Samsung's Competitive Advantage

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1. Does Samsung have a competitive advantage? If so, how are they creating added-value compared to industry competitors? Make sure to quantify your claims. (In answering this question, you will find helpful information in exhibits 6-7k (but not only there)). a. Compare Samsung’s “value stick” to that of an “industry average” competitor and briefly justify any differences. (Remember that willingness-to-pay and willingness-to-supply are generally unobservable, but you can still engage in informed speculation.) b. Propose potential explanations for the higher WTP/P and/or lower C/WTS of Samsung. (Recall that with Walmart we discussed the squeezing of suppliers vs. more efficient operations as potential sources of their low cost…show more content…
Samsung’s efficiency was also driven by the quality of its employees. All R&D and production engineers lived together in the same company-provided housing, which lead to quick design, resolve and process any issues in design or production which in turn led to quick turnaround time, lower idle times and increased productivity. Also, the site was located in the mountains where the air was fresh and clean, which meant lower maintenance costs since most machinery was highly sensitive to dust and other particles
Second, the Human Resources promotion policies have shifted from their more traditional structure (seniority) towards a meritocratic system where highly skilled managers can be promoted as soon as eligible. Samsung has also heavily invested in employees’ global business skills through various internal mobility and specializing programs. All these employee centric advancements ultimately drove innovation in product design and process efficiency higher than its competitors.
Third, Samsung created new uses for DRAM by outing its manufacturing and R&D in support of design firms (i.e., Rambus). Over the years, new DRAM products were launched which shared a common core design. This way, more DRAM chips were produced and sold, helping the company, not only to achieve larger economies of scale, but also to learn more about the market and its preferences.
Fourth, the production was also
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