Samsung Electronics Case Report

Samsung Electronics Case Report

As China is expected to become the world’s second largest purchaser of semiconductor, they are threatening Samsung Electronics. Samsung Electronics was already competed with other companies such as Hynix, Micron, Infineon, Elpida, Nanya, etc. Comparing the net revenues among those companies, Samsung Electronics had the highest net revenues. It can conclude that Samsung Electronics now has the highest possession in semiconductor among those competitors. However, the new competitor, China, brought up with low cost strategy. Also, Chinese company has already exhibited large scale entry. Even Chinese government was not only committed to subsidizing all infrastructure needs, but was able to provide cheap credit, abundant land, cheap utilities, engineering talent, tax incentives, and other essential resources to anyone who wanted to build a cutting-edge semiconductor facility with a Chinese partner. With this big threat of large-scale Chinese entry, Samsung Electronics have some solutions to break a path.

First, Samsung Electronics can invest in factories producing lower end chips in China. In this case, Samsung Electronics can watch closer to Chinese domestic growing market products. Now trend is really important point to catch up the society. The best way to catch or follow the trend is being in the country. After then, Samsung Electronics can make a strategy to make a product for Chinese consumers. Samsung Electronics can figure what are the best preferences for the Chinese customers. Not only looking for the Chinese customers’ preferences, but Samsung Electronics also can advertise the brand and raise the reputation. That is, it can develop to the higher brand value. As the brand value increases, the brand loyalty will be stronger. Samsung Electronics preferred customers will not change the brand easily.

Second, they can adjust human resource and recruitment policies. Samsung Electronics already aimed for the global strategy,...