Business Model and Strategic Plan Part II: SWOT Analysis Paper
Strategic direction: Amkor Technology has a robust strategic direction as indicated in their mission statement. The company aims to be the most trustable global supplier of test manufacturing services and reliable assembly as well as innovative solutions to micro-electric and semiconductor industries. The company’s strategy is long term spanning up to the year 2045 with milestones to be achieved before 2045(Amkor, 2016).
Organizational structure: The Company has a sound organizational structure. The company is managed by a board comprising the CEO, Chairman of the Board, Vice Chairman of the Board, and Seven Directors. Immediately reporting to the CEO are Executive Presidents (including Chief Financial Officer, Advanced Products, Chief Administrative Officer, and Global Sales and Marketing), Chief Technology Officer, President (Amkor Technology, Taiwan), and Senior Director (Investor Relations and Communications)(Official Board, 2015).
Organizational processes and systems. Amkor Technology has well established organizational processes and systems. For example, the company’s operations are structured in departments including packaging, technology, test services, design services, turnkey services, customer center, and investors. Each department operates as almost independent with managers leading them (Amkor, 2015).
Goals. The goal of Amkor Technology is found in its mission statement. The company’s goal is to be a trusted global supplier of reliable products. The company also intends to not only achieve operational excellence but also sustained growth in profits as well as cash flows (Amkor, 2015).
Organizational culture. The organization’s culture was initiated by the founder. At Amkor Technology, they embrace and foster values such as reliability, trust, and highest standards of fair dealing, respect, and integrity (Amkor, 2015).
Innovations: Amkor Technology is at the forefront of research and development, production, and supply of the most advanced technologies in both the semiconductor and micro-electric industry. The company’s technological advancement is handled by its departments which include packaging, technology, test services, design services, and turnkey services. All the departments are working harmoniously to produce advanced technology devices and services.
Intellectual property: There is a strong internal mechanism within the company to secure the company’s secrecy in its product. Further, the company patents any of its innovations to minimize copyright infringement by other companies including the rivals. There has been cases of major rivals in the semiconductor industry infringing on the property of others. For example, Samsung and IPhone have had copyright infringement cases in the past (Paik and Zhu, 2013). Copyright infringement is a threat to Amkor’s innovations.
Leadership: Leaders come up with vision and lead their companies to attain those visions. The performance of Amkor Technology suggest their leadership is strong. This is evident from the organizational structure, mission, profit growths, and cash flows. Amkor has an organizational structure with clear positions and responsibilities. It also show who reports to who. Available information suggest Akron has maintained sound financial records. They have sustainable profit growth and they have posted a healthy cash flow.
Technology: Technology is dynamic and companies are always striving to acquire the most advanced technology available. This is a great opportunity where the company play a role by offering the solutions their clients need. For example, there is a huge demand for mobile phones, tablets, television sets, computers, and equipment employed in the automotive, aviation, power, and health sector. All these exerts a huge demand for semiconductor materials and Amkor should be strategically positioned to offer solutions.
Environment: There is a global concern on matters regarding environmental protection. Not only is Amkor producing some of the most environmentally friendly materials but also the company employ environmentally conscious business practices.
Social: There is increasing changes people’s life styles, demographics, and social patterns which pushed the demand of electrical and electronic products higher. Demand of electronic and electrical products pus the demand for semiconductor products and services which Akron can exploit. There is increasing population in the emerging markets like Asia, India, Africa, and South America. Increase in global population imply an increase in semiconductors products.
Innovation: There is always a push to offer consumers with the best products possible. With their capacity to produce cheap, light, faster, and smaller products, Amkor Technology can exploit market opportunities to their advantage.
Resources: Although Amkor has sufficient resources to produce what the market needs, it cannot match resources owned by its competitors in terms of financial, talent, and equipment.
Technologies: Although the company has some of the most advanced technologies in the industry, it cannot match some of its rivals.
Strategic capabilities: The Company lacks certain strategic initiatives. For example, the global representation is lacking. It has focused its business in a few areas of the world.
Legal and regulations. That there is infringement of property rights suggest there is an overall weak legal and regulatory framework needed to safeguard Amkor’s innovation from rivals.
Competition: There is an intense rivalry in global semiconductor and electronics industry with the market dominated by companies such as Intel, Samsung, TSMC, Qualcomm, and SK Hynix (IC Insights, 2015). Akron is not even appearing in the top 20.
Economy: The slow growth in global economy such recession affects consumption of semiconductor and electronic products. The low demand affects product sales. This will negatively affect Amkor Technology products and services.
Global trends: Certain global trends are a threat to Amkor Technology. There is a risk raw material supply if suppliers encounter challenges like war or political interference. There is also research in the adoption of new materials by others. Development of new materials can render the current raw materials used as useless.
Amkor. (2015). About Amkor Technology. Retrieved from: http://www.amkor.com/go/about-us
IC Insights. (2015). Six Top 20 1Q15 Semiconductor Suppliers Show >20% Growth. Retrieved from: http://www.icinsights.com/news/bulletins/Six-Top-20-1Q15-Semiconductor-Suppliers-Show-20-Growth-/
Official Board. (2015). Amkor Technology. Retrieved from: http://www.theofficialboard.com/org-chart/amkor-technology
Paik, Y. & Zhu, F. (2013). The Impact of Patent Wars on Firm Strategy: Evidence from the Global Smartphone Market. Harvard Business Studies. Retrieved from: http://www.hbs.edu/faculty/Publication%20Files/14-015_8483575c-1f96-4a34-bcbf-c83d99da8959.pdf