Qualcomm SWOT Analysis- And Competitors

This article is helpful in understanding the Qualcomm SWOT analysis and its competitors.

Qualcomm

Qualcomm is one of the world’s largest telecommunication companies. Headquartered in California, this Multinational Corporation has various critical patents related to multiple technologies, including 5G, 4G, WCDMA, etc.… 

SWOT analysis of Qualcomm involves the study of the company’s Strengths, Weaknesses, Opportunities, and Threats. In this analysis, strengths and weaknesses can consider as internal factors and opportunities and threats as external factors. We will also be talking about the various business competitors of Qualcomm that have the same target market or technologies. 

Qualcomm Strengths 

As we discussed earlier, the strength of a company is its internal factor which helps it thrive in the competitive market. However, some things make Qualcomm different from other telecommunication network providers, and we will discuss some of these factors. 

• Research and development: Qualcomm invests in high-grade research facilities for the enhancement of technology. The technological research undergoing in Qualcomm includes advancements in Artificial Intelligence, Extended Reality, and wireless technology, including 5G. In addition, the University Relations Programs invest in intelligent minds and recruit talented students. 
• Customer Satisfaction: High-level customer satisfaction ensured by the management and marketing teams is a positive point for Qualcomm. They have built an enormous customer base with long-term contracts and ensure good brand quality among potential customers. 
• Reliable Suppliers: Qualcomm has a supply chain of reliable suppliers in the semiconductor industry hence avoiding any disadvantages due to supply chain bottlenecks. 
• Diversification in target customers: With the introduction and creation of many IoT products, they cover a lot of ground in terms of customer diversification. 
• Mergers and Acquisitions: The development of a reliable supply chain can also attribute to the number of successful mergers and acquisitions with other technology companies that happened in the past few years. It has also enabled streamlining the company’s operations along with building trust among suppliers. 
• Brand Recognition: Many years of industry experience have helped Qualcomm create a strong brand portfolio. When new product categories introduce, brand recognition proves to be extremely useful in marketing and expansion. 

Qualcomm Weaknesses

Similar to strengths, weaknesses are also internal factors that affect a company’s face in the global market. Let us look at some of the areas that Qualcomm can improve upon for more success and recognition. 

• Integration of firms: Even though we have already discussed that Qualcomm has done successful mergers, the success of integrating firms with a different work culture is low. It is a negative in mergers that the company cannot handle the variation of work culture. 
• Outside core business: Even though the company is a success in the core products, its technologies and management strategies are only compatible with current business models. Expansion towards other product segments might need more investment. The company’s weak presence in non-CDMA technologies can be cited as an example here. 
• Brand recall: There is a limited brand recall for Qualcomm products due to lesser global marketing. 

Opportunities for Qualcomm 

We are now moving to the external strategic factors of Qualcomm, starting from opportunities. Here are some chances for the company to improve its performance. 

• Cost of transportation: The decrease in the cost of transportation due to lowered shipping charges of materials can see as an opportunity for the company. It can bring down the cost of Qualcomm products which can be turned either as company profit or customer benefit to improve market share. 
• Online channel: Utilizing online facilities and improving product channels can bring in more orders and customers. The company has made considerable investments in improving its online sales channels. They can be a massive opportunity to know their customers well through methods like data analytics. 
• Strategic collaborations and partnerships: By joining hands with graphics and multimedia assets, corporations can contribute to advanced technologies to Qualcomm products. It enables in luring in more customers and providing additional products to existing customers. 

Threats faced by Qualcomm 

The following external factors are the threats faced by Qualcomm. These are the areas where the company’s assets can be at risk of exposure or other issues about the industry. 

• Global economic conditions: Due to the uprising of the pandemic and shutting down of global markets, the financial requirements vary concerning various countries. These changes may affect a multinational company like Qualcomm. 
• Liability laws: Different countries have different liability laws in the global market, resulting in recognizing various liability claims against the company. 
• Consumer behavior: Changing buying behavior in online and offline markets may affect the current supply chain procedures. 
• Security breaches: Leakage of confidential information due to security breaches can be a huge threat for any big company, and they need to be well aware of the consequences. 
• Competitors: Upcoming technologies from the competitors can dull the profit for the company while looking at the general market. 

Limitations of SWOT Analysis for Qualcomm 

Even though SWOT analysis is a widely used tool, it has its limitations in reaching conclusions. 

• One of the significant limitations of SWOT analysis is that some factors can be both strengths and weaknesses or opportunities and threats at the same time for a company. Therefore, we can’t differentiate them from one another without further case studies. For example, online consumer growth can be beneficial as increased customer interaction opportunity and a threat change consumer behavior.  
• SWOT is only an initial assessment. Can’t deduce further developments in the expansion or overcoming competitions from the SWOT analysis. 
• Can’t identify the relationship between internal and external factors in a SWOT analysis. It only identifies factors individually and fails to recognize the inner connections that can benefit the general idea formation. 

Qualcomm Competitors 

Being a telecommunication networking multinational corporation, Qualcomm has many competitors in the global industry. 

Their products and services include software technologies in smartphones, tablets, laptops, gaming devices, etc. and other entertainment systems. Hence, the direct competitors involve companies in the smartphone industry as well as network service providers. The competitors from the smartphone industry include Huawei, HTC, Nokia, and Samsung.  

With their investments in the Internet Of Things, healthcare, and other industries, Qualcomm competes with computer hardware and software manufacturers like IBM and Dell. The company also faces competition from internet service providers like Google. 

There are three major competitors for Qualcomm in terms of stock prices and product popularity in the communication industry. 

1. Motorola Solutions: They are a telecommunications network provider headquartered in Chicago. They invest in many advanced technologies and have built themselves as one of the favorite brands in the industry. 

2. Alcatel-Lucent: Another end-to-end communication service provider that has many diversified segments in the industry. They are present in the most dynamic markets with cutting-edge technologies. 

3. Siemens Aktiengesellschaft: Siemens AG is a German multinational corporation and one of the largest industrial manufacturing companies in the world. Qualcomm and Siemens together set up the first 5G private standalone network in Germany. Even in the collaboration, there may be future competition involved within the two companies. 

There are some significant competitors for Qualcomm when it comes to the semiconductor manufacturing industry. 

• Mediatek: Mediatek is a semiconductor manufacturing company that provides chips for various computers, smartphones, and other multimedia devices. The primary comparison takes place between the Qualcomm product Snapdragon and Mediatek. According to analysis, the Snapdragon is more reliable and robust, but Mediatek is more cost-effective. 

• Intel: Intel Corporation is one of the most important technology companies in the world. While comparing with Intel, Qualcomm has a higher advantage as it has more innovative technological advancements. Also, there is no competition between Intel and Qualcomm in smartphone chips as Intel only makes computer chips. The higher patent portfolio of Qualcomm is also a positive edge for the company. 

Conclusion 

SWOT analysis is a business analysis model which enables a company to identify its key features to focus more on downhill sides and keep up the work on positive sides. For example, Qualcomm’s SWOT analysis and the listing of competitors make us understand the areas in which the company can grow further and how its brand portfolio is recognized. Having a general idea in these areas can help find a clear vision for the company’s future. 

Frequently Asked Questions 

1. Which is better, Qualcomm or Mediatek?

There is no clear answer to this question as both brands have their positives and negatives. But even though Qualcomm has its edge in patent holdings, Mediatek tries to improve its technology by bringing in innovations. At the same time, the company’s future keeps reliable supply chain development can also be attributed to price, the product affordable. Hence, in the smartphone industry, Mediatek has an advantage when it comes to budget-friendly phones. 

2. What is the difference between Qualcomm Snapdragon and Samsung Exynos?

Even though both the processors use the same ARM architecture, the benefits you receive after using them differ in functionality due to the difference in brands. For example, Exynos are Octa-core chips while Snapdragon is quad-core chips. But when it comes to processing speed, Snapdragon overtakes Exynos processors. 

In general, if you are a person who is using the phone for primary purposes like calling and browsing, then Exynos is the best option. On the other hand, if you are a high-level gamer or editor, go for Snapdragon.