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 - – talent flight as more people leaving formal jobs, wage bills are increasing, increasing energy prices, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic ,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, 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 -
Effective Research and Development (R&D)
– Chipset Mobile has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Chipset Mobile is present in almost all the verticals within the industry. This has provided firm in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
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.
Innovation driven organization
– Chipset Mobile is one of the most innovative firm in sector. Manager in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Chipset Mobile
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chipset Mobile does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Learning organization
- Chipset Mobile is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Chipset Mobile is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 Harvard Business Review case study emphasize – knowledge, initiative, 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.
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 -
Need for greater diversity
– Chipset Mobile has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring
– The stress on hiring functional specialists at Chipset Mobile has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, John Thomas, Robert A. Burgelman suggests that, Chipset Mobile is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Chipset Mobile needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
Increasing silos among functional specialists
– The organizational structure of Chipset Mobile is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Chipset Mobile needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chipset Mobile to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Chipset Mobile has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chipset Mobile is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 can leverage the sales team experience to cultivate customer relationships as Chipset Mobile is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014, it seems that the employees of Chipset Mobile don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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 -
Building a culture of innovation
– managers at Chipset Mobile can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
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.
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.
Creating value in data economy
– The success of analytics program of Chipset Mobile has opened avenues for new revenue streams for the organization in the industry. This can help Chipset Mobile to build a more holistic ecosystem as suggested in the Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 case study. Chipset Mobile can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Chipset Mobile can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chipset Mobile to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Chipset Mobile to hire the very best people irrespective of their geographical location.
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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Chipset Mobile in the consumer business. Now Chipset Mobile can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chipset Mobile can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Learning at scale
– Online learning technologies has now opened space for Chipset Mobile to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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 -
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.
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 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.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Chipset Mobile in the Technology & Operations sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
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.
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.
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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chipset Mobile can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
