The goal of the Value chain management presented by Porter highlights six basic steps. These steps help reduce the cost across the production line. It brings into consideration the complete entities involved from suppliers to management to employees. The investment in technology and human resources ensure the company to remain competitive in the long run. Another change that the company needs to make is to reduce the product development and launch time. The microchip technology advances very fast and Smart Chip Company needs to accelerate on its development to stay on top.
(McCoy, 2009) In order to increase its market rate, the Smart Chip Company needs to make certain changes in its existing network. The research and development department should be given extra attention and resources so that they come up with better and faster solutions. It would be helpful if they make their technology and chips patented. This would help in slowing down the rivals in copying their technology and flooding the market with cloned microchips.
The complete manufacturing process should be evaluated to cut down on any extra costs. The company’s main concern should be to lower the cost while increasing the quality. A way to lower costs is to increase the size of the orders to the suppliers. As this industry has a long way to go, there is no risk in increasing the inventory. This will help in lowering the order cost as well as save transportation costs. The trusted and proven employees should be secured by offering those benefits and a healthy environment.
A healthy organizational culture of the company helps employees to contribute their best to the company. (Stephen P. Robbins, 2006) The above mentioned steps will help in keeping the Smart Chip Company one of the leading companies in the microchip business. References McCoy, C. J. (2009, March 12). Abc Microchip Company. Retrieved May 22, 2010, from Slide Share: http://www. slideshare. net/CarlaMcCoy/abc-microchip-company-unit-5-db Stephen P. Robbins, M. C. (2006). Management. Prentice Hall.