PROMONTORY INC.

Case Study Analysis

Introduction
Its client circle consists of Original Equipment Manufacturers (OEMs), who utilized to offer Corporation products with
their own brand name. He rearranged Company as an international brand and informed his divisional managers to
comprehend marketing and its value.

Problem Declaration
Venture's transition from a product based to a marketing business is not going as smoothly as planned. Overcoming
the unwillingness of divisional supervisors to incorporate marketing successfully is still a significant challenge.
Creating a constant brand identity across the entire world and using marketing techniques that best fits the regional
culture is no easy job.

Situational Analysis
Yun had a quite clear photo in his mind about how Promontory Inc Case Study Help can transform from a low end to
a high end item supplier. He understood that improvement can only be done through placing Enterprise as a
company 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 construct Company brand name, with a potential support of its
executives, Yun faced several marketing difficulties in early years of its efforts.

One of the marketing challenges for Yun was the perceptions of executives about the value of marketing. They
thought about marketing and selling as exact same tools and thought that quality products do not required
marketing for increasing sales. As their focus towards marketing was quite low in their previous business practices,
and the existing marketing requirement was excessive high, the gap was too wider and to fill this space with wrong
understandings about marketing was rather difficult for Yun.

Along with it the product range of the business was increasing with the ripening of new product ideas by the R&D
sector of Corporation. Yun had a challenge to carry out marketing planning and to produce marketing budget plans
for existing as well as for new products from the very beginning, and this would take a substantial time.

A substantial shift would be required in current marketing expenses to construct the Promontory Inc Case Study
Analysis brand. This would lead to increased marketing expenditures for Org and could disturb the administration
concerning increased expenses, as they hesitated to marketing expenditures formerly and a sudden big shift would
make them interrupt. This could lead to decreasing executive support for worldwide marketing. In this circumstance,
Yun faces an obstacle for validating increased marketing expenses by showing the long term worth of substantial
marketing expenses.
Internal Analysis
SWOT Analysis

Strengths
Promontory Inc Case Study Analysis strengths lie in its huge product portfolio. Corp has largest number of patents in
the industry with overall number of 15499 patents given in United States ( USP).

Strength of Promontory Inc Case Study Help is its capability to develop innovative items at a continuous rate. It
significant proves for the innovation and product creating of Organization is that the company has actually gotten so
many awards for its development and product design.

Unlike Apple and other rivals, Organization is concentrated on producing devices which can be easily incorporated
with any type of open source Os (OS) and software. This provides Org an edge over Apple devices.

Business's ability to produce high-end products at low expense of production is likewise one of the major strength of
Corporation as it allows the company to capture more market by offering quality products with cost control.

Weaknesses
Promontory Inc Case Study Solution weaknesses are concealed in the business's reliance on outsourcing software for
its devices due to business's failure in developing software application, unlike Sony. Org also has low revenue
margins as compare to Apple due to substantial difference in the rates of Apple and Business with a much lesser
distinction in quality. The varied focus of the business due to large number of products in its portfolio lead to the less
efficient production and make the business not able to charge greater prices like Apple. The business is likewise
inefficient in managing its patents and often faces the problem of patent violation.

Opportunities
Opportunities for Promontory Inc Case Study Help lie in the growing Smart device market and the business's
effectiveness in the market. Enterprise presently runs in about 80 countries and the company has an opportunity to
increase its geographical growth by moving towards more emerging markets outside Asia.

Threats
The dynamic market environment of technology industry pose a serious danger on Enterprise's survival and require
the business to invest much of its profits share on R&D in order to survive in the long run. The marketplace
saturation in industrialized nations i.e. saturation of mobile business is likewise a huge hazard for the business's
development in the existence of strong competitors like Apple.

4 P's of Marketing

Product
Promontory Inc Case Study Solution uses quality items and has a quite rich portfolio which accommodates different
sectors. The majority of the items remain in the top 3 of their particular industries. LCD and mobile phones are the
greatest products of Corp, whereas DRAM is also not far behind in contrast of them. Following is the product line of
Corporation:

• LCD/ TV
• Laptops.
• Mobile phones.
• A/c.
• Desktop computer.
• Hard drives.
• Washer.
• Refrigerators.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.

Price
Promontory Inc Case Study Solution utilizes both market competitive and market skimming rates strategies for its
wide variety of products. In competitive rates it adjusts the cost according to the competition in order to gain
benefit, whereas, it utilizes market skimming method where the product has actually an included value and by selling
a couple of items it can reach break-even.

Place
It has one of the very best supply chain networks, with retail suppliers, their own sole suppliers, E commerce
channels like Amazon etc. All its items are timely supplied to the selling place/ provided to the clients straight in case
of online order.

Promotion
It wasn't a widely known company outside of Korea until 1993. The management effort taken by their CEO has
pushed them to market more efficiently outside the borders and now it has entered the league of leading 25
business in the world in just 9 years. This is a remarkable achievement regardless of the ongoing arguments amongst
the managers about embracing marketing practices. It uses both offline & online channels of promotion to market
their products. Paid item advertisements, social promotion and digital advertisements are uses to develop awareness
about Enterprise products.

Worth Chain Analysis

Its an analytical framework for identifying service activities that include value or competitive advantage for the
company.

Incoming Logistics
For its inbound logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and produces an
unified relationship with them and even minimized their payment cycles to boost this relationship further which
includes value to their chain network.

Operations
Venture's core proficiency is its mass producing it produces 90% of its items internal. Divided into 3 different
departments its operations are specifically IT & Mobile Communications, Device Solutions and Customer Electronic
Devices. It is preserving operation centers worldwide to further add worth to its worth chain network.

Outbound Logistics
Its outbound logistics system efficiency is among the main reasons Promontory Inc Case Study Solution is able to
compete with Apple. Corporation's own Electronic Logitec system plays a significant function in the outbound
logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on
behalf of Corp.

Marketing and Sales

Bring in target client attention towards the item is done through marketing and sales to communicate with them the
worth and competitive advantage the item provides. Promontory Inc Case Study Help marketing budget plan is
continually on the rise since they began their rearranging globally and will continue to do so as they are continuously
seeking to invest and expand in high prospective growth markets. The spending plan is invested in events, print and
media advertisements, public relations etc.

Corporation Service
Company put their customers on top and continually make every effort to provide unmatchable customer care
standards. As after sales service is becoming incredibly important to keep clients pleased and engaged, they even
perform surveys through 3rd parties to discover their customer's feedback and execute it in the positive method to
minimize or if possible totally eliminate their client issues. By adding a direct support line to call them 24 hr they
have even more increased the included worth of Promontory Inc Case Study Help service.

Segmentation
Promontory Inc Case Study Analysis has actually diversified market division, based upon its provision of large range
of products to a great deal of customers. Enterprise target client sectors can be divided into 3 classifications i.e.
Promontory Inc Case Study Solution IT and Mobile Communications, Company Customer Electronics and Company
Gadget services.

Geographical
Promontory Inc Case Study Help geographic segmentation is based upon two requirements i.e. region and density.
Business serves about 80 nations worldwide with its products offered to Urban along with Rural areas of the nation.
The Enterprise is likewise growing its international existence and the company's versatility in finding its plants
motivates global expansion of Enterprise.

Demographic
The market division of Promontory Inc Case Study Help is based upon gender, age, life-cycle phase and profession.
Enterprise produces products that can be utilized by both women and males. The target consumers for Enterprise IT
and mobile communication products have an age variety of 18-65 with majority at a young or freshly wed life cycle
stage. They are mostly staff members, experts and students. Apart from it, Venture Consumer Electronics are
targeted to a consumer segment with an age range of 25-65. They are mainly staff members and professionals.
Nevertheless Promontory Inc Case Study Solution Device Solutions are targeted at students, staff members and
specialists with an age range of 25-65.

Psychographic
The psychographic division of Promontory Inc Case Study Solution s based upon the social class and the lifestyle of
the consumer. Venture target clients on the basis of social class are mainly upper middle, middle and working class
customers, as Corp sell products like cellular phone not much more affordable i.e. Motorola along with not much
costly i.e. Apple. It offers quality items to middle level customers at a slightly high rate than others targeting the
exact same segment.

Behavioural
Promontory Inc Case Study Solution bulk target consumers have unique behavioural attributes. It has customers with
an enthusiastic, trendy and figured out character with moderate level of loyalty towards the brand. Its clients have
some degree of shift towards other prominent brand names i.e. Apple. Most of Enterprise consumers want quality
along with cost control. They are drawn in towards Business since of its moderate costs with an extent of quality.

Quantitative analysis
Sales of Corporation has increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net
earnings of.48 billion $ to 5.9 billion $. It has also minimized its debt from 15 billion $ to 4.6 billion $. Digital media is
the biggest selling classification of Org with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors
sectors both reached 11 billion $ in sales. Because of the high overhead cost, earnings/ sales are increasing however
net earning is not increasing accordingly. New expansions and working with's were the primary factor of the boost in
the overhead expenses, with china currently not supplying any revenue to Business, however there is a lot potential
in the current market with 75 % yet to be checked out.

Qualitative analysis
The core strength of the company is currently producing but long gone are those days when good products were
selling themselves. Kim has currently begun to strengthen the marketing activities of Enterprise and really quickly it
will end up being one of its core strength like manufacturing if not better.

VRIO

Value
Org operates styles, makes and sell a vast portfolio of consumer electronics. It runs in an extremely competitive
environment and has effectively placed itself as the maker of quality products. The answer is yes.

Rarity
As, stated previously that Promontory Inc Case Study Analysis runs in an extremely competitive environment, which
implies all the business have similar products. So, the answer for rarity is no.

Imitability
Due to the nature of the industry, it is very easy for competitors to comprehend the functionality of the items and
easily make their own designs. Yes, Org is only behind IBM in signing up brand-new patents yearly, however the
benefit is extremely short term in this industry.

Organization
Chairman Lee has completely turnaround Corp, from going nearly bankrupt during the Asian monetary crisis of 1997
to the top 25 business in the world. Absolutely yes there is proper organization 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, bulk of the environments like U.S.A.,
Europe, China and so on, are really conductive for its operations. However, it faces some political pressures in less
industrialized nations where order scenario is not good. Latin American, African and some Asian nations fall in this
classification, where political instability do have an effect on Promontory Inc Case Study Analysis operations.

Economic
Purchasing power of consumers is important for business like Corporation to grow and be successful. Emerging
markets like India, middle-eastern nations etc. supply growth chances, whereas, due to recession even the
consumers of industrialized countries suffer severely. It is extremely essential for the business to keep an eye on the
ongoing financial scenario of the nation prior to going into the market.
Socio-Cultural
International companies need to deal with various social and cultural concerns throughout its operations in a foreign
country. Company has likewise faced many issues however have actually embraced to the regional environments of
the majority of the countries incredibly well. It has tailored its products, practices, policies and so on accordingly in
order to be successful.

Technological
With a yearly expenditure of 2.4 billion dollars in Research & Advancement, and with consistent ingenious item
launches, Promontory Inc Case Study Solution is one of the leading innovative companies of the world. With a clear
mission to be ahead of the rest when it pertains to technological advancements, Company has actually increased to
the no 25 of the top successful business of the world.

Legal
Each nation has their own laws and policies, being a multinational business Company have to strictly follow those
laws in their jurisdictions. Failure to do so, will lead to major legal effects. It has to study or work with a regional law
specialist prior to starting its operations in a particular nation.

Environmental
With the rising awareness amongst consumers about the ethical & environmental violations of companies, Corp has
to make sure that it follows all the security standards. Ecological damages, ethical misbehaviors are not appropriate
and in some countries the effects can be really severe. On the other hand it has to do some Business Social
Obligation practices to reveal the residents that it cares about their environment and individuals.

Porter's Five Forces

Threat of Substitute:
Threat of alternative for Enterprise's each product classification is quite significant. Aspects for high danger of
alternative for Promontory Inc Case Study Analysis Smart device consist of the presence of high number of suppliers
and Market saturation in developed countries, which make the expense of switching for consumers nearly no. Along
with it, Business printing services products are threatened by the increasing tourist attraction of customers towards
cloud storage.

Industry Rivalry:
The rivalry amongst Corporation and its close rivals is extreme. The significant reason behind this is the method of
market saturation in various number of product categories, requiring Enterprise to present more ingenious functions
in existing items and new innovative products to keep its development. The major rivals for Promontory Inc Case
Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

Promontory Inc Case Study Solution has a vast supply chain including about 2700 suppliers throughout the world.
( Org Sustainability Report, 2016) Supplier's bargaining power for Company is low as Company runs economies of
scale and its orders are of potential size and worth. These huge orders enable Business to negotiate costs with its
suppliers. Due to incapability of Company to build its own software, it has to outsource its software development to
Google, which ends up being a possible provider of software for Organization, resulting in high bargaining power of
Google. Although, in the majority of cases Business has a power to negotiate prices, but it provide considerable costs
to its providers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Buyers:

Haggling power of purchasers for various variety of item categories of Organization is intense. Among the factor
causing the intense bargaining power is the schedule of large number of rivals in practically each product
classification i.e. rivals of Corporation Smart device, with an extremely little differentiation. The high availability of
suppliers of Smartphones with minimum differentiation, make the changing cost for purchasers almost zero, hence
increasing the bargaining power of buyers. Market saturation in the majority of the product classifications likewise
make the bargaining power of buyers more intense in for Promontory Inc Case Study Solution. In spite of igh
bargaining power Corporation is quite efficient in selling its items at a higher cost than much of its rivals, due to high-
end quality item and a reasonable brand image.

Threat of New Entrants:

Risk of brand-new entrants for Promontory Inc Case Study Analysis is quite low. Along with it, requirement of
substantial knowledge and research study and advancement expenditures for survival in the industry likewise make
new entrants hesitant to enter in the market. Market saturation is likewise one of the barrier of entry in technology
market.

Competitive Analysis

Enterprise's high product diversification offers it differentiation from its competitors. It is among the three top brand
names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item
classification with Sony concentrating on customer electronic devices, Nokia on mobile phone and Intel on chips,
Corporation had a big R&D costs on all of its product categories which allow the company to make prospective
profits from sales of almost all of its products. (See Display) Nevertheless, due to the broad item range the company
faces high number of rivals.

The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in
terms of international market share, among 8 various item categories. Venture was the global leader in making
DRAM, SRAM and NAND flash chips. Corp earnings from chips was less than Intel however its revenues from chips
was growing faster than Intel and has actually grown close to the profits levels of Intel, as provided in the case Exhibit
2.

Along with the chips Venture mobile market was also growing at a high rate than its competitors i.e. Motorola and
Nokia. Business's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with
absolutely no sales growth. The major reson behind Enterprise's high growth despite of higher rates than Nokia and
Motorola was the company's high-end quality cellular phone.

Venture was also reaping the benefits from increasing market share of high end LCDs as given up case Exhibition 3.
The major factor, making the company make it possible for to obtain the opportunity is its mass production at low
cost. Sony was the most significant rival for Promontory Inc Case Study Help in LCD market, however, it had likewise
started joint endeavor with Enterprise in 2003 for LCD making, reducing the competitors for Business.

Porter's Competitive Method

Low Cost Management method of porter is fully implemented by Corporation the method they accomplish
economies of scale by enhancing their core proficiencies of manufacturing. They always bring something innovative
and brand-new whether it's a service or an item.

Alternatives: -
Alternative Service 1
The Chief Marketing Officer (CMO) of Promontory Inc Case Study Help would create a new brand image by targeting
the more youthful generation of the specific country. As, specifically cell phone of Organization are preferred among
the more youthful demographic.

Pros -
1. It is the best strategy to develop Consumer Lifetime Value (CLV) by creating a long-term relationship with clients.
Build commitment through delivering value and profit for long-lasting, as research has revealed it is more affordable
to keep current consumers than to bring in new ones.
2. Another pro of this option is that word of mouth spread faster amongst younger people and which in turn will
bring in brand-new clients for my products.

Cons -
1) Old consumers who were associated with Enterprise prior to might not like this new image the company is
attempting to portray.
2) It will incur more costs to reposition some products and it may not even bring success as the trends change
extremely rapidly amongst the younger market.

Alternative option 2
It would be done by arranging training workshops during which importance of marketing will be taught and numbers
will be provided. Marketing environment need to be created internally first as genuine marketing starts inside the
corporation.

Pros -
Its pro will be that all the marketing method supporters will come out and also the opposite ones.

Cons -
Its con can create a very unhealthy environment in the workplace, as individuals typically withstand modification
because they fear it.

Identify the best option

Very first option is the best as it plainly has more pros due to the fact that as soon as a Customer Life time Value is
developed the company will make money from it till that client lives and has buying power as well. Plus, our target
customers are the more youthful generation which are bound to live longer than the current old age people.
Enterprise's primary goal is to produce commitment amongst its customers and make them bought it from them and
even buy their various items.

Implementation Plan
• Targeting younger generation through social marketing, developing a relate to them like Pepsi make with music.
And set the expectations possible and practical.
• A team consisting of best marketing and sales experts need to be assemble, and both views ought to be taken into
account before protecting the resources needed to carry out the strategy.
• Thorough interaction of the plan must be done as it is really essential for everybody to be on the very same page to
make it work.
• Tasks and timelines ought to be develop and communicated appropriately to each individual responsible.
• The manager need to use a control panel which reveals the progress of all the jobs which have actually been done
or about to be done and by whom.
• The supervisor must keep an eye on and keep a continuous check on the individual and general efficiency.
Because any new trend or policy might come in due to which all the things currently planned have to be changed, •
Everyone ought to be prepared to adapt midway. It's much better to have contingency plans already prepared.
• At the end of the project the supervisor should interact the outcomes and if effective should celebrate with the
group.

Budget
The M-net program exposed compelling analysis about the low and high growth possible locations and just how
much advertising budget plan must be designated accordingly. This modification the budget plan allowance of
numerous managers and various countries were dissatisfied and argued but the analysis done by the program was
accurate and revealed figures like North America and Russia growth possible merited a 35% allowance while they
were receiving 45%. Whereas, China and Europe need to be receiving 42% but were instead offered 31%. It really
assisted to fairly disperse the resources and capture more clients by investing more on advertisements on the high
growth capacity areas of the world.

Conclusion
Promontory Inc Case Study Solution is a leading 25 company on the planet now and plans to get ahead of Sony who
sits currently at no. 20. Its constant investment in R&D and ingenious practices have actually moved them to new
heights but for them its' only the start and they want to be among the top 3 brand names in the world. They
completely turn-around from nearly going bankrupt throughout the Asian Financial Crisis to a world popular brand,
known for quality and development. Their value chain and their core proficiency their manufacturing capability,
along-with international brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997--
2002. With additional growth in China and other emerging markets those numbers will just increase further in the
future. Their marketing efforts need to be directed towards more youthful group amidst the internal arguments
about marketing and ought to develop Customer Lifetime Worth as it will not just provide advantages now however
will continue to reap it till the customer life time. As the expense of maintaining the customer is much cheaper than
bring in a new one.