Investment Technology Group Case Porter’s Five Forces Analysis


Home >> Harvard >> Investment Technology Group >> Porters Analysis

Investment Technology Group Case Study Help

Bargaining Power of Supplier:

The supplier in the Taiwanese Investment Technology Group industry has a reduced bargaining power despite the fact that the industry has supremacy of three gamers consisting of Powerchip, Nanya and also ProMOS. Investment Technology Group suppliers are plain initial equipment makers in strategic partnerships with foreign players in exchange for technology. The 2nd factor for a low bargaining power is the fact that there is excess supply of Investment Technology Group units because of the large range manufacturing of these dominant sector players which has actually decreased the cost each and also increased the bargaining power of the customer.

Threat of Substitutes & Degree of Rivalry:

The danger of substitutes out there is high provided the reality that Taiwanese suppliers compete with market show to worldwide gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the market has a high degree of competition where makers that have style as well as development abilities along with making competence may be able to have a greater negotiating power over the marketplace.

Bargaining Power of Buyer:

The market is controlled by gamers like Micron, Elpida, Samsung as well as Hynix which even more reduce the purchasing power of Taiwanese OEMs. The truth that these calculated players do not allow the Taiwanese OEMs to have access to modern technology shows that they have a greater bargaining power somewhat.

Threat of Entry:

Dangers of entrance in the Investment Technology Group manufacturing sector are low due to the reality that structure wafer fabs as well as buying equipment is very expensive.For simply 30,000 devices a month the resources requirements can vary from $ 500 million to $2.5 billion depending on the dimension of the devices. The manufacturing required to be in the newest technology and also there for new players would certainly not be able to compete with leading Investment Technology Group OEMs (original devices manufacturers) in Taiwan which were able to appreciate economic climates of range. In addition to this the current market had a demand-supply inequality therefore excess was already making it hard to permit new players to appreciate high margins.

Firm Strategy:

Considering that Investment Technology Group manufacturing uses standard processes as well as typical as well as specialized Investment Technology Group are the only 2 categories of Investment Technology Group being made, the processes can quickly make usage of mass production. While this has actually led to schedule of innovation and scale, there has been disequilibrium in the Investment Technology Group industry.

Threats & Opportunities in the External Atmosphere

Based on the inner as well as external audits, possibilities such as strategicalliances with innovation companions or development via merging/ procurement can be checked out by TMC. A relocation towards mobile memory is additionally a possibility for TMC especially as this is a niche market. Hazards can be seen in the form of over dependancy on foreign gamers for innovation and competitors from the United States and also Japanese Investment Technology Group producers.

Porter’s Five Forces Analysis