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It is our opinion that Samsung should begin an incremental decline in the production of low-end DRAM memory chips, and initiate an extensive strategic movement towards capturing the higher-end of the DRAM market, as well as new niche markets, such as Flash memory.
The external analyses showed that there are many competitors that have begun to focus solely on production of low end DRAM. The greatest threat observed is the rampant growth of the Chinese company SMIC, which comes as a result of low-cost production and tax-incentives from the Chinese government. The primary recommendation that resulted from this analysis is that the low-end DRAM market has become overcrowded, while the high-end market is currently occupied by only one major competitor, Eplida Memory...
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