Samsung

MICHAEL PORTER’S STARTEGY FOR SAMSUNG ELECTRONIC

INTRODUCTION

Samsung Electronics is an electronics Samson. One of the world's largest semiconductor manufacturers, Samsung Electronics is also South Korea's top electronics company. Samsung has grown to become a global larder in several different products ranging from flash memory chips to big LCD screens to CDMA mobile Phones. The firm goal is to become the leader in twice as many product categories by 2010.

Porter’s five forces model of industry competition

The threat new entrants

* It is not easy for a new company to enter the semiconductor industry because:

* Very costly, involved high or substantial capital.

* Not easy to train employees, normally take thousand of employees

* The impact of Market Entry is high as Samsung has found it easy to enter markets where it desires to do business

* Samsung has entered China and India, two emerging markets that provide the much needed volumes for its expanding business. The fact that Samsung has entered these markets with relative ease makes this a force that can be harnessed for the company’s good.

* Capital requirements: Continue investing in the R&D. Samsung has invested in factories producing lower end chip in china to be close to chines domestic growing market product.

The bargaining power of buyers

* Earns low profit: Samsung was still making most it profit from lower price appliances that consumer were likely pick up if they could afford a higher price brand such as Sony or Mitsubishi.

* The bargaining powers of buyers are high since the market for consumer electronics is essentially a buyer’s market with so many players or brand to choose. In the fray to sell consumer electronics to the consumers. This is reflected in the endless price wars that Samsung is engaged in with respect to the mobile phones and other electronic goods.

The bargaining power of suppliers

* The bargaining power of suppliers is relatively...