On Strategy: Takes on Competition - and Win
By Jack Mixner
Way back when, Texas Instruments (TI) dominated chip manufacture. Then, it diluted the company's focus with all sorts of "extra" divisions and product lines. The dilution allowed competitors to dominate old TI markets.
The 90s saw TI realize its problems, make changes, and begin to grow again. The changes included drastically reducing divisions. It focused on chips that ended up in Nokia cell phones. TI beat Intel in large-screen television processors. Then, last month, Intel annouced its decision to abandon the cell phone chip market. Score two huge wins for TI. The strategy of working with early startups with great ideas helped TI become the sole supplier for the new Slingbox.
Strategic Implication
In the early 90s, TI was moribund. A series of CEOs crafted focus strategies which brought TI back to chips. Focus worked. TI is growing again.
Analysts say TI won't make the leap to new protable chips for all the new electronic devices envisioned in the future and have hammered the stock. Looks to me like the analysts might be wrong. Focus is a good strategy. It might work for your company as well.
Think about it.
Reference
Darlin, Damon. Cashing In Its Chips. New York Times. July 9, 2006. http://www.nytimes.com/2006/07/09/business/yourmoney/09chip.html