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Fremont Financial Corp Recommendations Case Studies

CASE ANALYSIS

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Fremont Financial Corp Case Study Solution

Doorperson's diamond framework has actually highlighted the truth that Fremont Financial Corp can certainly leverage on Taiwan's production knowledge and scale production. At the exact same time the firm has the benefit of remaining in an area where the federal government is advertising the DRAM industry with individual intervention as well as development of infrastructure while opportunity occasions have decreased leads of straight competitors from international gamers. Fremont Financial Corp can definitely select a lasting affordable advantage in the Taiwanese DRAM industry by adopting approaches which can reduce the hazard of exterior factors and make use of the factors of competitive edge.

It has been gone over throughout the inner and also exterior analysis exactly how these strategic partnerships have been based on sharing of technology as well as capacity. Nevertheless, the critical alliances in between the DRAM manufacturers in Taiwan and also foreign modern technology carriers in Japan and United States have caused both and also favorable implications for the DRAM sector in Taiwan.

As far as the favorable effects of the strategic partnerships are concerned, the Taiwanese DRAM makers obtained immediate accessibility to DRAM modern technology without having to buy R&D on their own. It can be seen exactly how the Taiwanese market share in the DRAM sector is still extremely minor as well as if the regional gamers had to buy technology advancement on their own, it may have taken them long to obtain near Japanese and United States players. The 2nd positive ramification has actually been the fact that it has actually raised effectiveness degrees in the DRAM sector specifically as scale in production has actually allowed even more systems to be created at each plant.

The industry has actually had to encounter excess supply of DRAM units which has lowered the per unit rate of each system. Not just has it led to lower margins for the producers, it has brought the industry to a setting where DRAM makers have had to turn to local federal governments to obtain their economic circumstances sorted out.

As for the private feedbacks of regional DRAM firms are concerned, these strategic alliances have straight affected the way each company is reacting to the emergence of Fremont Financial Corp. Although Fremont Financial Corp has actually been the federal government's campaign in terms of making the DRAM sector self-reliant, market gamers are withstanding the transfer to combine due to these critical alliances.

Nanya makes use of Micron's technology as per this partnership while ProMOS has actually enabled Hynix to utilize 50% of its production capacity. Similarly, Elipda and also Powerchip are sharing a calculated alliance. Fremont Financial Corp may not be able to benefit from Elpida's technology due to the fact that the company is now a direct competitor to Powerchip and also the last is reluctant to share the innovation with Fremont Financial Corp. In the same manner Nanya's critical partnership with Micron is being available in the method of the last firm's passion in sharing modern technology with Fremont Financial Corp.