Strategy Management Analysis Of Micron Technology,Inc

Since the first semiconductor IC (integrated circuit) chip was developed by Jack S. Kilby in Texas Instruments in1958, IC has replaced PCB (printed circuit board) in many areas and dramatically shrinked the size of modern electronic device. With the higher density of IC products, the function of electronic device is much expanded. In the end, the IC industry led human beings into information world, and IC industry becomes the most important industry in the current modern society.As the most widely used IC product, the memory such as DRAM(Dynamic Ramdon Access Memory), has demonstrated rapid change and development. As result of fierce competition, the DRAM technology development and manufacturing center have been shifted from United States to Japan (1980s’) and again to Korea (1990s’). As we are in the21st century, worldwide DRAM industry competition mainly exists between the top five players: Korea’s Samsung, United States’Micron Technology, Korea’s Hynix, Germany’s Infineon and Japan’s Elpida.From the technical development point of view, as the Moore’s law predicted, global DRAM industry is developing in two directions:Silicon wafer (from which IC being manufactured) size going to be upsized from8" to12", and the IC design dimension going to enter into90nm technology node, the cost of producing IC thus able to be at half by every18months. From product application point of view, DDRII expects to replace DDR to dominate the marketplace within next24months. Most importantly, from the market driven force point of view, the future memory industry expects to be driven by the consumer product, especially the digital appliance in the next years ahead, not the Personal Computer industry as what it has been for the past twenty years.To better understand Micron Technology Inc.’s situation in the DRAM industry, key strategy and success lesson learnt have been anaylized for each of the four major competitors, including Samsung, Hynix, Infineon and Elpida. Through the analysis, especially from Samsung the biggest and the most successful memory player, key factors for success in the highly competitive memory industry have been understood. The paper followed to differentiate each competitor using the strategic group map.With SWOT method, Micron’s internal strength&Weakness, external Opportunity&Threats have been carefully examined. Using the TOWS strategy matrix method, the author points out several key strategical directions to further enhance Micron’s long term stronger position in the memory industry。...