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Ben Walter Case Study Analysis

Doorperson's diamond framework has highlighted the fact that Ben Walter can definitely take advantage of on Taiwan's manufacturing expertise and also scale manufacturing. At the same time the firm has the benefit of being in an area where the federal government is promoting the DRAM sector with individual treatment as well as growth of facilities while chance occasions have actually decreased prospects of straight competition from foreign gamers. Ben Walter can absolutely go with a sustainable affordable advantage in the Taiwanese DRAM industry by adopting approaches which can decrease the danger of outside factors and make use of the components of one-upmanship.

It has been discussed throughout the internal and external analysis exactly how these strategic alliances have been based on sharing of innovation and capability. The calculated partnerships between the DRAM makers in Taiwan as well as foreign technology suppliers in Japan as well as US have actually resulted in both as well as positive implications for the DRAM market in Taiwan.

As far as the positive ramifications of the strategic alliances are concerned, the Taiwanese DRAM producers obtained immediate access to DRAM technology without needing to buy R&D on their own. It can be seen exactly how the Taiwanese market share in the DRAM sector is still really minor as well as if the neighborhood gamers had to buy innovation development by themselves, it might have taken them long to get near Japanese and also US gamers. The second favorable ramification has been the fact that it has actually increased performance degrees in the DRAM sector specifically as scale in manufacturing has enabled even more devices to be created at each plant.

Nonetheless, there have actually been a number of adverse implications of these partnerships as well. To start with the dependancy on United States and also Japanese players has enhanced so local gamers hesitate to choose financial investment in style and development. In addition to this, the sector has needed to face excess supply of DRAM systems which has reduced the per unit cost of each system. Not only has it resulted in reduced margins for the makers, it has actually brought the industry to a placement where DRAM makers have actually had to count on city governments to get their financial situations figured out.

Regarding the specific feedbacks of local DRAM firms are concerned, these critical alliances have directly influenced the method each firm is reacting to the appearance of Ben Walter. Ben Walter has actually been the federal government's effort in terms of making the DRAM industry autonomous, sector gamers are standing up to the relocation to settle because of these critical alliances.

Ben Walter may not be able to benefit from Elpida's modern technology due to the fact that the company is now a straight competitor to Powerchip as well as the last is hesitant to share the innovation with Ben Walter. In the exact same fashion Nanya's strategic collaboration with Micron is coming in the means of the latter company's rate of interest in sharing innovation with Ben Walter.