Ic Enterprises In The Gray Market, The Rapid Response Mode

The purpose of this study is to find out the significance of "prompt response mode" in integrated circuits design companies. Market share and profit are the two key factors for most products and companies. The clear exploration on their characteristic will give us the answer, and this study just starts from the two aspects.Gray market exists in many areas, especially in the fast changing IT products market, because the government responses less promptly than manufactures and customers for new business. The comparison between the gray market and the authorized markets of cell phones shows that the gray market grew much faster than legal markets, and the related IC vendors share the characteristic of promptly responding as well. Referring to the famous "More Law" with deep analysis, I find that their profit drops as exponential relationship with time. This indicates that the parts suppliers must be in the "prompt response mode" to catch the gray market too.The two results give the basic strategy for IC design companies to survive and grow up under the gray market environment:following first, entering at right time, and building up the "prompt response mode" meanwhile.I analyze my own company, referring to this study, carried out the improvement methods for market positioning, product development, cost control, customer service and the plan for the future.