Samsung Electronics

Samsung Electronics The case deals with the drachma market competition, focusing on the organisation that should be undertaken by Samsung Electronics to maintain its market supremacy, without sacrificing its profit margins in the face of challenges posed by the further of the Chinese companies in this market. In entrap to stay forrard of the competition it is important to analyze the competition and take a close measure of non only our own emulous advantages plainly those of our competitors as well. The immediate competition that was posed to Samsung was by SMIC (Semiconductor Manufacturing planetary Corp.) a Chinese based exertion. SMICs seeming strategy was to save on initial investments by not spend directly in design, sacrificing initial profits in order to gain market share. SMICs decision to routine engine room blue prints from established players in the market and place move up a billion dollar production place to achieve large scales of volume, there by achieving economies of scale, helped it produce rapidly and exponentially expand its market share in a year. The revenues rose from $50.3M to $365M from 2002 to 2003, an approximate 500% increase. The other strategy that SMIC seemed to be working on was to establish its supremacy in the256Mbit drachm market sector.

Backed by already established technologies and by staging an average selling price of $4.43 which was below the industry average of $4.58 and approximately $2 lower than the ASP offered by Samsung. By following this strategy SMIC was incurring a damage of $.41, yet it was success estimabley carving a niche for itself in the market. Although a relative! ly new company, SMIC cannot be ignored by Samsung. There are a number of reasons for this. One, SMIC is currently establishing its desktop in the 256Mbit DRAM that forms 77% of Samsungs DRAM production, by pricing its product lower. By establishing its engineering science by collaborating with established names in the industry, they cannot be control out on the...If you want to get a entire essay, order it on our website: OrderCustomPaper.com

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