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Penn West Petroleum Ltd Case Study Analysis

Porter's diamond framework has highlighted the reality that Penn West Petroleum Ltd can definitely utilize on Taiwan's manufacturing know-how and also range manufacturing. At the very same time the firm has the benefit of remaining in an area where the government is advertising the DRAM industry with personal intervention as well as growth of facilities while opportunity events have decreased potential customers of straight competitors from foreign gamers. Penn West Petroleum Ltd can definitely choose a sustainable competitive advantage in the Taiwanese DRAM sector by adopting techniques which can decrease the danger of exterior factors and manipulate the factors of one-upmanship.

It has been discussed throughout the internal as well as outside analysis how these calculated alliances have actually been based on sharing of innovation as well as capability. The strategic alliances in between the DRAM producers in Taiwan as well as foreign innovation suppliers in Japan and also US have actually resulted in both and favorable implications for the DRAM industry in Taiwan.

Regarding the positive implications of the strategic partnerships are concerned, the Taiwanese DRAM makers got immediate access to DRAM technology without needing to purchase R&D by themselves. It can be seen how the Taiwanese market share in the DRAM sector is still extremely small as well as if the neighborhood players had to buy modern technology growth on their own, it might have taken them long to obtain near to Japanese and also US gamers. The second positive effects has been the fact that it has actually increased efficiency degrees in the DRAM industry especially as range in manufacturing has allowed more devices to be produced at each plant.

The sector has actually had to encounter excess supply of DRAM devices which has lowered the per unit rate of each system. Not only has it led to reduced margins for the manufacturers, it has brought the market to a setting where DRAM manufacturers have actually had to turn to neighborhood federal governments to get their economic situations sorted out.

As for the private feedbacks of local DRAM companies are worried, these tactical alliances have actually straight impacted the way each company is reacting to the appearance of Penn West Petroleum Ltd. Penn West Petroleum Ltd has actually been the government's campaign in terms of making the DRAM sector autonomous, industry players are withstanding the action to consolidate since of these strategic partnerships.

Penn West Petroleum Ltd might not be able to profit from Elpida's innovation because the firm is now a direct competitor to Powerchip as well as the latter is hesitant to share the technology with Penn West Petroleum Ltd. In the same fashion Nanya's calculated collaboration with Micron is coming in the method of the latter firm's passion in sharing modern technology with Penn West Petroleum Ltd.