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Texas InstrumentsA Strategic Analysis

nications. “This collaboration opens the entire Internet marketplace for mobile computing solutions based on TI’s and Xybernaut’s technology and patents,” says Jay Yass, Xybernaut’s VP of business development. (PRNewswire, Fairfax, 2000) Texas Instruments has also announced that the world leading provider of digital subscriber line equipment, Alcatel, will utilize TI DSP’s and Telogy software to power the new generation of voice over digital subscriber line modems. (PRNewswire, Dallas 2000) This new technology allows multiple voice calls along with data transmission on a single copper phone line. TI recently acquired Telogy in order to expand its market share in the voice over industry. This announcement is the first step in TI recognizing yet another golden opportunity and taking advantage of it. Texas Instruments has also developed the new DLP technology. This technology uses switches containing millions of tiny mirrors to create a high resolution, full color image and project it. TI recently announced a joint effort with IMAX to develop, manufacture and market projectors based on this new DLP technology. This new technology will allow for higher quality images to be projected in theaters and significant reductions in the cost of producing and distributing films. (PRNewswire, Dallas 2000)ThreatsTop management often overlooks external threats when companies are performing well. Most of the threats facing Texas Instruments come from competitors. Tessera is currently filing lawsuits against Texas Instruments for utilizing Tessera technology and failing to pay for such uses. Tessera claims that TI is taking advantage of “intellectual property” and including this knowledge in manufacturing their DSP’s and other electronics. On two separate occasions, Texas Instruments purchased the rights to use Tessera technology in its products and stipulated that TI pay royalties on a...

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