A phenomenon can be noticed in the case study of Samsung. For instance, Samsung sold half of its semiconductors to its subsidiaries. Please take a look at the graph below, which shows that the proportion of buying its own products has increased from 30% to the current 50%, averaging at 40%. We can see from the graph that Samsung establishes an internal market by selling its products to itself. So, just think why Samsung buys its own semiconductors? In my opinion, it gets a huge market by selling products to both external and internal markets. Now we can see its key to success, that is, Samsung can take advantage of its huge market, and in this way, it can achieve "Economy of Scale" earlier than any of its competitors. The definition of "Economy of Scale" is that the increase in efficiency of production as the number of goods being produced increasesWhen it reaches economy of scale, the result is extremely rewarding, as the cost will be greatly reduced as a result of mass production. To better illustrate my point, I would like to ask you to have a look at the diagram below. You can see two lines here, the purple one stands for Selling cost, while the blue one stands for net sale. Because even for a well-operated company like Nokia, the net sales and selling cost are just leveled off. In fact, this has already been a good sign. Compared with different companies, it is easy to tell that the growth of its net sales tend to exceed that of its selling cost after the expansion of a company, resulting in a drop on its return on asset. And the reason for this is runaway costs.All in all, let's sum up what was mentioned just now. Samsung has established a system of Vertical Intergration, and the effective operating of this system turns out to be very rewarding: Samsung does not simply make a profit on its semiconductor, its follow-up market is createing even more value instead.Therefore, its return on capital takes an industry-leading position. Moreover, Samsung also enjoys a huge market, which enables it to reach economy of scale more easily than its competitors, hence cutting the cost. That's all for our report. Thank you for listening.。
In the new phase of the new century,the trendency of the new military transformation is in the ascendant.It is the holy mission shouldered by our army to advance the military transformation wth Chinese characteristics,finish the mission of both mechanisation and information and realize the spanning development of the army's modernization.To advance the military transformation with Chinese characteristics needs jobs of different aspects.However,the basic one of them is to boost the system reform of the wage and welfare treatment of the soldier,and establish a new system which is fitting the mission shouldered by our army and the market economy development.Under this background,it becomes an important subject for our national defence construction to the way to increase the soldiers' wage and welfare treatment and carry out the strategy of using talents to strengthen our army.。