In this paper we conduct a comparative diagnosis between two leading Semiconductor-Memory Chip companies, Micron Technology, Inc., our target company, and its competitor SanDisk. Both companies have similar product offerings, brand recognition, worldwide operations, new technologies and endless opportunities, yet one is much more successful than the other. Whereas SanDisk can boast about its profit margins and market cap, Micron continues to get further buried in debt, face flat revenues and falling profit margins. Throughout our analysis we will uncover the similarities and differences in these two companies to decipher what is causing these two seemingly similar companies to have such different financial standings. We will begin our analysis with company backgrounds followed by SWOT & TOWS for both companies, after which we will use the Burton, Obel and DeSanctis’ model to analyze the characteristics of each company. Upon discovering Micron’s misfits we will make recommendations to bring about positive changes in the company and discuss forces that may hinder the implementation of our suggested recommendations. Background
Micron, a top competitor in the Semiconductor-Memory Chip Industry, was founded in 1978 by twins Joe and Ward Parkinson and colleague Doug Pitman in the basement of a dentist’s office. Certainly what can be regarded to as humble beginnings, has now transformed into a company at the forefront of the semiconductor field, going public in 1984. Micron has a Market Capitalization of $5 B. It makes DRAM (Dynamic Random Access Memory), NAND Flash and other memory technologies. The company sells to customers in networking and storage, consumer electronics, and mobile telecommunications, but the bulk of its sales are in the computer market. Intel and Hewlett-Packard are its leading customers. Micron’s mission statement is “Be the most efficient and innovative global provider of semiconductor solutions.” Mark Durcan, the current CEO of Micron, was appointed to the position after the sudden death of longtime CEO Steve Appleton in February 2012. Over the past 3 years, Micron has experienced upward trends in revenue while net income has seen dramatic fluctuations. Micron employs 26,100 employees and has locations of operation worldwide. SanDisk
SanDisk, arguably the number one competitor in the Semiconductor-Memory Chip Industry, was founded in 1988 by Dr. Eli Harari and Sanjay Mehrotra, but wasn’t publicly traded until 1995. SanDisk Corporation is a top producer of data storage products based on flash memory. Its products include memory cards used in digital cameras, mobile phones, USB drives etc. The company sells to manufacturers such as Samsung Electronics, Canon, and also through online retailers like Amazon.com. Its Market Capitalization is $8 B currently. Over the last 3 years, SanDisk has seen consistent growth in both net income and revenue. It hold key patents in NAND technology, which they manufacture jointly with Toshiba that enables them to generate higher storage density than their competitors. SanDisk has global sources of operation and employs 3,939 employees. Micron SWOT Analysis
Micron is a market leader in the semiconductor industry; one of Micron’s key strengths is innovation as result of their strong R&D department. Micron has developed new products that continue to change the market: their newest innovation is a small memory chip used in smart phones and tablets, a market with have high growth potential. Another strength that Micron has is its ability and willingness to collaborate with other companies. Their recent collaboration with Intel led to the creation of the NAND Flash Drive, which was honored with the Insight award for the 2011 Semiconductor of the Year. This gave Micron penetration into another market and substantiated their positive brand image. In addition to collaboration, their strategy of acquisitions also increases...