Glenorna Coffee Case Porter’s Five Forces Analysis


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Glenorna Coffee Case Study Solution

Bargaining Power of Supplier:

The supplier in the Taiwanese Glenorna Coffee market has a reduced bargaining power despite the fact that the industry has prominence of 3 players including Powerchip, Nanya and ProMOS. Glenorna Coffee suppliers are plain initial devices makers in critical alliances with foreign players in exchange for technology. The second factor for a low bargaining power is the fact that there is excess supply of Glenorna Coffee devices because of the big range manufacturing of these dominant industry gamers which has reduced the price each and also enhanced the bargaining power of the customer.

Threat of Substitutes & Degree of Rivalry:

The threat of alternatives on the market is high provided the reality that Taiwanese producers compete with market show global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the market has a high degree of rivalry where manufacturers that have design and growth abilities together with making competence might have the ability to have a greater negotiating power over the market.

Bargaining Power of Buyer:

The market is controlled by players like Micron, Elpida, Samsung as well as Hynix which even more lower the purchasing power of Taiwanese OEMs. The fact that these critical players do not allow the Taiwanese OEMs to have access to modern technology indicates that they have a higher bargaining power comparatively.

Threat of Entry:

Risks of entry in the Glenorna Coffee manufacturing market are reduced due to the reality that building wafer fabs and purchasing devices is highly expensive.For simply 30,000 systems a month the capital requirements can range from $ 500 million to $2.5 billion depending upon the dimension of the units. The manufacturing needed to be in the most current innovation and there for brand-new players would certainly not be able to compete with leading Glenorna Coffee OEMs (initial devices producers) in Taiwan which were able to appreciate economic situations of scale. The existing market had a demand-supply discrepancy and so excess was already making it hard to permit new gamers to enjoy high margins.

Firm Strategy:

The area's production firms have relied on a technique of automation in order to reduce prices through economic climates of range. Given that Glenorna Coffee manufacturing makes use of standard processes as well as standard as well as specialty Glenorna Coffee are the only 2 categories of Glenorna Coffee being produced, the processes can easily take advantage of automation. The industry has leading suppliers that have developed alliances in exchange for innovation from Korean and also Japanese companies. While this has actually caused schedule of technology and range, there has actually been disequilibrium in the Glenorna Coffee market.

Threats & Opportunities in the External Setting

Based on the internal and also external audits, opportunities such as strategicalliances with modern technology partners or growth with merging/ acquisition can be explored by TMC. In addition to this, a step towards mobile memory is also a possibility for TMC especially as this is a particular niche market. Risks can be seen in the type of over reliance on international gamers for innovation as well as competitors from the US as well as Japanese Glenorna Coffee makers.

Porter’s Five Forces Analysis