Menu

Diamond Foods Inc B Case Porter’s Five Forces Analysis

CASE SOLUTION

Home >> Harvard >> Diamond Foods Inc B >> Porters Analysis

Diamond Foods Inc B Case Study Analysis

Bargaining Power of Supplier:

The provider in the Taiwanese Diamond Foods Inc B sector has a reduced negotiating power although that the industry has supremacy of three gamers including Powerchip, Nanya and ProMOS. Diamond Foods Inc B makers are simple original equipment manufacturers in tactical alliances with foreign players in exchange for technology. The second factor for a low negotiating power is the reality that there is excess supply of Diamond Foods Inc B units due to the large scale production of these dominant industry gamers which has decreased the cost each and also boosted the bargaining power of the purchaser.

Threat of Substitutes & Degree of Rivalry:

The danger of replacements in the market is high offered the truth that Taiwanese manufacturers take on market show to global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This suggests that the marketplace has a high level of rivalry where manufacturers that have style and development capabilities together with producing experience may have the ability to have a higher bargaining power over the market.

Bargaining Power of Buyer:

The marketplace is dominated by players like Micron, Elpida, Samsung and also Hynix which further decrease the purchasing power of Taiwanese OEMs. The fact that these calculated players do not allow the Taiwanese OEMs to have accessibility to technology shows that they have a higher negotiating power somewhat.

Threat of Entry:

Risks of entry in the Diamond Foods Inc B production industry are reduced owing to the fact that building wafer fabs and also buying tools is extremely expensive.For just 30,000 units a month the capital demands can range from $ 500 million to $2.5 billion depending upon the size of the units. The production required to be in the newest technology and there for brand-new gamers would certainly not be able to contend with dominant Diamond Foods Inc B OEMs (original devices manufacturers) in Taiwan which were able to delight in economic climates of scale. The current market had a demand-supply imbalance and also so surplus was currently making it challenging to allow new gamers to take pleasure in high margins.

Firm Strategy:

Considering that Diamond Foods Inc B manufacturing makes use of common processes and also conventional and specialty Diamond Foods Inc B are the only two classifications of Diamond Foods Inc B being made, the procedures can quickly make use of mass manufacturing. While this has led to schedule of technology and range, there has been disequilibrium in the Diamond Foods Inc B market.

Threats & Opportunities in the External Environment

According to the interior and outside audits, chances such as strategicalliances with technology partners or development with merger/ purchase can be checked out by TMC. A step in the direction of mobile memory is likewise a possibility for TMC especially as this is a niche market. Risks can be seen in the form of over reliance on international gamers for innovation and competition from the United States as well as Japanese Diamond Foods Inc B suppliers.

Porter’s Five Forces Analysis