Naturi Corporation Case Porter’s Five Forces Analysis


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Bargaining Power of Supplier:

The supplier in the Taiwanese Naturi Corporation sector has a low bargaining power despite the fact that the sector has supremacy of 3 players including Powerchip, Nanya as well as ProMOS. Naturi Corporation suppliers are mere initial devices suppliers in strategic partnerships with foreign players for innovation. The 2nd factor for a low bargaining power is the fact that there is excess supply of Naturi Corporation devices as a result of the huge scale manufacturing of these leading sector gamers which has actually reduced the cost per unit and boosted the negotiating power of the customer.

Threat of Substitutes & Degree of Rivalry:

The threat of alternatives in the marketplace is high provided the truth that Taiwanese makers take on market share with international gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and also Fujitsu. This suggests that the market has a high level of competition where manufacturers that have layout as well as development capacities in addition to manufacturing knowledge may have the ability to have a greater negotiating power over the marketplace.

Bargaining Power of Buyer:

The marketplace is controlled by gamers like Micron, Elpida, Samsung and also Hynix which even more reduce the purchasing power of Taiwanese OEMs. The fact that these critical players do not allow the Taiwanese OEMs to have accessibility to innovation indicates that they have a greater negotiating power comparatively.

Threat of Entry:

Threats of entry in the Naturi Corporation production sector are low due to the truth that structure wafer fabs and purchasing equipment is highly expensive.For just 30,000 units a month the resources needs can vary from $ 500 million to $2.5 billion depending on the dimension of the units. In addition to this, the production needed to be in the latest innovation and there for brand-new gamers would certainly not be able to take on leading Naturi Corporation OEMs (original equipment suppliers) in Taiwan which were able to delight in economies of range. The current market had a demand-supply imbalance and so excess was already making it hard to enable new gamers to take pleasure in high margins.

Firm Strategy:

Because Naturi Corporation manufacturing makes use of standard processes and also conventional and specialty Naturi Corporation are the only 2 categories of Naturi Corporation being produced, the procedures can quickly make use of mass manufacturing. While this has actually led to availability of technology as well as scale, there has actually been disequilibrium in the Naturi Corporation market.

Threats & Opportunities in the External Atmosphere

As per the interior and also exterior audits, opportunities such as strategicalliances with modern technology partners or growth via merger/ purchase can be checked out by TMC. In addition to this, a step in the direction of mobile memory is also an opportunity for TMC particularly as this is a niche market. Threats can be seen in the form of over dependancy on international players for technology and competition from the US as well as Japanese Naturi Corporation makers.

Porter’s Five Forces Analysis