Blog Post #3 – Samsung Investment to Pay Off?
Article of Discussion: “Samsung to build $15 Billon Chip Plant”
Date of Article: October 5th 2014
The article of discussion this week pertains to a hefty investment made by South Korean Multinational conglomerate, Samsung, in order to keep up with competition on the smartphone market. They made an investment of $15 Billion on a new chip plant which will begin construction in 2015 and be expected to be complete by 2017. Its main issue is that it does not possess as much market power as apple does while providing a product at the same price and is struggling to compete on foreign markets that have cheaper alternatives such as Xiaomi. This an attempt by Samsung to protect their future and hopefully in the long run reduce costs of production in order to be able to remain a main stay on the phone market. This investment in my opinion may pay dividends but it may be a good idea to apply more effort in the positioning of their product in the minds of their customer. If Samsung could come up with a unique or diverse angle to separate themselves from their competition and implant their product line in the mind of their customer’s minds then maybe they would be able to start actually competing with apple again.
Cover Image Source: Robert Scoble