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, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%,
geopolitical disruptions, there is increasing trade war between United States & China, 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.
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.
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.
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.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Chipset Mobile are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Chipset Mobile has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chipset Mobile can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
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.
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.
Developing new processes and practices
– Chipset Mobile can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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.
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.
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 -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chipset Mobile can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Qualcomm and Intel: Evolving Strategies in the Mobile Chipset Industry in 2014 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chipset Mobile in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
