Qualcomm SWOT & PESTLE Analysis

Strength

1. Pioneer of new technologies driven by innovation: Qualcomm has a great history as a pioneer of new technologies driven by innovation. The company is a global leader in foundational technologies and products that are used in multiple wireless devices. The company’s inventions have enabled the growth of the smartphone market. Qualcomm was the pioneer in 3G and 4G technologies, and is now the leader in 5G. The company, through its long history of driving innovation, has played a leading role in development of system level inventions that have served as a foundation for 3G, 4G and 5G technologies. These inventions include CDMA and OFDMA technologies. The inventions are shared broadly through a licensing program and through the sale of wireless integrated circuit platforms. The company enjoys leadership in 5G IP with 75% of its 4G patents being in areas applicable to 5G. The achievement of 4G leadership was the major foundation for gaining leadership in 5G. Innovations such as advanced channel coding, massive MIMO, scalable OFDM-based air interface, mobile mmWave and flexible slot-based framework are the core of Qualcomm’s 5G capabilities. The company continues to expand 5G capabilities through multiple releases that introduce new technologies.

2. World-class technology products portfolio: Qualcomm has a broad world class technology portfolio across wireless connectivity, RF front end, processors, multimedia and components. These products are part of the Qualcomm CDMA Technologies (QCT) segment, through which Qualcomm conducts most of its business. A major product of the company is the Qualcomm Snapdragon family of products that are key components of most mobile devices. The RF product line includes Qualcomm RFFE components for simplifying the RF design for LTE multimode, 5G front end and multiband mobile devices, reduction in power consumption and improvement in radio performance. Wireless connectivity products include system software and integrated circuits for Bluetooth, WiFi, near field communication and frequency modulation. QCT also has standalone Bluetooth, WiFi, applications processor, fingerprint sensor and ethernet products for mobile devices, IoT applications, computers etc. The networking products include powerline chips, WiFi, ethernet, software and network processors.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Sustainability across the supply chain: As part of its focus on creating products having positive impact on communities, individuals and environment, Qualcomm integrates sustainability principles into its supply chain and products. Product sustainability is addressed through the company’s Environmental Management System and hazardous substance elimination programs. Qualcomm works closely with suppliers and manufacturers of its products to ensure sustainability is being practiced. The company is a member of the Responsible Business Alliance and ensures suppliers adopt the RBA code of conduct or similar codes. Suppliers who constitute more than 90% of the company’s product related spend complete the RBA self-assessment questionnaire every year.

2. Reduction in greenhouse gas emissions: Qualcomm looks for ways to reduce GHG emissions. The company’s 2025 goal is to reduce natural gas and electricity GHG emissions by 30% compared to 2014. As of 2019, the company has achieved a 17.9% reduction. In India alone, Qualcomm has reduced emissions by 10,600 tons of carbon dioxide equivalent by using solar energy in its Bangalore offices. On-site solar energy generating systems in San Diego and Bangalore are helping Qualcomm in achieving the reduction goal. The company also encourages use of electric vehicles (EV) by installing EV charging stations in its campuses at San Diego and Santa Clara. Within 1 year of operation of these stations, the company has reduced emissions by 300 tons of carbon dioxide equivalent.

3. Measures to tackle water scarcity: Some Qualcomm offices are located in areas having water scarcity. In these areas the company works with local communities to address the problem. For instance, in Bangalore, the company is working with United Way Bengaluru and Whitefield Rising to install a sewage treatment plant. In San Diego, which sees very little annual rainfall, Qualcomm entered into an agreement with the local administration to expand purple pipe and bring reclaimed water for usage in the company’s irrigation and industrial use, which would result in a reduction of 80 million gallons in annual water usage.