Menu

Southland Corp B Recommendations Case Studies

CASE HELP

Home >> Harvard >> Southland Corp B >> Recommendations

Southland Corp B Case Study Solution

Doorperson's diamond structure has highlighted the truth that Southland Corp B can absolutely take advantage of on Taiwan's production competence and also scale manufacturing. At the exact same time the company has the advantage of remaining in a region where the government is promoting the DRAM industry via individual intervention and development of facilities while possibility events have lowered potential customers of direct competition from foreign gamers. Southland Corp B can definitely opt for a lasting competitive benefit in the Taiwanese DRAM industry by embracing strategies which can reduce the hazard of outside factors as well as make use of the factors of one-upmanship.

It has actually been reviewed throughout the interior and exterior analysis just how these calculated alliances have been based upon sharing of innovation as well as ability. The calculated alliances in between the DRAM manufacturers in Taiwan and foreign technology service providers in Japan as well as US have actually resulted in both and favorable effects for the DRAM industry in Taiwan.

As far as the positive implications of the critical partnerships are worried, the Taiwanese DRAM manufacturers obtained instantaneous accessibility to DRAM innovation without having to purchase R&D by themselves. It can be seen exactly how the Taiwanese market share in the DRAM sector is still very minor and if the neighborhood gamers had to buy technology development on their own, it might have taken them long to get near to Japanese and also United States players. The 2nd positive effects has actually been the reality that it has actually enhanced efficiency levels in the DRAM market especially as scale in manufacturing has allowed even more systems to be produced at each plant.

There have actually been several unfavorable implications of these alliances also. The dependence on United States and also Japanese players has actually increased so regional players are reluctant to choose for financial investment in layout as well as advancement. The industry has actually had to deal with excess supply of DRAM units which has actually lowered the per system cost of each device. Not just has it led to reduced margins for the producers, it has actually brought the market to a position where DRAM suppliers have actually had to count on city governments to get their economic situations sorted out.

Regarding the specific actions of local DRAM companies are worried, these calculated alliances have actually directly affected the way each firm is reacting to the emergence of Southland Corp B. Southland Corp B has been the federal government's effort in terms of making the DRAM sector autonomous, industry players are standing up to the step to combine since of these tactical alliances.

Nanya uses Micron's modern technology as per this partnership while ProMOS has actually permitted Hynix to utilize 50% of its production capability. Elipda as well as Powerchip are sharing a calculated alliance. Southland Corp B might not be able to benefit from Elpida's innovation since the firm is now a direct competitor to Powerchip and also the latter is unwilling to share the modern technology with Southland Corp B. Similarly Nanya's strategic partnership with Micron is being available in the way of the latter company's rate of interest in sharing modern technology with Southland Corp B.