Case Write UpSamsung ElectronicsThe Memory IndustryAnalysis of the Five ForcesThe Five Forces is real important in the pains analysis . These hosts determine the persistence s profit potential as well as its process and development in terms of industry s operations . These factors countenance the following : little terror of new entrants , bargain originator of suppliers bargaining post of geters , terror of new products , and rivalry among competing firmsIn the work of Samsung electronics , their chief(prenominal) problem is their tough competition with Chinese competitors in the anamnesis industry (see exhibit 3 . However , in to look for the lieu of Samsung electronics in all aspects , the analysis of the five forces should be employedThreat of New EntrantsGiven the fact that Chinese Competitors do not very take aim difficulty in financing their manufacturing conductive material-products because they be being supported by outside bodies , Samsung concourse has the reason to be worried about their market status in semiconductor industry . Because of a large crime syndicate of capital , Chinese competitors gain the guts to compete in the market tied(p) if they argon not really earning high scratch . thereof they can sell their products in cheaper prices than other firms unless to have greater share of marketAlso , the fact that other semiconductor firms and companies are also helping them in penetrating the market by having strategic alliances joint ventures , and partnerships , these could really make Chinese competitors hedge in Samsung Electronics . They are really learning from those firms and companies about new technologies , original designs , and competitive strategies in to cope up with the change in the environment (i .e .
customers demandAll in all , it can be inferred found on the given situations that there is a high threat of new entrant in the semiconductor industry in particular in the memory industry which Samsung should really bring in to maintain their market statusBargaining Power of SuppliersWith regards to the bargaining ability of suppliers by Samsung Electronics , it can be said that Samsung has still the power oer the suppliers since its brand has already gained high-value in the market consequently suppliers would not easily cut its total with SamsungYet , suppliers have the movement to supply most of its products to other companies or firms if ever these firms would buy those products in rel atively higher price than Samsung does . As mentioned in the case China can really afford to move over profit-earnings just to penetrate the market industry . Thus , it is not unsurmountable that they would really try to buy most of the suppliers productsBy examining this force , Samsung has a high rate with regards to the bargaining power of suppliers given the prolific that it has already established a great descent with its suppliers . theless , if Samsung would really want to increase its relationship with its suppliers or stop up sufficient supplies , it may consider increasing its s from its suppliers or some(prenominal) better if it would do backward integration by acquiring its suppliersBargaining Power of BuyersAs...If you want to get a full essay, kindly club it on our website: BestEssayCheap.com
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