What were the sources of Samsung’s cost advantage in DRAMs in 2003? What were the sources of Samsung’s price premium in DRAMs in 2003? Calculate and explain the relative importance of each activity.

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Answer 2 questions below in a one page word document, 1.15-1.5 spaced. no more than 1 page, if a second page is needed, then it is to only be used for calculations or something supporting answer.

1. What were the sources of Samsung’s cost advantage in DRAMs in 2003? What were the sources of Samsung’s price premium in DRAMs in 2003? Calculate and explain the relative importance of each activity.
2. How should Samsung respond to the threat of Chinese entry? Evaluate the options available to Samsung and make a recommendation.

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