1. MBA-11 (C) KAMRAN KHAN SAMSUNG BRIEF 6391
Samsung should focus on to invest more in semiconductor business and leave the Chinese
Collaboration. Korean’s are pioneered and they expertise in making semiconductor products.
Samsung focus on differentiation strategy, low cost and high quality memory products and
targeted niche market. Samsung have too much organization experience and knowledge about
design and its production process. Samsung focus on making nanotechnology with high accuracy
and energy efficient products. Expand more on R&D system, unique HR policy, unique culture,
recruited globally high trained and skilled labor force. With an efficient and effective leadership
Samsung lead the Semiconductor business and they manage and control all scenarios that occur
around the competitions. Memory Chips production process and design is too difficult but
Samsung have a real potential and well managed its process and design and make products to
consumer demands.
How should Chairman Lee and the senior management team at Samsung react to the threat of
Chinese competition?
Samsung labor force are pioneered and they expertise in making semiconductor products and
they are efficient and capable to make more innovative and creative products to become a leader
in the semiconductor business. Samsung have a competitive advantage, they produce high
quality products at low cost memory products and differentiates of its products. It’s too difficult
to making nanotechnology based memory chips but Samsung have experience, knowledge,
strong leadership, skilled and highly trained labor force they can do easily and focuses on to
reliable, pioneering and cutting-edge memory products with high accuracy and energy efficient
products. Samsung expands more at its R&D system to control on cyclical innovations. Samsung
used sigma six as a tool to make advanced, efficient and quality products. China has not too
much organization experience and knowledge about design and its production process. But they
have cheap labors, cheap materials, tax incentives, and they make old model memory chips
which is low accuracy and low quality at low cost. Samsung have a risk with China collaboration
because intellectual rights not protected and China expertise in making semiconductor and lead
the semiconductor market. Samsung should focus on our cutting-edge products and make its
more innovative, superior and creative at low cost. Expand money for its R&D system and keep
differentiating our organizations structure (leadership, labor force, HR policy, pioneering, and
products) from our competitors.