Business Essay

1429 Words 6 Pages
QUALCOMM Incorporation was incorporated in 1985. It manufactures and markets digital wireless telecommunications facilities and products. These products and services are based upon code division multiple access (CDMA) technology. This company is listed in the Fortune’s List of top 100 companies, which have the best environment to perform work. It has almost 20,000 employees.
There are four segments, in which company is operating: 1- QCT (Qualcomm CDMA technology) 2- QTL (Qualcomm Technology Licensing) 3- QWI (Qualcomm Wireless and Internet) 4- QSI (Qualcomm Strategic Initiatives)

2- Porter’s Five Forces of Qualcomm

2.1- Threat of Suppliers

I. For the purpose of manufacturing,
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So, the competition in the market is very high, and its competitors have sound position in the market. II. These competitors have the ability to develop alliances, which can have an effect upon the buyer’s decision that whether they should buy from Qualcomm or not. This can be dangerous for the growth of Qualcomm.

2.4- Threat of New Entrants

I. New entrants are providing their terrestrial products at lower prices. II. These terrestrial based products can offer their products in other markets, too. III. Another threat of new entrant is telephone companies; they have ability to come in the market with 3G technology, which can have an adverse impact upon the growth of Qualcomm.

2.5- Threat of Substitute-

There are the following substitutes for the Qualcomm: I. New satellite system- this is a system which is connected to satellite rather than to terrestrial cells. They provide the function which a cell performs with low band width internet. II. Latest GSM technology for 3G Network III. Latest land based technology can be used as a substitute for CDMA technology; it can also be used as a substitute for other wireless technologies.

TABLE 1: Forces | Implication | 1- Threat of Buyers | High | 2- Threat of Suppliers | High | 3- Threat of Industry Rivals | High | 4- Threat of New Entrants | Medium/High | 5- Threat of Substitute | Medium/High |

From above table, it is concluded that company is

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