Competition in Global Semiconductor Industry a Case Study Analysis on Chinese Threats to Samsung Electronics Superiority

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Presented as part of the requirement for the award of MBA at Cardiff Metropolitan University (CMU) December 2011

Executive Summary

Success of a business depends on effectiveness of its strategies. To survive in the highly competitive business environment, business leader must rely on strategies which provide economical advantage. To find out what strategy is most reliable, managers must identify present situation of their own business and look on competitors tactics which are judged according to their performance. Then, they will be able to identify if anything is going wrong within the firm and take necessary steps to solve it. This case study analysis focuses on finding best strategies for Samsung Electronics to overcome the threats, thrown by Chinese competitors. To meet the goal of the study, I have done in-depth analysis on Samsung Electronics operational, marketing, human resource and technology management policies and tactics. In chapter-4, with the help of management models which are designed to resolve common problems and challenges, I have tried to find out the reasons why Chinese firms are believed to occupy Samsung’s market shares in coming years. These models have worked as mechanism towards reaching each of the objectives of the study and the objectives are designed to make sure Samsung retain and increase market share. Finally, chapter-5 has been designed with possible solutions to the problem and a business plan which demonstrate a guideline for Samsung Electronics to hold on to their dominance in the future.

Acknowledgement

This course work could not have been completed without the help of my teachers. First of all, I would like to thank all of my teachers who were being very co-operative and tolerant throughout my BA and MBA curriculums. Secondly, I acknowledge excellent library facilities and technological advancement of City of London, which allowed me to access ample amount of information related to my study. Then, I have to mention about brilliant support I have got from my parents. Last but not least, very special thank goes to my teacher, motivator and case study supervisor Dr. Rajendra Kumar, who has been very liberal and informative all the way through my student life at London School of Commerce.

Contents
Chapter 1: Introduction- 9 -
1.1: Background of the study:- 10 -
1.2: Significance of the study:- 11 -
1.2: Research questions:- 11 -
1.3: Research aim and objectives:- 12 -
1.3.1: Aim of the study -- 12 -
1.3.2: Primary objectives of the study - 12 -
1.3.3: Secondary objectives of the study - 12 -
Chapter 2: Description of the Situation:- 14 -
2.1: Description of the market:- 14 -
2.1.1: Market size and growth:- 14 -
2.1.2: Cost structure and profitability:- 14 -
2.2.3: Distribution and sales:- 15 -
2.2.4: Market trend:- 16 -
2.2: Description of existing competition:- 16 -
2.3: Description of Chinese competition:- 18 -
2.3: Samsung’s role in the industry:- 19 -
2.4: Concern about human resource policies:- 19 -
Chapter 3: Problem Statement and Plan of Analysis:- 21 -
3.1: Problem statement:- 21 -
3.2: Plan of analysis:- 21 -
3.2.1: Identify scopes of study:- 21 -
3.2.2: Strategy and organization:- 23 -
3.2.3: Marketing and sales:- 23 -
3.2.4: HRM, leadership and change:- 23 -
3.2.5: Information system analysis:- 24 -
3.2.6: Solution to the problem:- 24 -
3.3: Secondary Data Collection:- 24 -
3.4: Type and source of Secondary Data:- 24 -
3.5: Advantage of Secondary Data:- 26 -
3.6: Limitation of Secondary Data:- 26 -
3.7: Ethics:- 27 -
3.8: Reliability:- 27 -
3.8.1: Threats to Reliability:- 27 -
3.9: Validity:- 28 -
3.9.1: Threats to Validity:- 28 -
Chapter 4: Analysis and findings:- 29 -
4.1: SWOT Analysis:- 29 -
4.1.1: SO Strategies:- 30 -
4.1.2: ST Strategies:- 31 -...
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