Case Analysis 1 - Global Brands

THE FISHER VALLEY COLLEGE
“A Christ-centered Institution”
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Bachelor of Science in Accountancy * Bachelor of Science in Business Administration
Business Information Management
Case on Analysis on
“GLOBAL BRANDS”
Submitted to Prof. Marlon B. Raquel, MBA

Taguig City
In Partial Fulfillment
Of the Requirements for the Course
Business Policies & Strategies
By
KRIS ANNE D. SAMUDIO

Bachelor of Science in Accountancy Student
November 13, 2021

Coca-Cola Company
The Coca-Cola Company is an American giant beverage corporation, and it produces,
and markets nonalcoholic beverage concentrates and syrups in the world. It is best known for
Coca-Cola also famously known as “Coke”. Coca-Cola is a carbonated soft drink manufactured
by The Coca-Cola Company of Atlanta, Georgia, in the United States of America. Coke was
invented by John Pemberton as a medicine in May 8, 1886. But later the brand and formula were
purchased by a businessman, named as Asa Griggs Candler in 1889, who marketed it as a soft
drink, and it has dominated the soft drink market since then. The Coca -Cola Company only
produces the concentrates and syrup for various soft drinks under the corporate brand name of
Coca-Cola, which is sold to different bottlers in the world, who prepare the finish products and
sell it to the final consumers.
There are a number of products which The Coca-Cola Company produces other than
Coca-Cola itself. Fanta and Sprite hold, besides Coke, large market shares in the world non-
alcoholic beverage market. Fanta was introduced at the time of World War 2 and Sprite in 1960s.
Studies have shown that coke is the most admired and best-known trademarks in the world. In
fact, “Coca-Cola” is the second most understood term in the world, after “OK”.
STRENGTHS:
 One of the Top Global Brands
Coca Cola is one of the most valuable brands in the world. It preserved its top
position for 13 successive years when finally, in late 2013 Apple and Google’s brand
values surged up to take the top two positions. Currently, Coca Cola Company is ranked
the 3rd best global brand in terms of value by Interbrand.
 Strong Marketing
Coca Cola Company has very effective and penetrating marketing capabilities that
have helped the company get an unprecedented global exposure. Wherever you go in the
world, chances are that you would see a Coca Cola ad somewhere, or at least the people
of that particular area would recognize the Coca Cola brand image.
 Largest Market Share in Beverage
Coke is a clear victor when it comes to its rivals in terms of market share. Despite
the decades long war between Coke and Pepsi, Coke has somehow managed to stay on
top and be the market leader.

 Most Extensive Distribution Channel
Coca Cola operates in more than 200 countries and with this many countries on its
serving list it has to have a far-reaching distribution setup. It manufactures and sells
concentrates, beverage bases and syrups to bottling partners who sell the final product to
the consumers (Coca Cola).
 Customer Loyalty
Through its marketing campaigns, such as Share a Coke campaign, Coca Cola has
brought its customers together to bring out the company’s essence of sharing happiness.
These campaigns are intended to touch people emotionally and connect with the
customers in a way that makes them feel special. Coca Cola uses ‘happiness’ as an
emotional cue to bring its customers closer to the brand.
 Corporate Social Responsibility
Over the years, Coca Cola has engaged in various development programs. The
company has focused on energy conservation, recycling, health and water provision. It
has a Corporate Governance Rating of 8.5/10. Sustainability is one of the main goals of
the company and thus it has engaged in improving its public image in countries where it
operates.
WEAKNESSES:
 Focus on Carbonated Drinks
The consumption of carbonated drinks has shrunk in US, China, Brazil and other
countries because of the increased health awareness amongst the consumers, especially
the American consumers. The number of people who consume Coke soda, which
accounts for 70% of the company’s sales, has declined in US because of the alarming rate
of obesity in the country. People have become more health conscious and are shifting to
healthier substitutes such as fruit juices.
 Undiversified Product Portfolio
As the global trends are shifting towards healthier choices, Coca Cola is having a
hard time convincing its customers to consume its carbonated drinks. While its biggest
competitor, PepsiCo, has diversified into snacks and healthy drinks, Coca Cola’s focus
has not shifted from its carbonated drinks.
 Brand Failures
Coca Cola is attributed with one of the biggest brand failures. In the 1970s, the
company, vexed by the competition, introduced a new formula and rebranded its product
Coke as New Coke. The public was soon outraged and the company was forced to go
back to its original formula. Today, Coca Cola has more than 500 brands and it keeps on
experimenting on new ones.

IBM
IBM created the Software Group in 1995 to pull together all of IBM's infrastructure,
middleware and operational software from dispersed units of IBM. IBM's Software Group is
now a self-sustaining software business, with growth rates, profits and other key measures in
line with other major software companies. In addition, the software group has services and
support capabilities via their development labs (e.g., Toronto, Austin) and their services via
support canters (e.g., Dallas Systems Centre). The Software Group has the industry's leading
portfolio of middleware products. Software Sales Specialists within Sales and Distribution
sell to large customers and over 24,000 Business Partners to sell everywhere else. IBM
Software Group is organized around five brands within the software industry: Web sphere,
Information Management, Workplace, Portal and Collaboration, Tivoli, Rational.
(Understanding IBM, 2007).
STRENGTHS:
 Advanced business performance management.
 Good organization culture.
 Strategic outsourcing, mergers and acquisitions.
 High efficient fulfilment centre.
 Flexible marketing management.
 Creative services.
WEAKNESSES:
 High costs in the value chain.
 Possible acquisition issues.
Since, IBM spends much on its research and development then it’s earning and have very
limited supplier in market. Since company owning very sensitive place in market, because of its
massive organisation size the immediate change are likely impossible.
Strategy:
The main strategy of IBM is to delivers their high value added services (or software) to
customers through their server product. And it can be divided into 4 pieces as follows:
1) Reallocating resources to enhance their server product business and reduce operation
costs and optimize the efficiency.
2) To pursue an innovation agenda with its clients, partners and in other relationships, and to
continue refining its portfolio to achieve higher value.
3) Acquiring businesses that contribute strategically to its portfolio
4) To maintain its leadership of this rapidly changing business by focusing on high value
innovation-based solutions and services while consistently generating high returns on
invested capital for its shareholders.

GENERAL ELECTRIC
General Electric, or GE, is an American multinational conglomerate corporation
incorporated in Schenectad, New York and headquartered in Fairfield, Connecticut, United
States. General Electric was formed by the 1892 merger of Edison General Electric Company of
Schenectady, New York and Thomson-Houston Electric Company of Lynn, Massachusetts with
the help of Drexel, Morgan & Co. The company was incorporated in New York, with the
Schenectady plant used as headquarters for many years thereafter. Around the same time,
General Electric's Canadian counterpart, Canadian General Electric, was formed.
The company describes itself as composed of a number of primary business units or
"businesses." Each unit is itself a vast enterprise. GE is a massive, diversified, and profitable
conglomerate with a lot of very good but unrelated businesses. The company operates through
five segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial.
GE's divisions include GE Capital, GE Energy, GE Technology Infrastructure, and GE Home &
Business Solutions. Through these businesses, GE participates in markets that include the
generation, transmission and distribution of electricity (e.g. nuclear, gas and solar), lighting,
industrial, automation, medical imaging equipment, motors, railway locomotives, aircraft jet
engines, and aviation services. Through GE Commercial Finance, GE Consumer Finance, GE
Equipment Services, and GE Insurance it offers a range of financial services. GE also produces
General Imaging digital cameras. It has a presence in over 100 countries.

CORPORATE STRATEGY:
Corporate level strategy fundamentally is concerned with the selection of businesses in
which the company should compete and with the development and coordination of that portfolio
of businesses. Corporations are responsible for creating value through their businesses. They do
so by managing their portfolio of businesses, ensuring that the businesses are successful over the
long-term, developing business units, and sometimes ensuring that each business is compatible
with others in the portfolio.
NOKIA
The roots of Nokia go back to the year 1865 with the establishment of a forestry industry
enterprise in South-Western Finland by mining engineer Fredrick Idestam. While in the year
1898, witnessed the foundation of Finnish Rubber Works Ltd, and in 1912, Finnish Cable Works
began operations. Gradually, the ownership of this two companies and Nokia began to shift into
hands of just a few owners. Finally, these three companies were merged to form Nokia
Corporation in 1967.Nokia Corporation engages in the manufacture of mobile devices and
mobile network equipment, as well as in the provision of related solutions and services
worldwide. The company has four main business functions or segments: Mobile Phones,
Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various
mobile voice and data devices. This segment offers mobile phones and devices based on
GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment offers
mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM
etc.
STRENGTHS:
1. Nokia has largest network of distribution and selling as compared to other mobile phone
company in the world.
2. The financial aspect is very strong in case of Nokia as it has many more profitable
businesses.
3. The product being user friendly and have all the accessories one want.
4. Nokia with wide range of products for all classes.
5. The re-sell value of Nokia phones are high compared to other company’s product.
WEAKNESS:
1. Some of the products are not user friendly.
2. Some of the weakness includes the price of the product offered by the company.
3. Nokia does not like to adopt change very quickly.
4. The service canters in third world countries are very few.

MCDONALD’S
McDonald’s is the world’s leading fast food restaurant chain with more than 34,000 local
restaurants serving approximately 69 million people in 119 countries each day. More than 80%
of McDonald’s restaurants worldwide are owned and operated by independent local franchisees.
McDonald’s primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast
items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the
company has expanded its menu to include salads, fish, wraps, smoothies and fruit.
McDonalds is an international food outlet preferred by every age group around the world.
It is a multinational food outlet, despite this it has to be analyzed to evaluate its strengths,
weaknesses, opportunities and the threats.
STRENGTHS
McDonalds is the number 1 fast food chain in the world McDonalds succeed to its competitors
like burger king because of its strategy “just in time”. McDonalds achieved his goals both
domestic and international markets. According to fortune magazine 2005 McDonalds as “best
place to work for minorities”. McDonalds offers its products according to geography mean to say
it offers lamb burger in India and Middle East countries provide separate entrance for couples
and single woman and offers chicken and ham burgers in European countries more then 80%
McDonald’s business is operated by independent mean to say in airports along with highways
parks and in big cities.
McDonald is the first in fast food chain which provide nutrition information printed on all
packaging.
 Largest fast food market share in the world.
 Brand recognition valued at $40 billion
 $2 billion advertising budget
 Locally adapted food menus
 Partnerships with best brands
WEAKNESSES
 McDonalds failed to offer pizza because it is less able to compete with pizza fast food
chains.
 Quality issues are also noticed in some franchise.
 They are spending more money on training as more employee turn over in McDonald.
 Globally it is noticed that McDonald disrupts the local eating habit especially in younger
generation.
 Negative publicity
 Unhealthy food menu
 Low differentiation
GOOGLE
Google Inc. is a multinational corporation that provides Internet-related products and
services, including internet search, cloud computing, software and advertising technologies.
 Name Google Inc.
 Industries served Internet
 Geographic areas served Worldwide
 Headquarters U.S.
 Current CEO Eric Schmidt and Larry Page
 Revenue $ 50.17billion(2012)
 Profit $ 10.7billion(2012)
 Employees 53,861 (2012)
 Main Competitors Apple Inc., Facebook Inc., Microsoft Corporation,
Samsung Electronics Co., Ltd.,
International Business Machines Corporation and
many others.
STRENGTHS
 Open-source products and services. As the company states:” Google’s mission is to
organize the world’s information and make it universally accessible and useful.” The
same is with almost any of Google products.
 Quality and customer experience are the primary objects. Everything that Google
offers is of premium quality. The products are aimed at solving customer needs and
problems by providing excellent customer experience.
 Financial situation.
 Access to the largest group of internet users worldwide. Google has an access to 79%
of the world desktop search market users and 89% of the world mobile search market
users.
 Strong patents portfolio.
 Product integration. Nearly all Google products are integrated with each other forming
an ecosystem that enriches customers experience and encourages using more of
company’s products and services.

 Culture of innovation. Many unique products are offered by Google every year, with so
many in development stages. According to Boston Consulting Group (BCG) Google is
the 2nd most innovative company in the world.
WEAKNESSES
 Relies on one source of income. More than 90% of Google’s revenue comes from online
advertising. Online advertising is expected to grow in double digits in 2013 and will grow
Google’s income in the short term. But in the long run, Google may experience slow
income growth or even the decline due to a few reasons. First, the market for personal
computers is growing slowly and the Google experiences the overall decline in its
desktop search engine market.
 Unprofitable products. Google has many products and services that add little value for
the company and make only losses, thus decreasing firm’s profits.
 Patent litigations. Google is often involved in litigations over the breached patents and
other intellectual property. These litigations are costly and time consuming and distract
the company from innovating rather than litigating.

TOYOTA
Toyota Motor Corporation (トヨタ自動車株式会社 ) is a Japanese automotive manufacturer
which headquartered in Toyota, Aichi, Japan. The company was founded by Kiichiro Toyoda in
August 28, 1937 as a spinoff from his father's company Toyota Industries to create automobiles.
In 2014, the multinational corporation consisted of 30,038,875 employees worldwide. Toyota
was the largest automobile manufacturer in 2012 (by production) ahead of the Volkswagen
Group and General Motors. Toyota is the first automobile e manufacturer to produce more than
10 million vehicles per year around the world. In 2014, Toyota was the largest listed company in
Japan by market capitalization and revenue since it worth more than twice as much as Softbank
in Japan.
STRENGTHS
 Strong Market Position and Brand Recognition

Toyota Company has a strong market position in different geographies across the
world. The company has been recognized as the Top 10 of the best global brands. Toyota
is the most valued automotive brand in the world.
 Strong Quality Management
Toyota Company is one of the most innovative automotive companies and it
always focused on constant innovation.
 Extensive Production and Distribution Network
Toyota Company has an extensive production and distribution network. Toyota
and its affiliates produce automobiles and related accessories through more than 50
manufacturing companies in 27 countries and regions besides Japan.
WEAKNESSES
 Deterioration of Products
The fast expansion of Toyota made it more reliant on suppliers outside Japan to
provide the spare part and more senior engineers to proper supervise the production.
 Poor Allocation of Resources
INTEL
Intel Corporation is the largest semiconductor manufacturer in the world. It is an
American global technology company founded in 1968 by Gordon E. Moore and Robert Noyce.
The company’s product line includes network interface controllers, motherboard chipsets and
integrated circuits, flash memory, graphic chips, embedded processors and other devices related
to communications and computing. The SWOT Analysis of Intel Corporation is given below:
STRENGTHS
1. Intel is globally recognized brand name and has strong brand loyalty.
2. Intel was the dominant and pioneer supplier of microprocessors for PCs. It is still
dominated by numerous memory devices.
3. Intel is a global technology corporation and the world’s biggest semiconductor chip
producer, based on revenue.
4. Intel is the originator of the x86 series of microprocessors; the processors set up in most
personal computers.
5. Intel presently has around 80% of the microprocessor market share while AMD has
approximately 17%.
6. Intel Corporation merges superior chip design ability with a leading-edge mechanized
capability.
7. Intel is listed at number 48 in 2010 standing of the world’s 100 most influential brands
published by MBO.
8. In 1990s, Intel was one of the biggest and most successful companies in the world. Intel
was the main and most beneficial hardware supplier to the PC business.
WEAKNESSES
1. Intel sometime used divisive strategies in defense of its market position against its
competitors.
2. After 2000, Intel’s leading position in its core business was greatly reduced. By the end
of the 2006, Intel proclaimed a reform that resulted in the dismissal of 10,500 employees
or near 10 percent of its labor force by July 2006.
3. By the end of the 2006, Intel proclaimed a reform that resulted in the dismissal of 10,500
employees or near 10 percent of its labor force by July 2006.
4. The company faced decreasing revenue in financial year 2008.
5. Intel has not achieved economies of scale and economies of scope throughout the long
history.
6. Retail prices are higher as compared to the prices of competitors.
7. Not presence in the ultra-mobile’s processors market.
DISNEY
Walt Disney Company is a $27 billion a year Global Entertainment giant which is an
American based company was started by Walter Disney in venture with his brother named Roy
O Disney in 1923. In 1928, Walt Disney created Mickey Mouse for which Walt wanted to call
his character “Mortimer” but his wife convinced him to be called as “Mickey Mouse” and since
then Mickey has been a classical hit for Walt Disney. In 1937 Disney presented their first feature
full length Musical animated movie called “Snow white and the seven dwarfs” which is still a
huge hit and remained in the hearts of its consumers forever.
Walt Disney recognizes what is customer value in Disney brand. They value a fun experience
and homespun entertainment based on old-fashioned family values. Disney responds to these
consumer preferences by leveraging the brand across different consumer markets. Let’s say that
an American family goes to see a Disney movie together. They have a great time. They want to
continue the experience. So Walt Disney offers Disney’s consumer products with multiple
product lines aimed at specific age groups. Walt Disney has been a giant in four consumer
markets namely, Walt Disney studios and motion pictures, Disney Theme parks and resorts,
Disney T.V channels and media networks and Disney consumer (merchandising) products.
In 2003, Walt Disney came up with a movie called “Pirates of the Caribbean” which was a block
buster hit at the box office. The movie was targeted for all the members of a family. In addition
to the movie, Disney created a theme park ride, merchandising program, video game, TV series
and comic books. In 2004, Disney presented the movie called “Home on the range” which was
again a hit.
Apart from the movie Disney created an accompanying sound track album, a line of toys for
kids, clothing featuring the heroine, a theme park ride and a series of books. So Disney more
often or not supports and promotes its movies with a host of secondary products attached to it.
Disney’s strategy is to build consumer markets for each of its characters, from classics like
Mickey Mouse to snow white to new hits like Kim Possible. Each brand is created for a special
age group and distribution channel. Disney has a large distribution channel. Baby Mickey Mouse
and Disney babies target infants. Mickey Mouse is sold through the department and specially gift
stores while Baby Mickey Mouse is a lower price option sold through mass-market channels.
Disney’s Mickey’s stuff for kids targets boys and girls while Mickey unlimited targets teens and
adults.
STRENGTHS:
 Walt Disney is maintaining formidable position vis-à-vis their immediate competitors.
 Company is maintaining good company relationship with the suppliers.
 Company is maintaining healthy relationship with collective bargaining agent (CBR).
 Walt Disney is financially strong.
 The operational system is inclusive of procedures, processes & operations management
reflects the element of that the company is meeting the desired standards.
 Walt Disney is capable of producing new Products and Services in a short span of time.
WEAKNESSES:
 Walt Disney needs more rigorous analysis in understanding the consumer behavior.
 Walt Disney needs improvement in tracking the changes in cultural values.
 Walt Disney also does need strategic improvement in conducting the segmentation and
applying the softer techniques namely psychographic and lifestyle.
 The mission of the company strategic directions and long term objectives needs
improvement.
 H.R needs improvement. Training and development programs should be done and hiring
and selection criteria should also be taken into account of rectification.

 Marketing management needs improvement.
Hewlett - Packard
Bill Hewlett and Dave Packard founded HP in 1939. Their first product was an audio oscillator
and one of their first customers Walt Disney. Disney used the oscillator to test audio equipment
in the 12 specially equipped theaters showing Fantasia in 1940. HP entered the computer market
with the HP 2116A in 1966. It was designed to control HP’s large product line of test and
measurement equipment. By 1969, HP was marketing a timesharing computer system and
continued to issue new products, including their HP-35 hand-held calculator and several
computers in the 1970s. By the end of the 1980s they had a full range of computing equipment
from large scientific machines to personal computers and peripherals. In 2002, HP acquired
Compaq (and thus the merged remains of DEC, Tandem, and a few other firms).
STRENGTHS
 Legacy/ brand reputation
o The company has experienced in all aspects of electronic design and construction
since it was established in 1947.
 Global Distribution and Services Network
o The company’s products and services are available worldwide. The company’s
network encompasses more than 500 locations worldwide, providing quick and
easy access to the company's sales and support representatives.

 Diversified product portfolio
o Hewlett-Packard has provided various technological products for individual
consumers to large enterprises, including customers in the government, health and
education sectors.
 Innovative products
o 3D printing, cloud storage, Hybrid PC, etc.
 Low manufacturing cost
o Most of its products are outsourced to manufacturers around the world to generate
cost efficiency.
 Quality product
o HP's product is warranted to last for its intended manufacturing retaining its resale
value. Even their refurbished versions are in demand.
 Patent and license repository
o One of HP's subsidiary is HP Labs who do constant research and development.
WEAKNESSES
 Decreasing revenue
o Not much sales from budget consumers or general consumers in developing/third
world country
 Organizationally weak
o Ineffective leadership and hindering innovation and control, as current chairman
is also the CEO.
MERCEDES-BENZ
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol- powered car, the Benz
Patent Motorwagen, financed by Bertha Benz[2] and patented in January 1886,[3] and Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol
engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-
Motoren-Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926,
following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz
company. Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular
during Germany's Nazi period. Adolf Hitler was known to have driven these cars during his time
in power, with bulletproof windshields. Most of the surviving models have been sold at auctions
to private buyers. One of them is currently on display at the War Museum in Ottawa, Ontario.
Mercedes-Benz has introduced many technological and safety innovations that later became
common in other vehicles.[5] Mercedes-Benz is one of the best known and established
automotive brands in the world, and is also one of the world's oldest automotive brand still in
existence today in 2014, having produced the first petrol- powered car. For information relating
to the famous threepointed star, see under the title Daimler-Motoren-Gesellschaft including the
merger into Daimler-Benz.

SWOT ANALYSIS
 High Mercedes brand equity as one of the finest and strongest brands.
 Drive-train technologies, interior features, and safety systems.
 Exceptional service quality, an industry landmark.
 Mercedes Benz is one of the most popular brand names in the world. Benz is an
expensive car, thus has a limited target group.
 High maintenance cost and less mileage.
 Very expensive spare parts.
 Developing Intense hybrid cars and fuel-efficient cars for the future.
 Tapping emerging market across the world and building a global brand.
 Fast growing luxury automobile market and increased income.
 Increasing fuel prices.
 Improvement in public transport.
CISCO
Cisco is a network vendor for many institutions – yet they now also provide products and
services for home networking. At the beginning history of Cisco, the corporation’s goals were to
build-up easiness in accessing the information using various electronic information channels,
especially computer, inside the Stanford campus. Along with the growth of the firm, the
management hired many talented employees. They formalized their business plan covering four
strategic goals (provide complete solution for businesses, make acquisitions a structured process,
define the industry-wide networking protocols, and form the right strategic alliances). Based on
that strategy, they want to become “e-business” leaders in their industry.
Cisco use several distribution channels to deliver its products and services such as personal
selling, third-party distributors, resellers, service providers, and system integrators. Since Cisco
plays in the networking products, they try to provide customers with a great possible flexibility
of product or service development when designing customer’s networks. Therefore, customers
can save time and money when they want to change their existing networks.
Cisco differentiate its customers into four major segments i.e. enterprises, service providers,
small/medium-sized businesses, and home consumers. Cisco has been rendering networking
solutions for its customers. Moreover, it also use internet and internet-related technologies to
handle business activities. Cisco build several internet initiatives for its ebusiness functionality
such as Cisco Connection Online (CCO), Cisco Employee Connection (CEC), and
Manufacturing Connection Online (MCO). As an addition to those initiatives, the result is an
increase in
automated functions within several Cisco’s operation departments. These e-business initiatives
has brought the company to benefit a considerable flexibility in managing the dynamic of the
organization.
In Corporate-level strategy, Cisco totally committed to one industry which is computer
networking industry. Cisco’s key core competence is computer networking knowhow. It used
this competency to produce simple bridges and routers. Since then, the company has used this
competency to provide variety product (such as optical switches, software and even service) that
enable the sharing of information across disparate network. For instance, Cisco manages
complete information technology solution for business. Cisco also adopting innovative
techniques and technology to service customer and streamline its own business process with
efficiently and effectively. Because that, Cisco achieved average growth rate over 40 percent a
year, acquired more than 70 companies to further develop and expand its market presence.
Another thing is Cisco save more than $800 million a year from reinventing in e-business.
BMW
Bayerische Motoren Werke AG is commonly known as BMW. It translates to English as
Bavarian Motor Works. BMW-AG is a German automobile, motorcycle and engine
manufacturing company based in Munich, Germany. BMW started as a manufacturer of aircraft

engines in 1913, but in 1919 following the armistice (Treaty of Versailles) German military was
prohibited to produce aircrafts. Following years saw, the company manufacturing motorcycles
due to the Treaty of Versailles imposed conditions. The first BMW car was manufactured in the
year 1928. Currently, BMW is the parent company of Rolls Royce Motor Cars and MINI.
Besides being one of the ten largest car manufacturers in the world, it also has a strong market
position in the motorcycle sector under BMW Motorrad. BMW AG is one of the “German Big
3” luxury automakers with Audi and Mercedes Benz. In June 2012, BMW was listed as the #1
most reputable company in the world by Forbes.com and also the same year, Dow Jones
Sustainability Indexes named it the world‟s most sustainable automotive company for the 8th
consecutive year (first automotive enterprise to be in the Index). Rankings were based on
willingness to buy, recommend, work for and invest in a company. Since its first motorcycle
rolled out in 1923, BMW has been engaged in motorsport activities as well. BMW has been
official sponsor for London 2012 Olympics, United States Olympic Committee, PGA
Championships, BMW Italian Open (Golf) and Bundesliga (football). It is the charter member of
US Environmental Protection Agency’s National Environmental Achievement Track, which
recognizes companies for environmental stewardship and performance. BMW is ranked 3rd
place in Carbon Disclosure Leadership index across all industries.
STRENGTHS:
1. Strong Brand Reputation:

In 2012, BMW was listed as the most reputable business in the world by the
Forbes magazine. The strong brand reputation of BMW is the result of effective
marketing strategies.
2. Environmentally Friendly Technology:
BMW is known for its innovation and technological advancements. The company
develops environment friendly cars, with its engineers working on developing new types
of fuels, such as hydrogen.
3. Corporate Social Responsibility (CSR):
The company invests large sums in employee health management, balanced work
life programs, zero waste at its plants and suppliers‟ sustainability.
4. Quality Products:
BMW is a world-renowned brand for its engineering potentials, skilled workforce
and quality products.
5. Competitive Customer Service:
BMW works efficiently on long-term post sales customer service practices
catering to the needs, problems and any issues faced by its customers.
WEAKNESSES:
1. High-cost structure:
For production of high-end, luxury products; hiring skilled workforce and new
technological components leads to high costs for the business. BMW’s cost structure is
higher than that of its competitors like Audi, Toyota, GM and Volkswagen.
2. High prices perception:
Compared to its competitors, like Audi; BMW‟s luxury cars requires higher cost
structure. Thus, BMW follows a premium pricing strategy leading to high price in
comparison with other cars.
3. Too few acquisitions and strategic partnerships:
The lack of strategic partnerships with other organizations is another weakness of
BMW-AG. BMW‟s 10% growth is credited to acquisitions which makes hard for a
company to grow.
4. Weak brand portfolio (only three brands):
BMW manufactures and sells only 3 brands: BMW, MINI and Rolls-Royce. The
lack of differentiation in brand portfolio may have negative impact on long-term growth
of the company.
LOUIS VUITTON
LVMH, the world’s largest luxury group, came into being with the mergers of Moët Hennessy
and Louis Vuitton in 1987. Besides its traditional strengths in wines & cognac and leather &
fashion goods, other three are perfumes & cosmetics, watches & jewellery and selective
retailing.
In the external environment of part two, the report analysed the relevant dimensions of the macro
environment by use of the PESTEL framework and the luxury industry by the five forces
framework. The global economy, people’s expectations on luxury goods, drive for technological
application, rarity of raw materials, and intellectual property laws all have an impact on LVMH
in a broad sense. In a narrower sense, market entry into the luxury sector is defined low, threat of
substitutes neutral (low to loyal customers but high to those who normally cannot afford), the
power of suppliers, the power of buyers and competitive rivalry all high.
Generally the luxury industry can be regarded as in the shake-out stage; however, people in the
US, wealthy European countries and different Asian countries are in the different stages of
luxury spread process. Following the life cycle of the industry, the cycles of competition model
will be illustrated to explain the strategic moves of LVMH and its two main competitors: PPR
and Richemont.
In the strategic capabilities of part two, the report presented LVMH’s physical resources,
financial resources, human resources and intellectual capital. The Group’s core competencies lie
in four key elements: product, distribution, communication and price.

At the corporate level, LVMH expands horizontally and vertically in both backward and forward
integration. The Group’s good corporate parenting adds value to the individual brand underneath
it. LVMH’s strategic direction can be defined as diversification, a combination of market
penetration, product development and market development. The Group’s current product
portfolio, as diversified as over 50 brands, is shaped by Bernald Arnault’s constant acquisitions.
At the business level, we mainly present the strategy of Louis Vuitton, the star brand under
LVMH, which accounts for 60 per cent of the Group’s revenue. Louis Vuitton differentiates
itself by four approaches: stick firmly to the full price, pick store locations professionally, control
the production strictly, and manage its own inventory.
Innovation and entrepreneurship are fundamental drivers in today’s economy, even for well-
established MNCs like LVMH. Vigorous product and process innovation contributes to LVMH’s
long-standing success. The challenge for entrepreneurs at the maturity stage is to keep their
passion and momentum to create new growth for the company. However, this doesn’t seem a
problem for Bernald Arnault, who has been the CEO of LVMH since 1988.
MARLBORO
The amazing Marlboro cigarette brand began in England 1847 and was initially targeted at
female smokers. Aiming at this market segment was not successful, so in the 1920's Marlboro
was re-targeted to female smokers in the United States. In this campaign it was stressed that
Marlboro was a 'mild' cigarette. These efforts continued into World War II when the brand was
eventually taken off the market. In the 1950's Marlboro was again introduced to the market, this
time on the heels of a stories about the negative health aspects of smoking. At the time, the vast
majority of cigarettes being sold were non-filtered. Marlboro was a filtered cigarette, so this
clearly was an attempt to win over the health conscience crowd. Later, during the 50's, the
company decided to dump the targeting of women and began promoting Marlboro as a man's
cigarette. The first icon of this new change in marketing was the 'Tattooed Man' depicted on this
page. Various images of healthy looking, outdoor type began showing up in ads. The images
used in their ads evolved more and more into those depicting particularly macho types. In the
beginning, images of naval officers and livestock ranchers made the advertising scene. In 1954,
the now well known 'Marlboro Man' was introduced, and by 1963 was the sole representative of
Marlboro ads. Around 1972, Marlboro cigarettes became the most popular brand, and have
remained so, for the most part since then.
While the Marlboro brand may not be ranked at the top any longer, it still retains a value in
excess of $21 billion. That figure places it above such brands as American Express, Hewlett-
Packard, and Gillette.

STRENGTHS
1. Competition: Marlboro is the giant fermentable condition viz v competitors.
2. Supplier: Companies enjoying and maintaining good company relationship with
suppliers.
3. Labor: Company is maintaining good relationship with collective bargaining agent (CBR)
4. Financially: Philips and Morris is financially sound.
5. Production: systems operational management including quality assurance systems is in
place.
WEAKNESSES
1. Customer: The customers have become savy and they are obsessed to seek out value in
their transaction come up brand loyalty is not the consideration.
2. Competition: Competition is tough in the tobacco industry from both direction (i) direct
(ii) pvt brand/retail brand.
3. Organizational: The strategic direction of the company needs improvement.
4. Market: Marketing management needs significant improvement.
5. HRM: Philips and Morris need improvement in HRM.

HONDA
Honda Motor Company is a Japanese business producing automobiles and motorcycles. Honda is
the largest engine producer in the world in terms of units as well. The firm was the eighth largest
automaker in the world in 2011.
STRENGTHS
1. Diversified product portfolio. Honda unlike many other automotive companies does not
focus only on selling vehicles. It is the largest producer of the engines and motorcycles as
well. Therefore, the company is not as susceptible as its competitors are to market cycles
or technology disruptions.
2. Huge investments in R&D.
3. Strong brand image. Honda has a reputation for producing the best quality engines
around the world. The company’s brand was the 21st most valuable brand in the world
valued at $17 billion and was only behind Toyota, Mercedes-Benz and BMW, according
to Interbrand.
4. Motorcycle market share in Asia.
WEAKNESSES
1. Product recalls.
2. Weak position in Europe automotive market.

3. Decreasing sales.
SAMSUNG
Samsung is a rapidly developing company and is currently engaged in activities ranging from
ship building to semiconductors chip making. Samsung Electronics strength in general would
have to be its innovativeness and adaptability to change. The market for electronics is rapidly
developing and almost every day we tend to see a new product entering a market which increases
the competition that a company has to face and Samsung is taking the bull of change by the
horns and introducing innovative and sometimes unorthodox products to keep increasing its
already big market share. Mr. Zuhaib said that product development is the biggest core
competency that Samsung possesses. The market for smartphone is ever-changing and
continuously newer brands and handsets are entering the market also the competition between
smartphone manufacturers is increasing day by day so to counter this competition and to
maintain its market leader status Samsung has to bring about products that have the latest
features and technologies so as to assuage the customer’s demands.
The major weakness that we can comprehend about Samsung is that its products somewhat
lack the finesse and opulence that Apple products have. Everything about an Apple product is
opulent; there is an air of grandiose about them. While Samsung with its innovative product
portfolio and pricing for smartphones for all pockets has captured a substantial part of the market
and its market share has grown to be about 49.3% from 18% a few years back. Also talking
about Apple and the threat it posed to Samsung he said that it was a very minimum threat at
present. We mentioned the impending launch of the Samsung S III and how it had Apple worried
as it had not
moved quickly enough to launch the iPhone 5. He also said that the current flagship phone of
Apple the iPhone 4S has no competition technically with the S III.
Opportunities that Samsung has in the market are of further expanding its market share and
introducing some cheaper priced smartphones so that they can fill the gap between the current
demand for lower priced smartphones and their non-availability in the national market. Samsung
currently is targeting multiple areas or facets of the market. It is targeting students, upper class,
middle class and teenagers as well as working women. Samsung shipped about 9 million
smartphones last year and speaking in layman terms it is a cash cow and the owners and
management are milking it for all its worth. Also there are over 300,000 apps available on the
Android Marketplace for the Galaxy line of smartphones.
The threat that Samsung has to face is the unchecked flow of Chinese non branded phones
coming into the market. These phones are not only dangerous for the health of the user but also
in financial terms they are a source of loss for companies like Samsung because the non-branded
phones infringe many a patents and copyright designs held by them. And the funny thing is that
these companies qork unchecked in China and because of the supposed price advantage that they
have in the eyes of a normal Pakistani consumer they sell quickly.

APPLE
The firm started off as “Apple Computer”, best known for its Macintosh line of computers in the
1980s and 1990s. Despite a strong brand, rapid growth and high profits in the late 1980s, Apple
nearly went bankrupt in 1996.
Steve Jobs took over as CEO again in 1997 after being forced out of the firm in 1985. “Apple
Computer” was renamed “Apple Inc.” to reflect the firm’s expansion into consumer electronics
market with innovative non-PC products starting in the early 2000s. Various revolutionary
products such as the iPod, iPhone and iPad were introduced into the market, gaining a cult-like
following behind the brand, with exponential growth and share price rising more than 15-fold
since 2003. Today, Apple stands as a global technology powerhouse, surpassing its major
competitors, including Microsoft, to become one of the world’s most valuable companies.
STRENGTHS
 Strong Marketing Efforts
One of the greatest strength of Apple is its impactful marketing efforts which
produced a potent concoction of a strong global brand and celebrated products.
 Brand Marketing
Apple is one of the most established and reputable IT brands globally. Its popular
multi-million-dollar marketing campaigns included successful “Think Different” ads and
catchy slogans such as “It just works”, which positioned the firm as a chic alternative to
its competitors.
 Ecosystem of Products
Apple ingeniously created an ecosystem of products contributing to the firm’s
revenue and enhancing its product marketing.
 Retail Strategy
Apple launched its retail strategy in 2001 to increase customer exposure to its
products. Its stores carry its full range of products exclusively with well-trained sales
personnel promoting product advantages to potential buyers alongside in-store
presentations.
Horizontal and Vertical Integration
Another unique strength that Apple has over its competitors is that it is one of the
few firms in the PC industry that adopts both horizontal and vertical integration.
 Research and Development

This commitment to R&D allows Apple to produce sophisticated but easy-to-use
products and deliver well-integrated user experiences.
WEAKNESSES
 Business Strategy
Apple’s premium price differentiation strategy has its pitfalls given the intense
rivalry of the industry. Without constant innovation to set itself apart from its
competitors, Apple’s products may appear overpriced in comparison to its rivals.
 Reliance on Steve Jobs
 Apple’s Product and Expectations
 Corporate Social Responsibility

Case Analysis 1 - Global Brands

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Case Analysis 1 - Global Brands

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THE FISHER VALLEY COLLEGE

Submitted to Prof. Marlon B. Raquel, MBA

KRIS ANNE D. SAMUDIO

November 13, 2021

The Coca-Cola Company is an American giant beverage corporation, and it produces,

sell it to the final consumers.

 One of the Top Global Brands

the 3rd best global brand in terms of value by Interbrand.

 Largest Market Share in Beverage

top and be the market leader.

 Most Extensive Distribution Channel

the consumers (Coca Cola).

emotional cue to bring its customers closer to the brand.

 Corporate Social Responsibility

 Focus on Carbonated Drinks

healthier substitutes such as fruit juices.

 Undiversified Product Portfolio

has not shifted from its carbonated drinks.

experimenting on new ones.

Information Management, Workplace, Portal and Collaboration, Tivoli, Rational.

(Understanding IBM, 2007).

 Advanced business performance management.

 Good organization culture.

 Strategic outsourcing, mergers and acquisitions.

 High efficient fulfilment centre.

 Flexible marketing management.

 High costs in the value chain.

 Possible acquisition issues.

massive organisation size the immediate change are likely impossible.

costs and optimize the efficiency.

continue refining its portfolio to achieve higher value.

3) Acquiring businesses that contribute strategically to its portfolio

innovation-based solutions and services while consistently generating high returns on

invested capital for its shareholders.

General Electric, or GE, is an American multinational conglomerate corporation

incorporated in Schenectad, New York and headquartered in Fairfield, Connecticut, United

General Electric's Canadian counterpart, Canadian General Electric, was formed.

The company describes itself as composed of a number of primary business units or

engines, and aviation services. Through GE Commercial Finance, GE Consumer Finance, GE

General Imaging digital cameras. It has a presence in over 100 countries.

Corporate level strategy fundamentally is concerned with the selection of businesses in

with others in the portfolio.

Corporation in 1967.Nokia Corporation engages in the manufacture of mobile devices and

company in the world.

4. Nokia with wide range of products for all classes.

1. Some of the products are not user friendly.

3. Nokia does not like to adopt change very quickly.

4. The service canters in third world countries are very few.

McDonald’s primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast

weaknesses, opportunities and the threats.

parks and in big cities.

 Largest fast food market share in the world.

 Brand recognition valued at $40 billion

 $2 billion advertising budget

 Locally adapted food menus

 Partnerships with best brands

 Quality issues are also noticed in some franchise.

 Unhealthy food menu

Google Inc. is a multinational corporation that provides Internet-related products and

 Name Google Inc.

 Industries served Internet

 Geographic areas served Worldwide

 Current CEO Eric Schmidt and Larry Page

 Employees 53,861 (2012)