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Lending Club Case Study Analysis

Porter's diamond structure has actually highlighted the fact that Lending Club can definitely leverage on Taiwan's production know-how and also scale manufacturing. At the exact same time the firm has the benefit of being in an area where the government is advertising the DRAM sector through personal intervention as well as growth of facilities while chance occasions have actually lowered leads of straight competitors from international players. Lending Club can absolutely opt for a lasting affordable benefit in the Taiwanese DRAM sector by embracing techniques which can decrease the threat of exterior factors and also manipulate the determinants of one-upmanship.

It has actually been reviewed throughout the internal as well as external analysis exactly how these tactical partnerships have been based upon sharing of innovation as well as capability. However, the calculated partnerships in between the DRAM manufacturers in Taiwan as well as foreign technology carriers in Japan and United States have actually led to both as well as favorable implications for the DRAM market in Taiwan.

Regarding the favorable ramifications of the calculated partnerships are concerned, the Taiwanese DRAM manufacturers obtained immediate access to DRAM modern technology without having to invest in R&D on their own. It can be seen exactly how the Taiwanese market share in the DRAM sector is still extremely minor and if the neighborhood gamers had to invest in technology advancement on their own, it may have taken them long to get near Japanese as well as US players. The second favorable effects has actually been the reality that it has increased efficiency levels in the DRAM sector particularly as range in manufacturing has actually permitted more units to be created at each plant.

There have actually been a number of unfavorable ramifications of these alliances also. Firstly the dependence on United States and also Japanese players has enhanced so neighborhood players are reluctant to choose investment in style and also advancement. Along with this, the market has actually had to face excess supply of DRAM devices which has actually decreased the each price of each system. Not only has it resulted in lower margins for the manufacturers, it has actually brought the industry to a placement where DRAM manufacturers have had to resort to city governments to obtain their economic situations sorted out.

Regarding the specific feedbacks of regional DRAM companies are worried, these calculated partnerships have actually directly impacted the means each firm is reacting to the emergence of Lending Club. Lending Club has been the government's effort in terms of making the DRAM sector autonomous, sector players are standing up to the move to combine due to the fact that of these calculated partnerships.

As an example Nanya uses Micron's technology as per this partnership while ProMOS has actually allowed Hynix to utilize 50% of its manufacturing capability. Elipda and also Powerchip are sharing a critical alliance. However, Lending Club might not have the ability to gain from Elpida's innovation because the firm is now a direct rival to Powerchip and the latter hesitates to share the technology with Lending Club. Likewise Nanya's calculated collaboration with Micron is coming in the way of the latter company's passion in sharing innovation with Lending Club.