Samsung Electronics

Samsung Electronics The case deals with the drachma market competition, focusing on the schema that should be undertaken by Samsung Electronics to maintain its market supremacy, without sacrificing its profit margins in the face of challenges posed by the rising slope of the Chinese companies in this market. In direct to stay forwards of the competition it is important to analyze the competition and take a close measure of non only our own emulous advantages only when those of our competitors as well. The immediate competition that was posed to Samsung was by SMIC (Semiconductor Manufacturing planetary Corp.) a Chinese based persistence. SMICs seeming strategy was to save on initial investments by not spend directly in design, sacrificing initial profits in order to gain market share. SMICs decision to routine engineering blue prints from established players in the market and place orbit up a billion dollar production put in to achieve large scales of volume, thereby achieving economies of scale, helped it produce rapidly and exponentially expand its market share in a year. The revenues rose from $50.3M to $365M from 2002 to 2003, an approximate 500% increase. The other strategy that SMIC seemed to be working on was to establish its supremacy in the256Mbit fluidram market sector.

Backed by already established technologies and by staging an average selling price of $4.43 which was below the industry average of $4.58 and approximately $2 lower than the ASP offered by Samsung. By following this strategy SMIC was incurring a trauma of $.41, yet it was success estimabley ca rving a niche for itself in the market. Al! though a relatively new company, SMIC cannot be ignored by Samsung. There are a number of reasons for this. One, SMIC is currently establishing its filth in the 256Mbit DRAM that forms 77% of Samsungs DRAM production, by pricing its product lower. By establishing its applied science by collaborating with established names in the industry, they cannot be bidding out on the...If you want to get a honest essay, order it on our website: BestEssayCheap.com

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