<p align="justify">Micron Technology is an American organization that is based in Idaho; which produces semiconductor products. The Micron technology company was incorporated in 1978; it produces computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives and these products are produced through its subsidiaries (Micron, 2020). Micron operates under its consumer brand name Crucial and Ballistix; it has a global presence including Europe and Asia. Micron has formed many strategic partnerships primarily for research and a development purpose; its significant technology partnership is with INTEL for making NAND flash memory (Micron, 2020). Porter’s five forces model is a useful tool to identify threats and opportunities faced by Micron Technology.</p>
<h2 align="justify">Competitive Rivalry in the Market</h2>
<p align="justify">The semiconductor industry has been revolutionized in the last couple of decades. It requires constant innovation to stay competitive in the market. Micron Technology is in the top 5 producers of semiconductors worldwide (Statista, 2020). Its major competitors are INTEL, SAMSUNG, and Taiwan Semiconductor Manufacturing Company (TSMC). The annual revenue of Micron in the financial year 2019 was $30,391 million. (Fortune, 2020). Intel and Samsung generated annual revenue of $78,848 million and $221,579 million respectively (Fortune, 2020). The semiconductor industry is the powerhouse of the American economy; its major semiconductor industry is located in California, Texas &; Oregon (John VerWey, 2019). The increase in competitiveness in the market is due to the establishment of a new industry in East Asia. The semiconductor industry located in the United States exports the majority of its products to those countries. Thus, there is high competition in the United States semiconductor industry</p>
<h2 align="justify">Threat of Substitutes</h2>
<p align="justify">The semiconductor industry became a major part of the technology revolution after the 1970s. The industry grew rapidly due to the hyper expansion of general public-oriented technology products. According to the United States International Trade Commission (USITC) Semiconductor industry is concentrated in limited countries; there are major companies located in the United States, Japan, Europe, China, South Korea, Southeast Asia, and Taiwan (John VerWey, 2019). The recent developments in research and early adaptation of newer technologies like quantum computing have the potential to bring innovation in the semiconductor industry. Quantum computing is based on physical material rather on software technology; the infrastructure which will be used to build that system will be based on semiconductor (Liam Critchley, 2018). So, in the short term, there is no threat to the semiconductor industry; there is potential room for innovation and if the incumbents did not adapt they will be challenged by new entities.</p>
<h2 align="justify">The Threat of New Entrants</h2>
<p align="justify">The semiconductor industry is highly competitive and concentrated. There is a need for higher initial capital to establish a semiconductor company. Another important factor is the expertise required and the need for innovation; the incumbent companies are well established and with immense resources and expertise. The newcomer will need to bring something new and innovative to unsettle the existing giant corporations in the semiconductor industry. The incumbent companies spend billions of dollars on their Research and development to innovate faster and cheaper chipsets to fulfill the current demand (The Wall Street Transcript, 2011). The new entrants are restricted due to the higher value of initial capital required along with the need for expertise and innovation required to compete in the industry.</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The global semiconductor industry is driven largely by the demand from electronics such as smartphones, the Internet of things devices and cloud computing. Increased demand for semiconductor chips can be directly related to the growth of the Internet of things; as well as an exponential increase in the use of cloud computing. Majority of companies those act as a consumer of the semiconductor industry are situated in East Asia; due to the availability of an affordable labor in China, Vietnam, and Taiwan. As the industry concentration is increased in East Asia local manufacturers started to spur offering required products. Consumers already had enough options due to competition; this proliferation has increased the available choices for consumers. As consumers have enough options to choose from, they can acquire the required products at the best bargaining price. All these factors lead to higher bargaining power for customers</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">All the companies in the industry have multiple suppliers to acquire raw material from; the suppliers are aware of the specialized nature of the business and can bargain prices in their favor. Suppliers are aware of the stringent demands set by companies; to meet the needs suppliers add a premium to their prices. If there are few suppliers of the raw material item used in the company&#8217;s flagship product, suppliers make sure that the company is aware of their importance. Companies, on the other hand, have less room for maneuver; as the product design depends upon that specified raw material. If the raw material in demand has many providers or the required company needs a huge quantity of raw material they can drive the price down. Considering all the above factors suppliers have moderate bargaining power.</p>
<h2 align="justify">References</h2>
<p align="left">The Wall Street Transcript. (2011). High Barriers to Entry in Semiconductor Manufacturing. Available at: https://www.twst.com/news/467-high-barriers-to-entry-in-semiconductor-manufacturing<br />
Critchley, Liam. (2018). The Role of Semiconductors in Quantum Computing. AZO materials. Available at: https://www.azom.com/article.aspx?ArticleID=17173<br />
Fortune. (2020). Intel. Available at: https://fortune.com/fortune500/2019/intel/<br />
Fortune. (2020). Micron technology. Available at:https://fortune.com/fortune500/2019/micron-technology/<br />
Fortune. (2020). Samsung. Available at: https://fortune.com/global500/2019/samsung-electronics/<br />
Micron. (2020). About. Available at: https://www.micron.com/about<br />
Micron. (2020). Chipset partner. Available at: https://www.micron.com/solutions/micron-valued-partner-program/chipset-partner/intel<br />
Statista. (2020). Top 20 semiconductor companies. Available at:https://www.statista.com/statistics/283359/top-20-semiconductor-companies/<br />
VerWey, J. (2019). The Health and Competitiveness of the U.S. Semiconductor Manufacturing Equipment Industry. Office of Industries Working Paper ID-058. Available at: https://www.usitc.gov/publications/332/working_papers/id_058_the_health_and_competitiveness_of_the_sme_industry_final_070219checked.pdf</p>