The experience effect is defined as a systematic reduction in production costs that has been observed over the life of a product . This is related to this article because when Samsung faced the challenge of doing business in China, the company built a new factory in Vietnam last year to reduce costs and grow profits. In this article, although Samsung possessed the first-mover advantage in early 1992, since the technology transfer, many Chinese brands have expanded, which has put pressure on the prices of mobile phones. Samsung has found the solution to create a new lower production cost in Vietnam. Also, the brand offers the cheapest mobile phone to retain the vast market. -