Menu

J C Penney Company Recommendations Case Studies

CASE SOLUTION

Home >> Harvard >> J C Penney Company >> Recommendations

J C Penney Company Case Study Analysis

Concierge's diamond structure has highlighted the reality that J C Penney Company can absolutely leverage on Taiwan's manufacturing know-how as well as scale manufacturing. At the very same time the business has the advantage of being in an area where the federal government is promoting the DRAM market with personal intervention as well as growth of infrastructure while possibility occasions have actually lowered leads of direct competition from foreign players. J C Penney Company can absolutely opt for a sustainable competitive benefit in the Taiwanese DRAM market by adopting approaches which can lower the danger of exterior factors as well as exploit the determinants of one-upmanship.

It has actually been talked about throughout the internal as well as external analysis just how these tactical partnerships have actually been based upon sharing of modern technology and ability. Nonetheless, the critical partnerships in between the DRAM makers in Taiwan and also international modern technology service providers in Japan and US have actually caused both and positive ramifications for the DRAM market in Taiwan.

As for the positive implications of the tactical alliances are worried, the Taiwanese DRAM producers got instant accessibility to DRAM technology without needing to purchase R&D on their own. It can be seen how the Taiwanese market share in the DRAM sector is still extremely minor as well as if the local gamers needed to invest in modern technology growth on their own, it might have taken them long to get near Japanese as well as US gamers. The second positive implication has actually been the truth that it has actually raised effectiveness degrees in the DRAM industry specifically as scale in manufacturing has enabled more units to be produced at each plant.

Nevertheless, there have been several adverse implications of these partnerships also. The reliance on US as well as Japanese gamers has raised so local gamers are hesitant to opt for investment in layout and also development. Along with this, the industry has actually had to face excess supply of DRAM units which has reduced the each price of each device. Not just has it caused lower margins for the suppliers, it has brought the market to a placement where DRAM makers have had to turn to city governments to obtain their financial situations sorted out.

Regarding the specific feedbacks of local DRAM companies are worried, these critical alliances have actually directly influenced the way each firm is responding to the introduction of J C Penney Company. J C Penney Company has been the government's effort in terms of making the DRAM market self-reliant, industry gamers are resisting the action to combine because of these strategic partnerships.

For example Nanya utilizes Micron's technology according to this alliance while ProMOS has actually allowed Hynix to make use of 50% of its manufacturing capacity. Elipda and also Powerchip are sharing a strategic alliance. J C Penney Company may not be able to profit from Elpida's innovation because the firm is now a straight competitor to Powerchip and the last is hesitant to share the technology with J C Penney Company. Likewise Nanya's critical partnership with Micron is being available in the method of the latter firm's passion in sharing innovation with J C Penney Company.