General Micro Electronics, Incorporated: Semiconductor Assembly Process SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of General Micro Electronics, Incorporated: Semiconductor Assembly Process
General Micro Electronics (GME) designed, assembled, and tested semiconductors for wireless, memory management, wire line telecommunications, and networking applications. In January it purchased a new wire-bonder machine to support its growing contract assembly business. For the first couple of months the new machine performed well, but then its performance became more erratic and eventually was no longer meeting its internal standard for wire-bond strength. The strength of the wire-bond was an important quality dimension of semiconductor chips. With the use of overtime on the existing wire-bonding equipment being very close to full utilization, the need to improve the performance of the new wire-bonding machine was becoming critical. GME's operations personnel were continuously tweaking the new machine in an effort to find a combination of process parameters that would improve the machine's performance. Unfortunately, the performance of the machine continued to deteriorate.
Swot Analysis of "General Micro Electronics, Incorporated: Semiconductor Assembly Process" written by Scott M. Shafer, Charles Volk includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wire Machine facing as an external strategic factors. Some of the topics covered in General Micro Electronics, Incorporated: Semiconductor Assembly Process case study are - Strategic Management Strategies, Product development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the General Micro Electronics, Incorporated: Semiconductor Assembly Process casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing household debt because of falling income levels, increasing commodity prices, increasing energy prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of General Micro Electronics, Incorporated: Semiconductor Assembly Process
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in General Micro Electronics, Incorporated: Semiconductor Assembly Process case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wire Machine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wire Machine 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process can be done for the following purposes –
1. Strategic planning using facts provided in General Micro Electronics, Incorporated: Semiconductor Assembly Process case study
2. Improving business portfolio management of Wire Machine
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Wire Machine
Strengths General Micro Electronics, Incorporated: Semiconductor Assembly Process | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wire Machine in General Micro Electronics, Incorporated: Semiconductor Assembly Process Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Wire Machine 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 Wire Machine in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Wire Machine 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 Wire Machine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in General Micro Electronics, Incorporated: Semiconductor Assembly Process Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Leadership & Managing People industry
– General Micro Electronics, Incorporated: Semiconductor Assembly Process firm has clearly differentiated products in the market place. This has enabled Wire Machine to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Wire Machine to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Wire Machine has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in General Micro Electronics, Incorporated: Semiconductor Assembly Process HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Wire Machine
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wire Machine does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Wire Machine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the General Micro Electronics, Incorporated: Semiconductor Assembly Process 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.
Cross disciplinary teams
– Horizontal connected teams at the Wire Machine 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.
High switching costs
– The high switching costs that Wire Machine has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Diverse revenue streams
– Wire Machine is present in almost all the verticals within the industry. This has provided firm in General Micro Electronics, Incorporated: Semiconductor Assembly Process 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.
Ability to recruit top talent
– Wire Machine is one of the leading recruiters in the industry. Managers in the General Micro Electronics, Incorporated: Semiconductor Assembly Process are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Wire Machine in the sector have low bargaining power. General Micro Electronics, Incorporated: Semiconductor Assembly Process has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wire Machine to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses General Micro Electronics, Incorporated: Semiconductor Assembly Process | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General Micro Electronics, Incorporated: Semiconductor Assembly Process are -
Interest costs
– Compare to the competition, Wire Machine 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.
Aligning sales with marketing
– It come across in the case study General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process can leverage the sales team experience to cultivate customer relationships as Wire Machine is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Wire Machine is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Wire Machine needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wire Machine to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Wire Machine 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.
Lack of clear differentiation of Wire Machine products
– To increase the profitability and margins on the products, Wire Machine needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Wire Machine supply chain. Even after few cautionary changes mentioned in the HBR case study - General Micro Electronics, Incorporated: Semiconductor Assembly Process, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wire Machine vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study General Micro Electronics, Incorporated: Semiconductor Assembly Process, in the dynamic environment Wire Machine has struggled to respond to the nimble upstart competition. Wire Machine has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Wire Machine 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 - General Micro Electronics, Incorporated: Semiconductor Assembly Process should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As General Micro Electronics, Incorporated: Semiconductor Assembly Process HBR case study mentions - Wire Machine 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.
High operating costs
– Compare to the competitors, firm in the HBR case study General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 Wire Machine 's lucrative customers.
Need for greater diversity
– Wire Machine 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.
Opportunities General Micro Electronics, Incorporated: Semiconductor Assembly Process | 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process are -
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. Wire Machine can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Wire Machine can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. General Micro Electronics, Incorporated: Semiconductor Assembly Process 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wire Machine in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wire Machine 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 Wire Machine to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Wire Machine can develop new processes and procedures in Leadership & Managing People 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.
Building a culture of innovation
– managers at Wire Machine 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 Leadership & Managing People segment.
Manufacturing automation
– Wire Machine can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Wire Machine 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. Wire Machine 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wire Machine can use these opportunities to build new business models that can help the communities that Wire Machine operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Wire Machine can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Wire Machine to increase its market reach. Wire Machine 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wire Machine 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, General Micro Electronics, Incorporated: Semiconductor Assembly Process, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Wire Machine 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 Wire Machine business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wire Machine 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process .
Regulatory challenges
– Wire Machine 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 Leadership & Managing People industry regulations.
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 Wire Machine in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Wire Machine 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.
Increasing wage structure of Wire Machine
– 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 Wire Machine.
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 Wire Machine.
Stagnating economy with rate increase
– Wire Machine 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.
Shortening product life cycle
– it is one of the major threat that Wire Machine is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Wire Machine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
Consumer confidence and its impact on Wire Machine 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.
Weighted SWOT Analysis of General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 General Micro Electronics, Incorporated: Semiconductor Assembly Process 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 Wire Machine needs to make to build a sustainable competitive advantage.
