Cadence Design Systems

Cadence Design Systems has been enjoying a strong position in the Indian chip design industry but it faces several challenges. As seen from the chart, a growing number of multinational companies like Intel and STMicroelectronics are making inroads into India as the market becomes increasingly attractive. Thus, Cadence' position in the industry could be threatened as most companies would be able to gain access to R&D, design tools, resources and networks that the company has managed to establish so far. However, Cadence can ride on several trends. Indian consumers are getting more sophisticated and demand for electronic goods is expected to increase. While Cadence can tap onto the growing demand of demand in the urban areas of India, the rural parts also signify huge untapped potential which Cadence can consider going into. Also, there are an increasing number of university graduates and the supply of skilled labour is increasing. Thus, Cadence can form more strategic alliances with universities and increase training opportunities for budding Indian engineers. This would allow Cadence to lock in the Indian education market before its competitors, thereby increasing its chip designing capabilities and better serve its growing customer base in India. Cadence would also be able to gain better recognition among the locals by incorporating local researchers and employees in its operations. Furthermore, Cadence can consider increasing the number of agreements with various strategic partners such as automobile manufacturers which make use of chips extensively so as to enter new markets and enhance its customer reach. With a solid foundation that Cadence has already established in India, the company is in a good position to further improve its competitive edge given its strong connections with local authorities and partners.