Asm Lithography

Icfai University, Dehra Dun

Student Name | Sampada Gupta |

IUD No | 0901202046 |

IBS No | 09BS0002046 |

Course Code: SL GM 611

Course Name: Business Strategy-1

Faculty Name: Jacob Chandy

Date: 15-July-2010

Topic of the Assignment

Case Analysis

ASM Lithography

Student Signature Faculty Signature

ASML Founding

ASML is founded as 50/50 joint venture between Philips and Advanced Semiconductor Materials International (ASMI).

About ASML

ASML is a world leader in the manufacture of advanced technology systems for the semiconductor industry. The company offers an integrated portfolio for manufacturing complex integrated circuits (also called ICs or chips). The company is publicly traded on Euronext Amsterdam and NASDAQ under the symbol ASML.

Critical Incidents and Growth of ASML

1986 | The seed of success --PAS 2500 stepper was launched .A very close partnership with lens manufacturer Carl Zeiss. |

1988 | After Philips starts a joint-venture foundry in Taiwan, ASML begins to make in-roads into the Asian market. ASM International withdraws from the ASML joint venture and is bought out by Philips. |

1994 | Philips pulls out of ASML |

2000 - ASML acquires the Silicon Valley Group (SVG) | ASML acquires the Silicon Valley Group (SVG) and becomes the world's largest photolithography vendor |

2009 - Downturn and recovery | Effected by recession and recovery from that |

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Organisation Structure Of ASML

ASML's Board of Management is charged with the management of ASML, which means among other things that it is responsible for setting and achieving ASML's objectives, strategy and policies, as well as for ASML's general affairs. The Board of Management is also responsible for the identification and management of the risks connected to ASML's business activities.

The Board of Management is accountable to the Supervisory Board and to the General Meeting of Shareholders for its management of ASML.

Current Position of the company-

* Operations in 16 countries

* Total Market Share- 65%

* In 2010- 13.65 % profit,

* Latest product- PAS 5500

Strategic Management of ASML

a. Strategic Position of ASML include- the environment, strategic capability, expectation and purposes

1. The environment

Opportunities for ASML

* Opportunity to capture higher market share with increase in technology demand

* Cost control with partners in business

* Manufacturing of Lens in House.

Threat for ASML

* Volatile price of technology

* Fluctuation in foreign trade

* Risk in international operation due to change in trade regulation

* cyclic downturn of economy

* Difference in culture in different countries

* Japanese technology

2. The strategic capabilities

Strength of ASML

* High investment in research and development

* Strong and long term relationship with business partners, stakeholders, customers and employees

* Operations in 16 countries reduces risk

* Potential reduction in their environmental impact

* World class expertise business partner for manufacturing important components.

* Sharing risk and profit with suppliers

* Value sourcing by partnership with Phillips,Carl zess,Cymer,Digilent

* Brain box model- technology development to business partner and maintain crucial customer relation.

Weakness

* Carl Zess only supplier for lens ,Limited supplier, no own manufacturing unit, lack of educated and skill employees

b. Strategic choices