotion and digital ads are uses to produce awareness about Samsung items.

Worth Chain Analysis.

It's an analytical structure for determining organisation activities that include value or competitive advantage for the business.

Inbound Logistics.

It has one of the most efficient and effective supply chain network and has over 2700 suppliers throughout various markets around the world. Almost 80% of which is based in Asia and the remaining worldwide. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even lowered their payment cycles to increase this relationship further which adds value to their chain network.


Samsung's core competency is its mass making it produces 90% of its items in-house. Divided into 3 various departments its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to further add value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main reasons Total Productive Management And The Role Of Employee Involvement Case Study Analysis has the ability 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 value and competitive benefit the item provides. Total Productive Management And The Role Of Employee Involvement Case Study Solution advertising budget plan is continuously increasing given that they started their repositioning worldwide and will continue to do so as they are continually wanting to broaden and invest in high prospective development markets. The budget plan is spent on events, print and media ads, public relations etc.

Samsung Service. Samsung put their customers at the top and constantly make every effort to deliver unmatchable customer support requirements. As after sales service is becoming extremely crucial to keep consumers pleased and engaged, they even carry out studies through third parties to find out their client's feedback and execute it in the favorable method to reduce or if possible totally eliminate their consumer issues. By including a direct support line to call them 24 hours they have actually further increased the added worth of Total Productive Management And The Role Of Employee Involvement Case Study Help service.


Total Productive Management And The Role Of Employee Involvement Case Study Analysis has diversified market division, based upon its arrangement of wide variety of products to large number of customers. Samsung target customer sections can be divided into 3 classifications i.e. Total Productive Management And The Role Of Employee Involvement Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Gadget services.


Total Productive Management And The Role Of Employee Involvement Case Study Solution geographic segmentation is based upon two requirements i.e. area and density. Samsung serves about 80 countries worldwide with its products provided to Urban along with Backwoods of the nation. The Samsung is likewise growing its global presence and the company's versatility in locating its plants motivates worldwide growth of Samsung.


The demographic segmentation of Total Productive Management And The Role Of Employee Involvement Case Study Help is based upon gender, age, life-cycle phase and profession. Samsung produces products that can be used by both males and females. The target consumers for Samsung IT and mobile interaction items have an age series of 18-65 with majority at a young or newly wed life cycle phase. They are mainly employees, students and professionals. Apart from it, Samsung Consumer Electronic devices are targeted to a client segment with an age series of 25-65. They are primarily specialists and workers. Samsung Gadget Solutions are targeted at trainees, employees and professionals with an age range of 25-65.


The psychographic division of Total Productive Management And The Role Of Employee Involvement Case Study Solution s based upon the social class and the lifestyle of the customer. Samsung target consumers on the basis of social class are mainly upper middle, middle and working class clients, as Samsung sell items like mobile phone very little cheaper i.e. Motorola in addition to very little expensive i.e. Apple. It provides quality items to middle level consumers at a somewhat high price than others targeting the very same sector.


Total Productive Management And The Role Of Employee Involvement Case Study Help bulk target consumers have special behavioural qualities. They are attracted towards Samsung since of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Samsung has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. It has actually likewise lowered its financial obligation 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. Because of the high overhead cost, profits/ sales are increasing but net revenue is not increasing appropriately. New expansions and employing's were the main reason of the boost in the overhead costs, with china currently not offering any earnings to Samsung, however there is a lot capacity in the present market with 75 % yet to be explored.

Qualitative analysis.

Yes, this decision is based on the objective of Kim to target the more youthful audience and produce a global brand picture of the company. Whereas, the core strength of the business is presently producing however long gone are those days when good items were offering themselves. In the existing age marketing is extremely essential and companies can not prosper without it. Kim has actually currently begun to strengthen the marketing activities of Samsung and soon it will turn into one of its core strength like producing if not better.



Samsung operates styles, produces and offer a large portfolio of consumer electronic devices. It operates in an exceptionally competitive environment and has effectively positioned itself as the maker of quality items. So, the answer is yes.


As, said earlier that Total Productive Management And The Role Of Employee Involvement Case Study Solution runs in an extremely competitive environment, which suggests all the companies have similar items. The answer for rarity is no.


Due to the nature of the industry, it is very simple for competitors to comprehend the functionality of the items and easily make their own designs. Yes, Samsung is only behind IBM in registering new patents each year, however the benefit is very short term in this market.


Chairman Lee has entirely turnaround Samsung, from going practically insolvent during the Asian monetary crisis of 1997 to the top 25 company in the world. Absolutely yes there appertains organization in the business and the results speak for themselves.

External Ecological Analysis

PESTLE Analysis


Being an international brand name spread practically in every country worldwide, majority of the environments like USA, Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Total Productive Management And The Role Of Employee Involvement Case Study Help operations.


Buying power of clients is crucial for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries etc. provide development chances, whereas, due to recession even the clients of developed nations suffer badly. Hence it is very essential for the business to watch on the ongoing economic circumstance of the nation prior to entering the marketplace.


Multinational business have to face numerous social and cultural problems throughout its operations in a foreign country. Samsung has likewise dealt with lots of issues however have actually adopted to the regional environments of the majority of the countries exceptionally well. It has customized its items, practices, policies and so on accordingly in order to succeed.


With an annual expense of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Total Productive Management And The Role Of Employee Involvement Case Study Help is among the top innovative companies of the world. With a clear objective to be ahead of the rest when it pertains to technological improvements, Samsung has actually risen to the no 25 of the leading successful business of the world.


Each nation has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal consequences. So, it has to study or employ a regional law professional prior to beginning its operations in a specific country.


With the rising awareness amongst consumers about the ethical & environmental violations of business, Samsung needs to make sure that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some nations the effects can be very serious. On the other hand it needs to do some Corporate Social Responsibility practices to reveal the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Risk of Substitution

Danger of substitution for Samsung's each product category is rather considerable. Running in an exceptionally vibrant industry lead the business to deal with a high danger of replacement. Aspects for high threat of substitution for Total Productive Management And The Role Of Employee Involvement Case Study Analysis Smart device consist of the presence of high variety of providers and Market saturation in developed countries, which make the cost of changing for consumers nearly zero. Alternative dangers for Samsung visual display screen depend on the changing lifestyle of customers. Consumers can change to viewing visuals at home towards outdoor activities. Together with it, Samsung printing services items are threatened by the increasing tourist attraction of customers towards cloud storage.

Rivalry Amongst Existing Companies:

The rivaly amongst Samsung and its close competitors is extreme. The significant reason behind this is the method of market saturation in numerous number of item categories, requiring Samsung to introduce more ingenious features in existing products and brand-new innovative products to maintain its development. The major competitors for Total Productive Management And The Role Of Employee Involvement Case Study Analysis samrtphones consist of 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 Total Productive Management And The Role Of Employee Involvement Case Study Analysis to develop its own software, it has to outsource its software application development to Google, which ends up being a potential provider of software application for Samsung, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Market saturation in many of the item classifications likewise make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is quite capable of offering its items at a higher rate than much of its rivals, due to high end quality product and a fair brand name image.

Risk of New Entrants:

Risk of brand-new entrants for Total Productive Management And The Role Of Employee Involvement Case Study Help is rather low. Along with it, requirement of big knowledge and research study and advancement expenses for survival in the market likewise make new entrants hesitant to enter in the market. Market saturation is also one of the barrier of entry in innovation industry.

Competitive Analysis

Samsung's high product diversification provides it differentiation from its rivals. It is one of the 3 top brand names by market share. Unlikely to its close competitors including Sony, Intel and Nokia, who focus bulk on a single product category with Sony concentrating on consumer electronic devices, Nokia on cell phones and Intel on chips, Samsung had a huge R&D spending on all of its product classifications which make it possible for the business to earn possible profits from sales of almost all of its products. (See Exhibit) However, due to the broad product range the company deals with high number of competitors.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to worldwide market share, among 8 various product classifications. Samsung was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung revenues from chips was less than Intel however its earnings from chips was growing faster than Intel and has actually grown close to the revenue levels of Intel, as offered in the case Display 2.

In addition to the chips Samsung mobile market was likewise growing at a high rate than its rivals i.e. Motorola and Nokia. Samsung's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Samsung's high development despite of greater 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 business make it possible for to get the chance is its mass production at low cost. Sony was the biggest rival for Total Productive Management And The Role Of Employee Involvement Case Study Help in LCD market, nevertheless, it had likewise begun joint endeavor with Samsung in 2003 for LCD making, decreasing the competition for Samsung.

Porter's Competitive Technique

Low Expense Management technique of porter is completely executed by Samsung the way they accomplish economies of scale by enhancing their core competencies of manufacturing. They constantly bring something innovative and brand-new whether it's a service or a product.


Alternative Service 1

The Chief Marketing Officer (CMO) of Total Productive Management And The Role Of Employee Involvement Case Study Analysis would produce a brand-new brand name image by targeting the younger generation of the specific nation. As, especially cellphones of Samsung are very popular among the more youthful demographic.


1. It is the best method to construct Client Life time Value (CLV) by producing a long-term relationship with consumers. Build loyalty through delivering value and profit for long-lasting, as research has actually revealed it is much cheaper to keep current customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster amongst more youthful people and which in turn will generate brand-new consumers for my products.


1. Old clients who were related to Samsung before may not like this new image the company is attempting to depict.
2 It will incur further expenditures to rearrange some products and it might not even bring success as the trends alter really quickly among the younger demographic.

Alternative service 2.

Samsung has made making its core competency for the a lot of part of their business and due to which its supervisors are not afraid to fully get out of their comfort zone. It would be done by organizing training workshops during which value of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get demoted. Marketing environment must be created 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 really unhealthy environment in the work environment, as individuals often withstand modification due to the fact that they fear it.

Recognize the best option

First alternative is the best as it plainly has more pros due to the fact that as soon as a Consumer Lifetime Worth is developed the company will benefit from it till that client lives and has acquiring power also. Plus, our target consumers are the more youthful generation which are bound to live longer than the current aging people. Samsung's main objective is to develop commitment amongst its consumers and make them redeemed it from them and even buy their various items.

Execution Plan

• Targeting younger generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations realistic and attainable.
• A group including best marketing and sales professionals ought to be put together, and both views must be taken into consideration prior to securing the resources needed to implement the strategy.
• Thorough communication of the plan ought to be done as it is really important for everyone to be on the same page to make it work.
• Tasks and timelines must be construct and interacted appropriately to each person accountable.
• The manager ought to use a dashboard which shows the development of all the jobs which have been done or about to be done and by whom.
• The supervisor ought to keep track of and keep a constant check on the private and general performance.
• Everybody must be willing to adjust midway because any new pattern or policy may come in due to which all the important things currently planned need to be changed. It's much better to have contingency plans currently prepared.
• At the end of the project the supervisor should interact the outcomes and if successful ought to commemorate with the group.

Budget plan

This modification the spending plan allowance of various nations and lots of supervisors were unhappy and argued however the analysis done by the program was accurate and revealed figures like North America and Russia growth possible warranted a 35% allotment while they were receiving 45%. It actually helped to fairly disperse the resources and catch more clients by spending more on advertisements on the high growth capacity areas of the world.


Total Productive Management And The Role Of Employee Involvement Case Study Help is a top 25 business on the planet now and plans to get ahead of Sony who sits currently at no. 20. Its constant financial investment in R&D and innovative practices have actually moved them to brand-new heights but for them its' only the start and they wish to be among the top 3 brands in the world. They completely turn-around from almost declaring bankruptcy throughout the Asian Financial Crisis to a world distinguished brand, understood for quality and innovation. Their value chain and their core proficiency their manufacturing capability, along-with global brand name image structure 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 just increase even more in the future. Their marketing efforts need to be directed towards more youthful market amidst the internal arguments about marketing and need to create Client Life time Worth as it will not just provide benefits now but will continue to gain it till the customer life time. As the cost of keeping the customer is much cheaper than bring in a brand-new one.