November 5, 2012
What industry needs –
Industry is expected to grow from $20B in 2010 to $44B in 2014. Although demand was consistently strong and expected to grow 22% in 2012, margins were constantly squeezed due to pricing pressures and manufacturer sought to reduce costs wherever possible. Industry was sometimes prone to supply shortages, so fast, flexible manufacturing practices were critical in meeting customer demand.
* Consequence - Fallen behind its competitors on several fronts * Market - Experiencing pressure on prices and ability to get new product to market quickly
1) What are the Main Problems that the mobile division is experiencing? Roles and Responsibilities are not well defined; therefore, there is confusion around Focus * It had not always successfully commercialized the technology it developed * Its development did not always align with market needs
* Analysts sometimes criticized the firm as doing research for its own sake rather than to improve product s or meet new customer needs and faulted a corporate culture that was not always focused on results. * Developed redundant customized chips for mobile phone market customers while completely missing critical market in storage devices used for tablets. Handing its competitors an advantage in a critical growth market. * Because of rapid changes in customer preferences, the Mobile Division had to identify customer needs and respond more swiftly in the past with new products that adapted its technology to the need of the Marketing and Sales. The number of new products developed by Mobile in the past few years had slowed considerably, however, accounting for its lack of growth. Because of cost pressures, new products had to be designed with cost of manufacturing in mind, not just technical elegance. * Sales sold products at any price they could in order to meet their revenue goals...