The researcher of this study analyses ARM’s response to changes in the microenvironment, and analyses these changes for their appropriateness in enabling the firm to retain a competitive edge and maintain relevance in a highly volatile environment. …
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The firm that is analyzed in the paper is ARM, the producer of most microprocessors used in mobile devices like mobile phones, smart phones, servers and embedded devices. Intel dominates the manufacture of microprocessors for laptops, desktops, tablets and other computer devices. Though they share a related field in different industries, both firms are different, and each dominates a section of the market that its competitor did not want to venture, until recently. Recent events in the information technology industry have caused a shift towards the mobile industry, and both firms have enough interest to invest in research that will enable them to produce microprocessors for use in the domain of its competitor. ARM intends to shift into building processor architectures for the PC, tablet, and laptop industry while Intel wants to shift to producing processors for the mobile industry. However, this shift is faced with limitations since the two companies are pushing their strengths that had resulted in their domination of their current market. ARM does not build its processors; rather it sells the architecture to firms like NVidia, QUALCOMM, Apple and Texas Instruments that have the necessary infrastructure to build the designs. It charges these companies for up to 2 % of the revenue from the processors for each processor that is incorporated into a device. The ARM processors are characterised by low energy consumption that makes them ideal for mobile devices, and the firm also designs some processor architecture that are incorporated into servers. ...
ry has more potential for growth than the PC industry, and that is why Intel has shifted attention towards developing microprocessors for mobile devices. Intel aims at doing this by improving the energy consumption of its processors since their processing power is the best in the world. On the other hand, ARM has already developed processors for use in personal computers, tablets and other devices that use operating systems that are primarily built for computer systems. This will pose a threat to companies like AMD since ARM has the capacity to improve on its technologies since it does not build the processors (BDTi, 2011). Environmental Analysis Industry Cycle The microprocessor industry has reached its maturity stage as it has existed for a long time and firms have already established their niche markets. However, since this is a research, innovation and development-intensive market, the industry has retained the characteristic of an emerging market. In addition, due to the versatility of information technologies, it is likely to remain so as firms come up with new architectures, forms, and configurations of processors. Therefore, in its strategy, ARM should not only look at current developments, but also anticipate future changes in order to have a competitive edge against leading market players like Intel, and avoid being overtaken by emerging firms (Porter, 2008: 89). Porter’s Forces There are five main environmental forces that ARM has to deal with in its quest to venture into the PC market and retain its competitive edge in the mobile market, three of which are macroeconomic and two microeconomic. The porter forces give an over view of the steps the firm should take in order to achieve its objectives; these changes include: The entry of Intel and other firms
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ive Summary This report conducts a strategic analysis of ARM Holdings, the leading semiconductor intellectual property supplier founded in the year 1990. The organization has achieved impeccable growth in the past few years, both in terms of profits and revenue.
ARM Holdings is the world’s largest supplier of semiconductors and is at the growing stage of digital electronic products. The semiconductor industry has shown a strong growth rate in 2010 and ARM revenues from royalty has outperformed the industry (ARM-a, 2010). ARM has a global edge in the mobile phone and tablets market.
It employs over 2000 people and has offices around the globe including state of the art design centers based in the U.S., France, India, Sweden and Taiwan. It follows a unique business model (Figure 1) whereby it licenses IP to a wide network of partners, comprising of firms which are pioneers in the supplying of semiconductors and systems (ARM Holdings, 2012a).
Arm Holdings Company has taken technology into consideration while manufacturing their products as their products as they provides their developers with Intellectual Property (IP) that facilitates innovation and designing of any given product that are compatible.
Acorn (or later Advanced) RISC Machine (ARM) uses a 32-bit RISC (reduced instruction set computing) processor architecture that is utilized within many different applications. ARM processors are widely circulated, since their design integrates novel power-saving consumption and high performance features that adapt as part of the application design.
most any one seeking computers for home or business use, comparative products from suppliers like HP are often more attractive in terms of price, design or features which means that Dell’s product line up often fails in comparison without discounts or special offers.
ldings considering various principles of business development strategies, analysing the different strategies performed by the company and a comparison in the business model between ARM Holdings and Intel is also portrayed in the discussion of this paper.
ARM Holdings is one of
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