Samsung Electronics

Case Brief
Naqib rehman (6810)
Opinion:
In my opinion the Samsung managers in 2005 need to make actively partnership with the
Chinese firms, because in 2010 the Chinese firms was expected to be the world 2nd largest
purchaser of the semiconductors. The overall industry of memory chip has been growing rapidly,
most of the others firms want to invest in Chinese firms. Joint venture of Samsung with Chinese
firms cant affect the profitability of Samsung firms. Because Samsung having head to head
competition with Chinese firms in all types of markets.

Problem statement:
Options to deal with china or compete with china?

Defense:
Yes,
Samsung need to actively collaborate with the Chinese firms, because most of the competitors of
Samsung like ELPIDA, INFINEON and Motorola having already in partnership with Chinese
firms to gain low cost competitive advantage. Another reason for deal with Chinese firms is that
governments of Chinese support the Chinese firms for low cost advantage that Korean
government cant support the Samsung for low cost advantage. If Samsung make a strategic
alliance with Chinese firms, then Samsung can get access to the Chinese local markets for low
cost products. In partnership with Chinese firms Samsung can get easily access to some cheap
Chinese factors like cheap and skilled labor force, government supporting industries , incentives
of tax , good and highly level of infrastructure facilities. And also access to increasing rate of
Chinese customers for Samsung technologies. Another main reason for Samsung to make a
strategic alliance with the Chinese firms is gain access to nano technology.