ny sales of items containing the technology. This lawsuit is currently in litigation. Other competitors are moving quick to imitate TI’s products and technology and to develop new and better products of their own. Motorola and Lucent are among the closest competitors to TI. The expected increase in demand for DSP’s will cause other companies to set strategies that focus on obtaining some of TI’s market share. This increased competition may drive down the profits of TI and may lead to smaller market shares as well. Current CEO Thomas J. Engibous is a very busy man. He rises at 4am every morning and sets off for a full day of meetings, speeches and seminars. While Engibous is one of the most traveled CEO’s in America, he is also one of the most underpaid. Compared to other CEO’s in similar companies with similar earnings, Engibous makes about 41 percent below the market average salary. (Crystal, 2000) This high stress, low-pay lifestyle must pose the question as to how long Engibous will be willing, or able, to continue as CEO of Texas Instruments.One other threat is that of governmental threat. There is no mention of this as of yet, but with the recent developments at Microsoft, one must consider the possibility of government intervention if TI continues to dominate the market for DSP’s. TI currently controls over 50% of the market for DSP’s and their market share continues to grow. Surely the government wouldn’t interfere in a corporation controlling over 50% of the world’s market for DSP’s, would they??? Microsoft didn’t think so, do you???Recommended StrategyHaving thoroughly examined Texas Instruments, their goals and their strategies, I would make the following recommendations:1.Diversify the risks. Expand the Educational/Productivity and the Materials/Controls divisions. These businesses could increase their contribution to revenue if given the attenti...
