ASML Semiconductor Brand

ASML Holding NV Holdings Situation Analysis

With the innovation regarding semiconductor equipment and Lithography, this company brings more than 800 million in revenues. Electronics giant Philips and chip-machine manufacturer Advanced Semiconductor Materials International (ASMI) created a new company to develop lithography systems for the growing semiconductor market. ASML executives reached out to Philips board member Henk Bodt and developed R & D for computer chips and brought creativity as well as innovation to the business (Kuijpers and Roper 2016).  Currently, the company encounters challenges in terms of innovating new computer chips as well as lithography. The financial structures, stocks along with product innovation have been at stake declined the revenue by 2%.

Industry Structure and Economic Feature

ASML gives the world's leading chipmakers the power to mass-produce patterns on silicon. This company is currently working with the chip-making equipment industry that has high revenue with a low competitive market.  The major misconception in this industry is that make chips, also called microchips or integrated circuits (ICs) (Kuijpers and Roper 2016).  However, this company is also known for designing and manufacturing lithography machines that are an essential component in chip manufacturing. They are one of the well-recognized machines and this machine is a complex structural equipment. This consists of major parts such as the objective lens system, the table system, the mask table system, the mask transfer system, and the silicon transfer system (Pirati et al.. 2017). The company is currently planning to gain revenue from other structures related to computer development in order to grab the niche market and establish a long-term identity.  

 The economic feature of the company is unique compared to other companies.  The company is currently bringing revenue from manufacturing, supplying, and innovation. The sales of computer chips itself gave more than 500 billion in revenue but also invested some of the money in new products along with employee benefits.

ASML Holding N.V.

i) Business Level Strategies

Business Model and Capital Allocation Strategy are major strategies extensively used by the company (Van de Kerkhof, Benschop,  and Banine 2019). ASML is systematically developing its DUV service and field upgrade product portfolio to meet customer requirements and improve performance.

The company has the right tools to place execution the long-term financial strategy.  For example, the company has three major pillars to focus on   corporate level strategy such as technology leadership, customer and supplier intimacy, and entrepreneurial people. The company is relying on these pillars to improve their supply and build a strong supply chain and manufacturing network (Van Stijn, 2018). 

Competitive Analysis and Advantage in the industry:

Lithography machines and computer chips have been a niche market for most of the investors. In order to capture the market this company must have a competitive advantage which is patent-protected EUV and they also ranked first in quality on comparably vs competitors(Van de Kerkhof, Benschop,  and Banine 2019).. However, in recent times, ASML competitors include MKS Instruments, Lam Research, Ultratech, Cadence Design Systems, and ASM International.

 

SWOT Analysis

Strengths ii) Weaknesses iii) Opportunities iv) Threats

Strength   · The company currently have product uniqueness as well as intangible assets like brand value ·  High network and backlog ·   Strong financial performance for last few years.	Weakness · The company currently requires tremendous expenditure in order to provide service to the consumers · Intention competition and regulations affect the market growth. · Substantial increase in Current liabilities (Van de Kerkhof, Benschop,  and Banine 2019).
Opportunities · New products must be developed for expanding market · Recovering the economy from the current covid 19 would be suitable (Wagner and Harned 2010).	Threats · Dependencies of Supplier for the revenue generation ·  Foreign exchange effects · Stringent environmental regulations for the eco friendly products.

 

 

PESTLE Analysis:

Political factors	The political factors currently affect this company. High political stability provides a stable and friendly business environment to improve the business market of the company (Wagner and Harned 2010)... However, political instability due to global presence affected the company's market.  In this case, the company may unable to make appropriate revenue in countries with political instability (Peeters et al. 2014).
Economic factor	A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry (Peeters et al. 2014)..  The company is gaining revenue through business industry. However, economic structure could be sharper in order to bring high revenue with short time.
Social factors	Organizational culture of any company primarily influenced by societal norms, values and trends. Understanding the demographic trends, power structures, consumers’ spending patterns and shared beliefs can help ASML Holding N V. design effective marketing messages (Kuijpers and Roper 2016).. The social structures and social media have been used for computing youth market because they are highly enthusiastic in nature.
Legal markets	Since this company has huge global presence, the legislative issues are highly prominent for the company and it must be addressed to improve quality of the life (Kuijpers and Roper 2016)..
Environmental factor	In order to improve sustainability, reusable products are fundamental for company to label up. In this case, comcast Corporation. can benefit from it and invest in renewable technologies
Technological factor	A detailed analysis of the technological environment can help ASML Holding N V. capture the technological trends to achieve certain business advantages (Kuijpers and Roper 2016)..

Target Market Analysis of Roche Holdings:

i) Demographic Characteristics of the Market:

ASML dominates the market for lithography systems, giant machines that use light beams to create the circuitry of computer chips.  While the company is unable to grow due to a lack of youth consumer-based products, currently company is focusing on developing products that can attract the youth market (Kuijpers and Roper 2016)..

ii) Psychological Characteristics of the Market:

Every consumer is looking for something that is sustainable as well as excellent quality. Hence, when they develop a chip, they consider high sustainability for the chips with high-quality extension (Van Schoot et al. 2019).

iii) Behaviours of the Target Market:

Consumers tend to buy chips which is cheap and sustainable.  In this case, increasing the adoption of online services by customers will also enable ASML Holding to provide new offerings to customers in the Semiconductors industry.

iv) Strategies Appealing to the Market:

Internet and Artificial Intelligence has significantly altered the business model in the Technology industry and given the decreasing significance of the dealer network ASML Holding has to build a new robust supply chain network. That can be extremely expensive.

• It has enormous pricing power
• It recently guided for positive growth in a period when chip makers expected declining earnings(Van Schoot et al. 2019).

Marketing Mix of ASML Holding NV

i) Product Strategy (Product Mix)

ASML Holding N V maintains high-quality products for computer chips and they considered raw materials from reliable and trusted suppliers only. The broad portfolio helps ASML Holding N V in reaching different target groups in the market. shareholder ASMI was unable to maintain the high levels of investment with little return and decided to withdraw.

ii) Pricing Strategy

 This program is offering 12-month price forecasts for ASML Holding NV have a median target of 750.00, with a high estimate of 850.00 and a low estimate of 665.00 (Van Schoot et al. 2019)..

iii) Promotional/ Advertising Plan:

The company use promotions through advertisements on its websites and use social media. Since younger population is target population, the company mostly focused on social media especially Facebook and Instagram. TV commercials, print ads, online advertisements are also common methods for promotions.

ASML Holding NV Competitive Analysis

7Ps’ comparisons with competitors

i) Product

Their only computer chip company along with lithography machines for their development.

ii) Price:

ASML Holding NV's (ASML) share price as of October 12, 2022, is $398.33 compared to   ASML Holding NV.

iii) Place

They provide services all over the world rather than this company.

iv) Promotion

Use social media and printing for promotion.

v) Strengths’ comparisons with competitors

• In ASML's case, more optimistic forecasts are warranted.
• This company is a monopoly and unable to bring consider the competitor in this market in 2025.

vi) Weaknesses’ comparison with competitors

Have different services in order to bring revenue in the company.  It supports the company to make up for the loss which comes from other segments (Van Schoot et al. 2019).

vii) Organization’s Competitive Advantage

Historical daily share price chart. The latest closing stock price for ASML Holding as of January but they can be reaching different target groups in the market

Key success factors:

• Better and faster services
• Industry and technological advances (Bourgeois, Goodman, and Wynne 2017)
• Phone-related services for the orders
• Respect for each other in employee
• High quality of services for chips
• The semiconductor chip shortage affects many industries, including automotive, data centers, video games, and more.

Problems and Issues in ASML Holding NV Organization:

Local activists and politicians are concerned the semiconductor company is growing too big, too fast. In this case, the company can feel a dilemma regarding this and must develop a strong legislative background for this company.    However, potential oversupply is the main issue as the company has a high network for supply but lacks a product base apart from chips (Shin,  Park, and Lee 2016).  The company must focus on other products for improving its growth and revenue.