Samsung wins over Apple in Japan patent case 1

Samsung Electronics
Samsung, or Three Stars in Korean, was first founded in 1938 by Byung-Chull Lee. The
company splits its history into 7 eras of major accomplishments. From the beginning, the
primary focus of the business was trade export of products such as dried fish, vegetables and
fruit to other parts of Asia. In the 10 years following its debut, Samsung expanded to produce
flour and confectionary and founded its own manufacturing and sales operations. Several
acquisitions were made by Samsung between 1938 and 1969, which are now all subsidiaries
of Samsung Corporation, namely Samsung Life Insurance, Samsung Everland, and Samsung
Fire & Marine Insurance.
From 1970 to 1979, Samsung developed its growth strategies for the future, investing heavily
in raw materials and manufacturing processes. Samsung used the advantages of this strategy
to increase its market share in the electronics business, which was mostly TVs at that time, by
beginning to export outside its countries borders. In the early 1990's, Samsung refocused its
business strategies again to better respond to international demand. During this period
Samsung created the first-ever DVD recorder, developed their mobile telecommunications
systems and handsets, and made more acquisitions on an international scale. Following these
major developments, Samsung stepped up their game and released 17 different electronics
products that would rank within the top-five for global market share.
Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one
of few companies that continued growing, thanks to its leadership in digital and network
technologies and its steady concentration on electronics, finances and related services.
Samsung's current era, which began in 2000 is named "Pioneering the Digital Age".
Samsung at present
Samsung Electronics Co., Ltd. is a multinational electronics and information technology
company headquartered in Suwon and the flagship company of the Samsung Group. Samsung
Electronics is the world's largest information technology company measured by 2011
revenues. Its products include air conditioners, computers, digital televisions, liquid crystal
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displays (including thin film transistors (TFTs) and active-matrix organic light-emitting
diodes (AMOLEDs)), mobile phones, monitors, printers, refrigerators, semiconductors and
telecoms networking equipment. It is the world's largest mobile phone maker by unit sales in
the first quarter of 2012, with a global market share of 25.4%. It is also the world's secondlargest semiconductor maker by 2011 revenues (after Intel)
Samsung produces a wide range of printers for both consumers and business use, including
mono-laser printers, color laser printers, multifunction printers, and enterprise-use high-speed
digital multifunction printer models. The company introduced a number of energy efficient
products, including the premium laptop, the world's-smallest mono-laser printer, hard disk
drive, MP3 player and color laser multifunction printer. Samsung has introduced several
models of digital cameras and camcorders.
Major customers

Rank/company
1 Sony
2 Apple Inc.
3 Dell
4 Hewlett-Packard
5 Verizon
Communications
6 AT&T Inc.

Samsung's largest clients ( 2011)

Buying(trillion Percent of total
Part description
KRW)
sales
DRAM, NAND flash, LCD panels,
1.28
3.7
etc...
AP (mobile processor), DRAM,
0.9
2.6
NAND flash, etc...
DRAM, flat-panels, lithium-ion
0.87
2.5
batteries, etc...
DRAM, flat-panels, lithium-ion
0.76
2.2
batteries, etc...
Handsets, etc...

0.5

1.3

Handsets, etc...

0.5

1.3

External Analysis

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Political/ Legal Environments

Over the past several years, there has seen a plethora of patent lawsuits within the smart
phone industry. In the highly competitive environment, manufacturers of handsets have been
aggressive in protecting their intellectual properties by suing competitors by claiming
infringements on patents. More recently, Apple launched a lawsuit against Samsung in April
2011 claiming Samsung copied design features of the iPhone in its Galaxy line of Android
phones.
Samsung wins over Apple in Japan patent case
Aug 31, 2012 - A Tokyo court ruled that Samsung Electronics' mobile devices did not violate
an Apple Inc patent, awarding the South Korean firm a victory a week after it lost a landmark
patent case in the United States.
The Tokyo District Court's ruling on an Apple patent dealing with transferring media content
between devices comes after a U.S. federal jury found that Apple did not infringe on any of
Samsung's patents, while the South Korean firm had copied key features of the popular
iPhone. The U.S. jury awarded Apple $1.05 billion in damages and it is now seeking speedy
bans on the sale of eight Samsung phones in the U.S. market.

Economic Environment
The North American economy is still recovering from the financial crisis of 2008. The high
unemployment rate in the US and Canada has been negatively impacting consumer
confidence and has resulted in a decrease in consumer spending. Bloomberg reports consumer
spending dropped 0.2% in June 2011 which provides evidence the decrease in hiring and
wage increases below the inflation rate are affecting consumer spending. Consumer spending
accounts for 70% of the US economy; any fluctuation in this area will have a significant
impact on the overall economy. In Canada, the opposite is true. Consumer spending increased
by 3.8% from 1st quarter 2010 to the end of 1st quarter 2011 ("Canadian Consumer
Spending"). Consumer confidence is Canada seems to be higher than the US likely resulting

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from lower unemployment rates and Canada's faster paced recovery from the global financial
crisis.
Social-cultural Environment
The rise of the information age has made electronic devices more important for both business
and pleasure. It is important to determine how receptive a society is to new advancements in
technology and their adoption. By measuring adoption by age demographics, there is a
competition of who can gain the primary target groups. Insights into how different groups of
electronic devices users use their devices can provide insights into new features or
improvements in established features.
Technological Environment
Technological environment is continuously changing. Because of the extreme rivalry there is
always a competition in between the major competitors to bring something innovative in the
market. Consumers also so much demanding and they always appreciate new ideas by any
company. Samsung faced lots of challenges in recent years because other major companies
like Apple, Sony etc bringing lots of new product or new model of existing product in the
market. To compete with and retain market share, Samsung is always on their way to being
more and more innovative and give customers new experiences.

Porters Five Force Analysis

The threat of potential new entrants (Low)
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High capital is required to enter into this industry, where Samsung electronics 7 kinds of its
products have taken the largest share in the world market. More over, It is difficult to start up
in an industry where the existing firms already operate on cost and differentiation strategies.
However, with the commoditization of parts, finding vanilla solutions for a simple alternative
product might be possible. Differentiation, however, is another story. New entrants would
have issues with overcoming patent issues if they didnt plan on investing in their own R&D
to create a unique product. These things together would require a new entrant to establish a
competitive brand name while achieving economies of scale via investments in a supply chain
process and developing a distribution infrastructure to remain competitive. The costs of
accomplishing these things make a very strong barrier to entry. Even then, overcoming issues
such as customer loyalty and switching costs would be another large barrier to entry.
The threat of substitutes (Low)
Substitutes in the consumer electronics industry are many and the different companies
competing in this industry must apply many strategies in order to compete and make profits.
For Samsung, almost any device that performs the same functions as a Samsung phone could
be considered a substitute. Although there is an increased popularity of Tablets, they are
generally too bulky to be considered as straight substitutes. They dont offer traditional
mobile phone capabilities, which makes them inadequate. Laptops have the same problem.
HD TV- Television have recently become very popular with the new HD technology. The
substitutes for TV's are computers, laptops, I pods. Because of the limited availability and
space on IPods and the smaller size of a laptop screen, TVs will still stay popular and be high
in demand. In the digital camera industry cell phone cameras don't provide the same quality
and storage as digital cameras. So finally we can say the threat of substitute is low.
The bargaining power of buyers (High)
Buyers have good leverage when it comes to bargaining because of their access to information
and how competitive the industry is. With so many similar products from other carriers,
buyers have several points on which they can bargain. Buyers easily switch cost with the
increased of choices of companies and furthermore their products are quite similar to one
another; they will switch to those who have better features or price points. Switching costs,
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however, can be very high in some cases. Most of the electronic entertainment products are
created from wants, not needs, therefore the customer does not have to buy the product to
survive. Thus companies have to keep the buyer in mind and listen to what they want. So,
bargaining power of buyer is high.
The bargaining power of suppliers (Low)
In Samsungs case, the bargaining power of suppliers is low because Samsung is its own
supplier of most components. Samsung also happens to be its own supplier for raw materials.
In the industry, however, A mobile phone manufacturer could always integrate forward into
the industry without the middlemen. So the bargaining power of suppliers is low.
The intensity of competitive rivalry (High)
The threat of rivalry in the consumer electronic market is very high. Not only does a company
have to compete on a level of technology and price, but they also have to keep track of what
the competition is doing. There is a high intensity and constant competition in the electronics
industry and usually the main competitors come up with new products very often. If a
company does not keep up with trends and new products, they will lose their customers and
profits.
Like the smart phone industry has many competitors that are equally balanced, and thus
rivalry is high. The market for smart phones has slowed in growth since its boom, so pressure
to take customers from competitors is also high. Differentiation in the smart phone industry is
also at a point where it is very short-lived. If a company decided to compete in this industry,
they have to compete with intense price rivalry. So the rivalry among competitors is very
high.

Internal Analysis
Core Competences

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Core competencies are those capabilities that are critical to a business achieving competitive
advantage. The starting point for analyzing core competencies is recognizing that competition
between businesses is as much a race for competence mastery as it is for market position and
market power. The basic factors that make the Samsung world wide recognized are
manufacturing, product development, research and development. So from that factors we can
find out the core values of Samsung and these are:
1. Technology Leadership
2. Innovative culture through R&D
3. Brand image in the Industry.
In this tide of specialization, Samsung didnt simply follow others. In Samsung Group, three
sectors, namely electronic communication, financial insurance, and trade and service take the
dominant role. In the electronic communication sector, the four major industries including
semiconductor, communication, digital multi-media, and home apparatus, develop in a
coordinated way. And in the home apparatus industry, there are four core products namely
washing machine, refrigerator, air-conditioner, and electric cooker. People of Samsung call
this kind of industrial structure golden structure, which enjoys a coordinated development.
This diversification seems to be against the trend, but it has been proved effective in the
global market competition. Eighteen of Samsungs products have taken the largest part of
market share in various sectors, among which electronic products take up seven. The success
of the diversification originated from Samsungs creative understanding of Core Competence.
The diversified structure of Samsung is based on the advantages it enjoys in various fields. It
is the diversification through establishing structure and systems that are most suitable to itself.
In other words, the diversification of Samsung is not based on the unity of its products, but on
the unity of the resources.
SWOT Analysis
STRENGTHS

Strong Brand Image

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Existing knowledge and experience of electronics market

Strong global presence with strong brand and customer base.

Well diversified and differentiated product line, to meet changing customer needs.

Design with an attractive styling that catching the pulse of customer, as the result of
the development of Samsungs new products that involve team of product designers.

Technology
With an excellent research and development capabilities, they spend a high percentage
of revenue on R&D. It resulted in global leadership in the television segment, and in
improving its position from the third to second player in mobile phones with their
innovative products.

High Market share that continue to grow ( Mobile Phones, Memory chips and LCD).

WEAKNESS

Customer perception of weak product attributes like Durability

Not pro-active coming out with unique and leading model

Focus on mass market instead of niche market

Huge investment on Research & Development

Increasing Competition

OPPORTUNITIES

Increasing on electronics consumer market

Strong customer demand for innovative products & value-added features

High % of Younger population, which can be expand a new market now and in the
future
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THREATS

Economic slowdown weakens the demand for electronic products.

Low cost Chinese producers eroding profitability

Increasing competition for all electronic products

New nanotechnology may replace Samsungs DRAM technological advantages.

External changes like government, politics, taxes, etc

Corporate Social Responsibilities of Samsung:

Samsung takes its role as a "good corporate citizen" very seriously and stands firmly be- hind
its commitment to making a lasting social contribution to the community. Through numerous
initiatives, donations, sponsorships, and voluntary activities, Samsung honors its obligations
to society in creating a better and more prosperous tomorrow for all.
Social Welfare Programs:
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The Samsung Welfare Foundation and Samsung's affiliates serve the community and help
children and young adults develop into healthy, productive members of society through a
wide variety of programs. Since 1999, Samsung has donated 10 billion Korean Won in grants
to the Community Chest in Korea to assist with social welfare programs.
Animal Welfare Programs:
Samsung's philosophy is that the relationship between people and pets, especially dogs, makes
for a better and less self-centered world. Samsung believes that in our new millennium of
technology and fast-paced business environments, interaction with animals introduces a
calmer, sensitive and more holistic dimension to our world. Samsung runs a Pet Ownership
Program, where Samsung employees can adopt lovingly reared dogs. Positive pet caring and
handling are taught to families, and in doing so, contribute to creating a world that is less selffocused and cares more about animals in general. All service dogs in Samsung's programs are
cared for in their old age when they are no longer able to function in their field. Guide dogs,
search and rescue dogs, therapy dogs and hearing dogs are all guaranteed safe and
comfortable geriatric years either with volunteer families who wish to take care of them or at
our centers where they can be monitored constantly.

Cultural and Arts Programs:

Cultural and arts programs provide diverse support for the preservation and exhibition of
Korean and other ethnic heritages. Samsung has contributed greatly to numerous museums,
galleries and exhibits in Korea and around the world, including: Samsung also sponsors
talented young musicians of the International Sejong Soloists (ISS), a New York-based string
ensemble created in 1995 under the musical direction of Hyo Kang, a renowned violin
professor at the Juilliard School. To develop children's creativity and promote artistic
expression, Samsung's affiliates host and support various events such as the annual Bichumi
Painting Festival, the Glass Modeling Academy and the Kenox Photo gallery.

Academic and Educational Programs:

Samsung's academic and educational programs in Korea and around the world include direct
assistance to universities, international exchange programs, support of Korean studies
departments overseas, scholarships, donating computers to elementary schools and supplies to
develop schools in third world countries. Since 1990, Samsung's Ho-Am Foundation has been
awarding the Ho-Am Prize, Korea's version of the Nobel Prize, which recognizes outstanding
contributions to society or exceptional results in research in six areas that further the welfare
of humanity. In July 2002, the Samsung Kun-Hee Lee Scholarship Foundation was
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established to provide funds for young Koreans to study overseas in liberal arts, social studies,
science and especially technology and engineering.

Environmental Preservation Programs:

Environmental preservation programs exist at every Samsung operation around the world. In
1993, the Samsung Global Environment Research Center was established to study policies
and strategies related to environmental issues. Today, Samsung is actively involved in
ecological preservation through the development of environmentally friendly products and
related technologies. Samsung Electronics' Kiheung site and Samsung Petrochemical's Ulsan
site were designated Korea's first "environmentally friendly companies" by the Korean
government, assuming environmental responsibility for process improvement, toxic material
replacement and pollutant minimization. More recently, Samsung Corning in Malaysia
received the Prime Minister's Hibiscus Award, the first private sector award that recognizes
exemplary commitment by industries to the environment. Volunteer efforts are also a core
element of Samsung's commitment to a clean environment, as demonstrated by the employee
"Adopt a River" and "Adopt a Mountain" clean-up campaigns. These efforts have spread to
450 companies and institutions in Korea, and have also had a great impact overseas, including
tropical forest preservation in Malaysia, the "One Company, One Park" program in China, and
a beach-cleaning project in Mexico. Samsung's affiliated companies also run painting contests
and education programs for children to learn about the importance of environmental
preservation.

Employee Volunteer Programs:

Samsung employees are active in a wide spectrum of social improvement projects, from
environmental cleanup and disaster relief to housekeeping help for the elderly and mentoring
orphans and young parents. More than 50 percent of all Samsung employees world-wide are
currently involved in volunteer programs, sharing their time and talent for worthy causes. The
Washington D.C. based Points of Light Foundation (POLF) has recognized these cumulative
volunteer efforts. In 1998, POLF selected Samsung among all international corporations for
its prestigious Award for Excellence in Corporate Community Service. In awarding Samsung
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this honor, POLF noted Samsung's achievements in establishing effective systems to support
employee volunteer activities, to develop and maintain systematic volunteer programs, to
leverage technological and human resources, and to serve local needs.

Global Market Strategy

Samsung has implemented number of Global Market strategy to achieve international
competitiveness and following are some:
1) For any company to be successful, most important is to set goals, objectives and have
confidence level. In the article we have seen that Samsung Electronics have strong Vision
and Mission.

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a) Vision statement charts long term direction of a firm including its core values and
purpose. If we analyze their vision statement Lead the Digital technologies to
enrich the lives of people, develop new markets and ensure that company remains
a trusted market leader, we can see that Samsung Electronics want to lead the
Digital technologies and that is not easy having some many good competitors.
They are not only interested in local market but also develop new market along the
globe and finally they will ensure their products offers safety, longevity in order to
remain trusted market leader. All this wishes are not easy and therefore, their main
key global success I think is the desire to take tough challenges.
b) Mission statement explains the main reason for firm existence and provide
strategic planning guidelines. From this article we can see Samsung Mission
statement is Best digital e-company by creating industry leading technology
products and services, adopting the most up to date efficient management and
production procedures, maintain a strong focus on strengthening the company,
being a leader in global technology, and being a trusted responsible company.
This mission statement also indicate they want to introduce quality products so
that have quality control sector, they also have research and development sector so
they can adopt most up to date efficient management and production procedures.
All this indicate they have strong confidence and resources to deliver the best and
this what I think gave them the competitiveness and global market leadership.
Without goal everything is useless.
c) Finally they have strong objective, which is to become number one in its industry
throughout the world, and Korea`s first great global company. They objective
need to be achieved by research, development and quality control; advertising,
innovation and all this are forced by the objective of the company.
2) Good governance and transparency: In order to be successful in global market and achieve
international competitiveness, another key thing is to have good governance and
transparency. Samsung is successful in operating within the framework of good
governance and transparency to protect their corporate image and reputation and market
share and retain strategic partners. There is saying that it takes years to build up image but
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one minute to spoil it. Samsung has independent board of director, which governs the
company and always maintains transparency with its shareholders. Samsung Board of
director consists of nine members of whom two are Samsung executive directors and
seven external appointees. Four committees also establish within the board to fast track
the deliberations and decision making process of board members. They also have
management committee, audit committee the outside director recommendation committee
and also internal transaction committee. Moreover their governance is also strengthened
through its global code of conduct, which sets companies values and principle. Because of
having good company image, keeping shareholder satisfied and future more having
transparency in reports Samsung achieved international competiveness and recognition.
Since shareholders are happy and feel safe to invest, they agree to buy Samsung Shares
even at higher price which Samsung value high and also give global market leadership
from their competitor who fails to do similar.
3) Culture: Samsung Electronics is committed to creating knowledge based corporate culture
that encourages all of its employee to institute changes, innovation, creative methods and
process which cannot be achieved or replicated by its competitors. Values are the basic
concepts and beliefs of an organization and in essence are the core corporate culture and it
provide employee with a sense of common direction and standards for their everyday
behaviors and form the basis of the firms philosophy for achieving successful outcome. Its
also important for Samsung to often change their predominantly national culture to one
which is more international in outdoor which means they must respect other people
culture and avoid using things that has adverse meaning in different culture. Like V sign
in USA means victory but in UK, Ireland, Africa the same V sign means insult.
4) Knowledge and Management: Samsung Electronics is a learning organization and is
skilled in adapting to changing market conditions and addressing business needs.
Samsung conduct regular benchmark meaning identifying firms that are doing something
best and learning how to do it. They benchmark their competitors, supplier, joint venture
and trading partners. Doing so they keep up their technology with others. In some cases if
they find lack of knowledge among management or employee, they gather knowledge
from seminars, engaging consultancy assistance or by reading books. All this makes them
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up to date with latest technology advances and their brand customers gets latest products
so no need for shifting to other brands. Samsung also constantly monitor and reduce cost
of production and try to reduce price for end products so that customers can enjoy advance
product with less price. Samsung also recognize bringing latest technology in advance so
they spend high on research and development department.
5) Partners increase: Samsung always seek to increase strategic alliances meaning
corporative partnership arrangement between firms whereby they agree to work together
for mutual gain. This not only help them to increase review but more importantly they
share knowledge, increase efficiency and reduce cost of production.
6) Corporate social responsibility: Samsung in order to protect their corporate image and
brands consider corporate social responsibility. They seek for global talents and then
support them by providing resources to provide and produce which will enrich peoples
live. They also spend a lot on eco-friendly products. It also aims to have greenhouse gas
emissions by 2013. In short they contribute for the society from their profit to benefit the
society and also maintain their brand name and image. This will cost them at the initial
stage but will bring higher return for future.

Above are the points those clearly state why Samsung Electronic achieve international
competitiveness and global market leadership. above key global strategies was not
implemented in years. It takes time and they will continue implementing more new key global
strategies to strength their position, profit, image and products.

Positioning Strategy
Strategic alliances is corporate partnership agreement between firms whereby they agree to
work together for mutual gain. The definite clearly explain the whole scenario, where
business A and B joint together although they retain separate business identities and seek to
learn from each other and exchange knowledge, technology, products and skills which would
not otherwise be available if they operate alone.

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Samsung Electronics is a global company operating in many different countries. It will be

relatively difficult to operate in all this countries alone. Secondly, they have many different
products sectors like electronics, petrochemicals, heavy machinery, ship building, advertising
and insurance. They can share different types of products production with different companies
based on the skills and productivity ratio. For example some can create the same product at
lower cost than others. They can also use unutilized space of another establish company by
reducing fixed cost and so on.
Following are some point Samsung Electronics may apply to ensure that it selects appropriate
joint venture partners:
1) Its never easy to make friend especially in the corporate level. Every firm is
interest in self benefit. So the first thing to keep in mind while making joint
venture partners is to clearly identify benefits from venture of all partners
involved. All benefits should be states before sitting in the bargaining table. Both
party should clearly understand each benefit from joining.
2) They should clearly mention how the partnership will and in what level they
should exchange their knowledge, technology, products and skill and then each
partner should measure the degree of difference between the advantages and
disadvantage of such share.
3) Either partner or all partners involve should ensure that all should be able to adapt
changing environmental and market condition. Also they need to feel comfortable
that they will be able to develop prosperous relationship between partners and
ability to solve problems and settle difference.
4) They should check their size and capabilities, operating strategies, respective
corporate cultures, management practice, policies, philosophies and organization
structures. They should also check their safety and political stability and so on.
5) They should try to build partnership with large firms rather than small farms as
large firms will offer them more benefits than small firms but partnership with
large firms will be more costly and time consuming than of small firms.
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6) They should seek for diversification of production to reduce production cost. They
should seek for firms producing required product at cheaper price maintain same
quality so that Samsung can reduce production cost. Same way they should focus
more on producing products they can product in cheaper price than other.
7) Most importantly they should have good papers and documents of the partner
agreement contract in order to protect them from fraud or hazards situation in
future.
8) Always maintain transparency and be open minded with your partners in order to
avoid conflict.

Recommendation for Samsung Electronic:

Samsung Electronics is doing pretty well over the decade. Starting in 1969 in
South Korea and now operating in more 24 research and development centers
around the world. Also Samsung become the highest selling mobile phone
company overtook Nokia selling more than 93.5 Million units. Despite all success
they also have some drawbacks like law suit by Apple recently for copying their
design. Since Samsung is now one of many among the largest company in the
world, other will try to fight back and win the top position. I have some
recommendation for Samsung Electronics given below:

1) They are currently dominating some of the popular electronic

sectors like Mobile, TV, LCD, and Chipset and so on. Already there
are big players involved in those sectors like Sony, Apple, Intel
and they definitely regard Samsung as biggest threat. Having so
many bigger threats, Samsung has to be innovating in product
design and introducing and therefore they need to invest lots of
capital in Research and development sector and higher talents
before it competitors does. So my first suggestion will be to make
more friends and reduce number of threat either by being more
innovative or by joining as corporate partners with competitors.
2) Law suite cost money and also damage image of the corporation.
Samsung already learned their lesson from Apple and now they
should test market analysis and hire experts to analyses product
copywriter and design uniqueness before releasing product to the
market to avoid future lawsuit.
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3) Samsung should provide advance knowledge to its current

employee and hire new talents from the market to be more
productive, innovation and unique design.
4) Samsung should invest more on Research and development
sector so that they can introduce constant new products ahead of
its competitors to attract customers and more importantly satisfy
shareholders.
5) Samsung is doing well in conducting Social responsibility. They
should continue doing so and if possible increase level to impress
people around the global and enhance corporate image.
6) In this digital world, most important is advertising to promote
branding. They should sponsor big events, increase advertising
and offer seasonal discount to keep customer busy with Samsung
products.
7) Samsung should constantly monitor Management teams and
employee member in the management from external shareholder
to bring hope and faith on the existing and new shareholder. They
should be as more possible transparent in accounting and
documentation to be more specific to customer and shareholder.
8) Samsung should try to find partners for diversifying production
design and production based of economic of scale in order to
reduce production cost and that will reduce the final price of the
product and easier for customer to purchase. This will also give
comparative advantage over its competitors.
9) Samsung should enter more country as possible to increase
market sector around the globe. They should respect other
culture while doing so. They can enter other countries either by
fresh investment or through existing firms by selling right to use
brand name or design or chipset or even as franchise. They
should also ensure quality control in all essence.
10) China is getting expensive this day for production hub. They
should try to find alternative options if in future China becomes
expense country for production before its competitors. They can
do so now as experiment for future. They should always maintain
low price with similar or better quality products for its customer.
This can only be done when cost of product is low.

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