Qualcomm Analysis Strategic Management

Strategic Planning |

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School of Business and Economics |

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6/26/2016 |

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Analysis of Qualcomm Inc.:

(as of September 30, 2012)

Industry forces that have shaped Qualcomm’s direction and strategies

Qualcomm is an American global leader in innovative wireless telecommunications; it designs, develops, markets, and sells digital cutting-edge telecommunication products and services. The company was founded in 1985 by Irwin Jacobs and other partner investors, and is a major player in the semiconductor industry. In 2012, Qualcomm was ranked as the 3rd top company in the industry after Intel and Samsung. It is important to know that the semiconductor industry plays a crucial role in the everyday life of communities and small/large business and is recognized as a key driver of global economic growth. Back in 1960, Dr. Engelbert claimed that the future of computer chips would get smaller, faster, and cheaper. Just a few years down the road, Dr. Moore anticipated that the number of transistors on a single chip would double every twelve months – he subsequently revised the theory to every 24 months (Moore, 1965). His prediction became the Moore’s Law, and, to date, it has not failed the world. Thus, there is great pressure on chip makers to produce improved and innovative products because consumers - especially when it comes to electronics - want, need, and expect innovative technologies at their fingertips. Furthermore, according to a study of chip market trends and technological and economic drivers behind them (Ballhaus, et al, 2012), it is clear that the global semiconductor market is able to sustain growth. In fact, despite the difficult global economic position and unstable political environments, key drivers for growth have been identified - mostly from emerging markets in China, India, Russia, and Brazil:

1. The automotive market because of the increase of computer chips used in vehicles;

2. The industrial markets because of the...