This is the first 1,000 characters of 3558 words (14.23 pages) in the essay titled Texas Instruments
Global Pricing in the Semiconductor Industry
The Case Issue
The major issue of the case is dealing with the question, if a global pricing strategy would be adequate to pursue in the semiconductor industry. So far, semiconductors had been bought and sold at different price levels in different countries to reflect the various cost structures of the countries in which they were produced. Semiconductors made in European countries were usually more expensive than those made in Asia or North America, simply because it cost manufacturers more to operate in Europe than in the other two regions. Despite these differences, large distributors and some original equipment manufacturers were becoming insistent on buying their semiconductors at one worldwide price, and were pressuring vendors to negotiate global pricing terms.
As a consequence, and due to the fact that the semiconductor industry is very price competitive and price sensitive, the m...
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