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Strategy (http://access.vault.com/company-profiles/computer-hardware/micron-technology-inc/company-overview.aspx) These specific qualifications make this

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Strategy

 

Product
Differentiation is a strategy use for this niche market. Micron implants their
3D NAND memory in order to stay competitive and improve their attractiveness. “The mobile 3D NAND allows high definition
video streaming, higher bandwidth gameplay, faster boot up times, better camera
performance, and quicker file loading.” (http://access.vault.com/company-profiles/computer-hardware/micron-technology-inc/company-overview.aspx)

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These specific qualifications make this product very unique and
differentiate themselves from their competitors like: Intel Corporation,
Quantum Corporation, and Western Digital Corporation. Micron increasing this
product line makes it difficult to find substitutes for their specialize
products. Offering unique and high quality products makes this company
appealing to customers. We believe this strategy is effective because Micron is
limiting the risk of of companies trying to enter their market through product
differentiation.

Competitive
Rivalry is one of Porter’s Five Forces that is illustrated in Micron strategic
competitive strategy. Micron separates themselves from their competitors
through competitive landscape which is for example unique fabrications plants.
For example, Micron “considers vast
manufacturing operation a valuable resource. It has fabrication plants in the
US, Singapore, Taiwan, and Japan.” (http://access.vault.com/company-profiles/computer-hardware/micron-technology-inc/company-overview.aspx) Micron is looking to grow in business through acquisitions which
will allowed them to increase their production and competitive advantage. This
will reduce the potential competitors that can enter this market because these
products are being created throughout the world which result in competitors
needing a high capital investment and specialize workers to compete with
Micron. Micron specific products makes this a niche market.

Using Porter’s Five Forces helps distinguish Micron actual
and potential competitors. Micron threats to new entrants is low because a high amount of capital is required to invest in
research and development in order to create specialized product. It is very
difficult for companies to enter this niche market because it takes time to find
specialize workers to develop these specific products. Micron innovation
presents their customers the opportunity to utilize “applications faster and
scale without limit.” Which reduces the competitors to enter this market. (https://www.micron.com/products/solid-state-storage#tab4) It will be challenging for other providers to
enter this markets without specialize workers. This is how Micron stays unique
and limits the barrier to entry.

Micron threats of substitutes is low since this product differs from their competitors. Micron has a
competitive advantage because of the very diverse product line. For example,
their product (SSDs) “optimize performance, reliability, and endurance with our
high-quality SSDs.” These products are very exclusive with makes it challenging
for their competitors to enter the market. “SSD” makes software engine run
faster which is used in majority of computers these days.

There bargaining power of supplier is high because
although Micron have a diverse product line, many customers have the
opportunity to purchase products from other firms. Customers that depend on
Micron specific products make them a sole provider, strengthening Micron’s
bargaining power.

Bargaining Power of Customers is low because Micron
dominant design such as the “SSD” receives a high customer demand because it is
the dominant design in the industry. SSD, solid state drive, separates Micron
from their competitors because customers need this product makes their
computers faster, saves battery lives, and prevent damage there are not moving
parts. Customers cannot pressure this company which means this company has low
bargaining power of customers. Lexar and Crucial are some of their more popular
brand which means there is a demand for it.

There is a high rivalry among existing
competitors (“Micron sell to customers in customer electronics, mobile
telecommunications, computer market and more” which means customers have the
options of purchasing from another provider.  (http://access.vault.com/company-profiles/computer-hardware/micron-technology-inc/company-overview.aspx)
Some of their competitors include Intel Corporation, Quantum Corporation, and
Western Digital Corporation.

Micron is moving towards voluntary decision because they are
making innovated products like SSD. Through merger and acquisitions, Micron is
looking to expand and become more flexible. Micron vision is to “be the most
efficient and innovative global provider of semiconductor solution.”  (http://www.makingafortune.biz/list-of-companies-m/micron-technology.htm) This
shows that Micron is continuing to capture the international market by creating
dominant designs through high quality and effective pricing.

 

8)  Who is the current CEO? Include a very short bio of
the CEO, including her/his last three or four positions and how s/he became
current CEO. How does the CEO leadership support the current corporate strategy
and culture? Or is the CEO turning around the company, in which case how does
the CEO leadership support the change effort? (Three references, at least one
unique, 6 pts)

 

Micron current CEO is Sanjay
Mehrotra. He was also the co founder of San Disk until it was purchase by Western
Digital in 2016. Mehrotra graduated in 2009 from the Stanford University
Graduate School of Businesses Executives Education Program. Before Mehrotra
join Micron in 2017, he was the co founder of San Disk Corporation where he led
the company from a start up in 1988. Mehrotra received many awards such as the
“CEO of the Year” from the Entrepreneurs foundation of Silicon Valley, the
“Distinguished Lifetime Achievement Award” from the Chinese Institute of
Engineers USA, and the “Distinguished Alumni Award in Electrical Engineering”
from the University of California, Berkeley, 2013.

               Before
his career at San Disk, Mehrotra held design “engineering positions at
Integrated Device Technology, SEEQ technology, and Intel Corporation. Mehrotra
was a consultant of Atmel Corporation in April 1988- Nov 1988. He was a board
member for Western Digital in May 2016 who acquired SanDisk. He was board
member for Cavium Inc. in 2009. Mehrotra has over 30 years’ experience in
engineering and management. Although the Idahoans out Micro did not really know
Mehrotra, his influence in Micro has been been very effective. He rallies his
employees and spread the message. “We have great talent. We have great technology.
The world needs us, and we have worldwide reach. The future is ours. But we are
not meeting our potential. We must curb our production costs. We must deliver
the memory products our customers want, and we must do it faster.” (http://www.idahostatesman.com/news/business/article182905221.html)

Mehrotra vision for Micron is
to work more precise and produce more products for their customers. He wants
his employees to become self motivated which shows that he expects nothing but
the best.   Micron has a record setting
success and this is because of the influence on Mehrotra. His leadership has
allowed this company to push to offer more and faster. Before Methrotra
arrived, Micron profits were decreasing. “In May, Micron’s profitable quarter ended in August” Once Mehrotra join
Micron, its company “stock is up almost 60 percent since mid-August. Shares
have traded in recent days at their highest levels since early 2001. The stock
closed Friday at $45.33” (http://www.idahostatesman.com/news/business/article182905221.html)

Micron went
through a turning point after Mehrotra joined board. There stocks have increase
which is making their stakeholders very stratify.

9) Examine a significant
strategic action recently undertaken at the company under the aegis of
its current CEO. These may include reorganizations and expansions; mergers and
acquisitions, introductions or major revampings of new, significant product
lines or retail formats, productivity and HR related initiatives (this is not
an exhaustive list)… How is the action meant to improve the company’s
competitiveness? What are the major obstacles it faces? In your considered
opinion, will it succeed? (Three references, at least one unique, 6 pts)

 

Micro wants to limit the overall
cost of their products especially on the DRAM side. Their strategy primarily
focuses on the cost competitiveness, reduce the time it takes for them to
announce their new technology to the market, and deploy them in production
faster. Cost competitiveness and building a portfolio of high value solution
are some of the strategic actions taken by this company. Micron wants to ensure that they have the strongest
“portfolio of technologies with DRAM, with NAND, NOR, emerging technologies and
a strong product portfolio in customer engagement.” Mehrotra wants to reduce the cost of
technology given in this company NAND architecture of CMOS under the array. He
plans to build high value solution by creating a stronger portfolio of SSD and
CP solution for mobile applications that includes DRAM and NAND. These actions
will improve Micron competitive advantage. This strategy will succeed and make
Micron more competitive. Micron offers specific products and reducing the price
will only make them look more attractive. One obstacle is that Micron face is
the amount of time it takes to finalize new innovation. For example, this
company is finding a lot of challenge with creating self- driving cars. I
believe this company will succeed with their strategy because reducing price
will only make it harder for their competitors to compete. 

 

 

10c) This company strategy is appropriate because it
increases their competitive advantage. These tactics do not reflect poorly on
this company because all of their motives are ethical. This company is looking
to expand their product line and compete with their competitors through their
prices. Micron has exercise their strategy through mergers and acquisition.
Micro has paid 4 billion dollars to Nanya Technology for the DRAM maker which
closes closes the deal and bring Inotera’s DRAM production on board with
Micron. This is beneficial because Micron wants to decrease their overall cost
of their products. Micron has gain manufacturing through acquisitions. It can
be expensive to keep factories running, but this has given Micron a lot of
flexibility. Micron has fabrication plants in US, Singapore, Taiwan, and Japan.

            Micron has
created a dominant design, SSD, which has also improved their competitive
advantage. Their diverse product lines have made it very difficult for their
competitors to create substitutes since their products are very specialized.
Cost Competitiveness and building a portfolio of high value solution are
actions take by this company to ensure that they remain dominant. This strategy
is appropriate because this will increase customers’ willingness to pay since
their prices are cheaper. Micron crater to the market of consumer electronics.
Micron strengthening their portfolio of SSD and CP solution for mobile
applications will make them more competitive in this industry. This strategy
will allow them to maintain their growth long term. 

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