Samsung Electronics Company has come a long way since their start as a black-and-white TV set manufacturer in 1969. With rapid increases in sales early on, their brand name stood out as a market leader in Digital Media, Telecommunications, and Digital Appliances Business. Samsung’s first CEO, Kun Hee Lee,believed the semiconductor industry displayed legitimate market growth and decided to make an entry. In 1974, Lee purchased the Korea Semiconductor Company, which had recently run into financial difficulties. He convinced the group that although in the beginning they may lose money, later on their payoff would be large margins due to rapid growth in the industry. Samsung utilized key success factors in the memory chip industry and developed high-quality products while also managing to sell at higher prices as compared with competitors. External Consistency Internal Consistency Dynamic Consistency Porter’s Five Forces The three semiconductors Samsung produces are DRAMs (Dynamic Random Access Memory), SRAMs (Static Random Access Memory), and Flash memory, which have no substitutes. Samsung’s most pressing threat to their memory products is that of nanotechnology. If their R&D is not moved into this new direction they could lose their market share to this new area of the industry. With the threat of Chinese entrants mounting, Samsung had to make a choice as to how to proceed with their future business strategy. The first option is to begin collaborating with one of the Chinese firms. Taking the motto of “if you can’t beat them, join them” would allow a symbiotic relationship between the two firms. Pros: Samsung would benefit by getting access to the low costs that the Chinese government allows for firms in this industry. They can focus on emerging technology and products while temporarily holding off some of the the Chinese rivalry. Going into China also parallels with their internal consistency of appreciating the global aspect of the entire firm. Cons: The...