Samsung Case Study

Samsung Case Study --

QUESTIONS:

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1. Does Samsung have a competitive advantage? If so, how are they creating added-value

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compared to industry competitors? Make sure to quantify your claims. (In answering this

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question, you will find helpful information in exhibits 6-7k (but not only there)).

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a. Compare Samsung’s “value stick” to that of an “industry average” competitor

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and briefly justify any differences. (Remember that willingness-to-pay and

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willingness-to-supply are generally unobservable, but you can still engage in

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informed speculation.)

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b. Propose potential explanations for the higher WTP/P and/or lower C/WTS of

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Samsung. (Recall that with Walmart we discussed the squeezing of suppliers vs.

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more efficient operations as potential sources of their low cost advantage, while

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in Zara, we talked about higher quality garments vs. faster response as possible

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drivers of their WTP advantage.) Based on your analysis of the activities of the

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firm, and data from the case, what is the most important driver of Samsung’s

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WTP/P and/or C/WTS advantage?

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