Samsung ElectronicsVikas (59), Shantanu (49), Rachit (39), Junaid (29),   Himadri (19), Ankit (9)
Porter Model + PESTSupplier Power- Few Vendors-Samsung is a very large buyerMedium Political-Chinese Govt. provides all sorts of assistance for setting up a plant Economic Very High investment for setting up R&D centers and Fabricating PlantsIndustry CompetitionMicron, Infineon, Hynix, SMIC. As of now Samsung is the clear market leader
Moderate Buyer Power Chips sold to PC n Mobile makers.
 Moderately price sensitive consumer.MediumEntry BarriersHigh Capital Requirement.
Govt. ApprovalsVery HighTechnologicalVery high use of innovation and technology.Threat  of Substitutes- No major substitutes.   -Nanotechnology  based memory still not ready. LowSocial- Consumers (PC, Mobile companies) very well informed- Customers ready to try other options
Core Competency Model
Value ChainHas a state of art R&D facility and a fabricating unit in Seol. 	InfrastructureHuman Resource ManagementStrong vendor relationsValues human resources a lotRecruitementCompetitive Pay scales         SUPPORT ACTIVITIESExcellent R&D workNew Products IntroductionsTechnology DevelopmentLowest Raw Material Cost in the IndustryHigh Technology based operationsVery strong Brand. Known for its Quality. Rated in the top 20 brands of the world Customer OrientedPRIMARY ACTIVITIESInbound LogisticsOperationsOutbound LogisticsMarketing / SalesServiceSelf DistributionCentral computer linked with vendors
Analysis – SamsungEconomies of scale in semiconductor production.High Investment in R&DR&D Facility & Fabricating unit at single site.Innovative human resource policies, performance based promotions.Wide range of customized end products for meeting customer demands.Reliable Product- Very high brand value.
VRIO

Samsung Electronics (An HBR case)

  • 1.
    Samsung ElectronicsVikas (59),Shantanu (49), Rachit (39), Junaid (29), Himadri (19), Ankit (9)
  • 2.
    Porter Model +PESTSupplier Power- Few Vendors-Samsung is a very large buyerMedium Political-Chinese Govt. provides all sorts of assistance for setting up a plant Economic Very High investment for setting up R&D centers and Fabricating PlantsIndustry CompetitionMicron, Infineon, Hynix, SMIC. As of now Samsung is the clear market leader
  • 3.
    Moderate Buyer PowerChips sold to PC n Mobile makers.
  • 4.
    Moderately pricesensitive consumer.MediumEntry BarriersHigh Capital Requirement.
  • 5.
    Govt. ApprovalsVery HighTechnologicalVeryhigh use of innovation and technology.Threat of Substitutes- No major substitutes. -Nanotechnology based memory still not ready. LowSocial- Consumers (PC, Mobile companies) very well informed- Customers ready to try other options
  • 6.
  • 7.
    Value ChainHas astate of art R&D facility and a fabricating unit in Seol. InfrastructureHuman Resource ManagementStrong vendor relationsValues human resources a lotRecruitementCompetitive Pay scales SUPPORT ACTIVITIESExcellent R&D workNew Products IntroductionsTechnology DevelopmentLowest Raw Material Cost in the IndustryHigh Technology based operationsVery strong Brand. Known for its Quality. Rated in the top 20 brands of the world Customer OrientedPRIMARY ACTIVITIESInbound LogisticsOperationsOutbound LogisticsMarketing / SalesServiceSelf DistributionCentral computer linked with vendors
  • 8.
    Analysis – SamsungEconomiesof scale in semiconductor production.High Investment in R&DR&D Facility & Fabricating unit at single site.Innovative human resource policies, performance based promotions.Wide range of customized end products for meeting customer demands.Reliable Product- Very high brand value.
  • 9.