Qualcomm, Inc Research Paper Example | Topics and Well Written Essays - 1000 words

Qualcomm, Inc - Research Paper Example This was the beginning of the exponential growth of the company. The company nowadays has extensive portfolio not just in the United States of America, but the company has over 195 patent agreements around the world. This makes Qualcomm the best and the largest company in the communication sector. The company has also been very active in the growth of 3G and other wireless communication developments. Among various other development, company has developed several modern technologies in the industry including CDMA technology, 3G technology and QUALCOMM Enterprises Services (QES). QUALCOMM is also helping the governments around the world in setting up effective communication solutions. QUALCOMM has also started QUALCOMM licensing service though which the every new development that QUALCOMM makes is licensed to companies around the world so that this development is not concentrated to just one part of the world, but it spreads throughout the world evenly. (Qualcomm’s Official Webs ite, 2011) Qualcomm is threatened quite badly by the large amount of lawsuits that were filed against the company. Everyone these days seem to file lawsuits against the company. From the handset makers to cellular networks, everyone has given its own share of problems to the communication industry giant, QUALCOMM. These lawsuits range from antitrust law violations to licensing agreement. All of this could have created a mess if it was not QUALCOMM. It is one company that is spending huge sum on its team of defense attorneys. Hence, the company can fight it out by having out-of-the-court deals with the companies who have filed these lawsuits or else they can go with them hard in the court of law. In any case, QUALCOMM does not have too much to worry about and this problem is going to be handled more than effectively by the team of lawyers that are on QUALCOMM’s payroll. This problem also stemmed from the sharp growth of the communication industry in the last decade. This irreg ular resulted in a lot of problems and lawsuits for QUALCOMM. However, QUALCOMM is in a great position to come out of this problem as they have a great team of attorney to defend the company’s position. (Sidener, 2009) Another problem with QUALCOMM is its declining margin. In the latest quarter ending June 26 2011, QUALCOMM operating profit margin was 30 percent. This was a decline of 3 percent from the quarter previous year. This shows that operating expenses of QUALCOMM are rising faster than its revenues. This has caused the problem of declining QUALCOMM’s profitability. The scrutiny of financial statements reveals that this decline in profitability is a result of increasing cost of equipment and servicing costs. QUALCOMM can improve its position by moving towards more efficient operations. They should try to reduce the costs by as much as possible and should try to increase their revenues. This can be done by increasing the cost control methods and hiring operation managers at each cost centre. They should inspect the factors that are leading to wastage and should try to eliminate them so that the next quarter’s financial statements are more profitable and more ostentatious. (Qualcomm’s Income Statement, 2011) QUALCOMM operates in an industry and is facing high level of competition. It is reported that there are around 21 companies that provide competition to QUALCOMM directly or indirectly. This is