Mediatek Case Aanalysis

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Shanzhai! MediaTek Group Case Analysis|
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Group Members:

Bisma Iqbal
Kayla Wilson
Ali Fawaz
Jasmine HaiderCourse: 04-75-498 Section 30
Professor: Tony Mao
Submitted on: July 23/2012
Course: 04-75-498 Section 30
Professor: Tony Mao
Submitted on: July 23/2012
|

Table of Contents

| Page|
I. Problem Identification| |
Company Profile……………………………………………………………………………………………………| 2| Primary Issue………………………………………………………………………………………………………..| 2| Secondary Issues.………………………………………………………………………………………………….| 2| II. Internal Analysis| |

Value Chain…………………………………………………………………………………………………………..| 2| VRINE Model…………………………………………………………………………………………………………| 3| Summary………………………………………………………………………………………………………………| 3| III. External Analysis| |

PESTEL Model……………………………………………………………………………………………………….| 4| Porters 5……………………………………………………………………………………………………………….| 5| Industry Analysis…………………………………………………………………………………………………..| 5| Summary………………………………………………………………………………………………………………| 6| IV. Financial Analysis| |

Sales and Exports Summary Table…….………………………………………………………………….| 6| V. Alternatives| |
Alternative 1 – Upgrade to tier-1 supplier status…………………….……….……………………| 6| Alternative 2 – Expand into emerging markets……………………………….……………….……| 7| Alternative 3 - Status Quo…………………..…..…………………………………………………..……….| 7| VI. Recommendation/Implementation| |

Gantt Chart…………………………………………………………………………………………………………..| 8| Contingency Plan………………………………………………………………………………………………….| 8|

Problem Identification
Company Profile: MediaTek is a Taiwan-based company that manufactures fabless semiconductors. They have grown to become one of the top three suppliers of wireless chipsets in the world. The current CEO and Chairman is Ming-Kai Tsai. He is contemplating making a long-term strategic plan for the company.

Primary Issue: Should MediaTek enter the tier-one market?
Secondary Issues:
* Can MediaTek control the flow of their products to the Shanzhai!? * Should they consider upgrading their products to include 3G networks? * Can they offer the discount prices that other suppliers are offering to tier-one customers like Nokia and Samsung?

Internal Analysis
Value Chain
Resources: A major component of MediaTek’s resources is its strategic location in Taiwan. In close proximity is China’s first “special economic zone” of Shenzhen. Shenzhen is the largest manufacturing centre for mobile phones in the world and offers small importers financial relief by waving custom duties and value-added taxes. With over 180 million units valued at $12.23 billion U.S. exported in 2008, the area represents a hub for assembly and shipping products for the industry. This allows MediaTek to make a greater presence to in high demand markets outside China which include the United States, the European Union, Africa, Latin America, and South Korea. In addition, it allows the company to more easily evaluate global competition coming in and out of the area and gives them greater supply chain access. Further adding resource importance to the company is MediaTek’s technical support initiative. The company offers its customers design tools in the form of emulators and a simulator which allows their customers to customize the software on their mobile handset. This adds product value to their brand. In addition, they offer customer training for using their design tools. From a software engineering standpoint, MediaTek has been able to provide optimized drivers, customer information, and conduct module testing of components not manufactured by the company but included in the handsets. This has made the company robust by being mindful of the fully assembled end product which incorporates their...
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