Concierge's diamond structure has actually highlighted the fact that Seitel Inc can absolutely utilize on Taiwan's production proficiency as well as range manufacturing. At the same time the company has the advantage of remaining in an area where the federal government is advertising the DRAM sector with personal treatment as well as advancement of framework while possibility occasions have actually decreased potential customers of direct competition from international players. Seitel Inc can absolutely choose a sustainable affordable advantage in the Taiwanese DRAM market by taking on techniques which can reduce the risk of exterior factors and exploit the components of competitive edge.
It has actually been gone over throughout the inner as well as exterior analysis how these calculated partnerships have been based upon sharing of modern technology as well as capability. However, the critical partnerships between the DRAM manufacturers in Taiwan as well as foreign modern technology carriers in Japan and United States have caused both and positive implications for the DRAM sector in Taiwan.
Regarding the favorable effects of the tactical alliances are worried, the Taiwanese DRAM manufacturers obtained instant accessibility to DRAM modern technology without having to buy R&D on their own. It can be seen exactly how the Taiwanese market share in the DRAM market is still very minor and also if the neighborhood players needed to buy technology growth by themselves, it might have taken them long to obtain near to Japanese as well as United States gamers. The second positive implication has actually been the truth that it has increased efficiency levels in the DRAM industry especially as scale in production has actually enabled even more devices to be produced at each plant.
There have actually been several adverse effects of these alliances as well. The reliance on US and Japanese gamers has actually increased so regional gamers are reluctant to opt for investment in layout as well as development. In addition to this, the sector has actually needed to encounter excess supply of DRAM systems which has reduced the per unit price of each system. Not only has it caused reduced margins for the makers, it has actually brought the industry to a setting where DRAM manufacturers have had to count on city governments to get their economic situations ironed out.
As far as the private reactions of regional DRAM firms are worried, these tactical alliances have actually straight impacted the way each firm is reacting to the emergence of Seitel Inc. Although Seitel Inc has actually been the federal government's effort in terms of making the DRAM sector autonomous, sector players are withstanding the relocate to settle as a result of these strategic partnerships.
Seitel Inc may not be able to benefit from Elpida's technology due to the fact that the firm is now a direct rival to Powerchip and the last is reluctant to share the modern technology with Seitel Inc. In the same way Nanya's strategic partnership with Micron is coming in the way of the latter firm's passion in sharing modern technology with Seitel Inc.
Home >> Harvard >> Seitel Inc >> Recommendations
