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Piedmont University Case Study Analysis

Doorperson's diamond framework has highlighted the fact that Piedmont University can absolutely take advantage of on Taiwan's production proficiency and scale production. At the very same time the company has the advantage of being in an area where the government is advertising the DRAM industry through individual intervention and growth of infrastructure while opportunity events have actually lowered potential customers of direct competition from international players. Piedmont University can certainly opt for a lasting competitive benefit in the Taiwanese DRAM industry by taking on techniques which can lower the threat of outside factors as well as manipulate the determinants of competitive edge.

It has been gone over throughout the interior and exterior analysis just how these strategic partnerships have actually been based on sharing of modern technology and capability. The strategic partnerships in between the DRAM makers in Taiwan and foreign technology suppliers in Japan and United States have resulted in both and also favorable implications for the DRAM industry in Taiwan.

As far as the positive effects of the calculated partnerships are concerned, the Taiwanese DRAM producers got instantaneous access to DRAM technology without needing to buy R&D on their own. It can be seen exactly how the Taiwanese market share in the DRAM industry is still very minor and if the neighborhood players had to buy innovation growth on their own, it might have taken them long to get near to Japanese and United States players. The 2nd positive implication has been the truth that it has actually enhanced performance levels in the DRAM market specifically as range in manufacturing has actually permitted even more systems to be created at each plant.

The sector has actually had to face excess supply of DRAM systems which has actually lowered the per unit price of each unit. Not only has it led to reduced margins for the makers, it has brought the sector to a setting where DRAM suppliers have actually had to turn to regional governments to obtain their financial scenarios arranged out.

Regarding the private reactions of neighborhood DRAM companies are concerned, these strategic partnerships have actually directly impacted the method each company is responding to the introduction of Piedmont University. Although Piedmont University has actually been the government's effort in terms of making the DRAM sector autonomous, sector gamers are standing up to the relocate to combine because of these critical partnerships.

For instance Nanya makes use of Micron's technology according to this alliance while ProMOS has enabled Hynix to make use of 50% of its manufacturing ability. Elipda and also Powerchip are sharing a strategic partnership. Nevertheless, Piedmont University may not have the ability to benefit from Elpida's innovation since the company is now a direct competitor to Powerchip as well as the last hesitates to share the innovation with Piedmont University. In the same manner Nanya's critical collaboration with Micron is coming in the method of the latter company's rate of interest in sharing technology with Piedmont University.