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Accuflow Inc Case Study Analysis

Porter's ruby framework has highlighted the fact that Accuflow Inc can absolutely utilize on Taiwan's manufacturing know-how and scale manufacturing. At the very same time the firm has the benefit of being in an area where the government is advertising the DRAM sector through personal intervention as well as development of infrastructure while opportunity occasions have decreased potential customers of straight competitors from foreign gamers. Accuflow Inc can absolutely select a lasting competitive advantage in the Taiwanese DRAM market by taking on approaches which can decrease the danger of outside factors and also make use of the factors of competitive edge.

It has actually been talked about throughout the inner and also exterior analysis how these tactical partnerships have been based on sharing of modern technology and ability. The calculated partnerships in between the DRAM makers in Taiwan and also international modern technology suppliers in Japan and also United States have actually resulted in both and also favorable implications for the DRAM sector in Taiwan.

Regarding the favorable implications of the tactical alliances are worried, the Taiwanese DRAM makers got immediate accessibility to DRAM technology without having to invest in R&D by themselves. It can be seen how the Taiwanese market share in the DRAM market is still very small as well as if the local players had to buy technology growth by themselves, it may have taken them long to get close to Japanese as well as United States players. The second favorable effects has actually been the reality that it has actually raised efficiency levels in the DRAM market specifically as scale in production has allowed more systems to be produced at each plant.

The industry has had to face excess supply of DRAM units which has actually decreased the per device rate of each device. Not only has it led to reduced margins for the manufacturers, it has brought the sector to a setting where DRAM manufacturers have actually had to transform to neighborhood federal governments to obtain their monetary situations arranged out.

As for the individual reactions of local DRAM firms are concerned, these calculated alliances have actually straight impacted the method each company is responding to the introduction of Accuflow Inc. Accuflow Inc has actually been the federal government's campaign in terms of making the DRAM market self-reliant, industry gamers are resisting the move to combine because of these calculated partnerships.

For example Nanya utilizes Micron's modern technology based on this alliance while ProMOS has actually enabled Hynix to utilize 50% of its production capacity. Similarly, Elipda as well as Powerchip are sharing a calculated alliance. Accuflow Inc may not be able to profit from Elpida's technology because the company is currently a straight competitor to Powerchip and the latter is hesitant to share the technology with Accuflow Inc. In the same manner Nanya's calculated partnership with Micron is being available in the way of the last company's interest in sharing innovation with Accuflow Inc.