Strategic analysis of a software division in a fabless semiconductor company

SemiCo is a fabless semiconductor company that recently began developing products for the consumer and home networking markets. Customers of SemiCo in these markets require the development of more than just a silicon chip; they also need software, firmware and hardware. SemiCo is faced with a new set of challenges, including new customers, stiff competition based on product price, strategic fit issues, and required new skills. This paper analyses these challenges and provides recommendations by giving an overview of the company and its new software department, followed by an indepth analysis of the industry and competitors, then an analysis of SemiCo's strategy is given. Further analysis is done on the company, including financial and cultural issues along with a view of how SemiCo creates value within the organization. The paper concludes with an identification of strategic issues found in the analysis, along with recommendations and an implementation plan.