The company's single biggest problem in 2005, with a competitive advantage of a unique company culture and holding tremendous market share is the threat of Chinese entrants who were attacking the DRAM market in a similar fashion that Samsung did 20 years ago. In terms of performance, foreign competition will eliminate market share, dissolve suppliers access and with the anticipation that China would become the second largest purchases of semiconductors after the U.S. partners would look to expand joint investments with China as oppose to Samsung. The Chinese firms have much more funding too. The long-term impact can be detrimental to Samsung. As written, China seems to be very innovative in their approaches as oppose to Samsung who meets market needs/demands and moves forward.
Porter's Five Forces is applicable to this case due to the industry's extensive competition and threat of Chinese entrants. In terms of rivalry among existing firms, a number of firms are addressed as major competitors thus making the threat high. A number of innovative competitors throughout Asia, Germany and even Boise, Idaho position themselves as direct competitors. In addition, companies currently like Apple, Nokia and Sony are competitors because they make similar products.
Other companies, high because Samsung's products are interchangeable with those make the threat of substitute in terms of products or services. There are multiple choices for consumer's to purchase other brands like Phillips, Kodak or Panasonic however Samsung stood infront of those brands in 2004 but the competition does exists.