The Research On Development Strategy Of WX Semiconductor Company

WX Semiconductor Company was found in1989in Arizona of the UnitedStates. It is a leading provider of MCU, Analog and Memory etcsemiconductors. Through about tens of years development, the revenue ofWX company reached1billion US$in2006and market value reached4billion US$and meanwhile, it was added into S&P Index. But in the end of2009, the revenue didn’t grow up and was still about1billion US$.The thesis uses WX Company as example for its case study and startsresearch on the point of growth problem. Applying strategic managementtheory and other economics theories, by linking theory with practice, thestrategic management process of WX Company was scanned, analyzed,studied, summarized and improved.Firstly, it was introduced for WX Company development history, currentoperation situation and the facing problems and challenges were posed. Then,the external environment was analyzed including Macro, industry andcompetitive environment. For macro environment, PEST and globalizationfactors were analyzed. Considering semiconductor industry characters,Michael Porter’s five-force model was used to analyze semiconductorindustry structures. Also, major competitors were analyzed. Next, the internalenvironment was analyzed. Especially, the capabilities were deeply discussedfor quality controlling capability, technical training and support capability, risk management capability and profit capability etc. Following that, asummary was made for external potential opportunities and threats, andinternal strengths and weaknesses. With the analysis above, the developmentstrategy and competitive strategy was created linking quantitative analysisand qualitative analysis method. EFE and IFE was used to do quantitativeanalysis for external and internal factors. Then, by applying SWOT matrixand Quantitative Strategy Planning Matrix(QSPM) to evaluate strategies andmake choice for them, with considering corporate objectives and facingproblems and challenges, the combination corporate development strategieswere made of ‘Related diversification, market development and productsdevelopment combination strategies’. Based on Michael Porter’s CompetitiveStrategy and Value Chain theory, it was good choice to adopt differentiationcompetitive strategy. Finally, regarding to the combination corporatedevelopment strategy and differentiation competitive strategy, thecountermeasures were made for strategies implementing.