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Indias Negotiations Concerning The Dabhol Power Company 2001 2005 Case Porter’s Five Forces Analysis

CASE SOLUTION

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Indias Negotiations Concerning The Dabhol Power Company 2001 2005 Case Study Solution

Bargaining Power of Supplier:

The distributor in the Taiwanese Indias Negotiations Concerning The Dabhol Power Company 2001 2005 industry has a low bargaining power although that the market has supremacy of 3 gamers including Powerchip, Nanya as well as ProMOS. Indias Negotiations Concerning The Dabhol Power Company 2001 2005 producers are plain initial equipment suppliers in calculated partnerships with international players in exchange for technology. The second factor for a low bargaining power is the reality that there is excess supply of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 systems because of the big range manufacturing of these dominant industry gamers which has decreased the rate each and also boosted the negotiating power of the buyer.

Threat of Substitutes & Degree of Rivalry:

The danger of substitutes on the market is high offered the truth that Taiwanese suppliers compete with market show to global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and also Fujitsu. This shows that the marketplace has a high level of rivalry where suppliers that have design and also advancement abilities in addition to manufacturing know-how may be able to have a higher bargaining power over the marketplace.

Bargaining Power of Buyer:

The market is controlled by gamers like Micron, Elpida, Samsung and Hynix which further lower the purchasing power of Taiwanese OEMs. The truth that these tactical players do not permit the Taiwanese OEMs to have accessibility to innovation shows that they have a higher negotiating power relatively.

Threat of Entry:

Risks of access in the Indias Negotiations Concerning The Dabhol Power Company 2001 2005 manufacturing market are low owing to the truth that structure wafer fabs and also acquiring equipment is very expensive.For just 30,000 devices a month the capital requirements can vary from $ 500 million to $2.5 billion depending on the dimension of the systems. The manufacturing needed to be in the most current technology and there for new players would certainly not be able to complete with leading Indias Negotiations Concerning The Dabhol Power Company 2001 2005 OEMs (initial equipment makers) in Taiwan which were able to enjoy economies of scale. Along with this the current market had a demand-supply inequality and so surplus was currently making it hard to permit new gamers to delight in high margins.

Firm Strategy:

Considering that Indias Negotiations Concerning The Dabhol Power Company 2001 2005 manufacturing uses standard processes and typical and also specialty Indias Negotiations Concerning The Dabhol Power Company 2001 2005 are the only 2 categories of Indias Negotiations Concerning The Dabhol Power Company 2001 2005 being manufactured, the procedures can quickly make use of mass manufacturing. While this has led to accessibility of technology as well as range, there has been disequilibrium in the Indias Negotiations Concerning The Dabhol Power Company 2001 2005 industry.

Threats & Opportunities in the External Atmosphere

Based on the internal as well as external audits, opportunities such as strategicalliances with technology companions or development with merger/ procurement can be checked out by TMC. In addition to this, a relocation in the direction of mobile memory is additionally an opportunity for TMC especially as this is a particular niche market. Hazards can be seen in the form of over dependancy on international gamers for innovation and competitors from the United States and Japanese Indias Negotiations Concerning The Dabhol Power Company 2001 2005 suppliers.

Porter’s Five Forces Analysis