samsung

Essay specific features

 

Issue:

Social Issues

 

Written by:

Timothy S

 

Date added:

August 28, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 604

 

Was viewed:

3952 times

 

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Essay content:

The advantages of this strategy are twofold. First, partnering with a Chinese producer could further reduce Samsung’s average cost by exploiting a cheaper labor (Chinese labor is on average 57% cheaper, see Exhibit 7a). Second, partnering with a Chinese company could potentially enable Samsung to get government subsidy which could then use to increase its R&D budget...
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However, this strategy has its disadvantages. To start, IP rights in China are not well protected so there is a great risk of giving away information for free in the case that the partnership didn’t work out or there was some information leakage. Another disadvantage is the effect on its corporate culture...
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