New Markets Blog

Four lessons from Samsung's massive bet

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Samsung's plan to invest $41 billion -- this year -- is a bold but well-calculated strategic move. In industries with high fixed costs, beware the free-spending titan; it will happily up-end the
economics of would-be competitors.  A big reason the company can confidently make this
investment is because of its forward integration from electrical components into devices.  It can create markets to consume the output from its big bets on new plants and R&D.  Read more in my piece for Forbes.

Stephen Wunker is Managing Director of New Markets Advisors and author of Capturing New Markets: How Smart Companies Create Opportunities Others Don't.