Porter's diamond structure has highlighted the fact that Fremont Financial Corp can certainly utilize on Taiwan's manufacturing know-how as well as scale production. At the same time the business has the benefit of remaining in a region where the federal government is promoting the DRAM market via personal treatment and also advancement of framework while chance occasions have actually reduced prospects of direct competition from international gamers. Fremont Financial Corp can definitely opt for a sustainable affordable benefit in the Taiwanese DRAM sector by taking on techniques which can decrease the hazard of external factors and manipulate the components of competitive edge.
It has been talked about throughout the interior as well as outside analysis exactly how these strategic alliances have actually been based on sharing of modern technology and ability. The critical alliances in between the DRAM producers in Taiwan and foreign modern technology providers in Japan and also US have actually resulted in both and positive implications for the DRAM sector in Taiwan.
Regarding the favorable ramifications of the strategic alliances are concerned, the Taiwanese DRAM producers got immediate access to DRAM innovation without having to invest in R&D on their own. It can be seen just how the Taiwanese market share in the DRAM market is still extremely minor and also if the neighborhood players needed to invest in modern technology development on their own, it may have taken them long to get near Japanese as well as United States players. The 2nd favorable ramification has actually been the fact that it has actually increased performance degrees in the DRAM market particularly as scale in production has permitted even more devices to be generated at each plant.
Nonetheless, there have been several unfavorable effects of these partnerships also. The dependancy on United States as well as Japanese players has actually boosted so neighborhood players are hesitant to opt for investment in design and also development. The industry has actually had to deal with excess supply of DRAM systems which has actually reduced the per system cost of each system. Not just has it brought about lower margins for the makers, it has brought the market to a placement where DRAM suppliers have actually had to count on city governments to obtain their economic situations sorted out.
As for the individual reactions of regional DRAM companies are worried, these critical alliances have actually directly influenced the way each firm is responding to the introduction of Fremont Financial Corp. Although Fremont Financial Corp has been the federal government's initiative in terms of making the DRAM sector autonomous, sector players are resisting the transfer to consolidate due to these tactical alliances.
For example Nanya utilizes Micron's technology according to this alliance while ProMOS has enabled Hynix to make use of 50% of its production capability. Elipda and Powerchip are sharing a critical partnership. Fremont Financial Corp may not be able to benefit from Elpida's technology since the firm is now a straight rival to Powerchip and the latter is unwilling to share the innovation with Fremont Financial Corp. Similarly Nanya's strategic partnership with Micron is coming in the means of the last firm's interest in sharing innovation with Fremont Financial Corp.
Home >> Harvard >> Fremont Financial Corp >> Recommendations
