Post on 05-Apr-2018
8/2/2019 Strategy Group9 Section F Qualcomm
1/14
Presented by Group-9 Section-F
D Naveen PGP27350M Abhinandan PGP27367Satyajeet Jaiswal PGP27377Satyanarayana Murthy PGP27378
8/2/2019 Strategy Group9 Section F Qualcomm
2/14
Introduction and Company Background
A US fortune 500 company and world leader in 3G and nextgeneration mobile technologies
A fab-less semi-conductor company
Holds more than 12,600 patents for CDMA and relatedtechnologies
Head Quartered in San Diego USA with an employee base of16,100 highly skilled professionals and spread across 146locations worldwide
Annual revenues of over USD15 Billion and profits of overUSD 4 Billion
A major chunk of its revenues come from China, Japan,Korea and Taiwan
8/2/2019 Strategy Group9 Section F Qualcomm
3/14
Year Activity
1985 Company Founded
1989 First CDMA call
1990 Designed CDMA base stations
1992 Manufacture of CDMA mobile, base stations and chipsets
1995 CDMA made as cellular standard
1996 Launches CDMA technology Licensing providing complete range of CDMA
solutions
1999 CDMA selected as 3G Standard
1999 Divestmentof CDMA base stations and Mobile manufacture
2005 Scorpion processor brings consumer electronic features to mobile
2007 Worlds largest mobile chipset provider2007 First Windows mobile launched
2008 World CDMA patents reaches 12000+
2008 Breakthrough to First Android based mobile phone through its chipset
2009 Worlds CDMA subscribers surpass 500 million
2010 Worldwide 3G connections surpass 1 billion
8/2/2019 Strategy Group9 Section F Qualcomm
4/14
QualcommDifferent divisions
QualcommIncorporated
QualcommCDMA
Technologies
Segment(QCT)
QualcommTechnology
LicensingSegment(QTL)
Qualcomm wirelessand Internet
Segment(QWI)
Qualcomm InternetServices(QIS)
QualcommGovernment
Technologies(QGOV)
Qualcomm Enterpriseservices(QES)
Qualcomm StrategicInitiatives(QIS)
Qualcomm VenturesStructured Finance &Strategic Investments
8/2/2019 Strategy Group9 Section F Qualcomm
5/14
Generic Strategies followed by differentCompanies
Overall Low-cost
Provider Strategy
Broad Differentiation
Strategy
Focused Low-cost
Strategy
Focused Differentiation
Strategy
Best Cost ProviderStrategy
8/2/2019 Strategy Group9 Section F Qualcomm
6/14
8/2/2019 Strategy Group9 Section F Qualcomm
7/14
Qualcomm-Business StrategyBroad Differentiation (2/2)
8/2/2019 Strategy Group9 Section F Qualcomm
8/14
Effects of Qualcomms Strategy
Increased revenues to Qualcomm through its extensive portfolio licensing
Development of entire wireless ecosystem
Reduction in the costs of average and low end selling prices for 3G handsetsand other wireless devices
8/2/2019 Strategy Group9 Section F Qualcomm
9/14
Results of Qualcomms strategy (1/2)
0
2
4
6
8
10
12
14
16
2008 2009 2010 2011
Revenue
Net Income
0
0.1
0.2
0.3
0.4
0.5
0.60.7
2008 2009 2010 2011
EPS
01000
2000
3000
4000
5000
6000
2011 2010 2009 2008 2007
Royalty earned fromLicensing in million$
Revenue
8/2/2019 Strategy Group9 Section F Qualcomm
10/14
Results of Qualcomms strategy (2/2)
Ratios for
2011
Company Industry S&P 500 Remarks
Current Ratio 2.8 1.8 1.6 Healthy Balance Sheet andgood Financial Strength
GrossMargin(%)
70.4 39.9 46.9 Huge profit reapingproducts
ROA 11.9 4.5 3.1 Excellent Management
P/E ratio 23.8 25.4 17.7 Strong Investor Confidence
Revenue/Employee ( in $)
768679 352064 449376 Excellent Efficiency byemployees
8/2/2019 Strategy Group9 Section F Qualcomm
11/14
Routes used by Qualcomm to gainCompetitive Advantage under Broad
Differentiation
Improvements that raised product performance
Delivering value by differentiating on the basis ofcompetencies and competitive abilities that rivals don'thave
8/2/2019 Strategy Group9 Section F Qualcomm
12/14
Reasons for Success of Qualcomms Strategy
Highly skilled and competentworkforce
Patent portfolio enablingsuccessful product
implementations
Internal
Fast paced technological changes
Rapidly evolving productfeaturesExternal
8/2/2019 Strategy Group9 Section F Qualcomm
13/14
Challenges to Qualcomms Strategy
Much of Qualcomms revenue is from its relatively cheaper
Integrated circuit chips that are used in radio and theapplication processors
These cheaper chips will be threatened when companiessuch as MediaTek(which focuses on low cost strategies)mature
8/2/2019 Strategy Group9 Section F Qualcomm
14/14
Thank you