Samsung Electronics Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Samsung Electronics Case Study Solution

Introduction

Samsung started its operations in late 60’s under the chairmanship of ChungLi .Over the period of time, Samsung developed its stance in the television market by offering black and white TVs in the Korean market. After some time, the recent leader and third Samsung familys on Lee suggested the chairmen to acquire the semiconductor firm in Korea that has been facing the operational issues due to lack of cash flows, since the birth of Samsung DRAM took place there. The company since lacked the expertise to develop the DRAMS, partnered with American technology firm to teach them the development of the DRAMS in order to offer in the market.

The company from the initiation focused on research and development techniques and invested heavily init to capture market opportunity. In addition, Samsung also invested in the employees, under the global outlook to train and make employees learn different languages so to develop global integration and adaptive culture to engrave change.All these strategies allowed Samsung to effectively pursue the DRAM development and strategies that made it strong player and competitive player in the technology market.

However in current situation,with the increase in the growth in technology and semi-conductor markets, the threat of Chinese new entrants is eminent, making Samsung to devise new strategy in order to sustain its position in the market and retain its market share.Lee under such circumstances has to decide over two alternatives, presented in order to secure Samsung position.

Analysis

What kind of advantage is SMIC seeking? How close are they to achieving it?

SMIC is a Chinese firm, over the period of time, the company has developed the strategic alliances with the Japanese and US based companies in order to develop the semiconductors and DRAM under the logic chips.Since the semiconductor industry is growing at double digit. Though the company is seeking to enter into the industry by developing logic chips, SMIC is the only manufacturer of the logic chips however, it is eminent that the firm might spread its expertise internally in China.

The main advantage SMIC is seeking while entering into the Semiconductor industry is the achievement of the cost leadership in the DRAM markets,since the company has the expertise in developing the Blueprints, and has the government support for business operations, it is seeking to enter the marker by becomingthe cost-leader.

Moreover, since China has opened up the gateways for the international business, itlacks the expertise to develop the right product in the market, hence SIMC is seeking to havean access to the largepool of talentthrough its business strategy in orderto sustain its resource base capabilities effectively.

In addition to this, in China no other players are operating at a scale SMIC is operating, it is seeking to capitalize its resources to first cater the Chinese market and then enter into the global markets through same strategy. Such strategy might offer company the competitive position in international markets but might posit the threat to other players.

And since SMIC is the initial player moving toward the logic chip industry and memory card industry, the government is supporting the stance of the company by offering tax reliefs to the international players and low entry barriers, such support is allowing SMIC to quickly create alliance with the international players for the required support that will ultimately allow SMIC to grow in the market.

What competitive advantage(s) does Samsung have? Be sure to substantiate your position.

Samsung has a strong research and development department.From the initiation, the company invested in research and development techniques to develop sound technological base. Such strategic move has allowed the company to continually elevate its offerings and technology in the market, making it world’s second largest player in the semi conductor industry.

Also, the company has a strong well-developed and well recognized brand image in the market for offering the high tech products. Such brand image and product efficiency has allowed Samsung to become the supplier to Sony Ericsson and Nokia both.Moreover, the company has strong skilled forces that it established and gathered through internal pool of recruitment.The company has developed the international recruitments strategy to hire and train the people throughout the globe, this has allowed Samsung to acquire the skills and capabilities needed to develop the future products in the market. Such allowed the company in developing a high substantive position in the Korean and global markets.

Samsung Electronics Harvard Case Solution & Analysis

In addition to this, the culture of the company is its competitive edge, the company trains, secures and provides growth opportunities to its employees base on merit rather than seniority. Such strategy has allowed Samsung to develop a motivating and enthusiastic culture in the organization, making a strong team of motivated employees that perform well and hence effects the global position of the company.

Apart from these, Samsung is financially strong and have deep pockets, such factor offers the company the competitive edge in the market since it allows the company to either develop niche strategy or undercut the competitors effectively. Moreover it also allows the company to incorporate the latest technology efficiently into the company before the competitors introduce them into the market.

Moreover, the company has strong technological base and offersthe exclusivememorychips in the markets (8megabits), such operational expertiseand efficiency offers the company the competitive edge since no other players areoffering the latest and risky products in the market.

Lastly, Samsung has strong brand image and brand awareness in the market, this posits strong barraging power of the company in the suppliers and the other distributors to support Samsung and hence keeps the position of the company competitive and demanding in the market....................

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