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Because of these, Samsung tend to have a lower R&D cost compared to its competitors which have R&D facility located across the globe. As for labor cost, Samsung generally has a lower labor cost compared to its competitors because its competitors tend to operate in countries like America and Japan which have a higher wage rate than Korea.
Even though memory chips are often thought to be a commoditized product, the differentiation comes in when Samsung creates new uses for their DRAMs. This has resulted in more than 1,200 DRAM products in Samsung, the highest in the industry. On top of that, Samsung also developed products that have specific applications in devices such as game consoles...
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- 1. Is Samsung both low-cost and differentiated? If yes, how does it do both?
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