Samsung Case Study

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Fundamentals of Strategy Case Study: Samsung Y.E Samsung has adopted a culture of commitment in the company, always striving towards development and ingenuity. The strategic decisions that were taken have led Samsung to be a price leader as well as highly differentiated. In a very good timing Samsung invests 100M$ in DRAM semiconductor technology development, while the market was in recession and other companies were exiting the DRAM segment, and didn't retreat at the sign of loss. They have taken the risk to be the pioneer investors in mass producing 8 inch wafers, which granted them DRAM market-share leadership as well as lower-costs. Samsung offered 1200 different varieties of memory, ranged from legacy products to cutting edge technology (such as different memory sizes, SRAM, SDRAM, NAND flash and more). A strategic decision to collocate the main R&D and fabrication lines estimated saved 12%, benefits low-cost and high scales. Choosing the technology of stacking over trenching proves to be correct and gives a big advantage over other firms, enabling easier monitoring and fixing chips. The company purchases in high quantities, reducing raw material prices. About 34% of Samsung's advantage in operation margin (in DRAM) is due to its low cost advantages. Competitors had in average 132% higher costs. High quality labor – workers are recruited from all around the globe, searching for talents that will fit the firm's culture. They are very dedicated and allow flexibility and rapid development. Incentives are profit and performance based. By adopting a "quality first" approach, customizing products and winning reliability and performance prizes, high reputation is helped establish. Samsung performs frequent competitor analysis in order to avoid complacency and maintain a competitive edge. By ensuring its market share, Samsung has managed to maintain the
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