samsung in china :: essays research papers

Environmental AnalysisExternal EnvironmentChinese grocery store-still socialist economyhuge gap between the tell plans and the actual ability of government to manage and control the economy dire amount of economic interaction took place outside the governments formal economic plan-many smugglings and piracies-regional blockades-over-employment problemChinese color TV Market-full production capacity in demandprincipal battleground-high competitionJapanese firms high-end trade. increase production bases national Firms miserable-end market. But they were less competitive in epic screen TV.-small color TV market was shrinkinglarge market size of these product lines facilitated the fast achievement of cost reduction(economy of the scale, acquisition effect)Consumer analysis-only 41% of households had color TV80% of urban, 28% of ruralLow-end market is not a viable long-term. But boilers suit market was still expanding.-Buying power expanding both high-ends and low-ends -Tendenc y that head start image of a product lasted long in the eyes of the consumer.the evidence for differentiation needed instruction on high-ends -consumer preferenceUrban- check name, functionality were essential factors.Rural- reasonable quality and low price were preferred.-High protected market too much tariff costlocalization neededDomestic (Korean) Market-Deteriorating of competitive advantage rising the delve cost-Korean government policy supportive of big business acquire worsened of Korean marketLosing the M/S in the U.S. and no womb-to-tomb competitive in the low-end productneed to change the strategy focusing on high-end, high-tech-Liberalization of Korean marketForeign firms were permitted to sell their product directlyMore competitive in Domestic market, losing the domestic M/SSamsung had to expand the foreign market.Internal Environment puzzle in the U.S.-Set up the adjunct there in 1979- counselling on the low-end market segment based on competitive labor cost in Korea because of large demand and low competition base, and low barrier in the U.S.-Samsung produced a few of the most popular sizes TV for cost reduction through with(predicate) economies of scale and the experience curve.-Dual brand policy adopting buyer brand name(large retailers or OEM) mostly but arduous to build its own brand image-Establishing a production subsidiary in the U.S. because of trade barrier-Policy of Japanese firms targeting high-ends for differentiation through brand name recognitionMatsushita 4% of M/S in 1995 but could be high-price, higher profit-Policy of Samsung still determine strategy even though it had good quality of product3% of M/S, but much less profit than Matsushita and facing deep competition-Importance of TV industry to Samsung second proportion of Samsung electronicsIt was getting worse in situation of Samsung electronics, so needed some path to solve these problemsMarket participation in chinaware-later market entering than Japanese firm s-The establishment of SCH would enhance its image in China and speed up the accumulation of local knowledge of the market.