To: Mr. Kun Hee Lee, Chairman, Samsung Group
From:Senior Consultant, S&S Consulting
Re: The Samsung Group opportunities of future expansion
Date: August 14, 2008
After extensive research, S&S consultants have evaluated some of the opportunities that could better position The Samsung Group among their rival competitors in the Memory Industry as well as technological advancement. S&S consulting will help answer some of the questions that Samsung Group may have. We will analyze the external and internal factors of The Samsung Group, and compare those to their rival competitors in order to reposition their strategies in becoming an even stronger and more powerful Industry in the global market. In order to do so, we have pointed out some of the key issues on which the Samsung Group needs to refocus. To implement these new strategies, S&S consultants need The Samsung Group invest time and money. Key Issues:
•Examine the threat of entrants from China.
•Modify products to meet environmental changes.
•Relocate The Samsung Group manufacturing facility.
•Recruit too many foreign talents.
With many competitors competing in the memory chip industry, this would force the price of DRAM to decrease. Therefore, more resources are being used but the return in investment is less, which leads to an unprofitable outcome. Many major competitors were unable to survive in the memory chip industry because of the lack of experience as well as financial distressed. The threat of new entrants is relatively high and it is one of the major issues that the Samsung Group faces. The major threat is the Chinese firms competing fiercely within the memory chip industry; the Chinese firms are willing to sacrifice profits for market share. Another major threat from the Chinese firms is their easy access to outside finance and skillful local engineers; this means that the Chinese firms have the potential to build skills over...