Foundries Strategic Marketing Issues - Term Paper Example

? Foundries Foundries Introduction Foundries are world industries in a of their own. It started business in 2009 with anobjective to be a leading manufacturer in foundries. Within a short period, they had expanded their business with a secure and flexible supply. In addition, they are innovating new ways of revitalizing the foundry industry through reshaping and renovation. They also approach development of technology and engaging customers in a collaborative way. Currently the trend of foundries expansion is very rapid as many cultures, individuals, and companies more connected than before. More industries are now having a global perspective of foundries hence transformation is very easy. New models especially those in semiconductors field that have a great impact in our lives, are very crucial for one's success a field like these. Initially it has been in AMD manufacturing arm they have great assets in the leading technology and manufacturing capabilities. Foundries vision is to be a first truly world semi conductor foundry, to harness the resources of the world in order to deliver maximum value to its customers and unlock the potential for innovation. Its mission is to create a customer experience, through collaboration, exceptional service, successful innovation, and excellence in manufacturing. Major buyers and competitors It has more than 150 customers with a span of over three continents, these have created a new avenue to innovate, to drive, and develop semiconductor technology. They have state of the art manufacturing centers in United States of America, Singapore, and Germany. The high volume and fast yield advance technologies facilitate its marketing. The footprint of this global manufacturing firm has a major support of research facilities. These have enabled the design and development of semiconductor hubs, in Asia, Europe, and United States. The companies have outsourced the paradigm of manufacturing. They are also looking forward to collaborate with other partners in the field. They are delivering a collaborative model for engaging customers. They offer a unique model of design using integrated device manufacturer. It is a model build using optimization of technology for low leakage and low yield. The major buyers for global foundries include multinational companies such as STMicroelectronics, IBM, Samsung electronics, Toshiba, and Renesas. They provide solutions to manufacture high metal gate technology. Their customers include all the largest semiconductors in the world. These companies are involved in the manufacture of technological products. Major competitors It is important to note that the organization’s competitors play a significant role in determining the trend of the organization. The major competitors of global foundries include Nividia, ARM, AMD, and other international manufacturers of microchips. Major forces Bargaining power of suppliers The power of suppliers comes in because of availability and concentration of suppliers. When the suppliers’ power is high, the switching cost is also high. Threat of new Entrants There is a low entry of new entrants in the market because barriers like investment capital investment, time, and money affecting the profits. The new entrants affect the foundry industry heavily, for instance the entrance of Germany and China in the foundry industry has let to USA lose some of its business. Bargaining power of buyers Customizing of products leads to bargaining power and low switching costs. Foundry industry should be aware of customers needs since they are the ones who determine the future prospects of the company. Almost everything in Foundry industry is a resource, VRIO analyzes its sustainability and performance. Rivalry among competitors The major rivals include Taiwan, United States of America, Germany, and Japan is committed in this growing industry and has high barriers of Exit. Availability of substitutes The availability of substitutes of the products manufactured by Foundries dents the ability of Foundries to make more profits. The company is therefore required to perform intensive marketing of its products whilst improving on its quality. VRIO VRIO are initials stands for various meanings. Valuable- they accept new opportunities in the market. Resources are valuable if they aid an organization reach exploitation of opportunities. The best way to do this by answering the critical question; how they help the foundries, if a resource assist foundries in bringing innovation, quality and efficiency. Rare implies Foundry industry and hard to obtain. A resource is rare if other competitors do have it. For instance, Foundries brand name has value but the majority of its competitors in Asia and Europe have their own brand names of recognition, making Foundry not rare. Inimitable means foundry products are hard to copy through competition. A resource is non-substitutable if it is hard for its rivals to acquire it. In addition, it depends on the duration it will take the rivals to imitate it. For instance, Foundries established a great plant, which cannot be acquired by its competitors quickly. Organization implies company manages its resources in a manner that it enhances the realization of the company objectives. A resource is organized if an organization is able to use it. Foundries are organized to exploit all the resources at her disposal and have used VRIO on all its resources. Strategic issue Strategic issues are issues, which are not resolved and are waiting for an event in the future. It has a huge impact on business direction. It is related to the questions such as, what to sell, whom to sell to and how to avoid competition. They are pillars of any strategic planning. It involves the steps such as generating of information using the data, which is currently available for assumptions of the future, analyzing, and reviewing information, strategies, mission statement and goals, strategic objectives, implementation of a detailed budgets, action, and schedules. Identifying the strategic issues Identifying strategic issues are a product of hard work. The following techniques are used to identify; 1) explaining the strategic issue then review information and think about the impact of the information. 2) Challenge members to highlight the worksheet of information and note their views on throughout the review process. These techniques enable processes to be efficient. Strategic issues pop up on the review of weakness, threats, opportunities, or the winner’s exercise of profile. At times, strategic issues do not come in readily. Recognizing that strategic issues are unresolved questions and they have to address before articulating the strategies. Foundries should allow each member to review their highlighted information, identify the issues they should prioritize, and address the critical questions. Recommendation The comparison between present and the course of Foundries’ performance, role and direction with the strategies will show misalignments. These misalignments will lead to identifying strategic initiatives for the next year. Foundries will generate these strategic objectives through the following; reviewing mission statements, defining the strategies for suggestions of initiatives and having supporting flip charts showing the resolutions. Foundries should then translate strategic objectives into systematic, scheduled, and detailed action plan. These are the tools focusing Foundries resources and drive the results. All these begin with quality information then under goes process, which is robust, that resolve strategic issues in Foundries firm. If foundries are to achieve results from strategic plans, they should put more emphasis on key strategic issues. Issues emerging outside Foundries have more influence on its future. As a result, executives of Foundries should anticipate issues as they emerge, in addition to their internal responsibilities. They should respond rapidly. To understand the shifting values of the public, demand for public consultation, increasingly news media, which are intrusive and raise expectations. It manufactures high quality metal gate with 32/28nm technology. It has been able to balance the R&D model to the processing cost. The company’s objective is to provide its customers accessibility to advance technology, design solutions, and manufacturing processes. Its core objective is to provide the best solutions to its esteemed customers by levering the consumer insights. Global foundries continue to harness its leadership broadly to provide its customers with categories of technology processes. These technologies are; advanced, leading edge and base. It has also provide an in depth solutions that address customers that are reliant on products of semiconductors. Global foundries have greatly attempted to shape its future by formulating its vision, and to remain on the course it has to be reviewing its vision and mission frequently. Finally, strategic planning is very important for Global foundries as it clearly defines objectives and assesses internal and external factors to formulate strategies. It has to implement the formulated strategies, evaluate their progress, and make the necessary adjustments. In order to remain on track, Global Foundries must scan its internal and external environment regularly. Read More