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Samsung China

SAMSUNG CHINA
September 12, 2002

BUS 610 (Man. Econ.)
J. Suyderhoud, Instr.

Castaways
Alex H.
Brandon M.
Chandra H.
Rajesh B.
Stuart W.



Rural Urban
Low-Med end Barriers to Entry: Barriers to Entry:
Economies of Scale High Economies of Scale High
Product Differentiation Low Product Differentiation Med
Capital Requirements High Capital Requirements High
Access to distribution Channels High Access to distribution Channels High
Cost disadvantages Independent of Scale Med Cost disadvantages Independent of Scale Med
Government Policy Med Government Policy Med
Expected Retaliation High Expected Retaliation High
The Entry Deterring Price Med The Entry Deterring Price High
High-End Barriers to Entry: Barriers to Entry:
Economies of Scale High Economies of Scale High
Product Differentiation High Product Differentiation High
Capital Requirements High Capital Requirements High
Access to distribution Channels High Access to distribution Channels High
Cost disadvantages Independent of Scale High Cost disadvantages Independent of Scale High
Government Policy Med Government Policy Med
Expected Retaliation Low Expected Retaliation High
The Entry Deterring Price Low The Entry Deterring Price Low
I. Threat of Entry

Determinants Rating Significance
Economies of Scale High Necessary to produce high volume in order to be profitable
Product Differentiation High The brand and quality perceived with the brand are important in this market
Capital Requirements High Need significant amount of investment to enter the market
Access to distribution Channels High The Chinese market is structured in a way that makes it difficult to gain access to distribution channels. You need a high distribution rate in order to succeed in this market
Cost disadvantages Independent of Scale High Technology and the learning curve creates high barriers
Government Policy Med Government policy is rated medium, as although they encourage foreign...