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Concordia Casting Co Case Porter’s Five Forces Analysis

CASE SOLUTION

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Concordia Casting Co Case Study Analysis

Bargaining Power of Supplier:

The provider in the Taiwanese Concordia Casting Co market has a low negotiating power despite the fact that the industry has prominence of 3 gamers including Powerchip, Nanya and also ProMOS. Concordia Casting Co manufacturers are mere original equipment makers in tactical alliances with foreign gamers for technology. The 2nd factor for a reduced bargaining power is the fact that there is excess supply of Concordia Casting Co systems because of the large range manufacturing of these dominant sector players which has actually reduced the price each and also enhanced the negotiating power of the buyer.

Threat of Substitutes & Degree of Rivalry:

The threat of replacements in the market is high given the truth that Taiwanese manufacturers compete with market show global gamers like Intel, Motorola, IBM, Hitachi, NEC, Toshiba, Samsung as well as Fujitsu. This shows that the market has a high degree of rivalry where makers that have style as well as advancement capabilities together with making knowledge may have the ability to have a greater bargaining power over the marketplace.

Bargaining Power of Buyer:

The marketplace is dominated by players like Micron, Elpida, Samsung as well as Hynix which further decrease the purchasing power of Taiwanese OEMs. The fact that these tactical players do not permit the Taiwanese OEMs to have accessibility to modern technology indicates that they have a higher bargaining power relatively.

Threat of Entry:

Threats of entrance in the Concordia Casting Co manufacturing industry are reduced due to the fact that building wafer fabs as well as acquiring equipment is extremely expensive.For just 30,000 systems a month the resources requirements can vary from $ 500 million to $2.5 billion relying on the dimension of the devices. The manufacturing needed to be in the newest innovation as well as there for brand-new players would not be able to complete with leading Concordia Casting Co OEMs (original devices suppliers) in Taiwan which were able to enjoy economies of scale. Along with this the existing market had a demand-supply imbalance and so oversupply was already making it tough to enable new players to appreciate high margins.

Firm Strategy:

Given that Concordia Casting Co production utilizes conventional procedures as well as typical and also specialized Concordia Casting Co are the only 2 categories of Concordia Casting Co being manufactured, the procedures can easily make usage of mass manufacturing. While this has led to availability of modern technology as well as scale, there has actually been disequilibrium in the Concordia Casting Co sector.

Threats & Opportunities in the External Setting

According to the internal as well as external audits, possibilities such as strategicalliances with innovation partners or development through merger/ purchase can be checked out by TMC. An action towards mobile memory is additionally an opportunity for TMC particularly as this is a particular niche market. Hazards can be seen in the type of over reliance on international gamers for innovation as well as competition from the United States and also Japanese Concordia Casting Co manufacturers.

Porter’s Five Forces Analysis