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Naturi Corporation Case Porter’s Five Forces Analysis

CASE ANALYSIS

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Naturi Corporation Case Study Solution

Bargaining Power of Supplier:

The provider in the Taiwanese Naturi Corporation industry has a reduced negotiating power although that the industry has supremacy of three gamers including Powerchip, Nanya and also ProMOS. Naturi Corporation manufacturers are mere initial tools makers in strategic partnerships with foreign gamers for modern technology. The second factor for a reduced negotiating power is the fact that there is excess supply of Naturi Corporation systems because of the big scale manufacturing of these dominant industry players which has actually reduced the cost each and also enhanced the negotiating power of the buyer.

Threat of Substitutes & Degree of Rivalry:

The danger of alternatives in the marketplace is high provided the reality that Taiwanese suppliers take on market share with global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the market has a high level of rivalry where suppliers that have layout and also advancement capacities along with manufacturing knowledge may have the ability to have a higher bargaining power over the marketplace.

Bargaining Power of Buyer:

The marketplace is dominated by players like Micron, Elpida, Samsung as well as Hynix which additionally lower the purchasing power of Taiwanese OEMs. The truth that these tactical gamers do not enable the Taiwanese OEMs to have accessibility to modern technology shows that they have a higher bargaining power comparatively.

Threat of Entry:

Dangers of entrance in the Naturi Corporation manufacturing sector are reduced due to the truth that building wafer fabs and also acquiring tools is very expensive.For simply 30,000 devices a month the funding demands can vary from $ 500 million to $2.5 billion relying on the size of the units. The manufacturing needed to be in the most current modern technology as well as there for brand-new gamers would certainly not be able to complete with leading Naturi Corporation OEMs (initial devices makers) in Taiwan which were able to take pleasure in economic situations of range. Along with this the existing market had a demand-supply imbalance therefore surplus was currently making it difficult to allow brand-new players to appreciate high margins.

Firm Strategy:

Because Naturi Corporation production uses common procedures as well as conventional and specialty Naturi Corporation are the only 2 classifications of Naturi Corporation being made, the processes can quickly make use of mass manufacturing. While this has actually led to availability of innovation as well as range, there has actually been disequilibrium in the Naturi Corporation market.

Threats & Opportunities in the External Atmosphere

According to the interior and external audits, possibilities such as strategicalliances with modern technology partners or development with merger/ purchase can be checked out by TMC. A relocation towards mobile memory is additionally an opportunity for TMC especially as this is a niche market. Threats can be seen in the form of over dependancy on foreign gamers for technology as well as competition from the US and also Japanese Naturi Corporation producers.

Porter’s Five Forces Analysis