MIS-402

Analysing the strategy of SAMSUNG

Assignment#1

İrem Kaya

273880

SAMSUNG 

Consumer Products : •Mobile Phones •Televisions •MP3 & Audio/Video •Cameras & Camcorders •Computers & Peripherals •Professional Displays •Printers & Multifunction •Home Appliances Business Products : •IT Business Products •Professional Displays •Hospitality Solutions •Semi Conductor •LCD Panel •Telecommunications •Set Top Boxes •Storage •Fiber Optics

• FIVE  FORCES  MODEL

1. Rivalry within industry : • Moderate     •Industry was experiencing  fierce  rivalry by increase in industry capacity and normal cyclical downturn.     •Many Chinese firms were ready to enter the market.     •Chinese competitors were willing to sacrifice profits for market share.     •Strategic alliances forming against Samsung. 2.Suppliers :     •Medium     •With the growth of industry, supplier become more concentrated and would offer 5% discount on bulk purchases.     •Very high -buyers rely heavily on semiconductors.

3.Threat of substitude : •There was no effective substitude for memory chips. •Low 4.Buyers : •Buyers were largely OEM , with no one controlling more than 20% of global PC market.

• OEM would negotiate hard for price as memory presented 4-12% of PC cost and 4-7% of mobile phone cost. Buyers would pay  1%premium for reliability of product.Buyers were highly fragmented. Very low

5. Entry Barrier : Very high Entry barrier were high.It involves high capital  investment and complex technology. Huge challenge from new China firms.

PORTER'S STRATEGY FRAMEWORK OF SAMSUNG

SAMSUNG  provides advantage of cost and differentiation over its competitors.