Presented by Group-9 Section-F D Naveen M Abhinandan Satyajeet Jaiswal Satyanarayana Murthy PGP27350 PGP27367 PGP27377 PGP27378

Introduction and Company Background

A US fortune 500 company and world leader in 3G and next

generation mobile technologies A fab-less semi-conductor company Holds more than 12,600 patents for CDMA and related technologies Head Quartered in San Diego USA with an employee base of 16,100 highly skilled professionals and spread across 146 locations worldwide Annual revenues of over USD15 Billion and profits of over USD 4 Billion A major chunk of its revenues come from China, Japan, Korea and Taiwan

Year
1985 1989 1990 1992 1995 1996

Activity
Company Founded First CDMA call Designed CDMA base stations Manufacture of CDMA mobile, base stations and chipsets CDMA made as cellular standard Launches CDMA technology Licensing providing complete range of CDMA solutions

1999
1999 2005 2007 2007 2008 2008 2009 2010

CDMA selected as 3G Standard

Divestment of CDMA base stations and Mobile manufacture Scorpion processor brings consumer electronic features to mobile Worlds largest mobile chipset provider First Windows mobile launched World CDMA patents reaches 12000+ Breakthrough to First Android based mobile phone through its chipset Worlds CDMA subscribers surpass 500 million Worldwide 3G connections surpass 1 billion

QualcommDifferent divisions
Qualcomm Incorporated

Qualcomm CDMA Technologies Segment(QCT)

Qualcomm Technology Licensing Segment(QTL)

Qualcomm wireless and Internet Segment(QWI)

Qualcomm Strategic Initiatives(QIS)

Qualcomm Internet Services(QIS)

Qualcomm Government Technologies(QGOV)

Qualcomm Enterprise services(QES)

Qualcomm Ventures

Structured Finance & Strategic Investments

Generic Strategies followed by different Companies

Overall Low-cost Provider Strategy
Broad Differentiation Strategy

Best Cost Provider Strategy

Focused Low-cost Strategy

Focused Differentiation Strategy

Qualcomm Business strategy Broad Differentiation (1/2)

First mover advantage in bringing better CPU performance chipsets

First Mover advantage in designing low power products

Extensive innovation in building new wireless technologies like CDMA which led to 3G technologies and 4G LTE technologies

R&D initiatives and Intellectual property portfolio

Qualcomm-Business Strategy Broad Differentiation (2/2)

Effects of Qualcomms Strategy

Increased revenues to Qualcomm through its extensive portfolio licensing

Development of entire wireless ecosystem

Reduction in the costs of average and low end selling prices for 3G handsets and other wireless devices

Results of Qualcomms strategy (1/2)

16 14 12 10 8 6 4 2 0 2008 2009 2010 2011 Revenue Net Income 6000 5000 4000 3000 2000 1000 0 2011 2010 2009 2008 2007

Royalty earned from Licensing in million$

Revenue

0.7 0.6 0.5

0.4
0.3 0.2 0.1 0 2008 2009 2010 2011 EPS

Results of Qualcomms strategy (2/2)

Ratios for 2011 Company Industry 1.8 S&P 500 1.6 Remarks Healthy Balance Sheet and good Financial Strength Current Ratio 2.8

Gross Margin(%) ROA P/E ratio Revenue/Em ployee ( in $)

70.4 11.9 23.8 768679

39.9 4.5 25.4 352064

46.9 3.1 17.7 449376

Huge profit reaping products Excellent Management Strong Investor Confidence Excellent Efficiency by employees

Routes used by Qualcomm to gain Competitive Advantage under Broad Differentiation

Improvements that raised product performance

Delivering value by differentiating on the basis of competencies and competitive abilities that rivals don't have

Reasons for Success of Qualcomms Strategy

Internal

Highly skilled and competent workforce Patent portfolio enabling successful product implementations

External

Fast paced technological changes Rapidly evolving product features

Challenges to Qualcomms Strategy

Much of Qualcomms revenue is from its relatively cheaper

Integrated circuit chips that are used in radio and the application processors These cheaper chips will be threatened when companies such as MediaTek (which focuses on low cost strategies) mature

Thank you