Triple Point Technology Case Porter’s Five Forces Analysis


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Triple Point Technology Case Study Solution

Bargaining Power of Supplier:

The provider in the Taiwanese Triple Point Technology market has a low bargaining power despite the fact that the sector has supremacy of three gamers consisting of Powerchip, Nanya and ProMOS. Triple Point Technology makers are simple initial tools manufacturers in strategic partnerships with foreign gamers for innovation. The second factor for a reduced bargaining power is the fact that there is excess supply of Triple Point Technology systems due to the huge range manufacturing of these dominant sector players which has actually decreased the cost each as well as enhanced the bargaining power of the purchaser.

Threat of Substitutes & Degree of Rivalry:

The hazard of replacements in the market is high given the reality that Taiwanese suppliers compete with market show international players like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and also Fujitsu. This indicates that the marketplace has a high level of competition where makers that have style and also advancement capacities in addition to making know-how might be able to have a higher negotiating power over the market.

Bargaining Power of Buyer:

The marketplace is dominated by gamers like Micron, Elpida, Samsung and Hynix which further decrease the purchasing power of Taiwanese OEMs. The truth that these critical players do not permit the Taiwanese OEMs to have access to innovation indicates that they have a higher negotiating power fairly.

Threat of Entry:

Dangers of entry in the Triple Point Technology manufacturing industry are low because of the truth that structure wafer fabs and purchasing tools is highly expensive.For simply 30,000 systems a month the resources needs can vary from $ 500 million to $2.5 billion depending upon the dimension of the devices. The manufacturing required to be in the most recent technology and also there for new players would certainly not be able to contend with leading Triple Point Technology OEMs (initial devices makers) in Taiwan which were able to enjoy economic climates of scale. The existing market had a demand-supply inequality as well as so surplus was already making it tough to enable brand-new gamers to delight in high margins.

Firm Strategy:

The region's production firms have counted on a strategy of mass production in order to reduce prices via economies of range. Because Triple Point Technology manufacturing makes use of basic processes as well as conventional and also specialized Triple Point Technology are the only 2 groups of Triple Point Technology being manufactured, the procedures can easily use automation. The sector has leading suppliers that have developed alliances in exchange for technology from Korean and Japanese companies. While this has actually led to schedule of modern technology and scale, there has actually been disequilibrium in the Triple Point Technology sector.

Threats & Opportunities in the External Environment

Based on the inner and exterior audits, chances such as strategicalliances with modern technology companions or growth via merger/ purchase can be checked out by TMC. Along with this, a relocation in the direction of mobile memory is also a possibility for TMC specifically as this is a specific niche market. Dangers can be seen in the kind of over dependence on international players for modern technology and competitors from the United States as well as Japanese Triple Point Technology producers.

Porter’s Five Forces Analysis