Samsung - Case Study

MEMO

To

From : Senior Consultant , XYZ Consulting

Re : Competition and strategic war with Chinese competitiors

Date

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Executive Summary

In spite of being the market leader , Samsung Electronics has suddenly discovered itself at a crossroad , where on one hand it has to tackle Chinese invasion in its empire , on the other hand it has to decide on the same rival 's invitation of joint venture . Therefore the situation stands like if Samsung decides to raise a strategic war , then it has to forego a new business prospect , and

if it opts for joint venture , it might have to lose its secrets of competitive advantage . Therefore , this report resorts to SWOT , PEST and HPWS plan sheet to evaluate the situation and accordingly comes up with the recommendation that Samsung should stay away from such joint venture and instead consolidate itself and plan for a strategic war against not only Chinese companies , but also other competitors

Introduction

While semiconductors now heavily influence the human life , the battle for dominance in this market segment has now gained a new dimension with the arrival of Chinese competition . Semiconductors prove to be the staple diet for the digital diaspora , and thus are as important as the baby food , where it has to be readily available and free from error . For so long Samsung Electronics had been serving the major chunk of this demand with its strong muscles of planning , workforce , finance and magic touch of technology , but now their reign is suddenly being threatened by Chinese invasion , who are upbeat with governmental support and the blessings of financial institutions . In spite of their lacking in sophisticated technology or high-quality brain trust , they have already shown remarkable advancement in this segment , and from Samsung 's perspective , the Chinese are repeating the same feat that Samsung once successfully applied over the Japanese companies in its early days . Thus Samsung is now perplexed with the ball their Chinese counterparts have sent to their court by inviting them for a joint venture at Mainland China . Now Samsung has to choose from two options - whether to raise a strategic war and win the market , or to explore the possibility of having greater revenues by opting for joint venture with the Chinese Thus this report explores the pros and cons of both the options through an in-depth analysis of its internal and external conditions , before coming up with the recommendation of best possible stance for Samsung

Key Problem

Though Samsung is leading the market and moving into right directions by fostering the right babies of the future , it has discovered a potential threat in the competitors from Mainland China , who are doing well in spite of not spending in R D , and are hell bent to claim the market share even at the expense of profit . On the other hand , some of them have even offered the company for joint venture with production base in China . Apparently the offers look lucrative in terms of expanding company base and profit at the...