Samsung Case Study

1. What kind of advantage are the Chinese entrants seeking? How close are they to achieving that advantage?

Chinese firms have cost advantage to jump in growing market. While Samsung and the other innovative companies had focus on inventing new territories stuff, they positioned in cost advantage with using rather cheap labor. Even though they didn't have flourish experiences and tacit knowledge to require getting enough market share, still they have easy access to outside finance and talented local engineers to lead success of potential market.

2. How much of Samsung's performance is based on its reputed low-cost advantage?

The biggest challenge for Samsung recently, Chinese firm has been positioned with similar strategy that Samsung did at late 80's against Japan and US market. So that they need to choose their price value for competing with Chinese market, this lead company to have cost advantage in their market. Furthermore, with based on their reliable technology, cost value will give enforcement to Samsung market barrier against Chinese competitors.

3. Can Samsung's low-cost advantage withstand the Chinese threat on costs?

Samsung's major business strategy is to be innovative market leader, they have anticipated to future potential market, not just rely on short term profit. They had move faster step forward than other competitors. The reason Samsung's low-cost advantage can withstand the