1. What are the ingredients of SEC’s corporate turnaround strategy? What are the implications for marketing?
The ingredients of SECs corporate turnaround strategy are:
* SEC increasingly emphasized on manufacturing quality and technical leadership. Profits were reinvested in research and development (R&D). The company moved into a digital technology manufacturer and focused its R &D into it.
* SEC was primarily known was a low-cost manufacturer. The company transformed from a cheap original equipment manufacturers (OEM) to an innovative, premium product manufacturers. The company focused on innovation of higher-quality products across all categories in 1997.
* Operation of manufacturing plants in China and R&D facilities in India helped SEC to keep the cost low.
* Product diversification differentiated SEC from its competitors who were mainly focusing on a single category.
The implications for marketing were:
* To make the brand recognized globally since it was only regionally recognized in South Korea
* To make people emotionally attached to the brand
* To compete with the existing global brand
2. How strong is the Samsung brand?
Samsung is the only Korean brand on the top 100 list and were the fastest growing of all 100 brands in 2002. In 2003 SEC was ranked the world’s most valuable brands in Business Week. Samsung was ta third-tier commodity brand with very little product differentiation but now it is known to be a premier brand. In 2003 Samsung ranked 25 from number 34, which shows that it was able to compete and be successful in the market with its new products. Samsung’s debt of $15billion in 1997 has been reduced to $4.6 billion by 2002. It was also able to survive in the Asian financial crisis due to its product being different than its competitors. The net profit of $5.9 billion compared to $2.8 billion in 1999 shows that the company has been doing good financially.
These all information in the article...