CASE STUDY

I.Title: Samsung and Hynix Semiconductor to Cut Chip Production

II.Time Context:
III.Background:
Sam Robins, the owner and CEO of PC Solutions which is small but growing company that
assembles PCs and sells them in the highly competitive market for “clones”. He read one of
Wall Street Journal articles that contained statements from the executives of two of South
Korea’s largest semiconductor manufacturers namely Samsung Electronics Company and
Hynix Semiconductor saying that they would suspend all their memory chip production for a
week and another large semiconductor manufacturer was likely to follow suit. Satisfied that the
information was correct, he called the director of personnel.
IV.Point of View:
As Sam Robins, the owner and CEO of PC Solutions
V.Statement of the Problem:
How can we continue selling high quality assembled PCs in a highly competitive market?
VI.Area of Consideration:
SWOT Analysis
Strengths
 Bigger income
 Less outflows
Weakness
 If lack of computer parts, selling products might be impossible.
 Suspension of Manufacturers

Opportunities

 can be a regular and well-known supplier of PCs throughout the world

 can build new connections and relationship with other company

Threats

 competition
 customer preference
 VII.Alternative Course of Action

Advantages Disadvantages

1. Seek for Another Memory a. Discover new features a. The quality is not
Chip Producer ensured.

b. Build new connections b. Time consuming

a. Low start-up cost a. Time consuming

2. Produce Own Memory Chip b. Innovation b. risky

a. Affordable a. Secondhand quality

is not ensured.
3. Get Memory Chips from old
and scrap computers b. Recover valuable raw b. High labor cost
materials

VIII.Recommendation
We chose alternative course of action 1 and 3.
IX.Conclusion
Therefore, we chose to seek for another memory chip producer although the quality of
memory chips is not ensured and time consuming, it also discover new features and build new
connections with other manufacturers. Also, getting memory chips from old and scrap
computers is also a great alternative course of action since it is affordable and can recover
valuable raw materials even though secondhand quality of materials are not ensured and it
requires high labor cost.