Windward Investment Management Case Porter’s Five Forces Analysis


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Bargaining Power of Supplier:

The provider in the Taiwanese Windward Investment Management industry has a reduced bargaining power although that the industry has prominence of three players including Powerchip, Nanya and ProMOS. Windward Investment Management makers are mere initial equipment makers in tactical partnerships with foreign gamers in exchange for technology. The second reason for a low negotiating power is the reality that there is excess supply of Windward Investment Management units as a result of the huge scale production of these leading market gamers which has reduced the cost each and also enhanced the bargaining power of the buyer.

Threat of Substitutes & Degree of Rivalry:

The threat of substitutes on the market is high provided the truth that Taiwanese manufacturers compete with market show to global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung and Fujitsu. This shows that the market has a high degree of rivalry where producers that have style and advancement capacities along with making competence might have the ability to have a higher negotiating power over the market.

Bargaining Power of Buyer:

The market is dominated by gamers like Micron, Elpida, Samsung and Hynix which even more reduce the purchasing power of Taiwanese OEMs. The truth that these calculated gamers do not enable the Taiwanese OEMs to have access to technology indicates that they have a greater bargaining power somewhat.

Threat of Entry:

Threats of access in the Windward Investment Management production market are low due to the reality that structure wafer fabs and purchasing tools is highly expensive.For just 30,000 systems a month the funding requirements can vary from $ 500 million to $2.5 billion depending on the size of the units. In addition to this, the manufacturing needed to be in the latest technology and there for brand-new gamers would not have the ability to compete with leading Windward Investment Management OEMs (initial tools makers) in Taiwan which had the ability to take pleasure in economic situations of scale. In addition to this the current market had a demand-supply discrepancy and so excess was already making it challenging to enable new players to take pleasure in high margins.

Firm Strategy:

The region's manufacturing companies have actually relied on a strategy of mass production in order to reduce costs via economies of range. Considering that Windward Investment Management manufacturing makes use of basic processes and also basic as well as specialized Windward Investment Management are the only two classifications of Windward Investment Management being manufactured, the processes can easily take advantage of automation. The market has leading manufacturers that have actually developed partnerships in exchange for innovation from Korean and also Japanese companies. While this has brought about schedule of technology as well as range, there has actually been disequilibrium in the Windward Investment Management market.

Threats & Opportunities in the External Atmosphere

As per the internal as well as outside audits, possibilities such as strategicalliances with modern technology partners or development through merging/ acquisition can be explored by TMC. A relocation towards mobile memory is also a possibility for TMC particularly as this is a particular niche market. Risks can be seen in the kind of over dependence on international players for technology and competitors from the US and also Japanese Windward Investment Management suppliers.

Porter’s Five Forces Analysis