Menu

Riverbend Telephone Company Case Porter’s Five Forces Analysis

CASE SOLUTION

Home >> Harvard >> Riverbend Telephone Company >> Porters Analysis

Riverbend Telephone Company Case Study Solution

Bargaining Power of Supplier:

The vendor in the Taiwanese Riverbend Telephone Company market has a low bargaining power although that the market has supremacy of three gamers including Powerchip, Nanya and ProMOS. Riverbend Telephone Company suppliers are plain initial tools manufacturers in strategic partnerships with foreign players in exchange for innovation. The second reason for a reduced bargaining power is the reality that there is excess supply of Riverbend Telephone Company systems as a result of the huge range production of these leading industry players which has decreased the rate each and increased the bargaining power of the customer.

Threat of Substitutes & Degree of Rivalry:

The hazard of alternatives out there is high given the truth that Taiwanese manufacturers compete with market show worldwide gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and also Fujitsu. This indicates that the marketplace has a high degree of rivalry where producers that have style as well as advancement abilities together with making know-how might have the ability to have a higher bargaining power over the market.

Bargaining Power of Buyer:

The marketplace is dominated by gamers like Micron, Elpida, Samsung as well as Hynix which better decrease the buying powers of Taiwanese OEMs. The reality that these tactical players do not permit the Taiwanese OEMs to have access to modern technology shows that they have a greater bargaining power comparatively.

Threat of Entry:

Risks of entrance in the Riverbend Telephone Company manufacturing sector are low owing to the fact that structure wafer fabs and purchasing equipment is highly expensive.For simply 30,000 units a month the capital requirements can range from $ 500 million to $2.5 billion depending upon the dimension of the systems. The manufacturing needed to be in the latest technology as well as there for new players would not be able to complete with leading Riverbend Telephone Company OEMs (original equipment manufacturers) in Taiwan which were able to appreciate economies of scale. Along with this the current market had a demand-supply discrepancy and so oversupply was currently making it tough to enable brand-new gamers to appreciate high margins.

Firm Strategy:

The region's manufacturing companies have actually relied upon a technique of mass production in order to reduce prices via economies of range. Given that Riverbend Telephone Company production utilizes basic procedures and basic as well as specialty Riverbend Telephone Company are the only two classifications of Riverbend Telephone Company being manufactured, the processes can easily take advantage of automation. The market has leading makers that have actually developed partnerships for innovation from Oriental and also Japanese firms. While this has actually caused accessibility of technology and also range, there has actually been disequilibrium in the Riverbend Telephone Company sector.

Threats & Opportunities in the External Environment

As per the internal as well as outside audits, opportunities such as strategicalliances with innovation partners or growth through merging/ procurement can be checked out by TMC. In addition to this, an action in the direction of mobile memory is also a possibility for TMC particularly as this is a niche market. Dangers can be seen in the kind of over dependence on foreign players for innovation and also competitors from the US as well as Japanese Riverbend Telephone Company producers.

Porter’s Five Forces Analysis