The purpose of this study is to explore the dynamics of strategic groups, performance difference between strategic groups, and the key success factors of each product/market segment in the world semiconductor industry for recent 10 years.
There have been many changes in the world semiconductor industry from 1986 to 1995.
The Semiconductor industry has expanded its boundary mainly due to the rapid growth of forward industry(computer, consumer, telecommunication etc).
But the intensity of the competition also has increased among nations and each firms. In order to survive in this competitive environment, the government role(policy, financial & tax support etc.) and firm's strategy are getting important.
The empirical research is performed through the cluster analysis, regression, and other techniques involving the 43 firms in the world semiconductor industry.
First, the key success factors of each product/market segments are derived.
There exists significant difference among product/market segments because of the origin and needs structure. For example, the key success factors of the memory segment are the production capability and financial investment capability.
Second, 4 SSTPs(stable strategic time periods) are derived and the characteristics of strategic groups are analyzed during each SSTP. There exist 5 strategic groups(leader, follower, focus, champion, entrepreneur).
Finally, the case study about the path and pattern of resource capabilities of the leading firms(Intel, NEC, Samsung) is performed.
Further research is needed for indepth case study on the changes of the strategic position of firms.