Arm Holdings Strategic Swot Analysis

This paper evaluates the strategic position and activities of the microchip producer ARM by means of a PESLE analysis and a Porter's six forces analysis to review the company's internal and external environment. Using these analytical tools, the author deems how well ARM's strategy fits within the constraints of the external environment, the distinctive elements of ARM's products and services that distinguish it from its competitors and the sustainability of this strategy in the long-term.The paper concludes that, while presently the semi-conductor industry is significantly challenging, ARM has developed a differentiated strategy, which is capable of competing with large rivals, such as Intel, and which is sustainable over the long-term sustainability. Table of Contents: Executive Summary Introduction Environmental Analysis PESTLE Analysis Competitive Stance Porter's Six Forces Analysis Scale and Scope Analysis of Strategy Evaluation of Sustainability Description From the Paper Sampl e of Sources UsedRelated Papers Cite this Analytical Essay Comment & Share From the Paper: â€Å"Overall it would appear that ARM is making use of a differentiated generic strategy. Here while in general terms the industry for microchips may be seen as one which has become increasingly commoditised in recent years with large incumbent suppliers such as Intel focusing upon producing large volumes at low costs (Roca and Sills, 2011). ARM would seem to have adopted an alternative approach in attempting to develop a niche product hich outperforms cheaper micro chip products in terms of energy efficiency and size. In other words, it may be seen as ARM has built its differentiated generic strategy based upon re-evaluating the needs of its customers and potential customers who have show a clear desire to purchase a generation of microchips which are suitable for inclusion in a range of communications products such as smart phones and tablet computers (hence need to be smaller).In addition , ARM may also be seen as attempting to tap into the growing market for energy efficient products which give numerous benefits to the consumer including cost savings, a feel good factor and in the case of industrial buyers, the ability to market their own products within increased environmental credentials†. Sample of Sources Used: BBC News. 2010. The ups and downs of social networks. Available online at: http://www. bbc. co. k/news/technology-10719042 [Accessed on 22/03/12]. Butterton, G, R. 1996. Pirates, dragons and the US. Intellectual property rights in China. Ariz legal review. 1081. Begg, D, Fischer, S, Dornbusch, R. 2008. Economics. 9th ed. London: McGraw-Hill. Economist. 2012. Space invaders. Available online at: http://www. economist. com/node/21542402 [Accessed on 22/03/12]. Grant, R, M. 2008. Contemporary strategy analysis. 6th ed. Oxford: Blackwell Publishing.