A term paper on competitive strategies for AMKOR/ANAM Pilipinas, Inc.

• Main Author: Depante, Adrian N.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Semiconductor industry > Philippines; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2129
• Institution: De La Salle University

Amkor/Anam Pilipinas, Inc., is a joint venture arrangement of the Korean electonics firm Anam Industrial Co., Ltd., and an American marketing and sales company American Korean joint Venture Company. Amkor/Anam Pilipinas, Inc. was established in March 1989 and in less than a decade rose to the top semiconductor firms in the Philippines. The company have embarked on an expansion project with the establishment of its Sta. Rosa plant which became operational in July 1996. The expansion project was initiated to address the rapid growth of the semiconductor and the electronic industry in the country. However, the expansion coupled with increased operational costs, entailed the infusion of a large amount of capital which led to the loan borrowings that tilted the company into a risky over leveraged position. The Philippine semiconductor industry with its continuing rapid growth has launched the expansion project of many other existing competitors, and the establishment of new semiconductor firms. The result was an increased intensity of competition in the industry. The above facts are some of the factors and conditions that are affecting Amkor/Anam Pilipinas, Inc. at present. A detailed look at its internal and external procedures, strategies, structures and the like, led to a recommendation of an overall cost leadership strategy to sustain its growth, neutralize increased competition, arrest the potential risks on over-leveraged position and define functional strategies addressing each of he current production, financial, human resources and marketing concerns.