Fremont Financial Corp A Case Porter’s Five Forces Analysis


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Fremont Financial Corp A Case Study Solution

Bargaining Power of Supplier:

The vendor in the Taiwanese Fremont Financial Corp A industry has a reduced negotiating power despite the fact that the industry has supremacy of 3 gamers including Powerchip, Nanya and ProMOS. Fremont Financial Corp A producers are mere initial devices producers in strategic partnerships with foreign gamers in exchange for modern technology. The 2nd factor for a reduced negotiating power is the fact that there is excess supply of Fremont Financial Corp A systems due to the big scale manufacturing of these dominant market players which has actually lowered the price per unit and raised the bargaining power of the purchaser.

Threat of Substitutes & Degree of Rivalry:

The threat of alternatives in the market is high provided the reality that Taiwanese manufacturers take on market share with global players like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This suggests that the marketplace has a high degree of rivalry where manufacturers that have layout as well as advancement capacities in addition to producing competence might be able to have a higher negotiating power over the market.

Bargaining Power of Buyer:

The marketplace is controlled by players like Micron, Elpida, Samsung and also Hynix which further minimize the buying powers of Taiwanese OEMs. The reality that these tactical gamers do not allow the Taiwanese OEMs to have access to modern technology indicates that they have a higher negotiating power fairly.

Threat of Entry:

Threats of entry in the Fremont Financial Corp A production market are reduced due to the reality that building wafer fabs and also purchasing equipment is extremely expensive.For simply 30,000 devices a month the funding requirements can vary 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 recent innovation and there for new players would certainly not be able to compete with leading Fremont Financial Corp A OEMs (initial tools producers) in Taiwan which had the ability to take pleasure in economic climates of range. In addition to this the present market had a demand-supply imbalance therefore surplus was already making it tough to allow new players to take pleasure in high margins.

Firm Strategy:

The region's manufacturing companies have relied on a strategy of mass production in order to reduce prices with economic climates of scale. Given that Fremont Financial Corp A production utilizes standard procedures and basic as well as specialty Fremont Financial Corp A are the only 2 groups of Fremont Financial Corp A being produced, the processes can easily make use of automation. The industry has leading suppliers that have actually created alliances for technology from Oriental and Japanese firms. While this has caused availability of technology and range, there has been disequilibrium in the Fremont Financial Corp A industry.

Threats & Opportunities in the External Atmosphere

Based on the internal and exterior audits, possibilities such as strategicalliances with technology companions or development via merger/ acquisition can be explored by TMC. Along with this, an action towards mobile memory is also an opportunity for TMC specifically as this is a niche market. Dangers can be seen in the form of over dependancy on foreign gamers for technology and competitors from the US and also Japanese Fremont Financial Corp A producers.

Porter’s Five Forces Analysis