Samsung Electronics Case Summary

Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as

From pioneering in memory DRAM semicon to exiting the low-margin DRAM market – Intel was primarily a Memory semicon manufacturer before it entered microprocessors in 1980s. Its added value in the memory industry in 1970s was very high because of its advances in MOS process to produce DRAM. However, with increase in competition and the advancement of Japanese conglomerates in the memory industry Intel was forced to play a chasing game to improve performance and reduce costs. In the mid-1980s, Intel’s market share in the core memory business was <1%, however it was continuing to invest in this domain. They finally exited the DRAM market, which was more of a cash burner with low-margins.

Some of them are well known names, like US-based Intel, which supplies the NOR flash chips which hold the iPhone's updatable system software; and Korea's Samsung, which makes the video processor IC. Two famous names from consumer electronics, Japan's Sharp and Sanyo Epson, are among the suppliers of the phone's bright 3.5-inch display.

Although the Silicon Valley is not limited to the production of cell phones, many of the components of cell phones are manufactured by workers in the Silicon Valley. Several corporations that manufacture cell phones or the components of cell phones have their plants located in the Silicon Valley. Some corporations include Intel, Altera, 3com, Applied Materials, Agilent Technologies, Juniper Networks, Linear Technologies, National Semiconductors, and Xilinx (“Silicon Valley Companies”).

In 2013, Intel spent more than 10.6 billion in Research and Development (R&amp;D), and became the third biggest spender in R&amp;D. Intel invests in R&amp;D to get on with Moore’s Law, an observation by company co-founder Gordon Moore in 1965 that computing power doubles every two years. As the company works to cram more transistors onto its circuits, development eats most of the company’s R&amp;D spending. “It’s getting more expensive to do the development piece of it

Mitel Semiconductors Mitel Semiconductors is a division of Mitel Corporation. The semiconductors division focuses on the business communications segment of the overall semiconductor market. The segment is relatively small when compared to the semiconductor market as a whole but the segment is experiencing high levels of growth over the next five years. Currently Mitel Semiconductors holds 7% of the business communications segment and management would like to see market share double in the next five to six years. Mitel Semiconductors is quickly approaching full capacity at its Bromont Foundry that performs the

Compared to every other domestic industry, the semiconductor industry is unique. It is perennially one of America’s top exports, and every year, chip makers and designers dramatically increase the performance of their products while decreasing prices, making high-end technology goods increasingly productive and affordable for consumers.

The semiconductor industry thrives due to rapid technological advancement and innovations contributed by various countries of the world. Where European Union and United States have been leading the industry, the Asian countries are now

computer hardware sector. The company has a high brand value in the market due to its cost

Foxconn Technology Group, a subsidy of the Hon Hai Precision Industries Ltd. is one of the world's largest electronics manufacturers. It ranks 112th

SAMSUNG Electronics Co. is a South Korean multinational electronic information technology company having headquarter in South Korea. Samsung Electronics is the world’s larger mobile phone maker and world’s second larger semiconductor chip-maker.

In  the  next  section  we  will  analyze  the  level  of  competition  within  memory  industry  based  on  Porter’s   model, Samsung's competitive advantage and its sustainability considering the current market situation.  3. Analysis:  Considering  Porter’s  model  as  a  framework  to  analyze  the  level  of  competition  within  DRAM  memory  business,  the  threat  of   new   entrant  is  high  compared  to  the  threat  of  substitutes  and  established  rivals in horizontal competition.  If  we  look  at  rivalry within  the DRAM industry between established  players,  Samsung  has  a clear  advantage  over  its  competitors.  Samsung  is  the   market  leader  in  DRAM  memory  business. It  has  a wide  range of products and its products has a higher brand value.  Threat  of  new  entrants  is  high  as  Chinese  competitors  have  easier  access  to  large  pool  of  local  engineering talent and have a growing market  for these DRAM chips. The  government is also  providing all  sorts  of  assistance, like subsidized  land, for  the initial setup. Samsung has several options to  deter  the entry  of  new  Chinese  competitors.  One  option  Samsung  have  is  to  continue  to  explore  and  increase  market  shares  of  flash  memory  markets  which  is  a  new  and  growing  market.  Samsung  can  also  take  advantage  by  lowering  the  price  of  DRAM  chips.   This  would  force   a  price  war  and  drive new

Solectron Corporation is but another classic case of a company that benefited immensely from the dot.com boom, only to experience the pains of the bust as the dot.com companies went down in the early 2000s. From its humble beginnings in Milpitas, CA as a solar energy products manufacturer, Solectron grew to be a highly successful global supply chain integrator with revenues of $18.6 billion by 2001. From the time it was founded in 1977 through 2000, the company grew in leaps and bounds mainly through lateral acquisitions.

History: Company started its business as a Samsung Electronics Industry Co Ltd in 1969 and introduced some electronic products such as Black-and-white TVs, washing machine and refrigerator from 1960 to 1975. The worldwide establishment and expansion of the business and operations of the company started in 90 as entered in the Asia, Europe and American region

Because of the extremely intricate and sophisticated nature of manufacturing semiconductors, a competitor should expect high initial capital requirements to build facilities needed for production. Cost to build a new semiconductor fab has gone up from $200 million in 1985 to $3 Billion in 2004. Incumbent companies have capabilities to design newer generations of semiconductors with greater amounts of memory and processing abilities that make older generations obsolete. Older generations tend to drop half their amount in price one year after a new model is reduced (exhibit 6). The United States