Samsung Electronics Case Study Example | Topics and Well Written Essays - 500 words

Samsung Electronics - Case Study ExampleThe reminiscence industry is characterized by having few powerful suppliers. The consumers are extremely price conscious thus pelf margins are low. In order to be able to get lower prices from suppliers companies have to buy in bulk. Suppliers give high volume buyers a 5% purchase discount. Memory represents about 4-12% of the cost of an OEM electronic data processor. The OEM computer industry is the primary buyers of drachma. The OEM computer industry is fragmented and no single OEM manufacturer holds more than a 20% market share. Quality is a critical mastery factor for companies in the memory industry. growth quality allows companies to achieve customer retention (Kotler, 2002). Defective memory is high risk for a computer manufacturer because it could destroy product value. OEM companies are willing to pay an extra 1% price bounteousness for reliable suppliers.Samsung which is a successful player in the memory industry developed new types of cut of meat edge memory chips that enable them to differentiate themselves from the competition. The use of innovation enabled the company to have a groovy product variety and penetrate niche markets within the industry were they could charge higher prices. In 2003 Samsung offered 1200 types of DRAM products. This gave the company an advantage because by 2005 the prices of the older memory technology started to depreciate in price. When this occur the outgo approach for companies that did not have the new innovative products like Samsung was to utilize a strategy to piss market share. Chinese manufacturers utilized the strategic approach of increasing market share.Another critical success factor in the industry is having organizational experience and tacit knowledge to master the design and business process. Testing chips for reliability during the production process was imperative. Successful companies designed process improvements to allow more