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Samsung Strategy
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Intensity of the Competition within DRAM industry
The competition is high because the competitors are relatively equally balanced in the industry with powerful suppliers and high exit barriers due to high fixed costs and very specialized assets, which keep the companies competing even though they are earning low or negative returns (Exhibit 7a shows an industry average of -15% operating margin). Although the industry growth is at 16% per year, low product differentiation (almost as commodities...
Approximate word count: 801
Approximate pages: 4 (250 words per
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