Strategic Management

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 Strategic Management

ZHANG JIAN

Word Count: 1727

Table of Contents

Introduction: The SOC Business Unit of Advantest        3

Customer Needs and Value Profile        4

Current and Desired Positioning        5

Operation Model and Audit        7

Internal Linkages        14

Ecosystem Linkages        15

References:        17

Table of Figures

Figure 1: Advantest Sales Revenue and SOC Business percentage        4

Figure 2: SOC ATE market share in Asia        4

Figure 3: Customer Value Profile Advantest VS Teradyne        5

Figure 4: Spider Map comparing Advantest with Teradyne        6

Figure 5: Value Map: Current Position and Desired Position        6

Figure 6: Advantest SOC BU Business System with Costs and Resources        8

Figure 7: Resources Comparison between Advantest and Teradyne SOC        9

Figure 8: Capability Comparison between Advantest and Teradyne SOC        9

Figure 10: Management Agenda for next 30 months and beyond        13

Figure 12: Internal Linkages        14

Figure 13: Ecosystem Linkages        16

Strategic Analysis for Advantest SOC Business in Asia

Introduction: The SOC Business Unit of Advantest

Advantest is a well-known semiconductor equipment manufacturer with its main business of automated testing equipment (ATE). Out of several Business Units the System-On-Chip (SOC) ATE business which targets SOC chip makers is the largest and accounts for almost 50% of company revenue. The SOC business of Advantest is number 2 by market share, losing to its longtime rival Teradyne.  The customers are mainly chip makers like AMD, Intel and their outsourced manufacturing subcontractors and majority of which are located in Asia includes China, Taiwan, Korea and small portion in South East Asia. Asia market accounts for more than 60% of revenue and Advantest continues to lose to Teradyne in Asia market, which is the growing engine and driver for SOC market in the future (International Trade Administration, 2016).