Muhammad Taufiq6776-FMS/MBA/F14

Brief of Samsung Electronics

According to my view, Samsung electronics should keep business process separate from

Chinese producers.

After studying the case thoroughly, I conclude that it is better for Samsung to compete its

Chinese rivals rather than collaborate because there is only Samsung in the market that has

cutting-edge memory chips, as well as it can produce the maximum number of chips with least

defective in numbers it’s focus was to remain innovative in product design and process.

How Samsung will respond to the threats from Chinese competitors?

The Samsung has created a value in the customer's mind by producing innovative design

products. On the other hand, its rivals have less capability in designing and expertise in the

product. The competitive advantage of Samsung was cutting-edge memory chips which other

competitors could not meet them. Thus, if a company goes to collaborate with Chinese the

competitive advantage will break up and it will be impossible for companies to regain its market

once it has gone down.

In addition to that, it has a unique organizational culture, it promotes its employees with its

own grading system in which one who is young can easily promote at top position while most of

the companies promote on seniority base. Samsung has paid its employees, fewer salaries as

compared to its competitors, but the company also takes care of its employees, health,

education of children and other family related issues in exchange for their input to the

organization.

Therefore, if Samsung collaborate with them, they might face challenges in its organizational

culture. Moreover, if Samsung share its technology with Chinese, it might be a possibility that

after some years, the Chinese firms will become expert in technology and they will kick the

Samsung out of industry and became market leader, because Chinese firms mainly focus on

market share rather than profit. Therefore, I would prefer that it should not collaborate with

Chinese semiconductor producers.

Muhammad Taufiq6776-FMS/MBA/F14

Samsung Balance Scorecard