Samsung

Industry Analysis:

firm performance critically depends on the degree of competitiveness that are embodied in five forces, which are (1) the Intensity of rivalry among competitors, (2) the threat of potential entry, (3) the bargaining power of suppliers, (4) the bargaining power of buyers, and (5) the threat of substitutes.

So in Samsung side we can see:

1. Threat of New Entrants :

Low Moderate

Due to the extremely high capital investment needed for entrance into this industry, the threat of new entrants is low to moderate. At this time, the following four companies dominate 75% of the industry: Samsung, Hynix, Infineon, and Micron. Brand recognition is a key element that detracts entrants because from the beginning of entrance, there is only 25% of market share to battle for.

2. Supplier Buying Power:

Low

The companies in the semiconductor industry, while powerful themselves, have relatively low supplier power. Product standardization is a sign of buyer, not supplier, power.

3. Power of Buyers:

Moderate and High

Retailers- HIGH: In today’s marketplace, companies are more reliant on key retailers to distribute their products. The most prominent example of this new trend is seen with the contractual agreement between Apple and Samsung.

End Users- Moderate:

4. Threat of Substitutes- Moderate

there is a moderate diversification of producing companies. There are only a few key players and they have pretty much marked off their territory in retail markets.

5. Rivalry- High

Rivalry is extremely high and is continuing to intensify within this industry, with Samsung being the dominant player. In order to maintain substantial market share, having a competitive advantage to differentiate your product is essential.

Competitive environment analysis:

Since the early part of 2001, it has been notices that Samsung has been increasingly successful in repositioning the brand of its various...