Strategy (http://access.vault.com/company-profiles/computer-hardware/micron-technology-inc/company-overview.aspx) These specific qualifications make this
Strategy ProductDifferentiation is a strategy use for this niche market. Micron implants their3D NAND memory in order to stay competitive and improve their attractiveness. “The mobile 3D NAND allows high definitionvideo streaming, higher bandwidth gameplay, faster boot up times, better cameraperformance, and quicker file loading.” (http://access.vault.com/company-profiles/computer-hardware/micron-technology-inc/company-overview.aspx)These specific qualifications make this product very unique anddifferentiate themselves from their competitors like: Intel Corporation,Quantum Corporation, and Western Digital Corporation.
Micron increasing thisproduct line makes it difficult to find substitutes for their specializeproducts. Offering unique and high quality products makes this companyappealing to customers. We believe this strategy is effective because Micron islimiting the risk of of companies trying to enter their market through productdifferentiation. CompetitiveRivalry is one of Porter’s Five Forces that is illustrated in Micron strategiccompetitive strategy. Micron separates themselves from their competitorsthrough competitive landscape which is for example unique fabrications plants.
For example, Micron “considers vastmanufacturing operation a valuable resource. It has fabrication plants in theUS, 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 whichwill allowed them to increase their production and competitive advantage. Thiswill reduce the potential competitors that can enter this market because theseproducts are being created throughout the world which result in competitorsneeding a high capital investment and specialize workers to compete withMicron. Micron specific products makes this a niche market.
Using Porter’s Five Forces helps distinguish Micron actualand potential competitors. Micron threats to new entrants is low because a high amount of capital is required to invest inresearch and development in order to create specialized product. It is verydifficult for companies to enter this niche market because it takes time to findspecialize workers to develop these specific products. Micron innovationpresents their customers the opportunity to utilize “applications faster andscale 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 toenter this markets without specialize workers. This is how Micron stays uniqueand limits the barrier to entry.
Micron threats of substitutes is low since this product differs from their competitors. Micron has acompetitive advantage because of the very diverse product line. For example,their product (SSDs) “optimize performance, reliability, and endurance with ourhigh-quality SSDs.” These products are very exclusive with makes it challengingfor their competitors to enter the market. “SSD” makes software engine runfaster which is used in majority of computers these days.There bargaining power of supplier is high becausealthough Micron have a diverse product line, many customers have theopportunity to purchase products from other firms. Customers that depend onMicron specific products make them a sole provider, strengthening Micron’sbargaining power. Bargaining Power of Customers is low because Microndominant design such as the “SSD” receives a high customer demand because it isthe dominant design in the industry.
SSD, solid state drive, separates Micronfrom their competitors because customers need this product makes theircomputers faster, saves battery lives, and prevent damage there are not movingparts. Customers cannot pressure this company which means this company has lowbargaining power of customers. Lexar and Crucial are some of their more popularbrand which means there is a demand for it.There is a high rivalry among existingcompetitors (“Micron sell to customers in customer electronics, mobiletelecommunications, computer market and more” which means customers have theoptions 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, andWestern Digital Corporation. Micron is moving towards voluntary decision because they aremaking innovated products like SSD. Through merger and acquisitions, Micron islooking to expand and become more flexible. Micron vision is to “be the mostefficient and innovative global provider of semiconductor solution.” (http://www.makingafortune.
biz/list-of-companies-m/micron-technology.htm) Thisshows that Micron is continuing to capture the international market by creatingdominant designs through high quality and effective pricing. 8) Who is the current CEO? Include a very short bio ofthe CEO, including her/his last three or four positions and how s/he becamecurrent CEO. How does the CEO leadership support the current corporate strategyand culture? Or is the CEO turning around the company, in which case how doesthe CEO leadership support the change effort? (Three references, at least oneunique, 6 pts) Micron current CEO is SanjayMehrotra. He was also the co founder of San Disk until it was purchase by WesternDigital in 2016.
Mehrotra graduated in 2009 from the Stanford UniversityGraduate School of Businesses Executives Education Program. Before Mehrotrajoin Micron in 2017, he was the co founder of San Disk Corporation where he ledthe 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 ofEngineers USA, and the “Distinguished Alumni Award in Electrical Engineering”from the University of California, Berkeley, 2013.
Beforehis career at San Disk, Mehrotra held design “engineering positions atIntegrated Device Technology, SEEQ technology, and Intel Corporation. Mehrotrawas a consultant of Atmel Corporation in April 1988- Nov 1988. He was a boardmember for Western Digital in May 2016 who acquired SanDisk. He was boardmember for Cavium Inc. in 2009. Mehrotra has over 30 years’ experience inengineering and management. Although the Idahoans out Micro did not really knowMehrotra, his influence in Micro has been been very effective. He rallies hisemployees 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 arenot meeting our potential. We must curb our production costs. We must deliverthe memory products our customers want, and we must do it faster.” (http://www.
idahostatesman.com/news/business/article182905221.html) Mehrotra vision for Micron isto work more precise and produce more products for their customers. He wantshis employees to become self motivated which shows that he expects nothing butthe best.
Micron has a record settingsuccess and this is because of the influence on Mehrotra. His leadership hasallowed this company to push to offer more and faster. Before Methrotraarrived, Micron profits were decreasing. “In May, Micron’s profitable quarter ended in August” Once Mehrotra joinMicron, its company “stock is up almost 60 percent since mid-August.
Shareshave traded in recent days at their highest levels since early 2001. The stockclosed Friday at $45.33″ (http://www.idahostatesman.com/news/business/article182905221.html) Micron wentthrough a turning point after Mehrotra joined board.
There stocks have increasewhich is making their stakeholders very stratify.9) Examine a significantstrategic action recently undertaken at the company under the aegis ofits current CEO. These may include reorganizations and expansions; mergers andacquisitions, introductions or major revampings of new, significant productlines or retail formats, productivity and HR related initiatives (this is notan exhaustive list)… How is the action meant to improve the company’scompetitiveness? What are the major obstacles it faces? In your consideredopinion, will it succeed? (Three references, at least one unique, 6 pts) Micro wants to limit the overallcost of their products especially on the DRAM side. Their strategy primarilyfocuses on the cost competitiveness, reduce the time it takes for them toannounce their new technology to the market, and deploy them in productionfaster. Cost competitiveness and building a portfolio of high value solutionare 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 anda strong product portfolio in customer engagement.” Mehrotra wants to reduce the cost oftechnology given in this company NAND architecture of CMOS under the array. Heplans to build high value solution by creating a stronger portfolio of SSD andCP solution for mobile applications that includes DRAM and NAND.
These actionswill improve Micron competitive advantage. This strategy will succeed and makeMicron more competitive. Micron offers specific products and reducing the pricewill only make them look more attractive. One obstacle is that Micron face isthe amount of time it takes to finalize new innovation. For example, thiscompany is finding a lot of challenge with creating self- driving cars. Ibelieve this company will succeed with their strategy because reducing pricewill only make it harder for their competitors to compete. 10c) This company strategy is appropriate because itincreases their competitive advantage.
These tactics do not reflect poorly onthis company because all of their motives are ethical. This company is lookingto expand their product line and compete with their competitors through theirprices. Micron has exercise their strategy through mergers and acquisition.Micro has paid 4 billion dollars to Nanya Technology for the DRAM maker whichcloses closes the deal and bring Inotera’s DRAM production on board withMicron. This is beneficial because Micron wants to decrease their overall costof their products. Micron has gain manufacturing through acquisitions.
It canbe expensive to keep factories running, but this has given Micron a lot offlexibility. Micron has fabrication plants in US, Singapore, Taiwan, and Japan. Micron hascreated a dominant design, SSD, which has also improved their competitiveadvantage. Their diverse product lines have made it very difficult for theircompetitors to create substitutes since their products are very specialized.Cost Competitiveness and building a portfolio of high value solution areactions take by this company to ensure that they remain dominant. This strategyis appropriate because this will increase customers’ willingness to pay sincetheir prices are cheaper.
Micron crater to the market of consumer electronics.Micron strengthening their portfolio of SSD and CP solution for mobileapplications will make them more competitive in this industry. This strategywill allow them to maintain their growth long term.