MALIK SAAD NOMAN 6342-FMS/MBA/F13

Opinion
SAMSUNG has five business divisions, but its main business line (Semiconductor
business) is threatened by Chinese competitors. SAMSUNG should select defensive approach
strategy to sustain its position otherwise Chinese will get first mover advantage.

Reasons: -
Chinese have potential to produce if they get design or blue print of new neno chips.
They have cheap and skilled labor, organizational experience, enough finance resources and
processes. And in that case Chinese will also get first mover advantage. So just like 20 years
back SAMSUNG attacked Japanese companies, Chinese will do the same to SAMSUNG.

Problem Statement
How senior management teams at SAMSUNG react to the threat of Chinese competitors?

Defense
SAMSUNG is very smart in selecting strategy. As previously company shifted to
stacking dye method from trenching. Company deeply studies its competitors strategy and it is
conscious about product design, quality of manufacturing and process efficiency. Top
management is aware of all the risk. They already studied about competitors and other
companies and learn from their experiences like SONY, TOSHIBA and IBM and never repeat
that mistake. According to MOREs law, after 18 months memory and size of chip changes.
SAMSUNG already know that and company should select a defensive strategy against this
threat.