Essay About Samsung Electronics Company And Core Business Sectors

Samsung Electronics Case
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COMPANY OVERVIEW
Samsung Electronics Company was established in 1969.
It is largest conglomerate in South Korea with net sales of $135 billion in 2004.
The three core business sectors within the group were electronics, finance, and trade and services.
Samsung includes five business divisions – Semiconductor, Digital Media, Telecommunications, LCD and Digital Appliances
Samsung was the worlds leading memory chip producer for electronic devices
Samsung offered over 1200 variations of DRAM products – unprecedented in memory industry
Its products ranged from cutting edge frontier products to legacy products.
Samsung started to give more importance to high growth potential Flash memory business compared to DRAM
The company funded MBA and PhD programmes and hence invested in employees technical and business skills, also It actively recruited foreign talent
Samsung had created a global strategy group to solve problems at business unit level and prepare managers for important global positions
Analysis
Competition threat from Chinese Companies
Major memory competitors in 2005.
Elpida Memory Inc. (J.V. NEC + Hitachi)
Hynix Semiconductors, Inc. (Hyundai electronics)
Infineon Technologies AG (Seimens)
Micron Technologies (Texas instruments)
Nanya Technologies (Taiwan based)
Semicnductor Manufacturing International Corp. (SMIC, China)
Challenges to be addressed:
Should the current business strategy of Samsung Electronics be modified in order to successfully combat:
the challenges posed by the new Chinese entrants in the DRAM market
the cyclical downturn expected in the memory chip industry, in 2005
How to keep the employees motivated to strive for superiority in product design and process efficiency?
Industry Analysis by Porters 5 force model
Buyers (Low)
Powerful suppliers and price conscious customers . Intense competition among OEMs. Due to importance of memory chips, OEMs