Microchip Technology Company

Microchip Technology Company

Microchip Technology Company is located in the United States and headquartered in Chandler, Arizona, United States. Its address is 2355 West Chandler Blvd (Baker, 1998). It is one of the largest business to business firms in the automobile industry, supplying its electronic products mainly to Toyota Motors, among others. Its products aids in the production of motor vehicles in the world. Microchip Technology company is a publicly-listed corporation based in the United States. It deals in the manufacturing of built-in infotainment systems, microcontroller, mixed-signal, Serial EEPROM devices, Flash-IP integrated circuits, radiofrequency, among other things (Baker, 1998). The company was founded in 1978and has supplied most of the automobile companies in the world.

Sikanen et al. (2010) point out that Microchip Technology is the major supplier of Toyota Motors, which is the world’s most profitable automobile firm in the world. Further, it supplies the built-in infotainment systems to BMW, Honda, General Motors, and Telsa Inc. It is a major supplier in microcontrollers to automobile companies, and this makes it a business to a business firm. In this case, the product to be discussed is PIC microcontrollers and integrated circuits that automobile firms use in the production of vehicles. The center of focus in this paper will be production and supplier of integrated circuits by Microchip Technology to Toyota Motors.  IC is small tiny chips that are used as amplifiers, oscillators, time, computer memory, and microprocessor. It has the ability of millions of transistors, resistors, and capacitors. In automobiles, IC is used for amplification, timer, and oscillator.

Takeuchi (2009) noted that business to business products are those products that are produced and supplied to other businesses for the production of other goods or services. In this case, IC falls under business to the business product since it is manufactured with the aim of being supplied to other automobile companies to help in the production of automobiles. In connection, firms that involve in the manufacture of business to business products are known as business to business companies. In this case, our business to the business firm is Microchip Technology Inc.  IC has several advantages or benefits that automobile firms enjoy. Currently, firms prefer IC to discrete circuits due to their reliable performance. An apart from being cheap and affordable, IC performance is high because it has components that switch faster and use a little amount of power (Takeuchi, 2009). Due to their small size, they are easy to produce and convenient. Modern automobiles use IC due to their low energy and ability to hold many resistors that retains power. This enables such vehicles to support heavy music systems installed. They have increased in production and capacity due to their reliability

The automobile industry entails a wide range of firms and business organizations that design, develop, produce, and market vehicles around the world. It is noted to be one of the globes largest economic sectors in terms of revenue. The automobile industry is one of the most competitive industries in the world, with dynamics due to technological developments. Companies have become innovative and inventive, creating new products that meet customer satisfaction. Maintaining standards in the automobile industry, therefore, requires constant improvement in outcomes with extra services such as entertainment. With the introduction of IC in the automobile industry, customers have been able to access resistors that can store power for a long distance while listening to music. The major competitors in the industry are Toyota Motors, BMW, General Motors, and Telsa Inc. Since Toyota Motors adopted the use of IC in their car products, it has gained significant competitive advantage other its competitors. This has increased its market share and profits for the lasts few years. IC is unique in nature, providing extra services that are loved by most car owners, especially the youth.

Takeuchi (2009 noted that the marketing and selling of Toyota Motors vehicle products is made simple and comfortable due to its unique qualities associated to IC systems. The existence of such unique qualities of products results in product differentiation marketing strategy, which has been very effective for the last decades. For Microchip Technology, marketing IC products involved a strong and positive product relationship it has formed with buyers such as Toyota and Telsa. Due to the reliable and convenient nature of Microchip Technology products, the most used marketing strategy is product differentiation. In this case, the firm has differentiated its IC products to become unique in the market. IC is entirely different from discrete circuits in nature and the working process. Another strategy used by MT is pricing strategy (Takeuchi, 2009). At first, when the company introduced the product in the market, it charged affordable prices lower than the equilibrium price to attract customers. Currently, the firm has stable customers and suppliers its IC to the largest automobile companies in the world. For example, Toyota has formed a positive relationship with MT, and now it supplier all its branches across the globe.

The prices charged are affordable with reasonable payment methods. The prices for the IC are not fixed but negotiable. Takeuchi (2009) stated that depending on the quality and the size, the ICs range from $527 to $654. However, most MT supplier is given in wholesale price to the companies buying them. The payment methods available credit cards, debit cards, cheque, and cash. In most cases, MT uses electronic payment methods, such as smart cards, stripe cards, and mobile payments. Kickul & Gundry (2002) revealed that for loyal customers such as Telsa, Toyota Motors, and BMW companies, Microchip Technology offers a prices discount to a tune of $2343 for goods worth $800000.  Further, the company offers sales discount for an annual supply to a tune of ten inventories.

MT offers transport for its customers in terms of carriage outwards. For private shipments, the owner of the goods pays for the voyage fees. Microchip Technology uses a pro forma invoice, which is not a demand for payment.  This is used mostly with trusted firms such as Toyota Motors. In some cases, for prospective customers, the firm uses an interim invoice to help breakdown the values of large supply into multiple payments (Kickul & Gundry, 2002). This has helped startup or complimentary automobile firms to pay their debts in small amounts. It is important to note that the firm does not allow for credit even with reliable customers. Due to the high demand for IC in the automobile industry, MT maintains high rate production of IC with high quality. In a nutshell, Microchip Technology Company is one of the recognized firms that supply varieties of automobiles IC to the largest firms in the world. It thrives well in offering business to business products across the globe at affordable prices.

Prospecting Methods

Prospecting is essential in sales because it helps in developing a pipeline of potential customers available. It also helps to position sales representatives as trusted advisors and keeps focus on the right accounts. It entails attracting more customers to convert into buyers. Further prospecting helps to understand customers and their needs. This helps in production to align with specific customer preferences. The process of choosing a prospecting method requires a deep understanding of customers and the product. There are various prospecting methods such as Linkedln, seeking out partners, Yelp prospecting, and attending relevant events (Kickul & Gundry, 2002). For Integrated Circuits, Cold e-mailing and seeking partners would be appropriate. This can help create a vast base of customers who are mainly other automobile firms. Since the product already has a target market, specific prospecting methods such as cold e-mailing would reach the target customer direct. For cold e-mailing, the firm will send any unsolicited e-mail to the target customer in which they get without prior notice. It entails e-mail marketing and not spam. When seeking for partners, companies with an interest in IC will be contacted and enticed to partner with Microchip Technology firm to market its products to other automobile producers. This will help attract many customers and open a wide market for the business. Once the prospects are convinced to buy the products, favorable payment terms and discounts will be used to maintain their loyalty to the firm.

References

Baker, B. (1998). Temperature sensing technologies. AN679, Microchip Technology Inc.

Kickul, J., & Gundry, L. (2002). Prospecting for strategic advantage: The proactive entrepreneurial personality and small firm innovation. Journal of small business management, 40(2), 85-97.

Sikanen, T., Franssila, S., Kauppila, T. J., Kostiainen, R., Kotiaho, T., & Ketola, R. A. (2010). Microchip Technology in mass spectrometry. Mass spectrometry reviews, 29(3), 351-391.

Takeuchi, H. (2009). The contradictions that drive Toyota s success. Strategic direction.