Question 01: What recommendations would you make to Chairman Lee

regarding Samsung’s response to the threat of large-scale Chinese entry?

The recommendation for the Chairman of Samsung Mr. Lee will be to enter new
markets and explore new innovative products to remain sustainable in the Chinese
market. As for now, the company has been under severing threat from the local
Chinese players who offer products are very cheap rates which is quite difficult for
Samsung to manage.
Therefore, the recommendation for the company will be to introduce new
consumer electronic goods for the market. For instance, the company shall look to
offer medical devices, security camera, etc which can be a diverse profile for
Samsung, and this will also help the company to eliminate the competition with the
local players where Samsung will be playing in an entirely new market.
Question 02: What were the factors that led to Samsung’s dramatic rise over
the past 20 years?
The major factors that led to the dramatic rise of Samsung were the fact that it
prioritized speed as a major source of competitive advantage. The company looked
to introduce new technologies in all the different business sectors at a faster pace
than the competitors. Along with this, Samsung also invested a lot on new product
development.
The company has always been able to penetrate in developing markets and sustain
in mature markets. The above factors can be considered as major success
attributes for Samsung.
Question 03: What are the sources of Samsung’s cost advantage?
The major source of cost advantage for Samsung has been the fact that the
company produces its products in various parts of the world, rather than relying on
the home country. For instance, India and China have been two markets where the
products that are manufactured by Samsung are reasonable because of the low
labour cost and cheap raw material cost.
Along with this, another major source of competitive advantage for Samsung has
been the fact that the company has been offering products that are priced for the
specific market.
Question 04: What are the sources of Samsung’s price premium?
The major source or Samsung’s price premium has been the fact that the brand
name of Samsung has an image and customer loyalty. The company cannot just
reduce prices in order to stay competitive and sustainable in the market. For
instance, in China the products offered by Samsung in cell phones are ranked
number six, which is quite low.
...

The reason for this rank is because, competitors in the market offer similar features
cell phones at half the price of Samsung. However, Samsung cannot just reduce the
prices because it has invested huge amounts in research and development, product
innovation, human resource, marketing etc. This therefore ensures that the
company has to charge a premium price for its electronic consumer goods.
Question 05: What will be the most essential steps to implement the Global
Strategies for the immediate future?
            The major step which Lee has to take to actually implement Global Strategies
at Samsung in the competitive markets such as India and China is to further
penetrate in these markets. The most essential steps that need to be taken by the
company in the near future are to spend on advertising and marketing of its
products. Samsung, already spends ample revenues on advertising, however, in the
future the company should look to work upon ATL and BTL activities which can
increase the chances of implementing global strategies.
            Along with this, the company shall also look to introduce new product range
such as security cameras, medical electronic devices which are not being
manufactured by any of the competing rival firms. BY entering into this segment,
Samsung can increase its sales in the market.