Samsung Background Samsung started its business back in 1938, as an agricultural product producer. In 1969, Samsung became a low cost black and white TV manufacturer, known as Samsung Electronics Company (SEC). To support for its growing business, Samsung acquired a semiconductor business, and was set for a future in electronics business. During this period, Samsung focused on R&D, and supply chain to improve the quality of its products. In 1997, during the Asian financial crisis, SEC had a negative net income forcing it to dismiss 29,000 workers, and sell off $2 billion worth of assets.

SEC made a turnaround with its on-going business strategy. In 2002, it had a net profit of $5. 9 billion. By 2003, the company managed to turn into a $41 billion company- a largest Asian electronics company. SEC took the opportunity during the financial crisis to re-define its key fundamental strategies, and to pursue a long-term innovative goal. 2. Macro and Micro Factor Analysis Porter's Five Forces Analysis Rivalry: Samsung was engaging In a highly competitive business environment. For electronic product, Samsung faced known rivalry In the Industry, such as Sony, LOG, Sharp, Hitachi.

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In semiconductor segment (computer memory), Samsung had potential rivals from young Chinese manufacturers. Supplier Power: Semiconductor suppliers were mainly from China, and all the hardware manufacturers were able to access to these raw material resources so the power of supplier was low. Buyer Power: Semiconductor and electronic Industry was mainly competing on margin. The powerful buyers, who demanded lower prices, would hurt the company's profit.