This essay sheds light on the history of Samsung, elucidates how Samsung attained profound profitability, and also identifies competitive issues Samsung encounters. Furthermore, solutions for how Samsung can maximize profitability and further hedge against competitive risks are identified in this essay. Samsung was able to become a multibillion dollar company primarily as a result of focusing on creating quality products. "Samsung has become a major player in the semiconductor industry, the digital media industry, the telecom industry, the LCD industry, the digital appliance industry, and even the smart phone industry. The South Korean company, Samsung" (Siegel & Chang, 2009), has implemented prudent invest decisions to become financially profitable in the long haul by profusely investing in research and product development efforts, by upgrading their facilities and technologies to operate more efficiently, by investing in further educating their employees, and by creating more unique product lines of sophisticated technologies. An exorbitant amount of major conflicts presently face Samsung. For instance, "Chinese competitors have become DRAM producers and have entered the memory industry and compete directly against Samsung. China is also expected to become the largest producers of semiconductors, only second to the United States. Samsung does not want to jeopardize working with Chinese competitors because their intellectual property rights in China are not fully protected. If Samsung attained partnerships with Chinese competitors then this could mean that Samsung could be possibly be training future rivals as a result of sharing their knowledge and blueprints of their products" (Siegel & Chang, 2009). Even if Samsung risked partnering with Chinese competitors, Samsung would not be able to keep all of their employees a part of their research and development site in Korean which has a unique company culture that is the hub where all of their creative products ideas from their employees have been cultivated. One solution to implement that would interfere with their Chinese competitors chances to saturate the memory market is to continue to manufacture superior types of memory than their competitors sell and charge these superior products to consumers at lower price points than their competitor's products. Samsung has attained the competitive advantage of economies of scale and can afford to pass their savings onto their customers while remaining highly profitable as a result of being able to manufacture products in a very cost effective manner. By selling their products at more enticing price points, the end result of the decreased product markups will likely culminate in Samsung attaining an increased sales volume which will either maintain or increase sales revenue levels. Another viable solution would be for Samsung to ignore their new competitors and focus on creating superior products that appeal to customer's within highly profitable niche memory markets. Samsung can also focus their efforts on expanding their product mix or allocate investment capital into entering new markets, such as the video game market or the automobile market. Samsung should follow Apple's lead in regards to expanding their brand by entering, revolutionizing, or creating new profitable markets with high barriers of entry and low competition. Samsung should also follow suit of Apple's pricing strategy by charging high markups for their proprietary, quality products. The efficacious implementation of these proposed solutions can potentially help Samsung maximize profitability and mitigate competitive risks. They can also help Samsung bolster profitability, brand equity, brand loyalty, brand recognition, and possibly attain greater market share in growing markets.