SAMSUNG Case AnalysisStrategic Management

Sankalp Saxena (H13103) HRM B

Samsung Case Analysis

Brief Overview of Company
Spread across 58 countries 5 Divisions: Semiconductor, Digital Media, Telecommunications, LCD, Digital Appliances Market Leader in DRAM, Second Largest Chipmaker worldwide High Brand Value Low operating costs and high Selling Prices High Quality allows to ask for higher premium Adopts Low Cost Differentiated Product Strategy

Porter 5 Forces Model: DRAM Industry

Samsung Company: SWOT Analysis

Recommendations
Though Samsung is still the market leader, the emergence of competitors and the introduction of new entrants in the market aided by alliances with market incumbents and governments helpful policies (ample access to capital, low cost labor, engineering talent etc.) has forced Samsung to look into its existing strategy and implement certain changes. Here are a few recommendations: 1) Start focusing on niche products(flash segments) and releasing them: Samsung can easily do this helped by their heavy investment in R&D which allows them to keep working on latest technologies 2) Price Cutting: Samsung can try suppressing Chinese companies by reducing price on low end DRAMs. This would prevent those companies from gaining market share. Due to its lower costs and its high margins, Samsung can afford to lower the prices and still not lose much in terms of profits

3) Acquisitions: Using what may be called as an aggressive move, Samsung can go for purchasing successful new entrants and prevent them eating in to the market share.