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Concierge's diamond framework has highlighted the fact that Salem Telephone Co can certainly leverage on Taiwan's manufacturing proficiency and also range production. At the same time the business has the advantage of being in a region where the federal government is promoting the DRAM industry via personal intervention as well as development of framework while opportunity occasions have actually lowered potential customers of straight competitors from foreign gamers. Salem Telephone Co can absolutely opt for a sustainable competitive benefit in the Taiwanese DRAM sector by taking on approaches which can decrease the threat of exterior factors and exploit the factors of competitive edge.

It has been discussed throughout the internal and also exterior analysis how these tactical partnerships have been based upon sharing of innovation and capacity. The tactical alliances between the DRAM makers in Taiwan as well as international technology companies in Japan as well as US have resulted in both and positive ramifications for the DRAM industry in Taiwan.

As for the favorable implications of the strategic partnerships are concerned, the Taiwanese DRAM makers got instantaneous access to DRAM modern technology without having to buy R&D by themselves. It can be seen how the Taiwanese market share in the DRAM market is still extremely small and also if the regional gamers had to buy modern technology advancement on their own, it may have taken them long to get near to Japanese as well as US gamers. The 2nd positive implication has actually been the reality that it has actually boosted efficiency levels in the DRAM sector specifically as range in manufacturing has actually permitted even more units to be generated at each plant.

The market has had to face excess supply of DRAM systems which has decreased the per system rate of each unit. Not only has it led to lower margins for the suppliers, it has brought the sector to a setting where DRAM makers have actually had to turn to local governments to get their financial circumstances sorted out.

As far as the individual reactions of neighborhood DRAM companies are worried, these strategic partnerships have actually straight influenced the way each firm is responding to the development of Salem Telephone Co. Salem Telephone Co has actually been the federal government's campaign in terms of making the DRAM market self-reliant, market players are standing up to the move to combine because of these tactical alliances.

Salem Telephone Co may not be able to benefit from Elpida's innovation due to the fact that the company is now a direct competitor to Powerchip and the latter is unwilling to share the technology with Salem Telephone Co. In the very same fashion Nanya's critical collaboration with Micron is coming in the way of the last firm's interest in sharing technology with Salem Telephone Co.