Enron Gas Services Case Porter’s Five Forces Analysis


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Bargaining Power of Supplier:

The vendor in the Taiwanese Enron Gas Services sector has a low bargaining power despite the fact that the market has supremacy of three gamers including Powerchip, Nanya as well as ProMOS. Enron Gas Services suppliers are mere initial equipment makers in strategic alliances with foreign players in exchange for innovation. The 2nd reason for a low negotiating power is the truth that there is excess supply of Enron Gas Services systems due to the big scale manufacturing of these dominant market gamers which has reduced the price each as well as enhanced the negotiating power of the customer.

Threat of Substitutes & Degree of Rivalry:

The risk of replacements in the marketplace is high provided the fact that Taiwanese makers compete with market show worldwide players like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the market has a high level of competition where suppliers that have style and advancement capacities in addition to producing knowledge may have the ability to have a greater bargaining power over the market.

Bargaining Power of Buyer:

The market is controlled by gamers like Micron, Elpida, Samsung and Hynix which additionally reduce the purchasing power of Taiwanese OEMs. The truth that these critical gamers do not allow the Taiwanese OEMs to have accessibility to modern technology shows that they have a greater negotiating power somewhat.

Threat of Entry:

Hazards of entry in the Enron Gas Services production sector are low due to the reality that building wafer fabs and also acquiring tools is highly expensive.For simply 30,000 systems a month the funding requirements can vary from $ 500 million to $2.5 billion depending upon the dimension of the devices. The production required to be in the newest innovation and also there for new players would certainly not be able to contend with leading Enron Gas Services OEMs (initial tools makers) in Taiwan which were able to take pleasure in economic climates of scale. In addition to this the existing market had a demand-supply discrepancy and so surplus was currently making it tough to permit brand-new gamers to take pleasure in high margins.

Firm Strategy:

The region's manufacturing companies have actually counted on a technique of mass production in order to lower prices through economic situations of scale. Considering that Enron Gas Services manufacturing uses standard procedures as well as conventional and also specialized Enron Gas Services are the only 2 categories of Enron Gas Services being manufactured, the processes can quickly use mass production. The sector has dominant suppliers that have actually developed alliances in exchange for technology from Korean and Japanese firms. While this has brought about availability of technology and also scale, there has been disequilibrium in the Enron Gas Services industry.

Threats & Opportunities in the External Environment

As per the interior and also external audits, opportunities such as strategicalliances with innovation companions or growth with merger/ acquisition can be explored by TMC. An action towards mobile memory is also a possibility for TMC especially as this is a niche market. Threats can be seen in the type of over dependence on international gamers for innovation as well as competition from the United States and Japanese Enron Gas Services manufacturers.

Porter’s Five Forces Analysis