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Transcript of Case5_Samsung
49733015 Chen, Yi-Chun
49833013 Wu, Wen-Yang
49833025 Kuo, Jui-Fa
49833033 Lai, Ju-Hui
49833036 Huang, Pei-Chia Cede the lower end of the market to China Develop high-value niche markets and apply
for intellectual property rights Analysis Low end Cutting edge (1)Sell the technology of legacy prodyct to China (2)Set up fab in China to maintain cost advantage (3)The popularization of technology network (1)Strengthen the quality and brand (2)Develop a new niche market
Enhance cooperation with other companies (3)Establish their brand image strongly (4)Priority to purchase products of Samsung. What were the sources of Samsung’s
cost advantage in DRAMs in 2003? (1) Economies of scale Exhibit 1
Comparison of Production Volume of DRAM in 2003 (256Mbit equivalent) (2)Cheaper labor (3) Common core design (4) Concentrated fab lines saved an average of 12%
on fab construction costs fab lines were located at a single site Exhibit 2
Comparison of Labor Cost of DRAM in 2003 (256Mbit equivalent) Source: Harvard business school Samsung Electronics case, Exhibit 7a Two seemingly different architectures
can shared a common core design. YOU What were the sources of Samsung’s
price premium in DRAMs in 2003? Price premium (%)= [Brand A price ($) - Benchmark price ($)] Benchmark price ($) Exhibit 3
Comparison of Price Premium of DRAM in 2003 (256Mbit equivalent) Source: Harvard business school Samsung Electronics case, Exhibit 7a (1) High brand value Company’s brand value increased to $12.6 billion (ranking 21st in the world) in 2004. It invested $1 billion towards to mass
production in 8-inch chips. (2) Take risk of investing in R&D Depend on core design, Samsung actively sought to (3) Customized
products customize its products and meet customer demands. Source: Harvard business school Samsung Electronics case, Exhibit 10c Exhibits 4
Comparison of Production by Process Technology (4) Process technology (Design rule) Between 1995 and 2003, the company won awards
for reliability and performance from most major customers. (5) High quality of products Group 2 Source: Harvard business school Samsung Electronics case, Exhibit 7a