Analysis of the strategic situation of ARM Holdings Coursework

Analysis of the strategic situation of ARM Holdings - Coursework Example Economical factors: A country that has a stable GDP will be able to finance the semi conductor as the plant itself costs a huge amount of money. The UK is leading trading and power center and has the third largest economy. Therefore the country is in a position to finance the needs and requirements of the industry. While these larger scale economic factors are a strong indicator of economic success, one recognizes that oftentimes the semiconductor industry doesn’t operate in unison with macroeconomic trends. The semiconductor industry is large scale, totalling over $300 billion worldwide. While ARM constitutes a major player in the United Kingdom, globally they are supplanted by a series of organizations from the United States, Japan, and South Korea. Technological Factors: The technologies used by ARM are a major threat to Intel who is dominating the global microprocessor market. With low-end mobile phones the company has become the processor of choice in smart phones as well as tablets. The chips are more efficient in terms of energy than Intel. The larger scale semi-conductor industry plays a crucial role in the supply chain of technological products. Indeed, as microprocessors form the core of a variety of crucial technological devices novel innovations in the market drive industry wide change. Additionally, this process necessitates a high degree of industry volatility. Environmental factors: The products of ARM are low power but at the same time enable more efficient energy products.