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Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market Case Porter’s Five Forces Analysis

CASE STUDY

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Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market Case Study Solution

Bargaining Power of Supplier:

The provider in the Taiwanese Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market sector has a reduced bargaining power despite the fact that the industry has prominence of 3 gamers consisting of Powerchip, Nanya and ProMOS. Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market makers are mere initial devices suppliers in tactical alliances with international gamers for modern technology. The 2nd reason for a low negotiating power is the reality that there is excess supply of Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market units as a result of the large range production of these leading industry players which has actually lowered the price each as well as enhanced the bargaining power of the customer.

Threat of Substitutes & Degree of Rivalry:

The threat of alternatives in the marketplace is high offered the truth that Taiwanese makers compete with market share with worldwide players like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung as well as Fujitsu. This indicates that the marketplace has a high degree of rivalry where producers that have design and also advancement capacities together with manufacturing proficiency might have the ability to have a greater bargaining power over the market.

Bargaining Power of Buyer:

The marketplace is controlled by gamers like Micron, Elpida, Samsung and Hynix which additionally minimize the purchasing power of Taiwanese OEMs. The truth that these strategic players do not allow the Taiwanese OEMs to have access to innovation suggests that they have a higher bargaining power relatively.

Threat of Entry:

Dangers of entry in the Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market manufacturing sector are low due to the fact that building wafer fabs and buying equipment is extremely expensive.For just 30,000 units a month the capital requirements can vary from $ 500 million to $2.5 billion depending upon the size of the devices. The production needed to be in the most current technology and also there for new gamers would not be able to contend with dominant Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market OEMs (original devices producers) in Taiwan which were able to delight in economies of scale. In addition to this the existing market had a demand-supply imbalance and so excess was currently making it hard to enable new players to appreciate high margins.

Firm Strategy:

Since Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market production uses basic procedures and typical as well as specialized Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market are the only 2 groups of Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market being manufactured, the procedures can quickly make usage of mass production. While this has actually led to availability of technology and also scale, there has been disequilibrium in the Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market sector.

Threats & Opportunities in the External Atmosphere

Based on the interior and also external audits, chances such as strategicalliances with modern technology partners or growth through merging/ acquisition can be explored by TMC. In addition to this, a move towards mobile memory is also a possibility for TMC particularly as this is a particular niche market. Dangers can be seen in the type of over reliance on foreign gamers for innovation as well as competitors from the United States and Japanese Intelfra Ltd Pricing Telecom Infrastructure In A Monopolistic Market manufacturers.

Porter’s Five Forces Analysis