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Velib Sustainable Market Space Case Study Solution and Analysis


Historically, the company's core customers include the Original Equipment Manufacturers (OEMs), which used to sell Velib Sustainable Market Space Case Study Analysis items withtheir own brand name. Its consumer circle consists of Original Equipment Manufacturers (OEMs), who used to sell Corp products with their own brand name. He repositioned Business as an international brand and informed his divisional managers to understand marketing and its importance.

Problem Statement

Org's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional supervisors to integrate marketing effectively is still a major challenge. Developing a consistent brand name identity across the whole world and utilizing marketing techniques that finest fits the local culture is no easy task. The M-net program analysis have actually been truly useful in determining the high and less possible growth areas, however allowance of resources appropriately is not well received among the managers. There is no agreement among the hierarchy concerning the best fit future technique.
Executive Summary
Situational Analysis

Velib Sustainable Market Space Case Study Help efforts for developing its trademark name across the world was started after introducing the "new management effort" by Chairman Lee in 1993. The goal was to transform Company from a cheap OEM to a high value-added item service provider. To make the vision of Venture a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear photo in his mind about how Organization can change from a low end to a high-end product company. He understood that change can only be done through positioning Company 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 Enterprise brand name, with a potential support of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

One of the marketing obstacles for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as exact 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 company practices, and the current marketing requirement was excessive high, the space was too wider and to fill this gap with wrong perceptions about marketing was rather challenging for Yun.

As specified above, marketing focus was really low in previous practices, for that reason there were no appropriate marketing spending plans for each of the item on the portfolio. There was no marketing preparation provided for the existing items. In addition to it the product range of the company was increasing with the ripening of new product concepts by the R&D sector of Business. Yun had an obstacle to carry out marketing planning and to develop 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 required in existing marketing expenditures to develop the Company brand name. This would result in increased marketing expenditures for Corporation and might disturb the administration concerning increased expenses, as they were hesitant to marketing expenses formerly and an unexpected big shiftwould make them disrupt.

Internal Analysis
SWOT Analysis

Velib Sustainable Market Space Case Study Analysis strengths lie in its big product portfolio. Corp has biggest number of patents in the industry with overall number of 15499 patents approved in US( USP).

Another strength of Velib Sustainable Market Space Case Study Analysis is its capability to develop innovative products at a continuous rate. It significant shows for the innovation and product designing of Organization is that the company has actually gotten so many awards for its development and product style.

Unlike Apple and other competitors, Org is focused on producing devices which can be easily incorporated with any type of open source Os (OS) and software application. This provides Corporation an edge over Apple devices.
Porter's 5 Forces Analysis
Org's capability to produce high-end items at low cost of production is also one of the significant strength of Organization as it makes it possible for the business to capture more market by supplying quality products with expense control.


Velib Sustainable Market Space Case Study Analysis weak points are hidden in the business's dependence on outsourcing software for its gadgets due to company's inability in establishing software application, unlike Sony. Business likewise has low revenue margins as compare to Apple due to huge difference in the prices of Apple and Venture with a much lower difference in quality. The varied focus of the business due to large number of products in its portfolio, lead to the less effective production and make the company unable to charge greater costs like Apple. The company is also inefficient in handling its patents and frequently faces the issue of patent infraction.


Opportunities for Enterprise lie in the growing Smart device market and the company's performance in the market. It can increase its market share and revenues from mobile phone as the business is quite efficient in mobile phone market. Company currently runs in about 80 countries and the business has a chance to increase its geographical growth by moving towards more emerging markets outside Asia. Business can move towards acquisitions to get patents. It would allow the business to increase its product portfolio with an increase in its wealth.


The vibrant market environment of innovation industry pose a serious danger on Venture'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 marketplace saturation in industrialized countries i.e. saturation of mobile company is also a big risk for the business's growth in the existence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis

Velib Sustainable Market Space Case Study Solution uses quality items and has a quite rich portfolio which deals with various segments. The majority of the products remain in the top three of their respective industries. LCD and cellphones are the biggest products of Corporation, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Enterprise:

• Laptops.
• Smart phone.
• Air conditioning unit.
• Personal computers.
• Hard drives.
• Washer.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.


Velib Sustainable Market Space Case Study Help uses both market competitive and market skimming pricing techniques for its wide array of products. In competitive pricing it adjusts the cost according to the competition in order to acquire benefit, whereas, it utilizes market skimming strategy where the product has an added value and by offering a couple of items it can reach break-even.


It has among the very best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon etc. All its items are prompt supplied to the selling place/ delivered to the consumers straight in case of online order.

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

Value Chain Analysis.

It's an analytical framework for identifying organisation activities that include value or competitive benefit for the business.

Incoming Logistics.

It has among the most efficient and efficient supply chain network and has over 2700 suppliers across various markets around the globe. Almost 80% of which is based in Asia and the remaining around the world. For its inbound logistics it owns different logistics firms as it subsidiaries. It takes care of its providers and develops an unified relationship with them and even lowered their payment cycles to boost this relationship further which adds worth to their chain network.


Venture's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 different departments its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to further include value to its value chain network.

Outbound Logistics.

Its outbound logistics system efficiency is one of the main reasons Velib Sustainable Market Space Case Study Analysis has the ability to compete with Apple. Organization's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Org.

Marketing and Sales.

Bring in target client attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the product uses. Velib Sustainable Market Space Case Study Help advertising spending plan is continually increasing given that they started their repositioning globally and will continue to do so as they are continuously wanting to invest and expand in high potential growth markets. The budget is invested in occasions, print and media ads, public relations etc.

Venture Service. Company put their clients at the top and constantly make every effort to deliver unmatchable client service requirements. As after sales service is ending up being very essential to keep customers pleased and engaged, they even carry out surveys through 3rd parties to learn their client's feedback and execute it in the favorable method to lower or if possible totally remove their customer issues. By including a direct support line to call them 24 hours they have further increased the included value of Velib Sustainable Market Space Case Study Analysis service.


Velib Sustainable Market Space Case Study Help has diversified market segmentation, based upon its arrangement of large range of products to large number of customers. Venture target consumer sections can be divided into 3 categories i.e. Velib Sustainable Market Space Case Study Help IT and Mobile Communications, Corp Customer Electronic Devices and Business Gadget options.


Velib Sustainable Market Space Case Study Help geographical segmentation is based upon two requirements i.e. area and density. Venture serves about 80 countries worldwide with its items offered to Urban as well as Rural areas of the nation. The Corp is also growing its worldwide presence and the business's versatility in locating its plants motivates worldwide expansion of Corporation.


The market division of Velib Sustainable Market Space Case Study Analysis is based upon gender, age, life-cycle phase and profession. Corp produces products that can be used by both women and males. The target consumers for Venture IT and mobile interaction products have an age series of 18-65 with majority at a young or freshly married life process phase. They are mainly trainees, staff members and experts. Apart from it, Venture Consumer Electronics are targeted to a consumer sector with an age range of 25-65. They are mainly workers and professionals. Nevertheless Velib Sustainable Market Space Case Study Solution Gadget Solutions are targeted at students, staff members and experts with an age series of 25-65.


The psychographic segmentation of Velib Sustainable Market Space Case Study Help s based upon the social class and the life style of the customer. Enterprise target customers on the basis of social class are mainly upper middle, middle and working class consumers, as Enterprise sell items like cellular phone not much less expensive i.e. Motorola in addition to not much pricey i.e. Apple. It offers quality items to middle level customers at a somewhat high rate than others targeting the very same sector.


Velib Sustainable Market Space Case Study Analysis majority target clients have distinct behavioural attributes. It has customers with an enthusiastic, stylish and figured out personality with moderate level of commitment towards the brand name. Its consumers have some degree of shift towards other distinguished brand names i.e. Apple. Most of Venture clients desire quality along with cost control. Since of its moderate prices with a level of quality, they are brought in towards Corp.

Quantitative analysis.

Sales of Velib Sustainable Market Space Case Study Help has increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Company 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 company is currently producing however long gone are those days when good products were offering themselves. Kim has actually currently started to enhance the marketing activities of Org and extremely quickly it will end up being one of its core strength like producing if not better.



Venture operates designs, manufactures and offer a large portfolio of consumer electronic devices. It operates in a very competitive environment and has actually successfully positioned itself as the maker of quality items. So, the answer is yes.


As, stated earlier that Velib Sustainable Market Space Case Study Analysis runs in an extremely competitive environment, which means all the business have comparable items. So, the response for rarity is no.


Due to the nature of the market, it is extremely simple for rivals to comprehend the performance of the products and quickly make their own designs. Yes, Corporation is just behind IBM in signing up new patents annually, but the advantage is really short-term in this market.


Chairman Lee has completely turnaround Enterprise, from going nearly bankrupt during the Asian monetary crisis of 1997 to the leading 25 business in the world. Certainly yes there appertains organization in the business and the results promote themselves.

External Ecological Analysis

PESTLE Analysis


Being a multinational brand name spread nearly in every nation worldwide, majority of the environments like U.S.A., Europe, China and so on, are very conductive for its operations. It deals with some political pressures in less industrialized countries where law and order circumstance is not good. Latin American, African and some Asian countries fall in this category, where political instability do have an effect on Velib Sustainable Market Space Case Study Solution operations.


Buying power of consumers is crucial for business like Corp to prosper and grow. Emerging markets like India, middle-eastern countries etc. offer growth chances, whereas, due to economic crisis even the customers of industrialized nations suffer badly. It is extremely essential for the company to keep an eye on the ongoing financial circumstance of the nation before entering the market.


International companies have to deal with various social and cultural issues during its operations in a foreign country. Venture has actually also faced numerous problems but have adopted to the local environments of most of the countries exceptionally well. It has actually customized its items, practices, policies etc. accordingly in order to achieve success.


With an annual expense of 2.4 billion dollars in Research study & Development, and with consistent innovative item launches, Velib Sustainable Market Space Case Study Solution is among the top innovative business of the world. With a clear objective to be ahead of the rest when it comes to technological advancements, Org has risen to the no 25 of the top effective business of the world.


Each nation has their own laws and policies, being an international company Business have to strictly follow those laws in their jurisdictions. Failure to do so, will result in severe legal consequences. So, it needs to study or hire a regional law specialist prior to beginning its operations in a specific country.


With the increasing awareness amongst customers about the ethical & environmental offenses of companies, Organization has to ensure that it follows all the safety guidelines. Ecological damages, ethical misbehaviors are not acceptable and in some countries the repercussions can be really severe. On the other hand it needs to do some Business Social Responsibility practices to show the residents that it cares about their environment and people.

Porter's 5 Forces

Hazard of Replacement

Danger of substitution for Org's each item category is rather significant. Running in a very dynamic industry lead the company to deal with a high hazard of alternative. Aspects for high hazard of alternative for Velib Sustainable Market Space Case Study Solution Smartphone include the existence of high variety of suppliers and Market saturation in industrialized countries, which make the cost of changing for customers nearly zero. Replacement threats for Business visual screen lie in the changing life style of clients. Clients can change to watching visuals in your home towards outdoor activities. Along with it, Corp printing solutions items are threatened by the increasing attraction of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Venture and its close competitors is intense. The major reason behind this is the technique of market saturation in different number of product categories, forcing Corporation to present more ingenious features in existing items and new innovative items to maintain its growth. Other aspect for the intense rivalry amongst the rivals is the little item differentiation among the products. The prominent players in the innovation industry are quite knowledgeable about the value of R&D spending 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 leads to the changing market shares which can be seen in Exhibit F.

Bargaining Power of Suppliers:

( Corporation Sustainability Report, 2016) Supplier's bargaining power for Business is low as Venture runs economies of scale and its orders are of potential size and worth. Due to incapability of Velib Sustainable Market Space Case Study Help to construct its own software, it has to outsource its software advancement to Google, which ends up being a potential supplier of software for Business, resulting in high bargaining power of Google.

Bargaining Power of Buyers:

Bargaining power of buyers for various variety of item classifications of Organization is intense. One of the element causing the intense bargaining power is the availability of a great deal of competitors in practically each product category i.e. rivals of Organization Smartphone, with an extremely little differentiation. The high schedule of providers of Smart devices with minimum distinction, make the switching expense for buyers nearly absolutely no, hence increasing the bargaining power of purchasers. Market saturation in most of the product classifications also make the bargaining power of buyers more intense in for Velib Sustainable Market Space Case Study Analysis. In spite of igh bargaining power Venture is rather capable of selling its items at a higher cost than much of its competitors, due to high end quality product and a reasonable brand name image.

Threat of New Entrants:

Threat of brand-new entrants for Velib Sustainable Market Space Case Study Help is rather low. Along with it, requirement of substantial expertise and research and development expenditures for survival in the industry likewise make brand-new entrants reluctant to enter in the market. Market saturation is likewise one of the barrier of entry in innovation industry.

Competitive Analysis

Enterprise's high item diversity provides it distinction from its rivals. It is one of the three top brand names by market share. Unlikely to its close competitors consisting of Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on consumer electronics, Nokia on mobile phone and Intel on chips, Company had a huge R&D costs on all of its product classifications which enable the business to make possible profits from sales of practically all of its items. (See Exhibit) However, due to the large item variety the business deals with high variety of competitors.

The company ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to worldwide market share, among 8 different item categories. Company was the worldwide leader in making DRAM, SRAM and NAND flash chips. Org incomes from chips was less than Intel but its profits from chips was growing much faster than Intel and has actually grown close to the revenue levels of Intel, as provided in the case Display 2.

In addition to the chips Corp mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Company's cell phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales growth. The major reson behind Organization's high growth despite of greater rates than Nokia and Motorola was the company's high-end quality cell phones.

Corp was likewise profiting from increasing market share of high end LCDs as given in case Exhibit 3. The significant factor, making the company allow to obtain the chance is its mass production at low cost. Sony was the most significant competitor for Velib Sustainable Market Space Case Study Analysis in LCD market, however, it had actually also begun joint endeavor with Venture in 2003 for LCD manufacturing, reducing the competition for Org.

Porter's Competitive Technique

Low Expense Management method of porter is fully executed by Company the way they accomplish economies of scale by strengthening their core proficiencies of manufacturing. They always bring something ingenious and brand-new whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Velib Sustainable Market Space Case Study Solution would develop a brand-new brand name image by targeting the younger generation of the particular nation. As, specifically smart phones of Venture are very popular amongst the more youthful group.


1. It is the very best technique to build Consumer Lifetime Worth (CLV) by producing a long-lasting relationship with clients. Construct commitment through delivering value and profit for long-lasting, as research has revealed it is much cheaper to retain present customers than to draw in new ones.
2. Another pro of this option is that word of mouth spread more quickly among younger people and which in turn will generate new customers for my items.


1. Old customers who were related to Company prior to may not like this brand-new image the company is trying to portray.
2 It will incur further costs to reposition some products and it might not even bring success as the trends change extremely quickly among the more youthful group.

Alternative service 2.

Business has made manufacturing its core proficiency for the most part of their business and due to which its managers are not scared to fully get out of their comfort zone. It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be offered. Failure to get the passing scores will get demoted. Marketing environment should be developed internally first as real marketing starts inside the corporation.


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


2. Its con can develop a very unhealthy environment in the office, as individuals often resist change due to the fact that they fear it.

Identify the best option

Very first alternative is the best as it clearly has more pros since when a Consumer Life time Worth is constructed the business will benefit from it till that client lives and has purchasing power as well. Plus, our target clients are the more youthful generation which are bound to live longer than the present old age people. Enterprise's primary objective is to produce commitment amongst its clients and make them bought it from them and even buy their various products.

Application Strategy

• Targeting younger generation through social marketing, creating a relate to them like Pepsi finish with music. And set the expectations realistic and achievable.
• A group consisting of best marketing and sales experts must be put together, and both views ought to be considered before securing the resources required to implement the plan.
• Thorough interaction of the plan must be done as it is extremely crucial for everybody to be on the exact same page to make it work.
• Tasks and timelines must be construct and communicated accordingly to each individual accountable.
• The manager ought to utilize a dashboard which shows the development of all the tasks which have actually been done or about to be done and by whom.
• The supervisor need to keep track of and keep a constant look at the individual and general efficiency.
Since any new trend or policy might come in due to which all the things already prepared have to be changed, • Everybody must be prepared to adapt midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the manager should interact the outcomes and if successful need to celebrate with the team.


The M-net program exposed compelling analysis about the low and high growth prospective areas and just how much marketing budget plan must be assigned appropriately. This modification the budget plan allotment of many supervisors and different countries were dissatisfied and argued however the analysis done by the program was precise and showed figures like North America and Russia growth possible merited a 35% allotment while they were receiving 45%. Whereas, China and Europe should be receiving 42% but were instead offered 31%. It truly helped to fairly distribute the resources and record more clients by spending more on advertisements on the high development potential regions of the world.

Velib Sustainable Market Space Case Study Solution is a top 25 company on the planet now and prepares to get ahead of Sony who sits presently at no. 20. Its consistent investment in R&D and innovative practices have actually propelled them to brand-new heights however for them its' only the start and they want to be among the leading 3 brands worldwide. They completely turn-around from almost declaring bankruptcy throughout the Asian Financial Crisis to a world renowned brand name, known for quality and development. Their worth chain and their core competency their production capability, along-with worldwide brand image building have actually 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 ought to be directed towards more youthful group amid the internal arguments about marketing and should create Client Lifetime Value as it will not only provide advantages now but will continue to enjoy it till the client lifetime. As the cost of maintaining the customer is more affordable than bring in a new one.