Research And Practice On Development Strategy Of Foreign Mobile Phone Chip Enterprises In China

With the development of China’s handset market, the chipset industry saw a dramatic increase in the past few years. The industrial layout and competition is getting more complex and fierce. The increasing threshold of this industry, including the funds needed for survival, company size, operational capacity and technical requirement, is getting higher and higher. Broadcom Company, one of the world’s leading chipset designer and supplier, however, cannot find the breakthrough of China’s market which made it hard to increase the market share in China. Facing with the difficulties in China’s market, we try to analyze Broadcom Company’s internal and external environment and competitive conditions, and further explored Broadcom’s existing development strategy to find the existing problems and deficiencies, and to learn from other competitors for Broadcom Company in the development strategy of the China’s market. Further propose the more effective development strategy of China’s mobile phone chipset market and provide references and suggestions for the development of foreign mobile phone chipset business in the China.In this study, firstly, we try to understand the foreign company’s performance in China’s chipset market through the analysis of a large number of domestic and international theoretical literatures on corporate strategy and analysis of the status and characteristics of China’s chipset market. After the literature review, we conduct research into the existing strategy of Broadcom in China, combined with case study of Broadcom Corporation and application of marketing, strategic management, Porter’s five forces model etc. Further, we attempt to evaluate existing strategy of Broadcom by using of SWOT analysis, from which we could analyze the problems faced by Broadcom Company in China’s market and provide with references and suggestions for it to establish a better development strategy in China.We attempts to focus on Broadcom Corporation in our case study in order to understand the problems faced by Chinese chipset enterprises and foreign chipset companies in China as well as summarize development strategy for systematic research. However, as different companies have different R&D capabilities and target markets, Companies’features differs one by one and make it impossible to get a comprehensive study of all the foreign chipset companies in China’s mobile phone chip market, which is the inadequacies of this paper. In addition, this paper focuses on the qualitative research with only little quantitative analysis, which drive us to conduct quantitative and qualitative study in the future research as well as the comparison study of the different enterprises, proposing a more comprehensive analysis and strategic suggestions.