Concordia Electronic Systems Test Case Porter’s Five Forces Analysis


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Concordia Electronic Systems Test Case Study Solution

Bargaining Power of Supplier:

The vendor in the Taiwanese Concordia Electronic Systems Test sector has a reduced bargaining power despite the fact that the market has prominence of 3 players consisting of Powerchip, Nanya and also ProMOS. Concordia Electronic Systems Test suppliers are plain original tools makers in tactical alliances with international gamers for innovation. The 2nd factor for a reduced negotiating power is the fact that there is excess supply of Concordia Electronic Systems Test units because of the large scale manufacturing of these leading sector gamers which has decreased the cost each and boosted the negotiating power of the buyer.

Threat of Substitutes & Degree of Rivalry:

The hazard of replacements out there is high given the truth that Taiwanese suppliers compete with market show to global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and also Fujitsu. This indicates that the market has a high level of competition where producers that have design and growth abilities together with making knowledge might have the ability to have a higher negotiating power over the marketplace.

Bargaining Power of Buyer:

The marketplace is controlled by players like Micron, Elpida, Samsung and Hynix which additionally decrease the buying powers of Taiwanese OEMs. The fact that these critical gamers do not allow the Taiwanese OEMs to have access to technology indicates that they have a greater negotiating power fairly.

Threat of Entry:

Risks of access in the Concordia Electronic Systems Test production industry are low because of the truth that structure wafer fabs and also acquiring equipment is extremely expensive.For simply 30,000 units a month the capital needs can range from $ 500 million to $2.5 billion relying on the size of the systems. In addition to this, the manufacturing needed to be in the most up to date modern technology and there for new gamers would certainly not be able to compete with dominant Concordia Electronic Systems Test OEMs (original devices suppliers) in Taiwan which were able to appreciate economies of scale. The present market had a demand-supply discrepancy as well as so excess was already making it tough to permit new players to take pleasure in high margins.

Firm Strategy:

Since Concordia Electronic Systems Test production uses standard processes and also common and also specialty Concordia Electronic Systems Test are the only 2 classifications of Concordia Electronic Systems Test being manufactured, the procedures can easily make use of mass manufacturing. While this has led to accessibility of modern technology and also range, there has been disequilibrium in the Concordia Electronic Systems Test market.

Threats & Opportunities in the External Atmosphere

According to the internal and also outside audits, chances such as strategicalliances with innovation partners or development with merging/ procurement can be checked out by TMC. A relocation towards mobile memory is also an opportunity for TMC especially as this is a specific niche market. Hazards can be seen in the form of over dependancy on international players for technology and also competitors from the US and also Japanese Concordia Electronic Systems Test producers.

Porter’s Five Forces Analysis