Strategy
Strategy Assignment 12/3/14
Anne-cecile POUXE
XU Zhao
Magesh Rengaswamy
Pierre Boesinger
Elie Hayek 1- What is the case about?
The case is about the success story of Samsung that was able to understand the market evolution and improved the technology to acquire huge market share and become number in the memory chip industry. The case also deals about the strategy and steps implemented by Samsung to challenge her competitors and successfully adapt to the industry.
2- Asses the attractiveness of the memory chips industry in 2003 and in the future identify the KSF
Market growth: consumer products, telecommunication products has average of 8 percentage
The key success factor:
Producing at low price
Efficiency of purchases
Efficient production line
Technology and innovation
Increase memory capacity
Reliability of products
3- What were the sources of Samsung’s cost advantage in DRAM in 2003
Measure this advantage
Big production sites
Efficiency of R&D
Effective communication between departments(engineers and designers)
Effective HR policies
The size and diversity of the group ( generate enough profit to cover some losses)
Lowest labor cost
Highest operating margin (65%)
Best production technology
Economy of scales in purchasing: 5% for high volume purchase from suppliers
4- What were the sources of Samsung’s price premium in DRAM in 2003
Measure this advantage
Reliability of their product
Wide range of innovative products
Brand image
5- How cam Samsung combine a cost and a differentiation advantage
Based on the fact that Samsung produce in an efficient way Samsung is able to produce high volumes in low prices. This will help them to invest more in the R&D which will allow them to keep the trend of innovating and diversifying their product to meet the growth and needs in the market
Anne-cecile POUXE
XU Zhao
Magesh Rengaswamy
Pierre Boesinger
Elie Hayek 1- What is the case about?
The case is about the success story of Samsung that was able to understand the market evolution and improved the technology to acquire huge market share and become number in the memory chip industry. The case also deals about the strategy and steps implemented by Samsung to challenge her competitors and successfully adapt to the industry.
2- Asses the attractiveness of the memory chips industry in 2003 and in the future identify the KSF
Market growth: consumer products, telecommunication products has average of 8 percentage
The key success factor:
Producing at low price
Efficiency of purchases
Efficient production line
Technology and innovation
Increase memory capacity
Reliability of products
3- What were the sources of Samsung’s cost advantage in DRAM in 2003
Measure this advantage
Big production sites
Efficiency of R&D
Effective communication between departments(engineers and designers)
Effective HR policies
The size and diversity of the group ( generate enough profit to cover some losses)
Lowest labor cost
Highest operating margin (65%)
Best production technology
Economy of scales in purchasing: 5% for high volume purchase from suppliers
4- What were the sources of Samsung’s price premium in DRAM in 2003
Measure this advantage
Reliability of their product
Wide range of innovative products
Brand image
5- How cam Samsung combine a cost and a differentiation advantage
Based on the fact that Samsung produce in an efficient way Samsung is able to produce high volumes in low prices. This will help them to invest more in the R&D which will allow them to keep the trend of innovating and diversifying their product to meet the growth and needs in the market