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Telefã“Nicas Bid For The Mobile Market In Brazil B Case Porter’s Five Forces Analysis

CASE STUDY

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Telefã“Nicas Bid For The Mobile Market In Brazil B Case Study Solution

Bargaining Power of Supplier:

The supplier in the Taiwanese Telefã“Nicas Bid For The Mobile Market In Brazil B market has a low negotiating power despite the fact that the industry has dominance of 3 players including Powerchip, Nanya and also ProMOS. Telefã“Nicas Bid For The Mobile Market In Brazil B suppliers are mere original devices producers in strategic alliances with international players for innovation. The second reason for a reduced negotiating power is the fact that there is excess supply of Telefã“Nicas Bid For The Mobile Market In Brazil B devices due to the big scale production of these dominant market players which has lowered the price per unit as well as raised the bargaining power of the customer.

Threat of Substitutes & Degree of Rivalry:

The hazard of substitutes in the marketplace is high offered the fact that Taiwanese manufacturers take on market show worldwide gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the marketplace has a high degree of rivalry where suppliers that have style and growth abilities together with producing experience may be able to have a higher negotiating power over the market.

Bargaining Power of Buyer:

The market is controlled by players like Micron, Elpida, Samsung as well as Hynix which additionally reduce the purchasing power of Taiwanese OEMs. The fact that these tactical players do not allow the Taiwanese OEMs to have access to technology shows that they have a higher negotiating power comparatively.

Threat of Entry:

Dangers of entrance in the Telefã“Nicas Bid For The Mobile Market In Brazil B production market are reduced owing to the reality that building wafer fabs and acquiring equipment is highly expensive.For just 30,000 systems a month the funding needs can vary from $ 500 million to $2.5 billion depending on the size of the systems. The production needed to be in the most current technology and there for brand-new gamers would certainly not be able to compete with leading Telefã“Nicas Bid For The Mobile Market In Brazil B OEMs (initial devices suppliers) in Taiwan which were able to appreciate economies of range. The present market had a demand-supply discrepancy and also so surplus was already making it difficult to allow new players to enjoy high margins.

Firm Strategy:

Since Telefã“Nicas Bid For The Mobile Market In Brazil B manufacturing uses common procedures and also typical and specialized Telefã“Nicas Bid For The Mobile Market In Brazil B are the only two classifications of Telefã“Nicas Bid For The Mobile Market In Brazil B being produced, the processes can easily make use of mass production. While this has led to availability of innovation as well as range, there has actually been disequilibrium in the Telefã“Nicas Bid For The Mobile Market In Brazil B industry.

Threats & Opportunities in the External Environment

As per the inner and also outside audits, opportunities such as strategicalliances with innovation partners or growth with merger/ purchase can be discovered by TMC. Along with this, a move in the direction of mobile memory is also an opportunity for TMC especially as this is a niche market. Threats can be seen in the type of over dependancy on international players for innovation and also competitors from the United States as well as Japanese Telefã“Nicas Bid For The Mobile Market In Brazil B makers.

Porter’s Five Forces Analysis