<p style="text-align: justify;">Texas Instruments is an American public limited corporation operating in the semiconductor sector that designs semiconductors and circuits and offers analogue electronics, calculators and digital, light and embedded processors. It has been dealing in the semiconductor manufacturing industry, the firm was created in 1930, having its headquarters located in Texas, United States. As of 2017, the firm has generated a strong figure of revenue of 14.46 billion US dollars and has involved an employment figure of almost 30,000 individuals (Texas, 2020).</p>
<p style="text-align: justify;">From the consideration of the global semiconductor industry, the implementation of Porter&#8217;s five forces would be a beneficial tool for maintaining prospect strategies to understand better the company standing position.</p>
<h2 style="text-align: justify;">Competitive Rivalry in Market</h2>
<p style="text-align: justify;">The competitive rivalry in the semiconductor industry is considered high because many firms are already operating in the industry to meet technological advancements and innovation. As a result of this increase, several firms and corporations have captured the market to provide the semiconductor chips and other integrated circuits required to fulfil and maintain the constant changes in infrastructure, resulting in fierce competition among existing firms.</p>
<p style="text-align: justify;">The company&#8217;s major competitors in terms of leading sales firms in the market are Intel, Samsung, TSMC, Micron and Qualcomm. Texas instruments are trying to increase sales with a current figure of 13.09 Billion US dollars, while others are standing at the figures of 73.89, 60.48, 45.42, 21.66 and 19.37 billion US dollars, respectively (Statista, 2020). The United States Is considered the hub for the semiconductor industry and exports major of its modern innovation in technologies to other world regions. Therefore, the presence of such big names in the industry makes the competition fiercer among the firms.</p>
<h2 style="text-align: justify;">Threat of Substitutes</h2>
<p style="text-align: justify;">The threat of having substitutes in the semiconductor manufacturing sector is considered low because of the manufacturing of semiconductors and other related products by many firms already operating. In context to the semiconductor sector, it has the ability to keep innovating in a very short period. A successful alternative would drive the semiconductor industry to seek out a means to produce the product on its own.</p>
<p style="text-align: justify;">The latest evidence and new technology, such as quantum mechanics, have the capacity to spur additional innovation, but the framework that would be used will be semiconductor-based (Mukhopadhyay et al., 2019). Furthermore, while the development of technology can alter the processes in the production line, it cannot be considered an alternative. Therefore, the risk of substitutes in the industry is low.</p>
<h2 style="text-align: justify;">The Threat of New Entrants</h2>
<p style="text-align: justify;">The threat of new firms in the semiconductor industry is considered low because of the several big firm&#8217;s presences in the sector. It necessitates extensive study and development, making compliance exceedingly difficult for newcomers. In addition, new enterprises must contend with the economies of scale by huge brands and the expertise necessary for the idea generation, which necessitates a large amount of cash.</p>
<p style="text-align: justify;">The market&#8217;s difficulties and barriers to entry from incumbents are significant enough, owing to continual innovation, to deter new businesses from entering (Uzunca et al, 2018). Other variables that create challenges in terms of operating and sustaining the firm include the usage of information technology and high engagement costs. Hence, making fewer ways for new players.</p>
<h2 style="text-align: justify;">Bargaining Power of Buyers</h2>
<p style="text-align: justify;">The Bargaining power of consumers in the context of the semiconductor industry is moderate because of the products that are available in abundance by the existing firms with many similarities. Furthermore, due to greater competition, consumers now have more options or channels to choose from.</p>
<p style="text-align: justify;">Clients in the universal semiconductor business enjoy minimal switching costs since they can buy out of any semiconductor participant at the lowest price possible, as long as the components are comparable (Wouters and Sandholzer, 2018). Keeping in view such behavior of consumers, the bargaining power of consumers is relatively moderate in the sector.</p>
<h2 style="text-align: justify;">Bargaining Power of Suppliers</h2>
<p style="text-align: justify;">The Bargaining power of suppliers in the semiconductor sector is moderate because the sector&#8217;s suppliers are numerous and recognize the importance of the industry; they have an advantage in bargaining. Companies require machinery and equipment makers, silicon suppliers, chemicals, lubricants, fluids, energy, metals, and other materials used in semiconductor manufacturing, to name a few.</p>
<p style="text-align: justify;">Furthermore, since not every vendor can match the requirements of specialized businesses, suppliers in the vast semiconductor industry have significantly more leverage. These firms embrace a significant authority capability in the industry&#8217;s process dynamics and change semiconductor material prices (Siddiqui et al., 2017). Thus, in context to the semiconductor industry, the bargaining power of suppliers is moderate.</p>
<h2 style="text-align: left;">References:</h2>
<p>Ram, J. and Wu, M.L., 2016. A fresh look at the role of switching cost in influencing customer loyalty. Asia Pacific Journal of Marketing and Logistics.<br />
Texas, 2020. Annual Report. [online] Investor.ti.com. Available at: https://investor.ti.com/financial-information/earnings-annual-reports.<br />
Statista, 2020. Top semiconductor companies 2019 | Statista. [online] Statista. Available at: https://www.statista.com/statistics/283359/top-20-semiconductor-companies/.<br />
Wouters, M. and Sandholzer, M., 2018. How an industry standard may enhance the mediating capacity of calculations: Cost of ownership in the semiconductor industry. Management Accounting Research, 39, pp.47-63.<br />
Siddiqui, J., Ortega, J. and Albus, B., 2017, April. On the relationship between semiconductor manufacturing volume, yield, and reliability. In 2017 IEEE International Reliability Physics Symposium (IRPS) (pp. SR-1). IEEE.<br />
Uzunca, B. and Cassiman, B., 2018, July. Entry diversion: Entry barriers to divert submarket entry. In Academy of Management Proceedings (Vol. 2018, No. 1, p. 17793). Briarcliff Manor, NY 10510: Academy of Management.</p>