Strategic Management Report: Micron Technology's Competitive Landscape

This report presents a strategic analysis of Micron Technology, focusing on its operations in Dubai and its global presence. It begins with an executive summary and then provides a detailed company profile. The analysis includes an examination of the external environment using PESTEL analysis, identifying political, economic, social, technological, environmental, and legal factors affecting the company. The internal environment is assessed through an examination of strengths and weaknesses. The report also applies Porter's Five Forces model to analyze the competitive landscape. Stakeholder analysis, including consumers, government, employees, media, and suppliers, is also conducted. The report further delves into the company's distinctive competencies, including its differentiation strategy. It identifies potential problems faced by the organization, and concludes with strategic recommendations, such as investing more in research and development and exploring joint venture strategies to overcome challenges in a dynamic environment. The report also analyzes Micron Technology's global presence and potential problems.

RUNNING HEAD: STRATEGIC MANAGEMENT 0
STRATEGIC MANAGEMENT
Micron Technology

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Executive Summary
Micron Technology offer quality products worldwide and organize various programs to
motivate large number of employees. The aim of the paper is to understand the external and
internal environment of the organization. The paper also provides information about the
strategies used by the organization and problems they faced while conducting the operations. The
results revealed that government policies, high competition affect the organization in negative
manner. The employees and cost differentiation strategy is distinctive competencies of the
organization. However, it is conclude that company still faces challenges because of dynamic
environment and less investment in innovation. To overcome this organization can adopt joint
venture strategy and can invest more o research and development.

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Table of Contents
Introduction..................................................................................................................................................................................... 3
Company profile.............................................................................................................................................................................. 3
External analysis.............................................................................................................................................................................. 3
PESTEL analysis........................................................................................................................................................................4
Political factors......................................................................................................................................................................4
Economic factors................................................................................................................................................................... 4
Social factors.........................................................................................................................................................................4
Technological factors............................................................................................................................................................ 4
Environmental factors............................................................................................................................................................ 4
Legal factors.......................................................................................................................................................................... 5
Internal analysis............................................................................................................................................................................... 5
Strengths..................................................................................................................................................................................... 5
Weaknesses................................................................................................................................................................................ 6
Five Forces analysis......................................................................................................................................................................... 6
Threats regarding the Entrance of New Firms.............................................................................................................................6
Suppliers power in negotiation...................................................................................................................................................6
Buyers power in negotiation.......................................................................................................................................................7
Threats of substitution................................................................................................................................................................ 7
Rivalry from existing competitors..............................................................................................................................................7
Stakeholders Analysis......................................................................................................................................................................7
Consumers.................................................................................................................................................................................. 8
Government................................................................................................................................................................................ 8
Employees.................................................................................................................................................................................. 8
Media.......................................................................................................................................................................................... 8
Suppliers..................................................................................................................................................................................... 8
Micron Technology Stakeholders Matrix.........................................................................................................................................8
Four Generic Building Blocks..........................................................................................................................................................9
Efficiency................................................................................................................................................................................... 9
Quality...................................................................................................................................................................................... 10
Innovation................................................................................................................................................................................. 10
Customer responsiveness.......................................................................................................................................................... 10
Distinctive competencies............................................................................................................................................................... 10
Differentiation strategy.................................................................................................................................................................. 11
Strategic Alliance........................................................................................................................................................................... 11
Micron Technology Global............................................................................................................................................................12
Potential Problems.........................................................................................................................................................................12
Recommendations..........................................................................................................................................................................13
Conclusion..................................................................................................................................................................................... 13
References..................................................................................................................................................................................... 14

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Introduction
Strategic management is considered the approach which is significant for the
organization it is because in this continuous planning, investigation as well as analysis takes
place which helps in accomplishing the goals and objective of the organization. In this report, the
external and internal analysis of the company through “PESTEL and SWOT” is discussed. The
report also investigates the components of the company to gain competitive advantage through
analyzing the industry by “Five force model”. The report also discussed distinctive
competencies, differentiation strategy major problems faced by the organization. The
recommendation is also provided to overcome the issues.
Company profile
Micron Technology, Inc. is an American producer of computer memory and computer
data storage including dynamic random-access memory, flash memory, and USB flash drives. It
was found in the year 1978 and company is in semiconductors industry (Wahab, Dali, & Tolago,
2018). The company also serves their products and services in United Arab Emirates such as
Dubai. In the year 2019 the revenue of the company was $4.79 billion. The company offers their
services worldwide; therefore the company has skilled and competent workers who all are
specialized in producing USB flash drivers etc. It is estimated that in the 2017 the company has
more than 7,000 number of employees in UAE (Cuvero, Richard, Granados, & Pilkington,
2018). The company has both full and part time employees with further options such as remote
work etc. In UAE the branches of the company are Dubai, Sharjah etc therefore the company
offers memory products which are sold into the tablet, mobile devices, enterprises, automotive as
well as market of consumer’s electronics.
External analysis
It is refers to the approach which analyze the external factors which affects the
organization in both positive and negative manner that is some factors will be opportunities for
the company and some factors are considered threats for the company. Through which it become
difficult for the company to sustain in long run.

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PESTEL analysis
Political factors
The tax rate is higher in Dubai that is 55% for more than AED 5,000,000 turnover in the
year 2018, which is considered the threat for the company because of increase in the expenditure
of Micron Technology (Foit, Banas, Golda, & Kampa, 2018). Therefore, the government also
made compulsory policy for the companies in semiconductor industry to issue the license, it also
affects Micron Technology in negative terms due to increase in the regulation formalities.
Economic factors
The growth rate of Dubai is high that is 6.1% in the year 2019, which is become the
opportunity for Micron technology because of increasing the demand of the products (Aravossis,
Kapsalis, Kyriakopoulos, & Xouleis, 2019). It is also estimated that in the year 2018, the lower
interest rate that is 2.00% this also influence the organization in positive terms and become the
opportunity to diversify and expand their business.
Social factors
The population in Dubai is 31.4 lakh which is higher this is the opportunity for
semiconductor industry and also for Micron technology to manufacture the memory products
according to the needs and requirements of the consumers (Sarant, 2016). It is estimated that in
the year 2019 there is growth of enterprises in Dubai which is also the opportunity for
semiconductor industry to gain competitive advantage.
Technological factors
The technological factors also affects semiconductor industry that is in Dubai RFID’s
technology is placed all over the city (Hussein, Faisal, Marashdah, Sawaf, & Wasfy, 2015). This
is the opportunity for Micron technology to expand their business in business. The competitors
of Micron technology use advanced technologies such as USB production tool and other Repair
software for repairing the memory card. This is the threats for Micron technology to increase
their sales in long run.
Environmental factors
In the year 2018, government of Dubai makes regulatory policies for semiconductor
industry to reduce carbon emission and to decrease waste and water (Krishnan & Islam, 2019).

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Micron technology also use Act of Environmental protection and it become the opportunity to
increase the loyalty among the consumers and to gain competitive advantage.
Legal factors
Dubai has 0% crime rate through this company in semiconductor industry can diversity
their products line (Uzzafer, 2016). Therefore in Dubai there is also regulatory Act regarding
intellectual property and various other regulations in diversification, it is also difficult for Micron
Technology to conduct their operations in Dubai.
Therefore it is also estimated that culture of people in Dubai also leads the opportunity
for semiconductor industry that is to buy, flash memory, and USB flash drives in households,
enterprises as well as in mobile devices and tablet. The present condition of Micron organization
is mature because the organization has not much expansion of business in Dubai as well as does
not provide more varieties according to needs and requirements (Wang, Qi, Fox, Stan, &
Skadron, 2015). Therefore to overcome threats organization can manufacture more varieties of
products as per consumer preferences and can sell products at lower prices in comparison to their
competitors in Dubai.
Internal analysis
It is the approach which provides information about the strengths and weaknesses of the
organization. It helps the organization to provide information about the components through
which it can take competitive advantage. It also supports the organization to investigate the
issues, weaknesses so that organization can develop strategies to overcome the problems.
Strengths
The major strength of Micron technology is the highly skilled and competent employees
which are specialized in particular area (Fruh & Al Musleh, 2015). It is because in Dubai
organization provide on-the job training, role play as well as organize other programs and
discussion to increase the skills and abilities of the employees. Therefore in the year 2018,
organization invests huge funds to motivate the employees by providing efficient training.
The other strength is the strong supply chain as well as distribution network it is because
company has skilled suppliers and adopts RFID and GPS technology to track the raw material.

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Micron Technology also uses Orderhive and EZOffice Inventory software to manage the
inventory and to deliver the products to the final consumer in efficient manner. The sale of
Micron technology increases because of strong marketing strategies that is it is also the major
strength of the organization. Micron Technology adopts social media strategy to spread
awareness about the product. It is because about 70% of the population remains active on social
media (Chu, Cui, & Liu, 2017).
Weaknesses
Micron Technology also has some weaknesses that is organization does less investment
in research and development. In the year 2017 the company spent only $1.82 billion in research
and development which is less in comparison to their competitors (Huang & Xu, 2017). The
other weakness is that technology is the main part of semiconductor industry of Dubai because of
more advancement in technology is made by the organization. However, it is estimated that
Micron Technology does not spent more funds in adopting advanced technologies.
Therefore, to overcome these weaknesses organization can spend more funds on research
and development so that they can understand the needs and requirements of the consumers.
Through this Micron Technology can make changes according to the requirements and it can
also support in reducing the expenditure because of lower wastage and optimum utilization of
resources in Dubai.
Five Forces analysis
Threats regarding the Entrance of New Firms
The threats of new entrance are medium because organization can conduct business in
semiconductor industry of Dubai at lower investment. However, the organization can overcome
this challenge by investing more funds in research and development. Micron Technology can
also invest in adopting advanced technology so that they can gain competitive advantage by
delivering quality memory cards and other products.
Suppliers power in negotiation
The bargaining of the suppliers are high it is because majority of the companies which
are in the semiconductor industry of Dubai purchase raw material from several suppliers (Chang,

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Liao, Lee, & Lo, 2015). Therefore it is also the challenge for Micron Technology because it
increases the expenditure of organization. To overcome this Micron Technology can maintain
dedicated supplier by managing the needs of themselves and that of suppliers. This results in
reducing the cost and get quality products from the efficient suppliers.
Buyers power in negotiation
The bargaining power of the buyers are also high it is because of offering more varieties
to the consumers. The semiconductor industry of Dubai manages their operation by providing
quality products to the consumers (Liao, Deschamps, Rocha Loures, & Ramos, 2017). Therefore
to overcome Micron Technology can increase the base of target consumers in Dubai. This can
support the company in streamlining the procedure of sales and production.
Threats of substitution
The threat of substitution in semiconductor industry of Dubai is high because several
organizations in Dubai also offer similar products such as DGS Electronics Trading LLC and
Formosa Technology (Krishnan & Islam, 2019). Therefore, to tackle this issue Micron
Technology can focuses on service orientation rather than product orientation. Micron
Technology can focus on core requirements of the consumers.
Rivalry from existing competitors
The competition among the companies in Semiconductor industry of Dubai is high it is
because they can adopt advanced technologies in providing efficient services and delivering the
product by supply chain to the consumers. The main competitors of Micron Technology in Dubai
are “DGS Electronics Trading LLC” as well as “Formosa Technology”. To overcome this
problem Micron Technology can adopt differentiation strategy by understanding the upcoming
and linking it with consumers needs. This can help the organization to gain competitive
advantage and to increase the overall sales and profits of the organization.
Stakeholders Analysis
Micron Technology has various stakeholders which include consumers, government,
employees, media and suppliers. Therefore, it is estimated that organization is influenced by the
interest of the stakeholders.

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Consumers
Micron Technology has large number of consumers because of offering low cost product
at right time. Therefore in the year 2019 loyalty among the consumer’s results in increasing the
sales of the organization that is profits of the company was $4.79 billion (Olanrewaju, Uzorh, &
Nnanna, 2019).
Government
The policies of the government in Dubai affect the functioning of Micron Technology. It
is because of conducting the operations as per the regulations given by the government. The
regulatory policy is to conduct the business in ethical manner (Jabeen & Isakovic, 2018). If
Micron Technology will not adopt the regulatory act it will be penalized in the long run.
Employees
The needs of the employees influence Micron Technology in negative manner if not
fulfilled. It is because Micron Technology adopts career development strategy by organizing
leadership development program.
Media
Media plays a major role in increasing the status and reputation of the organization,
therefore, to increase the brand image as well as loyalty among the consumers media influenced
the organization in positive manner.
Suppliers
Micron Technology has numerous suppliers which offers quality products and provides
various varieties to increase motivation. Therefore, organization has various suppliers and
consumers which help Micron Technology in gaining competitive advantage.
Micron Technology Stakeholders Matrix
The matrix describes that consumers are having less influence because of better goodwill
and reputation in marketplace of Dubai. Therefore consumers can affects Micron technology in
higher manner because of more options are available in the similar market. The government
policies are also the threats for the organization (Halse, 2017). The media is the major

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component because of raising the overall reputation of the organization and on the other hand
suppliers impacts Micron Technology in lesser manner.
Four Generic Building Blocks
Efficiency
The efficiency of Micron Technology will be maintained when the company focuses on
adopting advanced technologies for manufacturing flash memory as well as USB flash drives.
Therefore these four factors are inter- related so Micron Technology has to deliver quality
products at lower prices to gain competitive advantage (Sreedharan & Raju, 2016).

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Quality
The quality of the products will be maintained when Micron Technology invest more
funds in researching the current requirements of consumers in Dubai. Therefore for this
organization can also develop research team it can support the organization to deliver varieties of
product with innovation (Beyene, Shi, & Wu, 2016).
Innovation
The building block of innovation will be achieved by Micron Technologies by
forecasting the technologies and innovation done by competitors in the product. It can support
the organization to add differentiation and uniqueness in the products and services to achieve
competitive benefit.
Customer responsiveness
The organization can accomplish customer responsive by regularly assessing the internal
and external environment (Acheampong & Moyaid, 2016). This helps the organization to
understand the factors which affect the organization and strengths which can help in overcoming
the threats.
Therefore, these four blocks are connected because efficiency and quality are major
aspect to increase innovation in the product. This support in increasing the competitive ability
and can also raise the capability to sustain in long run by gaining competitive advantage.
Distinctive competencies
There are many distinctive competencies which allow Micron Technology to offer flash
memory and various other products through online (Aravossis, Kapsalis, Kyriakopoulos, &
Xouleis, 2019). It made convenience for the consumers and results in increasing the profits of the
organization that is in the year 2019, the profits of the company were $4.79 billion. It is
demonstrate that Micron Technology has twice of consumers than that of competitors because of
offering low cost products that is in the year 2019 the whole price of products were only $3.475
billion (Olanrewaju, Uzorh, & Nnanna, 2019).
The competent and skilled employees is also the distinctive capability of the employees it
is because it organize various leadership program monthly and provide coaching to the other

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employees to increase the capability of the skills in the particular department (Schilirò, 2015). In
the year 2018 the amount spent on training will be increased by 30% to gain competitive
advantage by producing quality products and providing efficient services to the consumers. The
innovation in providing services is also considered capability because of also selling the product
through online in Dubai. The mission statement and values also help the organization to
competent in competitive environment that is expand their business by providing memory and
storage solution (Davarcioglu & Lelik, 2018). Therefore values of the organization are
collaboration, focusing on consumer’s needs and innovation.
Differentiation strategy
Micron Technology does not make complete use of differentiation strategy to gain
competitive advantage it is because the company operates their functioning in highly competitive
environment (Cuvero, Richard, Granados, & Pilkington, 2018). The competitors adopt highly
advanced technologies to offer quality products but Micron Technology mainly focuses on cost
differentiation strategy. Therefore, the company also takes some initiatives by adding the
memory products of households and enterprises to sell in Dubai because of higher demand (Foit,
Banas, Golda, & Kampa, 2018). The company also sells online products to increase the loyalty
among the consumers and to gain competitive advantage. However, company still face various
issues and adopts less differentiation strategy which results that profits of the company does not
increase in same ration and company does not expand their operations in Dubai.
It is estimated that in the year 2018, more of the innovation is developed by the
competitors of the organization that is “DGS Electronics Trading LLC” (Patnaik, Ashraf,
Sinanoglu, & Knechtel, 2019). This is become the threats for Micron Technology because of
offering less varieties and lower innovation in the products. It is also estimated that companies
also invest lower finds in research and development which made the companies less focused on
the needs of the consumers.
Strategic Alliance
Strategic Alliance is considered the contract which is made among two different
organizations for each other in manufacturing as well as for purpose of the business (Rivera,