IBM 414 | Current Events Assignment #4
Kien Lai | IBM 414 | 4/23/02 | California State Polytechnic University, Pomona
- Publication Source: Los Angeles Times Date: 4/23/02 Page(s): C1, C13
- Title of Article: Micron to Buy Part of Hynix for $3.6 Billion
- The firm is Micron Technology Inc. and its marketing strategy is the acquisition of Hynix memory division in hopes of becoming the world©s leading supplier of memory modules.
- No
- The reasoning behind why I think the strategy will not work is because alliances and joint ventures have already been developed by competing companies such as Toshiba, NEC, Infineon, and Samsung. The acquisition of Hynix by Micron would actually put them at a disadvantage because of the junction of the two companies that have entirely different cultures. Moreover, the company faces restructuring costs after the completion of the merger. While Micron gets tangled in its own web, their competitors will be able to take full advantage of this opportunity to gain significant market share. It will take a great leader to pull off this merger while at the same time maintain it market share.
- The concept the article relates to is chapter four on page 140. Micron, being an American company, will face the challenge of incorporating Hynix, which is based in South Korea. This will be very difficult because American companies are typically low-context while Asian counties are generally high-context regions. Moreover, the culture within each company is drastically different.
