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Intro

Historically, the company's core consumers consist of the Original Equipment Manufacturers (OEMs), which utilized to sell Valuation Project Case Study Solution products withtheir own brand name. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Samsung items with their own brand name. He repositioned Samsung as an international brand name and informed his divisional managers to comprehend marketing and its significance.

Problem Declaration

Samsung's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to integrate marketing efficiently is still a major difficulty. Producing a consistent brand name identity throughout the whole world and using marketing techniques that best fits the regional culture is no easy task. The M-net program analysis have been truly handy in figuring out the high and less prospective development areas, however allotment of resources accordingly is not well received amongst the supervisors. There is no agreement amongst the hierarchy regarding the very best matched future technique.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Valuation Project Case Study Analysis can change from a low end to a high end product provider. He knew that transformation can only be done through positioning Samsung as a business providing high-end items and this might only be done through high level of marketing.

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

Among the marketing challenges for Yun was the perceptions of executives about the value of marketing. They thought about 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 service 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 quite tough for Yun.

As mentioned above, marketing focus was extremely low in previous practices, therefore there were no appropriate marketing spending plans for each of the product on the portfolio. There was no marketing planning provided for the existing items. Together with it the product variety of the business was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had an obstacle to perform marketing preparation and to create marketing budget plans for existing as well as for brand-new items from the very start, and this would take a big time.

A huge shift would be required in present marketing expenses to build the Samsung brand name. This would result in increased marketing expenditures for Samsung and could disturb the administration regarding increased expenses, as they were reluctant to marketing expenditures previously and a sudden big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis
Strengths


Valuation Project Case Study Help strengths lie in its substantial item portfolio. Samsung has largest number of patents in the market with overall number of 15499 patents given in US( USP).

Another strength of Valuation Project Case Study Help is its ability to develop innovative items at a continuous rate. It significant proves for the innovation and item creating of Samsung is that the business has actually received many awards for its innovation and item style.

Unlike Apple and other rivals, Samsung is concentrated on producing gadgets which can be quickly incorporated with any type of open source Operating System (OS) and software. This offers Samsung an edge over Apple devices.
Porter's 5 Forces Analysis
Samsung's capability to produce high end products at low cost of production is also one of the significant strength of Samsung as it makes it possible for the company to catch more market by supplying quality items with expense control.

Weaknesses

Samsung's weaknesses are concealed in the company's dependence on outsourcing software for its gadgets due to business's inability in establishing software, unlike Sony. Valuation Project Case Study Help also has low revenue margins as compare to Apple due to substantial difference in the rates of Apple and Samsung with a much lesser distinction in quality.

Opportunities

Opportunities for Valuation Project Case Study Help lie in the growing Mobile phone market and the business's performance in the market. Samsung currently runs in about 80 countries and the business has a chance to increase its geographical expansion by moving towards more emerging markets outside Asia.

Dangers

The dynamic market environment of technology market position a serious hazard on Samsung's survival and force the company to spend much of its profits share on R&D in order to make it through in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile business is also a big threat for the company's development in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis
Product

Valuation Project Case Study Help offers quality products and has a rather abundant portfolio which caters to different segments. Most of the products remain in the top three of their respective markets. LCD and mobile phones are the biggest items of Samsung, whereas DRAM is also not far behind in comparison of them. Following is the line of product of Samsung:

• LCD/ TV
• Laptops.
• Cellphone.
• Air conditioning system.
• Computer.
• Hard drives.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Rate.

Valuation Project Case Study Solution utilizes both market competitive and market skimming prices techniques for its wide array of products. In competitive rates it adjusts the price according to the competition in order to gain advantage, whereas, it utilizes market skimming method where the item has actually an included worth and by selling a couple of products it can reach break-even.

Place.

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

Promo.
Vrio Analysis
It wasn't a widely known company beyond Korea till 1993. But the management effort taken by their CEO has actually pushed them to market more effectively outside the borders and now it has gotten in the league of leading 25 business in the world in simply 9 years. This is a remarkable accomplishment regardless of the ongoing arguments amongst the managers about embracing marketing practices. It utilizes both offline & online channels of promo to market their products. Paid item ads, social promo and digital ads are utilizes to create awareness about Samsung items.

Value Chain Analysis.

It's an analytical structure for recognizing organisation activities that add value or competitive advantage for the company.

Inbound Logistics.

For its inbound logistics it owns different 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 adds value to their chain network.

Operations.

Samsung's core proficiency is its mass producing it produces 90% of its items internal. Divided into three different divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is preserving operation hubs worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system efficiency is one of the primary factors Valuation Project Case Study Help has the ability to take on Apple. Samsung's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target consumer attention towards the item is done through marketing and sales to interact with them the worth and competitive benefit the product provides. Valuation Project Case Study Solution marketing budget plan is continually on the rise since they began their repositioning globally and will continue to do so as they are constantly seeking to expand and invest in high prospective development markets. The spending plan is invested in occasions, print and media advertisements, public relations and so on.

Samsung Service. Samsung put their clients at the top and continuously strive to deliver unmatchable client service standards. As after sales service is becoming exceptionally crucial to keep customers delighted and engaged, they even conduct studies through 3rd parties to find out their customer's feedback and implement it in the favorable method to lower or if possible totally remove their client issues. By adding a direct support line to call them 24 hours they have actually even more increased the added worth of Valuation Project Case Study Analysis service.

Segmentation.

Valuation Project Case Study Solution has actually diversified market division, based upon its arrangement of vast array of items to large number of consumers. Samsung target customer sectors can be divided into 3 categories i.e. Valuation Project Case Study Solution IT and Mobile Communications, Samsung Consumer Electronic Devices and Samsung Device solutions.

Geographical.

Valuation Project Case Study Solution geographic division is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its products supplied to Urban as well as Backwoods of the nation. The Samsung is likewise growing its international presence and the company's flexibility in finding its plants motivates international expansion of Samsung.

Group.

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

Psychographic.

The psychographic segmentation of Valuation Project Case Study Analysis s based upon the social class and the life style of the consumer. Samsung target clients on the basis of social class are mainly upper middle, middle and working class customers, as Samsung sell products like cell phones very little more affordable i.e. Motorola along with very little pricey i.e. Apple. It supplies quality items to middle level customers at a slightly high cost than others targeting the same section.

Behavioural.

Valuation Project Case Study Help bulk target customers have special behavioural qualities. It has consumers with an ambitious, stylish and determined character with moderate level of loyalty towards the brand. Its consumers have some degree of shift towards other prominent brand names i.e. Apple. The majority of Samsun consumers want quality in addition to cost control. Because of its moderate rates with a level of quality, they are brought in towards Samsung.

Quantitative analysis.

Sales of Samsung has actually 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 actually also decreased its debt from 15 billion $ to 4.6 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. Revenues/ sales are increasing but net earnings is not increasing accordingly due to the fact that of the high overhead expense. New growths and hiring's were the main factor of the increase in the overhead costs, with china presently not offering any profit to Samsung, but there is so much capacity in the current market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based upon the mission of Kim to target the more youthful audience and produce a global brand name image of the company. Whereas, the core strength of the business is presently making however long gone are those days when great products were offering themselves. In the existing age marketing is really crucial and business can not prosper without it. Kim has actually currently begun to enhance the marketing activities of Samsung and very soon it will turn into one of its core strength like producing if not better.

VRIO.

Value.

Samsung operates designs, produces and offer a vast portfolio of customer electronic devices. It operates in an extremely competitive environment and has actually effectively placed itself as the maker of quality items. The answer is yes.

Rarity.

As, said previously that Valuation Project Case Study Solution runs in a highly competitive environment, which suggests all the companies have comparable items. So, the answer for rarity is no.

Imitability.

Due to the nature of the industry, it is extremely simple for competitors to understand the functionality of the items and easily make their own models. Yes, Samsung is only behind IBM in registering brand-new patents yearly, but the advantage is very short-term in this market.

Organization.

Chairman Lee has completely turn-around Samsung, from going practically insolvent throughout the Asian monetary crisis of 1997 to the leading 25 business worldwide. Absolutely yes there is proper company in the company and the outcomes speak for themselves.

External Ecological Analysis

PESTLE Analysis

Political

Being an international brand name spread nearly in every country worldwide, majority of the environments like U.S.A., Europe, China and so on, are really conductive for its operations. It deals with some political pressures in less industrialized nations where law and order situation is not excellent. Latin American, African and some Asian countries fall in this category, where political instability do have a result on Valuation Project Case Study Help operations.

Economic

Purchasing power of clients is important for companies like Samsung to grow and succeed. Emerging markets like India, middle-eastern countries etc. supply development chances, whereas, due to economic crisis even the customers of industrialized nations suffer severely. Thus it is extremely essential for the company to keep an eye on the ongoing financial circumstance of the nation prior to going into the market.

Socio-Cultural

Multinational companies need to deal with numerous social and cultural issues throughout its operations in a foreign country. Samsung has also dealt with lots of issues but have actually adopted to the regional environments of most of the countries remarkably well. It has actually customized its items, practices, policies and so on accordingly in order to achieve success.

Technological

With an annual expense of 2.4 billion dollars in Research & Development, and with consistent innovative product launches, Valuation Project Case Study Help is among the top ingenious business of the world. With a clear mission to be ahead of the rest when it comes to technological developments, Samsung has actually risen to the no 25 of the top successful companies of the world.

Legal

Each country has their own laws and policies, being a multinational business Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal effects. It has to study or work with a local law specialist prior to starting its operations in a specific nation.

Environmental

With the increasing awareness among consumers about the environmental & ethical infractions of business, Samsung has to guarantee that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some nations the consequences can be really severe. On the other hand it has to do some Corporate Social Duty practices to show the residents that it cares about their environment and people.

Porter's 5 Forces

Risk of Alternative

Risk of alternative for Samsung's each product category is quite significant. Elements for high risk of alternative for Valuation Project Case Study Solution Mobile phone consist of the presence of high number of suppliers and Market saturation in developed nations, which make the expense of switching for consumers almost no. Along with it, Samsung printing options products are threatened by the increasing destination of consumers 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 different variety of item classifications, requiring Samsung to introduce more ingenious features in existing products and brand-new innovative items to preserve its growth. Other factor for the extreme rivalry amongst the rivals is the little item differentiation amongst the products. The prominent players in the innovation industry are rather familiar with the importance of R&D costs for their survival and are encountering a race of marketing and R&D costs, to record the market. The major competitors for Valuation Project Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the varying market shares which can be seen in Display F.

Bargaining Power of Suppliers:

Valuation Project Case Study Solution has a vast supply chain including about 2700 providers across 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 substantial orders make it possible for Samsung to work out rates with its providers. Due to incapability of Samsung to develop its own software, it has to outsource its software application development to Google, which becomes a possible provider of software application for Samsung, resulting in high bargaining power of Google. In many of Valuation Project Case Study Solution has a power to work out prices, but it supply significant rates to its suppliers to build a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Buyers:

Bargaining power of buyers for various number of product categories of Samsung is intense. Among the aspect leading to the intense bargaining power is the accessibility of large number of competitors in practically each product classification i.e. competitors of Samsung Smartphone, with a really little distinction. The high accessibility of providers of Mobile phones with minimum distinction, make the changing cost for purchasers practically zero, hence increasing the bargaining power of buyers. Market saturation in most of the item categories also make the bargaining power of purchasers more intense in for Valuation Project Case Study Solution. In spite of igh bargaining power Samsung is quite efficient in selling its products at a greater rate than much of its competitors, due to high-end quality item and a fair brand image.

Hazard of New Entrants:

Risk of new entrants for Valuation Project Case Study Analysis is quite low. Along with it, requirement of substantial knowledge and research study and development expenditures for survival in the industry also make brand-new entrants reluctant to go into in the market. Market saturation is also one of the barrier of entry in innovation industry.

Competitive Analysis

Samsung's high item diversification offers it distinction from its competitors. It is one of the three top brands by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product classification with Sony concentrating on consumer electronic devices, Nokia on cellular phone and Intel on chips, Samsung had a big R&D costs on all of its item categories which allow the business to make potential income from sales of almost all of its items. (See Exhibition) However, due to the large item variety the company deals with high number of rivals.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in terms of worldwide market share, amongst 8 various product classifications. Samsung was the worldwide leader in making DRAM, SRAM and NAND flash chips. Samsung profits from chips was less than Intel but its incomes from chips was growing faster than Intel and has actually grown close to the income 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 cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The significant reson behind Samsung's high development despite of greater prices than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was also reaping the benefits from increasing market share of high-end LCDs as given in case Display 3. The major factor, making the business enable to obtain the chance is its mass production at low cost. Sony was the greatest competitor for Valuation Project Case Study Analysis in LCD market, however, it had actually likewise started joint endeavor with Samsung in 2003 for LCD manufacturing, lessening the competition for Samsung.

Porter's Competitive Method

Low Expense Management strategy of porter is totally implemented by Samsung the method they achieve economies of scale by enhancing their core competencies of production. Even to the point that their rival SONY decided to form an alliance with them to produce for them, because they were not able to compete with them on low expense. Differentiation is another strategy well carried out by Samsung by constant financial 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 Solution 1

The Chief Marketing Officer (CMO) of Valuation Project Case Study Help would produce a new brand name image by targeting the more youthful generation of the particular country. As, particularly smart phones of Samsung are popular among the younger demographic.

Pros

1. It is the best strategy to develop Client Life time Worth (CLV) by creating a long-lasting relationship with clients. Develop commitment through delivering value and profit for long-term, as research has actually showed it is much cheaper to retain current consumers than to draw 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 customers for my items.

Cons

1. Old consumers who were associated with Samsung prior to may not like this new image the company is attempting to depict.
2 It will sustain further expenditures to rearrange some products and it may not even bring success as the patterns alter really quickly among the more youthful demographic.

Alternative option 2.

Samsung has actually made manufacturing its core competency for the many part of their company and due to which its supervisors are not scared to completely step 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 given. Failure to get the passing scores will get benched. Marketing environment need to be developed internally initially as real marketing begins inside the corporation.

Pros

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

Cons

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

Determine the best option

Option is the finest as it clearly has more pros due to the fact that once a Customer Lifetime Worth is developed the company will profit from it till that customer is alive and has acquiring power. Plus, our target customers are the younger generation which are bound to live longer than the existing aging people. Samsung's primary objective is to produce loyalty amongst its consumers and make them bought it from them and even purchase their various products.

Execution Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations sensible and possible.
• A group consisting of finest marketing and sales specialists must be assemble, and both views ought to be taken into consideration before protecting the resources required to carry out the plan.
• Thorough communication of the plan ought to be done as it is really important for everybody to be on the very same page to make it work.
• Tasks and timelines need to be develop and communicated appropriately to each person accountable.
• The manager need to utilize a control panel which reveals the progress of all the jobs which have been done or about to be done and by whom.
• The supervisor must keep track of and keep a constant examine the overall and specific performance.
• Everyone ought to be willing to adjust midway due to the fact that any brand-new trend or policy might can be found in due to which all the important things currently prepared need to be adjusted. It's much better to have contingency strategies already prepared.
• At the end of the campaign the manager must communicate the outcomes and if successful should celebrate with the team.

Budget

The M-net program exposed engaging analysis about the low and high growth prospective locations and how much advertising spending plan must be allocated accordingly. This change the budget plan allotment of different nations and lots of managers were unhappy and argued however the analysis done by the program was precise and showed figures like North America and Russia growth potential merited a 35% allotment while they were getting 45%. Whereas, China and Europe must be receiving 42% but were rather given 31%. It really helped to fairly distribute the resources and catch more customers by investing more on ads on the high growth potential areas of the world.
Recommendations
Conclusion

Its continuous financial investment in R&D and ingenious practices have actually propelled them to new heights but for them its' only the start and they want to be amongst the top 3 brand names in the world. Their marketing efforts ought to be directed towards younger demographic amidst the internal arguments about marketing and need to develop Client Lifetime Worth as it will not just give them benefits now however will continue to gain it till the client lifetime. As the expense of keeping the client is much less expensive than attracting a brand-new one.