Final Business Model and Strategic Plan
Final Business Model and Strategic Plan
Executive Summary
Amkor Technology Inc. is a global leader in the field of semiconductor technology with a client base comprising more than 300. The company relies on continuous improvement and development of new products to remain competitive in the industry. In view of this, it intends to launch a new product: silicon wafer. The proposed product will be a super thin silicon wafer based on Magnesium Diboride. The industry is dynamic and customer concerns need to be addressed. To delight customers, the proposed new silicon wafer will be very small in size, light in weight, high speed, and can be sold at a lower cost. The proposed product is predicted to enjoy some favorable market conditions. For example, there is low threat of new entrants and the company hold trademark and patents for its products and its brand reputation is well established. In its path to prosperity, the technology department has developed mission, vision, and core values. The mission is ‘to utilize innovative skills and other resources to produce advanced microchips that are in line with the dynamic nature of the semiconductor industry.’ The vision is ‘to be the leading innovative center producing cheap, reliable, faster, quality, light, and small semiconductors by the year 2045’. The core values are promotion of a culture of innovation, respect for others, and environmentally responsible business practices while those of the company are to foster a culture of innovation, operational excellence, fairness, respect, integrity, and cultural diversity. While launching the product, it will be assumed that the products and services will be in demand for a reasonable time in future. It is also assumed that there will be sufficient customer base for the product and that the business will run at a profit. There is a risk of product becoming obsolete if other players come up with advanced products. The proposed product will require minor organizational changes especially in the marketing department. It is expected that the sales revenue will grow at a rate of 29% per annum. With this, the shareholders, government and employees will be in a position to earn more while customers will continue enjoy superior products and services.
The success of Amkor’s Technology proposed product is partly dependent on the effectiveness of both marketing as well as information technology strategies. It is for this reason that that the company will employ proven marketing and information strategies tailored for hi-tech products. According to investigation carried out by Viardot (2004), a hi-tech product is one which requires input of sophisticated technology, changed and updated frequently, innovative for the market, requires high investments in R&D, intended for specific markets, and can be integrated into high tech applications. The goal of the marketing strategy to be adopted is to respond to wants and needs of the customers with a solution. The company aim to not only offer products but also services which has a strong competitive advantage at a reasonable profit. One of the greatest marketing employed is contained in the vision and mission of the company. The mission statement has been carefully drafted to define what the company’s business is all about, added value, and the market segments. The company also has a vision statement which captures its long term aspiration. Viardot pointed out that hi-tech companies should not define their mission in terms of either technology or the product. Rather, they should define their mission in terms of target customers and markets. This is because technologies and products will pass but the wants and needs of customers hardly change. For this product, the company’s marketing strategy as well as marketing plan will also involve carrying out situational analysis. A situational analysis had been done with the aim of understanding opportunities in the market as well as market constraints. Designing of the marketing mix and targeting markets is another strategy where marketing mix in terms of four Ps (product, promotion, place, and price) and segmentation techniques will be defined. In addition, the company will adopt flexible action programs suitable for the rapid changes in the sector alongside monitoring procedures for each action program.
The marketing department will also invest a lot in knowing the customers as well as markets for the proposed product. This include determination of the buying behavior of the customers, estimation of demand, and proper management of relationship with existing and potential customers. It has been established that one of the winning marketing strategies is understand competitors (Viardot, 2004). Firstly, it will involve identification of competitors. Secondly, an analysis of competitors’ strategies is done. Thirdly, the next task is to find information about competitors. Fourth, a competitive analysis is organized. Finally, the Amkor Technology marketing strategy will select its market based on the intimate knowledge it has on its most important customers. Selection of the markets will involve many things. The first one is the choice of any of the two market segmentation methods (radical innovation and incremental innovation) that has been found to be ideal in a hi-tech firm. All the market segments are not important. That is why an evaluation and targeting of market segments need will have to be carried out. This will be followed by positioning of the solution. Here, the idea is to ensure that the product launched in the market is well recognized, identified, and perceived by the customers of the most important segments.
Nanji (2015) investigated content types, tactics, and channels used by B2B technology-based firms to market their products. Evidence suggest website ranks number one at 91% followed by Email (89%), webinars (77%), social media (76%), organic search (SEO) (64%), blog/microblog (62%), paid search (SEM) (59%), digital banners (57%), online display ads (43%), micro-websites (40%), and mobile web and apps (28%). When launching products, the top most preferred social media platform is LinkedIn (81%), followed by Twitter (71%), Facebook (54%), YouTube (54%), Google+ (17%), and Slideshare (17%). The company will employ diversified effective information technology platforms in its strategies. This include emails, webinars, social media, organic search, blog/microblog, paid search, digital banners, online display ads, micro-websites, and mobile web and apps. Some of the top social media platforms that will be utilized include LinkedIn, twitter, Facebook, YouTube, Google+, and Slideshare.
Monitoring and Controlling Proposed Strategic Plan.
Monitoring and controlling of the proposed strategic plan is very important for the company. Monitoring and control serves a number of purposes. For example, it helps the company to make sure that the efforts are in line with the plan. That the business strategic plan is on track. Monitoring also ensure that the results achieved correspond with the objectives. It is impossible to know where corrective actions are need without any monitoring. Monitoring helps the company to improve performance. Monitoring also helps the company match what is written in the strategic plan and what is happening on a day-to-day running of the business (Birnbaum, 2009). Monitoring and control of the proposed strategic plan would involve comparison between achieved results and the target results, assessment of performance, and also measurement of performance (Balaban, Belic, and Gudelj, 2011). It also involves providing appropriate feedback on the results achieved.
Ethical, Legal and Regulatory Issues, and Corporate Social Responsibility.
There are a number of ethical issues which the company is likely to face. This include accounting practice ethics such as fraud, social networking ethics, harassment in the workplace, and paying employees equally (Lister, 2016). Common legal issues that are likely to be encountered by Amkor Technology include disgruntled employees, cases of discrimination/ harassment, immigration audits, copyrights and patent issues, dissatisfied customers, and other legal issues such as tax litigation and legal disputes with contractors as well as competitors (Sun, 2016). There are a number of regulations imposed by government and other agencies that can highly impact business processes (Moreno, 2014). For example, regulations can limit profitability and revenue growth. These regulations can be in terms of environmental regulations, advertising regulations, privacy regulations, and employee regulations among others (Holt, 2016). The company has to engage in at least one of the three corporate social responsibilities (CSR) which have been identified and include ethical activities, altruistic activities, and strategic activities (Asongu, 2007).
References
Asongu, J.J. (2007). Strategic Corporate Social Responsibility in Practice. Atlanta, GA: Prince Media Group.
Birnbaum, B. (2009). Monitoring Implementation of Your Strategic Plan. Retrieved from: http://www.birnbaumassociates.com/monitoring.htm
Balaban, N., Belić, K., & Gudelj, M. (2011). Business process performance management: theoretical and methodological approach and implementation. Management Information Systems, 6(4), 003-009.
Holt, M. (2016). What Are the Government Regulations for a Small Business? Retrieved from: http://smallbusiness.chron.com/government-regulations-small-business-1319.html
Lister, J. (2016). Top Ethical Issues Facing the General Business Community. Retrieved from: http://smallbusiness.chron.com/top-ethical-issues-facing-general-business-community-25417.html
Moreno, K. (2014). Regulatory Environment Has More Impact on Business than the Economy, Say U.S. CEOs. Retrieved from: http://www.forbes.com/sites/forbesinsights/2014/08/12/regulatory-environment-has-more-impact-on-business-than-the-economy-say-u-s-ceos/#21b5c0a53d2a
Nanji, A. (2015). How B2B Tech Companies Market Products. Retrieved from: http://www.marketingprofs.com/charts/2015/27524/how-b2b-tech-companies-market-products
Sun, L. (2016). Five Common Legal Issues Faced by Businesses. Retrieved from: http://www.businessdictionary.com/article/538/common-legal-issues-faced-by-businesses/
Viardot, E. (2004). Successful Marketing Strategy for High-Tech Firms. Norwood, MA: Artech House.
