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, assembling and the testing of their products, Qualcomm depends upon its suppliers. Some of these suppliers are sole vendors in the market. II. Licensees and designers of Qualcomm are Intel, Motorola, LG, Nortel, Philips and Samsung. These companies/ Licensees are also the buyers of the Qualcomm technology. These companies can harm the image and growth of Qualcomm, if they move toward other network for services. III. Omnitracs, Truckmail and Omniexpress are the satellite system providers for the company. If the transponder (device which receives signals) capacity is low, they can harm the business and growth of the company.
2.2- Threat of Buyers
I. It has a huge number of buyers in entertainment, transportation and communication industries. 39% of the company’s revenue is generated from its buyers Samsung, LG and Hyundai. Buyers have a vast variety like Intel, IBM and Nokia etc., upon which they can switch. II. Qualcomm needs to increase its buyers, because if it loses any one of the major three buyers, it would have to suffer a lot.
2.3- Industry Rivals
I. There are many rivals in the industry like IBM, Intel, Acer, Nokia etc. These rivals have stronger relationship with customers and suppliers