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Velib Sustainable Market Space Case Study Solution and Analysis


Velib Sustainable Market Space Case Study Analysis is a widely known global brand name in technology market, founded in 1938 by Lee Byung Chul, in South Korea. Velib Sustainable Market Space handle a great deal of item categories including Semiconductors, Telecommunications, Digital Media, Digital Appliances and many more other electronic items. Historically, the business's core clients include the Original Equipment Manufacturers (OEMs), which used to sell Venture products withtheir own trademark name. Till early 1990s, the core competency of Organization lie in its low rate offerings than its competitors by making existing products at economies of scale. Its client circle includes Original Equipment Manufacturers (OEMs), who used to offer Velib Sustainable Market Space Case Study Help items with their own brand. Company was not simply known outside Korea. There were likewise no or little interest in building the brand name worldwide. Marketing budget was controlled by production department with a focal point on supplying cheap products.During the 1997 Asian Financial Crisis the business nearly got insolvent, but with the Vision of Chairman Lee it totally turn its fortune around and in 2002 was listed the leading 25 most important company worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the business was not even listed. He rearranged Corporation as a global brand and informed his divisional managers to comprehend marketing and its significance. Now their goal is to reach the top 10 by 2005.

Issue Declaration

Corp's transition from an item based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to include marketing efficiently is still a major obstacle. Developing a consistent brand name identity across the entire world and utilizing marketing strategies that finest fits the local culture is no simple job.
Executive Summary
Situational Analysis

Yun had a rather clear photo in his mind about how Velib Sustainable Market Space Case Study Help can change from a low end to a high end item company. He knew that improvement can just be done through placing Org as a business using high-end products and this might just be done through high level of marketing.

In spite of having a clear vision about how to develop Venture brand name, with a potential support of its executives, Yun dealt with a number of marketing difficulties in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as exact same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the current marketing requirement was too much high, the gap was too larger and to fill this gap with wrong perceptions about marketing was rather challenging for Yun.

As specified above, marketing focus was extremely low in previous practices, therefore there were no correct marketing spending plans for each of the item on the portfolio. There was no marketing preparation done for the existing products. Together with it the item range of the business was increasing with the ripening of new product concepts by the R&D sector of Venture. Yun had a challenge to perform marketing planning and to produce marketing spending plans for existing along with for brand-new items from the very start, and this would take a big time.

A substantial shift would be required in present marketing expenditures to construct the Organization brand. This would result in increased marketing expenses for Organization and might interrupt the administration regarding increased expenses, as they were hesitant to marketing expenditures previously and an abrupt huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis

Velib Sustainable Market Space Case Study Help strengths lie in its big item portfolio. Org has largest number of patents in the industry with total number of 15499 patents approved in US( USP).

Another strength of Velib Sustainable Market Space Case Study Help is its ability to develop innovative items at a constant rate. It major shows for the development and item creating of Business is that the business has actually gotten so many awards for its innovation and item design.

Unlike Apple and other competitors, Venture is focused on producing devices which can be easily integrated with any type of open source Operating System (OS) and software. This provides Enterprise an edge over Apple gadgets.
Porter's 5 Forces Analysis
Business's ability to produce high-end items at low cost of production is likewise one of the significant strength of Company as it enables the company to record more market by offering quality items with expense control.

Weak points

Org's weak points are concealed in the business's dependence on outsourcing software for its devices due to company's inability in establishing software application, unlike Sony. Velib Sustainable Market Space Case Study Help also has low profit margins as compare to Apple due to huge distinction in the rates of Apple and Venture with a much lower distinction in quality.


Opportunities for Org lie in the growing Mobile phone market and the business's performance in the market. It can increase its market share and incomes from mobile phone as the business is quite efficient in cell phone market. Enterprise presently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Corporation can move towards acquisitions to get patents. It would enable the business to increase its product portfolio with a boost in its wealth.


The vibrant industry environment of technology industry pose a severe hazard on Organization's survival and force the company to spend much of its revenues share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile company is likewise a big risk for the business's growth in the existence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Velib Sustainable Market Space Case Study Analysis provides quality items and has a rather abundant portfolio which caters to different segments. The majority of the products are in the leading 3 of their particular industries. LCD and cellphones are the greatest items of Org, whereas DRAM is likewise not far behind in comparison of them. Following is the product line of Corporation:

• Laptops.
• Cellphone.
• A/c.
• Desktop computer.
• Hard disk drives.
• Washer.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Velib Sustainable Market Space Case Study Solution utilizes both market competitive and market skimming prices methods for its wide variety of items. In competitive prices it adjusts the rate according to the competition in order to get advantage, whereas, it utilizes market skimming strategy where the item has actually 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 distributors, their own sole suppliers, E commerce channels like Amazon etc. All its items are timely provided to the selling location/ delivered to the customers straight in case of online order.

Vrio Analysis
It wasn't a widely known business beyond Korea till 1993. But the management effort taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has actually entered the league of top 25 companies on the planet in simply 9 years. This is an amazing accomplishment regardless of the continuous arguments amongst the supervisors about embracing marketing practices. It uses both offline & online channels of promotion to market their products. Paid item ads, social promotion and digital ads are uses to develop awareness about Business items.

Worth Chain Analysis.

It's an analytical framework for identifying service activities that add worth or competitive advantage for the company.

Incoming Logistics.

It has among the most efficient and efficient supply chain network and has over 2700 providers throughout various markets worldwide. Practically 80% of which is based in Asia and the staying around the globe. For its inbound logistics it owns various logistics companies as it subsidiaries. It takes care of its providers and develops a harmonious relationship with them and even lowered their payment cycles to increase this relationship further which includes worth to their chain network.


Company's core competency is its mass manufacturing it produces 90% of its items in-house. Divided into 3 different departments its operations are particularly IT & Mobile Communications, Device Solutions and Consumer Electronics. It is keeping operation centers worldwide to even more add value to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the primary reasons Velib Sustainable Market Space Case Study Help has the ability to take on Apple. Business's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the jobs of collection of payment, settling insurance coverage claims, etc. on behalf of Venture.

Marketing and Sales.

Drawing in target customer attention towards the item is done through marketing and sales to communicate with them the worth and competitive benefit the item offers. Velib Sustainable Market Space Case Study Solution marketing spending plan is constantly increasing since they started their rearranging worldwide and will continue to do so as they are continuously aiming to invest and expand in high potential growth markets. The budget is spent on events, print and media advertisements, public relations and so on.

Corporation Service. Corp put their clients on top and constantly make every effort to provide unmatchable customer service requirements. As after sales service is ending up being exceptionally essential to keep customers happy and engaged, they even carry out surveys through 3rd parties to discover their customer's feedback and execute it in the favorable way to decrease or if possible entirely remove their consumer concerns. By including a direct support line to call them 24 hours they have even more increased the included value of Velib Sustainable Market Space Case Study Solution service.


Velib Sustainable Market Space Case Study Analysis has actually diversified market division, based upon its arrangement of vast array of items to a great deal of consumers. Company target consumer segments can be divided into 3 categories i.e. Velib Sustainable Market Space Case Study Help IT and Mobile Communications, Corporation Consumer Electronics and Corp Gadget services.


Velib Sustainable Market Space Case Study Analysis geographical division is based upon 2 criteria i.e. area and density. Corp serves about 80 countries worldwide with its items supplied to Urban in addition to Backwoods of the country. The Business is likewise growing its global existence and the company's versatility in finding its plants motivates global expansion of Corporation.


Business produces items that can be utilized by both females and males. The target customers for Business IT and mobile interaction products have an age variety of 18-65 with majority at a young or freshly wed life cycle phase. Apart from it, Corporation Customer Electronics are targeted to a client sector with an age variety of 25-65.


The psychographic division of Velib Sustainable Market Space Case Study Help s based upon the social class and the life style of the consumer. Venture target consumers on the basis of social class are mainly upper middle, middle and working class customers, as Corp offer products like mobile phone not much cheaper i.e. Motorola along with very little pricey i.e. Apple. It offers quality items to middle level consumers at a slightly high cost than others targeting the exact same sector.


Velib Sustainable Market Space Case Study Analysis bulk target clients have unique behavioural characteristics. It has customers with an enthusiastic, trendy and identified personality with moderate level of loyalty towards the brand. Its consumers have some degree of shift towards other renowned brands i.e. Apple. Most of Corporation clients want quality as well as cost control. They are drawn in towards Org because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Velib Sustainable Market Space Case Study Analysis has actually 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 largest selling category of Org with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Yes, this choice is based upon the mission of Kim to target the younger audience and produce a worldwide brand picture of the business. Whereas, the core strength of the company is currently making but long gone are those days when good items were selling themselves. In the current age marketing is extremely crucial and business can not prosper without it. Kim has currently started to reinforce the marketing activities of Corp and soon it will become one of its core strength like manufacturing if not much better.



Org operates designs, produces and sell a large portfolio of consumer electronics. It operates in a very 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 Analysis operates in a highly competitive environment, which implies all the business have similar products. The answer for rarity is no.


Due to the nature of the industry, it is very easy for rivals to comprehend the functionality of the items and easily make their own models. Yes, Corporation is only behind IBM in registering brand-new patents each year, but the advantage is extremely short-term in this industry.


Chairman Lee has totally turnaround Org, from going almost insolvent during the Asian financial crisis of 1997 to the top 25 company on the planet. Definitely yes there is proper organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand spread practically in every nation worldwide, bulk of the environments like USA, Europe, China etc., are really conductive for its operations. It faces some political pressures in less developed 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 an impact on Velib Sustainable Market Space Case Study Solution operations.


Buying power of clients is vital for companies like Enterprise to grow and prosper. Emerging markets like India, middle-eastern nations etc. offer growth opportunities, whereas, due to recession even the consumers of developed nations suffer badly. It is really essential for the business to keep an eye on the ongoing economic circumstance of the nation prior to entering the market.


Multinational companies need to face various social and cultural issues during its operations in a foreign nation. Business has likewise dealt with many concerns but have embraced to the regional environments of the majority of the nations extremely well. It has tailored its products, practices, policies and so on appropriately in order to succeed.


With an annual expenditure of 2.4 billion dollars in Research & Development, and with constant ingenious product launches, Velib Sustainable Market Space Case Study Help is among the top ingenious companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Organization 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 Org have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to severe legal effects. It has to study or hire a local law expert prior to beginning its operations in a particular nation.


With the increasing awareness among customers about the ethical & ecological infractions of companies, Business needs to make sure that it follows all the security standards. Ecological damages, ethical misconducts are not appropriate and in some countries the consequences can be extremely serious. On the other hand it needs to do some Corporate Social Responsibility practices to show the residents that it appreciates their environment and individuals.

Porter's 5 Forces

Danger of Replacement

Risk of substitution for Business's each product classification is rather significant. Running in a very vibrant industry lead the business to deal with a high risk of substitution. Aspects for high danger of substitution for Velib Sustainable Market Space Case Study Help Smartphone consist of the existence of high number of suppliers and Market saturation in developed nations, which make the cost of switching for customers almost zero. Alternative risks for Venture visual screen depend on the altering lifestyle of clients. Clients can switch to viewing visuals in the house towards outside activities. Along with it, Business printing services items are threatened by the increasing destination of consumers towards cloud storage.

Rivalry Among Existing Companies:

The rivaly amongst Organization and its close competitors is extreme. The major reason behind this is the technique of market saturation in numerous variety of product classifications, forcing Enterprise to introduce more ingenious features in existing products and new ingenious products to keep its growth. Other aspect for the extreme rivalry among the rivals is the little product differentiation amongst the products. The popular gamers in the technology market are rather knowledgeable about the significance of R&D spending for their survival and are encountering a race of marketing and R&D costs, to catch the market. The major competitors for Velib Sustainable Market Space Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competition rivalry leads to the fluctuating market shares which can be seen in Display F.

Bargaining Power of Suppliers:

Velib Sustainable Market Space Case Study Analysis has a large supply chain consisting of about 2700 providers across the world.( Corporation Sustainability Report, 2016) Provider's bargaining power for Corp is low as Organization runs economies of scale and its orders are of possible size and worth. These big orders make it possible for Enterprise to work out prices with its providers. Due to incapability of Corp to develop its own software application, it has to outsource its software advancement to Google, which ends up being a prospective supplier of software for Corp, resulting in high bargaining power of Google. In many of Velib Sustainable Market Space Case Study Solution has a power to work out costs, however it provide considerable prices to its providers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in many of the product classifications likewise make the bargaining power of purchasers more extreme in for Org. In spite of igh bargaining power Org is rather capable of offering its products at a higher price than much of its rivals, due to high end quality product and a reasonable brand name image.

Risk of New Entrants:

Risk of brand-new entrants for Company is quite low. Among the major element for low danger of brand-new entrants is the high competitors in the industry. The requirement of huge quantity of capital to enter in the marketplace is likewise among the prospective barrier to entry. In addition to it, requirement of big know-how and research and advancement expenditures for survival in the industry also make brand-new entrants hesitant to go into in the marketplace. Market saturation is likewise among the barrier of entry in innovation market. High bargaining power of suppliers force the gamers in the industry to charge as low costs as possible and this can only be achieved by production efficiency. Brand-new companies, in bulk cases, lack the production effectiveness, for this reason increasing the dangers for entryway in the technology market.

Competitive Analysis

Corporation's high product diversity provides it distinction from its rivals. Unlikely to its close competitors including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Velib Sustainable Market Space Case Study Solution had a substantial R&D spending on all of its item categories which make it possible for the business to earn potential profits from sales of almost all of its items.

The business ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in regards to worldwide market share, amongst 8 various product categories. Corporation was the global leader in making DRAM, SRAM and NAND flash chips. Corporation earnings from chips was less than Intel but its incomes from chips was growing much faster than Intel and has actually grown close to the income levels of Intel, as provided in the case Exhibition 2.

In addition to the chips Venture mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Venture'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 Org's high growth despite of greater prices than Nokia and Motorola was the business's high-end quality cell phones.

Venture was likewise profiting from increasing market share of high-end LCDs as given up case Display 3. The major reason, making the company make it possible for to avail the chance is its mass production at low cost. Sony was the biggest competitor for Velib Sustainable Market Space Case Study Analysis in LCD market, however, it had also begun joint venture with Venture in 2003 for LCD making, decreasing the competitors for Corporation.

Porter's Competitive Technique

Low Expense Management strategy of porter is fully implemented by Venture the way they accomplish economies of scale by reinforcing their core competencies of production. They constantly bring something ingenious and 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 produce a brand-new brand name image by targeting the more youthful generation of the specific nation. As, especially mobile phones of Org are incredibly popular amongst the younger group.


1. It is the very best method to build Customer Lifetime Value (CLV) by producing a long-term relationship with clients. Construct loyalty through delivering value and profit for long-term, as research has showed it is more affordable to maintain present clients than to attract brand-new ones.
2. Another pro of this alternative is that word of mouth spread more quickly amongst more youthful individuals and which in turn will bring in new customers for my items.


1. Old consumers who were associated with Venture before 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 patterns change very rapidly amongst the more youthful market.

Alternative solution 2.

Corporation has made producing its core competency for the most part of their business and due to which its managers are not afraid to completely get out of their convenience zone. It would be done by arranging training workshops throughout which importance of marketing will be taught and numbers will be provided. Failure to get the passing scores will get demoted. Marketing environment ought to be produced internally initially as genuine marketing begins inside the corporation.


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


2. Its con can develop a very unhealthy environment in the office, as individuals typically withstand change since they fear it.

Determine the best option

Alternative is the finest as it plainly has more pros because as soon as a Consumer Lifetime Worth is constructed 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 current aging people. Corporation's main goal is to create commitment amongst its clients and make them repurchase it from them and even purchase their various products.

Application Plan

• Targeting younger generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations practical and attainable.
• A group including finest marketing and sales professionals must be put together, and both views ought to be taken into consideration before protecting the resources required to execute the strategy.
• Thorough communication of the strategy must be done as it is really essential for everybody to be on the same page to make it work.
• Tasks and timelines ought to be construct and communicated appropriately to each person accountable.
• The supervisor must use a dashboard which shows the progress of all the jobs which have actually been done or about to be done and by whom.
• The supervisor should monitor and keep a constant examine the individual and total efficiency.
• Everybody should want to adjust midway because any brand-new pattern or policy may can be found in due to which all the important things currently planned need to be adjusted. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor need to communicate the results and if successful ought to celebrate with the group.

Budget plan

This modification the budget allotment of lots of supervisors and various countries were unhappy and argued but 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%. It actually helped to fairly distribute the resources and capture more clients by investing more on ads on the high development potential regions of the world.

Velib Sustainable Market Space Case Study Analysis is a leading 25 company on the planet now and prepares to get ahead of Sony who sits presently at no. 20. Its constant investment in R&D and innovative practices have moved them to brand-new heights however for them its' only the start and they wish to be among the top 3 brands on the planet. They entirely turnaround from practically going bankrupt during the Asian Financial Crisis to a world distinguished brand, understood for quality and development. Their value chain and their core competency their production ability, along-with global brand image structure 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 further in the future. Their marketing efforts ought to be directed towards more youthful demographic amid the internal arguments about marketing and should produce Client Life time Value as it will not only provide benefits now however will continue to reap it till the customer lifetime. As the cost of keeping the customer is more affordable than bring in a brand-new one.