In this discussion please identify:
1. Sources of Samsung's competitive advantage.
a. One major source of competitive advantage for the company was its emphasis on producing superior products that are well designed and engineered for performance. b. Another major source of competitive advantage for Samsung was the amount of resources and expertise available to the company in recent years. The case study notes that in 2005, the Samsung Group (including Samsung Electronics Company), was the largest conglomerate in South Korea with net sales of $135 billion in 2004, 337 overseas operations in 58 countries and approximately 212,000 staff employed around the world in its far-flung operations.
c. Samsung had already weathered and survived two previous cyclical downturns in the memory chip industry by virtue of delivering the best performance in the industry.
d. In 2000, Samsung's brand value was $5.2 billion (43rd in the world), and increased to $12.6 billion (21st in the world) in 2004. According to Siegel and Chang, "In 2004, Samsung stood ahead of many brands such as Philips, Kodak, and Panasonic. Sony ranked 20th by comparison" (p. 6).
Sources of the Chinese entrants' competitive advantage.
The semiconductor industry experienced remarkable grow during the first part of the 21st century, and experienced increasingly intense competition and large-scale entry by Chinese companies in 2005 (Siegel & Chang.). According...
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