Menu

Colt Industries Recommendations Case Studies

CASE STUDY

Home >> Harvard >> Colt Industries >> Recommendations

Colt Industries Case Study Solution

Porter's diamond structure has actually highlighted the fact that Colt Industries can absolutely leverage on Taiwan's production knowledge and range production. At the same time the firm has the benefit of being in a region where the federal government is advertising the DRAM market with individual intervention and advancement of infrastructure while possibility occasions have actually decreased leads of direct competitors from foreign players. Colt Industries can definitely go with a sustainable competitive benefit in the Taiwanese DRAM market by taking on techniques which can reduce the hazard of external factors as well as manipulate the components of competitive edge.

It has actually been talked about throughout the interior as well as outside analysis just how these strategic partnerships have been based upon sharing of innovation and capability. The calculated partnerships between the DRAM makers in Taiwan as well as international modern technology carriers in Japan and also US have resulted in both as well as favorable ramifications for the DRAM sector in Taiwan.

As for the positive implications of the strategic alliances are concerned, the Taiwanese DRAM manufacturers obtained instantaneous accessibility to DRAM technology without needing to invest in R&D on their own. It can be seen how the Taiwanese market share in the DRAM industry is still extremely small as well as if the regional gamers had to buy technology development by themselves, it may have taken them long to obtain near to Japanese and United States players. The second positive ramification has been the fact that it has raised efficiency degrees in the DRAM market particularly as range in production has actually allowed more devices to be generated at each plant.

Nonetheless, there have actually been numerous adverse ramifications of these alliances as well. First of all the reliance on US and Japanese gamers has actually raised so neighborhood gamers are reluctant to go with financial investment in style as well as development. The sector has had to deal with excess supply of DRAM units which has decreased the per system price of each unit. Not only has it led to reduced margins for the makers, it has brought the market to a setting where DRAM makers have actually had to rely on local governments to get their economic situations figured out.

As far as the private reactions of regional DRAM firms are concerned, these strategic alliances have actually directly affected the way each firm is responding to the appearance of Colt Industries. Colt Industries has actually been the federal government's effort in terms of making the DRAM sector autonomous, industry gamers are withstanding the move to settle due to the fact that of these calculated alliances.

Nanya uses Micron's modern technology as per this alliance while ProMOS has actually allowed Hynix to use 50% of its manufacturing capability. In a similar way, Elipda and Powerchip are sharing a calculated alliance. Nevertheless, Colt Industries may not have the ability to benefit from Elpida's innovation because the company is currently a straight competitor to Powerchip and also the last is reluctant to share the innovation with Colt Industries. In the same manner Nanya's strategic partnership with Micron is can be found in the means of the last company's passion in sharing technology with Colt Industries.