Essay on Samsung

12200 Words Jun 24th, 2014 49 Pages
9-705-508
REV: JULY 29, 2006

JORDAN I. SIEGEL JAMES JINHO CHANG

Samsung Electronics
Introduction
Kun Hee Lee, chairman of the Samsung Group, contemplated his company’s strategy while sitting in the basement office of his home. His office had a one hundred-inch screen on the wall, and in front of the screen there was a short desk, just one foot in height. Lee spent much of his day in this room, studying the strategies of his competitors and overseeing multibillion-dollar investment decisions. Beside his desk were hundreds of DVDs and videos, many examining his competitors’ histories and strategies. Every new product made by Samsung and its competitors sat along the walls. Trained as an engineer, Lee eagerly picked apart every
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In spite of Samsung’s current success, Lee now worried about mainland Chinese companies that were beginning to attack Samsung in the same way that Samsung had attacked the Japanese companies 20 years earlier. The memory chip industry was expected to experience a cyclical downturn in 2005, and while Samsung had survived the past two downturns with the best performance in the industry, some outside observers believed that the Chinese entry would fundamentally change industry conditions in the years ahead.
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This case was prepared by Professor Jordan I. Siegel and Professor James Jinho Chang, Yonsei University. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2005 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or

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