Menu

Fremont Financial Corp Case Porter’s Five Forces Analysis

CASE HELP

Home >> Harvard >> Fremont Financial Corp >> Porters Analysis

Fremont Financial Corp Case Study Analysis

Bargaining Power of Supplier:

The distributor in the Taiwanese Fremont Financial Corp market has a reduced bargaining power despite the fact that the industry has supremacy of three gamers consisting of Powerchip, Nanya and ProMOS. Fremont Financial Corp suppliers are simple original equipment makers in critical partnerships with international players in exchange for modern technology. The 2nd reason for a reduced negotiating power is the reality that there is excess supply of Fremont Financial Corp units due to the large scale manufacturing of these dominant industry gamers which has lowered the price each and also increased the bargaining power of the customer.

Threat of Substitutes & Degree of Rivalry:

The risk of replacements out there is high offered the fact that Taiwanese manufacturers compete with market share with global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the market has a high level of competition where manufacturers that have style and development capacities together with manufacturing knowledge may have the ability to have a greater bargaining power over the marketplace.

Bargaining Power of Buyer:

The market is dominated by gamers like Micron, Elpida, Samsung as well as Hynix which additionally lower the purchasing power of Taiwanese OEMs. The truth that these tactical gamers do not permit the Taiwanese OEMs to have accessibility to innovation suggests that they have a greater bargaining power relatively.

Threat of Entry:

Dangers of access in the Fremont Financial Corp manufacturing market are low because of the reality that building wafer fabs and also purchasing equipment is highly expensive.For simply 30,000 systems a month the capital needs can vary from $ 500 million to $2.5 billion depending on the size of the devices. The production needed to be in the newest innovation and also there for brand-new players would certainly not be able to complete with leading Fremont Financial Corp OEMs (initial tools suppliers) in Taiwan which were able to take pleasure in economies of range. The existing market had a demand-supply imbalance as well as so excess was currently making it difficult to allow new gamers to appreciate high margins.

Firm Strategy:

The area's production companies have depended on a technique of automation in order to lower prices via economies of range. Since Fremont Financial Corp production makes use of typical procedures and also common and specialized Fremont Financial Corp are the only 2 classifications of Fremont Financial Corp being manufactured, the processes can quickly utilize automation. The market has dominant suppliers that have actually developed partnerships for technology from Korean and also Japanese companies. While this has led to accessibility of technology as well as scale, there has actually been disequilibrium in the Fremont Financial Corp industry.

Threats & Opportunities in the External Environment

Based on the interior and exterior audits, possibilities such as strategicalliances with technology partners or development through merging/ acquisition can be explored by TMC. An action in the direction of mobile memory is also an opportunity for TMC specifically as this is a particular niche market. Hazards can be seen in the kind of over reliance on international gamers for modern technology and also competition from the United States and Japanese Fremont Financial Corp makers.

Porter’s Five Forces Analysis