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Samsung to discontinue its camera sector and focus on appliances and smartphones

Started Feb 4, 2016 | Discussions thread
ttbek Veteran Member • Posts: 4,869
Re: Samsung to discontinue its camera sector and focus on appliances and smartphones
1

Agreed, if you can get it off the ground vertical integration is my preferred model. Depending on the implementation you may benefit less than hoped from it though (e.g. if you sell your competitors the same things you use at the same prices). Sometimes it can be good to generate extra income, but other times you're giving away market share depending on how replaceable you are in the market your leverage will vary.

Walmart would build up its suppliers with huge orders that forced them to expand. Then they had full power over the supplier because if they lost the sales to Walmart they would be forced to cut their operation down to their original small size again, if they survive the implosion. Walmart can then just as build up another small supplier. This works for items that are easy to expand manufacturing for, it doesn't work when you want 14 nm process chips right now. There are not many options there, it's pretty much Intel, Global Foundries and Samsung. If you dump one of them in an attempt to extract cheaper prices from one of them, you could be locked out of the market for a long time before another has the capacity to add your chips, if they're even willing to after seeing you try to screw over the other company.

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