Samsung should focus on to invest more in semiconductor business and leave the Chinese Collaboration. Korean’s are pioneered and they expertise in making semiconductor products. Samsung focus on differentiation strategy, low cost and high quality memory products and targeted niche market. Samsung have too much organization experience and knowledge about design and its production process. Samsung focus on making nanotechnology with high accuracy and energy efficient products. Expand more on R&D system, unique HR policy, unique culture, recruited globally high trained and skilled labor force. With an efficient and effective leadership Samsung lead the Semiconductor business and they manage and control all scenarios that occur around the competitions. Memory Chips production process and design is too difficult but Samsung have a real potential and well managed its process and design and make products to consumer demands.
How should Chairman Lee and the senior management team at Samsung react to the threat of Chinese competition? Samsung labor force are pioneered and they expertise in making semiconductor products and they are efficient and capable to make more innovative and creative products to become a leader in the semiconductor business. Samsung have a competitive advantage, they produce high quality products at low cost memory products and differentiates of its products. It’s too difficult to making nanotechnology based memory chips but Samsung have experience, knowledge, strong leadership, skilled and highly trained labor force they can do easily and focuses on to reliable, pioneering and cutting-edge memory products with high accuracy and energy efficient products. Samsung expands more at its R&D system to control on cyclical innovations.
Samsung used sigma six as a tool to make advanced, efficient and quality products. China has not too much organization experience and knowledge about design and its production process. But they have cheap labors, cheap materials, tax incentives, and they make old model memory chips which is low accuracy and low quality at low cost. Samsung have a risk with China collaboration because intellectual rights not protected and China expertise in making semiconductor and lead the semiconductor market. Samsung should focus on our cutting-edge products and make its more innovative, superior and creative at low cost. Expand money for its R&D system and keep differentiating our organizations structure.