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Freeport Indonesia Case Study Analysis

Concierge's ruby framework has highlighted the reality that Freeport Indonesia can certainly utilize on Taiwan's manufacturing knowledge as well as range production. At the very same time the company has the advantage of remaining in an area where the government is advertising the DRAM industry via personal treatment and also advancement of infrastructure while chance events have reduced leads of direct competitors from international players. Freeport Indonesia can certainly go with a sustainable competitive benefit in the Taiwanese DRAM market by adopting techniques which can decrease the danger of exterior factors and manipulate the determinants of competitive edge.

It has actually been gone over throughout the inner as well as outside analysis how these strategic alliances have actually been based upon sharing of modern technology and capability. The calculated alliances in between the DRAM manufacturers in Taiwan and also foreign technology carriers in Japan and United States have resulted in both and also positive ramifications for the DRAM market in Taiwan.

As far as the favorable implications of the calculated alliances are concerned, the Taiwanese DRAM manufacturers obtained immediate access to DRAM innovation without having to invest in R&D by themselves. It can be seen just how the Taiwanese market share in the DRAM market is still very minor and if the local gamers had to purchase technology advancement by themselves, it might have taken them long to get near to Japanese and also United States gamers. The 2nd favorable ramification has been the fact that it has actually raised effectiveness levels in the DRAM industry specifically as scale in manufacturing has actually permitted more units to be produced at each plant.

There have actually been a number of adverse effects of these alliances too. To start with the dependence on US as well as Japanese players has actually raised so local gamers are reluctant to choose financial investment in style and also advancement. Along with this, the industry has needed to encounter excess supply of DRAM systems which has actually lowered the per unit cost of each unit. Not just has it brought about lower margins for the suppliers, it has brought the sector to a placement where DRAM producers have had to look to local governments to obtain their economic situations ironed out.

As far as the specific actions of regional DRAM firms are concerned, these tactical alliances have directly impacted the way each firm is reacting to the introduction of Freeport Indonesia. Although Freeport Indonesia has actually been the federal government's effort in regards to making the DRAM market autonomous, market gamers are withstanding the move to consolidate as a result of these tactical partnerships.

Freeport Indonesia might not be able to profit from Elpida's modern technology since the firm is currently a straight competitor to Powerchip and the last is hesitant to share the innovation with Freeport Indonesia. In the very same way Nanya's tactical partnership with Micron is coming in the method of the latter company's interest in sharing technology with Freeport Indonesia.