Menu

Real Estate Investment Trusts Recommendations Case Studies

CASE SOLUTION

Home >> Harvard >> Real Estate Investment Trusts >> Recommendations

Real Estate Investment Trusts Case Study Analysis

Concierge's ruby structure has actually highlighted the reality that Real Estate Investment Trusts can absolutely utilize on Taiwan's manufacturing proficiency and range manufacturing. At the very same time the business has the benefit of being in a region where the government is promoting the DRAM market via personal treatment and advancement of framework while opportunity events have decreased potential customers of direct competitors from foreign players. Real Estate Investment Trusts can absolutely go with a lasting affordable advantage in the Taiwanese DRAM industry by taking on methods which can reduce the danger of external factors and also exploit the components of one-upmanship.

It has actually been gone over throughout the interior and also exterior analysis exactly how these calculated alliances have actually been based upon sharing of innovation and ability. Nonetheless, the strategic alliances in between the DRAM makers in Taiwan and foreign innovation carriers in Japan as well as United States have caused both as well as positive implications for the DRAM sector in Taiwan.

As far as the favorable effects of the calculated alliances are concerned, the Taiwanese DRAM producers obtained instant accessibility to DRAM modern technology without needing to invest in R&D by themselves. It can be seen just how the Taiwanese market share in the DRAM sector is still extremely small as well as if the local players had to invest in modern technology growth by themselves, it might have taken them long to obtain near Japanese and also US players. The second positive ramification has been the reality that it has actually increased effectiveness levels in the DRAM market particularly as scale in manufacturing has actually enabled even more systems to be generated at each plant.

The sector has had to encounter excess supply of DRAM devices which has reduced the per device rate of each system. Not only has it led to lower margins for the suppliers, it has brought the industry to a position where DRAM suppliers have had to transform to local federal governments to obtain their financial situations arranged out.

Regarding the individual reactions of regional DRAM firms are worried, these strategic alliances have actually straight affected the means each company is reacting to the development of Real Estate Investment Trusts. Although Real Estate Investment Trusts has been the government's campaign in terms of making the DRAM industry autonomous, market players are withstanding the move to combine due to these tactical partnerships.

Nanya utilizes Micron's innovation as per this alliance while ProMOS has allowed Hynix to use 50% of its manufacturing capacity. Elipda as well as Powerchip are sharing a tactical partnership. Nevertheless, Real Estate Investment Trusts may not have the ability to take advantage of Elpida's innovation due to the fact that the firm is now a direct rival to Powerchip and the latter is reluctant to share the modern technology with Real Estate Investment Trusts. Likewise Nanya's strategic collaboration with Micron is being available in the method of the last company's passion in sharing innovation with Real Estate Investment Trusts.