A strategic analysis of Sierra wireless

This paper performs a strategic analysis of Sierra Wireless, a leader in wireless data communications hardware and software. Sierra Wireless operates in the cellular modem industry and develops, manufactures, markets and supports wide-area wireless modems and enterprise software. The company faces challenges to its market leadership across its product lines due to commoditization of the market. It needs to change its differentiation strategy, develop lower-cost products and reduce its operating expenses to remain competitive. This paper argues that the best way to gain cost efficiencies is through restructuring and moving research and development offshore to original design manufacturers and a Sierra Wireless research and development Asian subsidiary.