Texas Instruments: The Semiconductor Industry

I. STATEMENT OF THE PROBLEM

The problem in the case "Texas Instruments: The Semiconductor Industry" was how can Texas Instruments maintain market share and profitability while other companies are conforming to global pricing systems?

II. OBJECTIVE

The objective of this case study was to be able to find out what will be the best solution on the problem of Texas Instruments on how to maintain market share and profitability while other companies are conforming to global pricing systems.

III. AREAS OF CONSIDERATION

The three most important areas of consideration for this case are the following:

1. The creation of global pricing system.

2. The competitive manufacturers of Texas Instrument.

3. The clients of Texas Instruments like Arrow and other small and medium

IV. ALTERNATIVE COURSES OF ACTION

The following are the alternative courses of actions for this case study:

1. To create a global pricing system.

2. To maintain the current pricing system and do not conform to the pressures of the distributors such as Arrow.

3. To differentiate Texas Instruments (TI) while servicing the small and medium businesses directly.

V. CONCLUSION

Texas Instruments needs to be active in this industry and not lose control to middle men such as distributors like Arrow. While Texas Instruments is interested in keeping their relationship alive and healthy with Arrow, they are more interested in not losing money due to global pricing systems and remaining in control of their own company. While this may be a choice that involves a high level of risk, all of the alternatives that could be presented to Texas Instruments involve risk. It is proposed that Texas Instruments widen its own distribution center to begin the servicing of medium and small business while trying to differentiate the company with more products. For example, in 1958, Texas Instrument's Jack Kilby developed the first semiconductor to be made of one single material so that the once need to solder components together to complete the semiconductor was irrelevant. This led to an incredibly high demand in the semiconductor market at low costs and in small sizes. This was an innovation in the electronics industry and is why Texas Instruments is considered a pioneer in the semiconductor industry. This is something that Texas Instruments should be looking to do yet again. With the positive financial