Freescale’s Competitive Strategy In Automotive Electronics

Semiconductor is the foundation of the electronic industry today, semiconductor make the advanced technology applications more into people’s lives, and affect the outlook of modern society and the daily life style of people, as Intel founder Gordon Moore predicted:IC will be very far-reaching influence, the whole of human society can generally enjoy the well-being by electronic technology, everyone will understand the benefits.With the development of the industry, the gradual expansion of the market and the evolving of the technology, the semiconductor industry is also continuous development forward in the varied environment. The last decade, the world semiconductor industry changed enormously, the major semiconductor suppliers have to reorganization in order to respond to market changes, the existing market structure is constantly being broken, and the competition of the semiconductor market become more intense, which strategies the semiconductor industry should take and how to quickly adapt to the market changes has become a critical issue.Automotive semiconductor is the market with the huge potential which is only less than the communication electronics market. Freescale owns strong technical strength and good reputation as one of the main auto-semi company. But the reason that company has too many development directions and is lack of competitiveness leads company loss the advantage in auto-semi market. That the company seizes the huge market opportunity and promotes the market share is very important. I take strategic management theory as a starting point, with the analysis tools like the PEST analysis and SWOT matrix analyses the external environment Freescale Semiconductor meets, finally I think Freescale should choose the cost leadership strategy to establish a competitive advantage and expand market share. I hope I can take a suitable strategic choice in the automotive semiconductor business through this research, and provide a reference for the strategy choice of the automotive semiconductor company in future.