ARM is a designer of low-power microprocessors, which generates revenue by licensing its intellectual property to semiconductor manufacturers. It has enjoyed 10 years of unbroken profitability, more than quadrupling its revenues during the period. This case study shows how the company has provided a solution to a technological problem and consistently executed a simple, effective business model.
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ARM designs the core architecture of the processors that form the heart of many contemporary electronic products. It then licenses the designs to semiconductor manufacturers, and does not manufacture any chips itself.
ARM is dominant in the mobile computing processor market. Its Reduced Instruction Set Computing (RISC) processor designs offer much lower power consumption than alternative architectures.
Your key questions answered
What is ARM's business model? Who are its competitors?
What are its end-markets? How well has the company performed?