Cmus Essay

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T-Mobile (TMUS) Acquisition Strategy for Cirrus Logic (CRUS) Corporate acquisitions are an integral component of long-term business strategy with the desired goal of increased revenue, profitability and growth. TMUS has established itself as an innovative, cost focused company and has successfully seized market share while building a loyal customer base. In order to maintain and enhance their standing in the industry, TMUS should consider an acquisition strategy based upon the principle of efficiency and pursue CRUS as a target for takeover. CRUS is a provider of audio and voice IC products renown for high quality, low power, small size and optimal performance. Its chips are used in a variety of cellular and electronic devices covering …show more content…

Furthermore, because CRUS is a fabless company, it does not need to own or operate foundries for production. Instead it has developed a plethora of strategic alliances with a network of third-party contractors and chip assemblers for the manufacture, assembly and testing of its products. This strategy has allowed CRUS to keep CAPEX minimized and enabled them to focus their resources on design and development thereby encouraging innovation while reducing operational and financial risk (Zachs, 2017). The objective for the acquisition of CRUS would be to provide TMUS access to lower cost and higher quality software and hardware components allowing them to evolve their strategic position from cost focus to cost leadership by taking advantage of economies of scale in their manufacturing processes. Additionally, this acquisition will allow TMUS to take control over one of its competitor’s major suppliers as more than eighty percent of CRUS current business revenue stems from sales to Apple Inc. (Neiger, 2018). Interestingly, CRUS was once a rumored takeover target of Apple, but the acquisition never came to fruition (Truta, 2010). Moreover, CRUS strong manufacturing

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