GMBA Program- KUBS

INNOVATION AND VENTURING

PROF. DONNA KELLY

Assignment: “The Sputtering R&D Machine”

Analysis maker: Pham Le Minh ( 2008417060)

Summary:
Home Star (HS) is an appliance business with the reputation “the first, the best, the only”, is
threatened by competitor Vanguard with their claim on HS as “old school” in respect of
making runaway hits.

Analysis:
HS is facing with serious issues that need to be solved:
- Obsessed with smart appliance, networked home: Spend too much for R&D for developing
future appliance in terms of time, human resources and costs
- Lost in catching consumers taste and changing market: Disconnected between Marketing
and R&D, as well as the long-standing, beloved header of R&D is keeping on his own
principles regardless of current market demands and threat of losing HS’s leading position.
To prevent the decline and turn to be old school, HS has to accomplish following missions:
-> Churning out new products in the coming trade show is critical to Home Star(1)
-> Fix R&D (2)
1. Within only 6 months, probably there is not enough time to make a great breakthrough.
Therefore, HS has to vitalize the image of HS products:
- Make a customer survey in order to figure out list of products are in need or dissatisfied and
categorize customers. Then, base on that database to produce products:
Create new brand name’s image base on the current products but with additional functions or
features ( clean, deodorization…)
Choose some focused products and make improvements, such as more add-ons, accessories,
change product-size, out-looking, price….

Segments
Categorize customers
upon needs Promotional campaign

New brand-name with additional features,

Customer Dissatisfied
functions
products
survey

Improve with add-ons, accessories, new

Dissatisfied features
size, out-looking, price strategy
of products

2. Marketing and R&D must work together base on the customer and market demand as the
first goal, try to make the right customers happy.
Set the target for R&D: use measures in order to access performance, how effective R&D
use Marketing’s database and outcomes. Maximize the full potentiality of each division with
effective incentive close to objective of “the first, the best, the only”
Set up sub-divisions within R&D with different goals: keep track with changing market and
research for innovation and future technology
Restructure the investment policy, budgeting for R&D: manage cost base on activities and
capable of achieving target.
Commercialize R&D operation with the HS’s strategic goals from the header of R&D, if it's
essential, substitution is able to be considered for the long-term benefit.

PHAM LE MINH
phamleminhkansai@gmail.com