Velib Sustainable Market Space Harvard Case Study Solution

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Velib Sustainable Market Space Case Study Solution & Analysis


Historically, the company's core consumers include the Original Devices Manufacturers (OEMs), which utilized to offer Velib Sustainable Market Space Case Study Help products withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who utilized to offer Samsung products with their own brand name. He rearranged Samsung as an international brand name and informed his divisional supervisors to understand marketing and its significance.

Problem Statement

Samsung's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to include marketing successfully is still a significant challenge. Developing a consistent brand name identity across the whole world and employing marketing techniques that best fits the regional culture is no simple job. The M-net program analysis have been actually helpful in identifying the high and less prospective growth areas, however allocation of resources accordingly is not well gotten amongst the supervisors. There is no agreement amongst the hierarchy relating to the best matched future strategy.
Executive Summary
Situational Analysis

Yun had a rather clear image in his mind about how Velib Sustainable Market Space Case Study Solution can change from a low end to a high end item company. He knew that improvement can only be done through placing Samsung as a business 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 obstacles in early years of its efforts.

Among the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as same tools and believed that quality items do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the present marketing requirement was too much high, the space was too larger and to fill this gap with incorrect understandings about marketing was rather challenging 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 preparation provided for the existing items. In addition to it the item range of the company was increasing with the ripening of brand-new item concepts by the R&D sector of Samsung. Yun had a difficulty to perform marketing preparation and to create marketing spending plans for existing in addition to for brand-new items from the very start, and this would take a substantial time.

A substantial shift would be needed in current marketing expenses to construct the Velib Sustainable Market Space Case Study Solution brand. This would lead to increased marketing expenses for Samsung and might disturb the administration relating to increased costs, as they hesitated to marketing expenditures formerly and an unexpected huge shiftwould make them interrupt. This could result in decreasing executive support for international marketing. In this circumstance, Yun faces a challenge for validating increased marketing expenses by demonstrating the long term worth of big marketing expenses.

Internal Analysis
SWOT Analysis

Velib Sustainable Market Space Case Study Analysis strengths lie in its substantial item portfolio. Samsung has biggest number of patents in the industry with overall number of 15499 patents granted in US( USP).

Another strength of Velib Sustainable Market Space Case Study Solution is its ability to establish ingenious items at a continuous rate. It significant shows for the innovation and item developing of Samsung is that the company has actually gotten a lot of awards for its development and product design.

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

Weak points

Samsung's weak points are hidden in the company's reliance on outsourcing software application for its devices due to company's failure in developing software, unlike Sony. Velib Sustainable Market Space Case Study Solution likewise has low revenue margins as compare to Apple due to big distinction in the prices of Apple and Samsung with a much lower difference in quality.


Opportunities for Samsung depend on the growing Mobile phone market and the company's effectiveness in the market. It can increase its market share and revenues from cellular phone as the business is rather efficient in smart phone market. Samsung currently runs in about 80 nations and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Samsung can move towards acquisitions to get patents. It would make it possible for the business to increase its product portfolio with a boost in its wealth.


The vibrant market environment of innovation market posture a serious risk on Samsung's survival and force the company to invest much of its profits share on R&D in order to survive in the long run. The market saturation in industrialized countries i.e. saturation of mobile company is also a big threat for the company's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Velib Sustainable Market Space Case Study Solution provides quality products and has a quite abundant portfolio which accommodates various segments. Most of the items remain in the top 3 of their particular markets. LCD and cellphones are the greatest products of Samsung, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Samsung:

• Laptops.
• Mobile phones.
• Air conditioner.
• Desktop computer.
• Hard drives.
• Washer.
• Fridges.
• Cameras.
• Microwaves.
• Flash memory.


Velib Sustainable Market Space Case Study Solution uses both market competitive and market skimming rates methods for its wide variety of products. In competitive pricing it changes the rate according to the competition in order to gain advantage, whereas, it utilizes market skimming technique where the product has an included value and by offering a few items it can reach break-even.


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

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

Value Chain Analysis.

It's an analytical framework for determining service activities that include value or competitive benefit for the company.

Inbound Logistics.

For its inbound logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and creates an unified relationship with them and even minimized their payment cycles to increase this relationship even more which adds worth to their chain network.


Samsung's core competency is its mass making it produces 90% of its products internal. Divided into 3 different departments its operations are specifically IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is preserving operation centers worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is among the primary factors Velib Sustainable Market Space 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 carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Attracting target client attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the product uses. Velib Sustainable Market Space Case Study Analysis marketing budget plan is continually growing given that they began their rearranging worldwide and will continue to do so as they are continually wanting to broaden and invest in high potential growth markets. The budget plan is invested in occasions, print and media advertisements, public relations etc.

Samsung put their consumers at the leading and continuously aim to provide unmatchable consumer service requirements. By adding a direct assistance line to contact them 24 hours they have further increased the included worth of Samsung service.


Velib Sustainable Market Space Case Study Analysis has actually diversified market segmentation, based upon its provision of wide range of items to a great deal of customers. Samsung target client segments can be divided into 3 categories i.e. Velib Sustainable Market Space Case Study Help IT and Mobile Communications, Samsung Customer Electronic Devices and Samsung Device solutions.


Velib Sustainable Market Space Case Study Help geographical segmentation is based upon 2 requirements i.e. region and density. Samsung serves about 80 countries worldwide with its products provided to Urban along with Rural areas of the nation. The Samsung is likewise growing its international existence and the business's flexibility in locating its plants encourages international expansion of Samsung.


The demographic segmentation of Velib Sustainable Market Space Case Study Help is based upon gender, age, life-cycle phase and occupation. Samsung produces items that can be utilized by both males and females. The target clients for Samsung IT and mobile communication items have an age variety of 18-65 with bulk at a young or freshly wed life cycle stage. They are mostly professionals, workers and students. Apart from it, Samsung Consumer Electronic devices are targeted to a customer sector with an age series of 25-65. They are mainly workers and specialists. Nevertheless Velib Sustainable Market Space Case Study Analysis Device Solutions are targeted at trainees, staff members and specialists with an age variety of 25-65.


The psychographic segmentation of Velib Sustainable Market Space Case Study Solution s based upon the social class and the life style of the consumer. Samsung target customers on the basis of social class are generally upper middle, middle and working class clients, as Samsung offer items like cell phones very little more affordable i.e. Motorola in addition to very little expensive i.e. Apple. It provides quality products to middle level consumers at a slightly high rate than others targeting the exact same sector.


Velib Sustainable Market Space Case Study Solution majority target clients have special behavioural attributes. They are attracted towards Samsung since of its moderate prices with a degree of quality.

Quantitative analysis.

Sales of Velib Sustainable Market Space Case Study Solution has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit 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 presently manufacturing but long gone are those days when good products were selling themselves. Kim has already started to reinforce the marketing activities of Samsung and really soon it will end up being one of its core strength like making if not better.



Samsung operates designs, makes and offer a huge portfolio of consumer electronic devices. It operates in an extremely competitive environment and has actually successfully placed itself as the maker of quality items. The answer is yes.


As, said earlier that Velib Sustainable Market Space Case Study Solution runs in a highly competitive environment, which indicates all the business have comparable products. So, the response for rarity is no.


Due to the nature of the market, it is very easy for rivals to understand the functionality of the items and quickly make their own designs. 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 completely turn-around Samsung, from going almost bankrupt during the Asian financial crisis of 1997 to the leading 25 business worldwide. Absolutely yes there is proper company in the company and the results promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread nearly in every country worldwide, bulk of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. It deals with some political pressures in less developed countries where law and order situation is not excellent. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Velib Sustainable Market Space Case Study Analysis operations.


Purchasing power of consumers is important for business like Samsung to grow and prosper. Emerging markets like India, middle-eastern nations and so on provide development opportunities, whereas, due to economic crisis even the clients of developed countries suffer terribly. It is really important for the business to keep an eye on the ongoing financial scenario of the nation prior to entering the market.


International companies need to face different social and cultural issues throughout its operations in a foreign country. Samsung has actually likewise faced lots of issues however have actually embraced to the regional environments of most of the countries extremely well. It has actually tailored its items, practices, policies etc. accordingly in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with continuous innovative product launches, Velib Sustainable Market Space Case Study Help is one of the leading ingenious companies of the world. With a clear objective to be ahead of the rest when it comes to technological developments, Samsung has increased to the no 25 of the leading effective companies of the world.


Each country has their own laws and policies, being an international company Samsung have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to serious legal effects. So, it has to study or hire a local law specialist before starting its operations in a specific nation.


With the increasing awareness amongst consumers about the ethical & environmental infractions of business, Samsung needs to guarantee that it follows all the safety standards. Environmental damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be extremely severe. On the other hand it needs to do some Business Social Obligation practices to reveal the residents that it appreciates their environment and people.

Porter's 5 Forces

Hazard of Substitution

Danger of replacement for Samsung's each product category is rather significant. Aspects for high danger of substitution for Velib Sustainable Market Space Case Study Analysis Smart device consist of the existence of high number of suppliers and Market saturation in industrialized countries, which make the cost of switching for consumers practically zero. Along with it, Samsung printing options products are threatened by the increasing destination of customers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly among Samsung and its close competitors is extreme. The major reason behind this is the method of market saturation in various number of product classifications, requiring Samsung to introduce more ingenious functions in existing items and new innovative products to preserve its growth. Other element for the extreme competition amongst the rivals is the little product distinction amongst the items. The popular gamers in the technology market are quite knowledgeable about the importance of R&D costs for their survival and are encountering a race of marketing and R&D spending, to capture the market. The significant rivals for Velib Sustainable Market Space Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competitors rivalry results in the changing market shares which can be seen in Display F.

Bargaining Power of Providers:

Velib Sustainable Market Space Case Study Analysis has a vast supply chain including about 2700 providers across the world.( 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. These big orders enable Samsung to work out costs with its providers. Due to incapability of Samsung to develop its own software, it has to outsource its software development to Google, which becomes a potential provider of software for Samsung, resulting in high bargaining power of Google. Although, in the majority of cases Samsung has a power to negotiate rates, but it offer significant prices to its providers to construct a strong supply chain and to have strong relationships with its providers.

Bargaining Power of Purchasers:

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

Threat of New Entrants:

Threat of brand-new entrants for Samsung is quite low. One of the significant factor for low risk of brand-new entrants is the high competition in the market. The requirement of huge amount of capital to enter in the marketplace is also one of the prospective barrier to entry. In addition to it, requirement of huge proficiency and research study and advancement expenditures for survival in the industry likewise make new entrants reluctant to enter in the market. Market saturation is also among the barrier of entry in technology market. High bargaining power of suppliers force the players in the market to charge as low costs as possible and this can only be achieved by production effectiveness. New companies, in bulk cases, lack the production efficiency, thus increasing the risks for entryway in the technology industry.

Competitive Analysis

Samsung's high item diversification provides it distinction from its competitors. It is one of the 3 top brand names by market share. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item category with Sony concentrating on customer electronics, Nokia on cell phones and Intel on chips, Samsung had a big R&D spending on all of its product categories which allow the company to earn potential revenue from sales of nearly all of its products. (See Display) Nevertheless, due to the broad product variety the business faces high variety of competitors.

The company ranks first in 4 item classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in regards to worldwide market share, among 8 different item categories. Samsung was the international leader in producing DRAM, SRAM and NAND flash chips. Although, Samsung revenues from chips was less than Intel but its earnings from chips was growing much faster than Intel and has grown close to the profits levels of Intel, as given up the case Exhibition 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 development was 51% as compare to Motorola with only 4% and Nokia with zero sales development. The significant reson behind Samsung's high development despite of higher rates than Nokia and Motorola was the company's high-end quality cell phones.

Samsung was likewise reaping the benefits from increasing market share of high-end LCDs as given in case Exhibit 3. The major factor, making the business make it possible for to obtain the opportunity is its mass production at low expense. Sony was the greatest rival for Velib Sustainable Market Space Case Study Solution in LCD market, nevertheless, it had likewise begun joint venture with Samsung in 2003 for LCD making, lessening the competitors for Samsung.

Porter's Competitive Technique

Low Expense Leadership technique of porter is totally executed by Samsung the way they accomplish economies of scale by enhancing their core proficiencies of manufacturing. Even to the point that their rival SONY chose to form an alliance with them to make for them, because they were unable to compete with them on low expense. Distinction is another method well implemented by Samsung by continuous financial investment in the R&D and remaining ahead of the competitors. They always bring something ingenious and brand-new whether it's an item or a service.


Alternative Option 1

The Chief Marketing Officer (CMO) of Velib Sustainable Market Space Case Study Help would develop a new brand image by targeting the younger generation of the specific nation. As, especially smart phones of Samsung are preferred amongst the more youthful group.


1. It is the best technique to develop Customer Lifetime Worth (CLV) by developing a long-lasting relationship with customers. Develop commitment through providing worth and profit for long-term, as research has revealed it is more affordable to retain current clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly among younger people and which in turn will generate new consumers for my products.


1. Old clients who were related to Samsung prior to may not like this brand-new image the business is trying to depict.
2 It will sustain more expenses to reposition some products and it might not even bring success as the patterns alter extremely rapidly among the more youthful group.

Alternative solution 2.

Samsung has actually made making its core proficiency for the a lot of part of their business and due to which its managers are not afraid to totally get out of their comfort zone. It would be done by setting up training workshops during which value of marketing will be taught and numbers will be provided. Failure to get the passing ratings will get benched. Marketing environment should be developed internally initially as genuine marketing begins inside the corporation.


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


2. Its con can create a really unhealthy environment in the workplace, as people frequently resist modification since they fear it.

Determine the very best alternative

Alternative is the finest as it plainly has more pros since when a Consumer Lifetime Worth is built the business will benefit from it till that client is alive and has buying power. Plus, our target clients are the younger generation which are bound to live longer than the current aging people. Nevertheless, Samsung's main objective is to produce commitment amongst its consumers and make them bought it from them and even buy their different products as well.

Execution Plan

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations reasonable and attainable.
• A group consisting of finest marketing and sales professionals must be assemble, and both views need to be taken into consideration before securing the resources required to implement the strategy.
• Thorough interaction of the plan need to be done as it is really essential for everyone to be on the very same page to make it work.
• Jobs and timelines ought to be build and interacted appropriately to each person accountable.
• The manager should utilize a control panel which shows the progress of all the tasks which have actually been done or about to be done and by whom.
• The supervisor should keep an eye on and keep a continuous examine the total and specific performance.
• Everyone need to want to adjust midway due to the fact that any brand-new trend or policy might be available in due to which all the things already prepared need to be adjusted. It's better to have contingency strategies already prepared.
• At the end of the project the manager should communicate the results and if effective should commemorate with the group.

Budget plan

This change the budget allocation of many supervisors and various nations were unhappy and argued however the analysis done by the program was precise and revealed figures like North America and Russia development prospective merited a 35% allotment while they were getting 45%. It really helped to fairly disperse the resources and catch more customers by investing more on ads on the high development capacity regions of the world.

Its constant financial investment in R&D and ingenious practices have propelled them to new heights however for them its' only the start and they desire to be amongst the leading 3 brands in the world. Their marketing efforts must be directed towards more youthful demographic amidst the internal arguments about marketing and need to create Consumer Life time Worth as it will not just provide them advantages now but will continue to reap it till the customer life time. As the expense of keeping the customer is much more affordable than attracting a brand-new one.