Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014
This case discusses the evolving strategies in the mobile chipset industry in 2014, focusing on Qualcomm, the dominant technology company in the mobile industry and the leading chipset manufacturer. The case begins with the evolution of Qualcomm's communication technology, highlighting the company's consistent ability to lead the market in modem performance by deploying the latest, fastest communication technology. The case then details the competitive dynamics of Qualcomm's strategy, including its technology adoption strategy; its "whole product strategy" (products and services); its mobile carrier strategy; and its modem and CPU (central processing unit) integration strategy. The company decided early on not to sell a "modem-only" chipset, but rather to build an entire mobile chipset solution, eliminating the need for handset manufacturers to incorporate a separate CPU chip, which reduced their costs and improved Qualcomm's competitive position. The case also discusses the transition the mobile market was going through in 2014, driven by several technological and marketplace changes. Those changes included slowing radio link improvements (as the technology approached a performance limit), which could potentially give Qualcomm's competitors an opportunity to catch up to its technology. Other industry changes included the eroding power of mobile carriers and the growth of mobile subscribers in India and China, where demand was dramatically increasing for low-cost handsets. This made room for Taiwanese-based MediaTek to emerge as a strong player in the mobile chipset industry. Qualcomm also faced emerging competition from application processing and graphical processing players such as Nvidia. The case concludes with a discussion of a potential path for Intel to become a rising contender in the mobile chipset industry through its new low-power Atom microprocessor.
Swot Analysis of "Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014" written by John Thomas, Robert A. Burgelman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chipset Mobile facing as an external strategic factors. Some of the topics covered in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 case study are - Strategic Management Strategies, Globalization, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 casestudy better are - – increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chipset Mobile, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chipset Mobile operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 can be done for the following purposes –
1. Strategic planning using facts provided in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 case study
2. Improving business portfolio management of Chipset Mobile
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chipset Mobile
Strengths Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chipset Mobile in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 Harvard Business Review case study are -
Training and development
– Chipset Mobile has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Chipset Mobile has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chipset Mobile has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Chipset Mobile has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chipset Mobile to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Chipset Mobile in the sector have low bargaining power. Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chipset Mobile to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Analytics focus
– Chipset Mobile is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by John Thomas, Robert A. Burgelman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Technology & Operations industry
– Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 firm has clearly differentiated products in the market place. This has enabled Chipset Mobile to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Chipset Mobile to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Chipset Mobile is one of the leading recruiters in the industry. Managers in the Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Chipset Mobile is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Chipset Mobile in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Chipset Mobile digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Chipset Mobile has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Strong track record of project management
– Chipset Mobile is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Chipset Mobile in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 are -
Low market penetration in new markets
– Outside its home market of Chipset Mobile, firm in the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Chipset Mobile products
– To increase the profitability and margins on the products, Chipset Mobile needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 HBR case study mentions - Chipset Mobile takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014, is just above the industry average. Chipset Mobile needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014, in the dynamic environment Chipset Mobile has struggled to respond to the nimble upstart competition. Chipset Mobile has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Chipset Mobile supply chain. Even after few cautionary changes mentioned in the HBR case study - Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chipset Mobile vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Chipset Mobile has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Chipset Mobile has relatively successful track record of launching new products.
Products dominated business model
– Even though Chipset Mobile has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Chipset Mobile 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Chipset Mobile can use these opportunities to build new business models that can help the communities that Chipset Mobile operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Chipset Mobile to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Buying journey improvements
– Chipset Mobile can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Chipset Mobile can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chipset Mobile in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Chipset Mobile can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Better consumer reach
– The expansion of the 5G network will help Chipset Mobile to increase its market reach. Chipset Mobile will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Chipset Mobile is facing challenges because of the dominance of functional experts in the organization. Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chipset Mobile can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Chipset Mobile has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chipset Mobile to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Chipset Mobile has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Chipset Mobile can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Chipset Mobile can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Chipset Mobile can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Chipset Mobile business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Chipset Mobile has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Chipset Mobile needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Chipset Mobile high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Chipset Mobile needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Increasing wage structure of Chipset Mobile
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Chipset Mobile.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Chipset Mobile needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Chipset Mobile will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Stagnating economy with rate increase
– Chipset Mobile can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Chipset Mobile demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Chipset Mobile.
Shortening product life cycle
– it is one of the major threat that Chipset Mobile is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Chipset Mobile needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Chipset Mobile can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Chipset Mobile needs to make to build a sustainable competitive advantage.