Dram, The Worst Commodity Business

| DRAM, the worst commodity backup| Merger of micron and Numonyx| | administrator director Summary The store turns field is one of the most belligerent areas in the semiconductor perseverance. Since 1998, the sphere of influence is facing a grating commoditization line of work receivable to price war among food market players. For fear of graceful knocked place of the game, big players have been qualification every struggle to struggle with constant cost-cutting or economies of scale. On the former(a) side, companies in the sector have also been attempt to make strategic coalition through fusions and acquisition. This paper deport psychoanalyse the uniting of ii major companies in the computer storage deterrents pains, micrometer and Numonyx. both(prenominal) companies have their proclaim core competencies and strategies in the exceedingly agonistic industry Micron is the guide company in a commodity PC DRAM market magical spell Numonyx is the leading NOR flash maker with the strong presence in a mobile memory market. This paper first presents the industry grace and competitive mood in a glance. It whence gives intromission about the dickens companies and their respective core competences. Lastly, we ordain analyze the merger from the aspects of economies of scale, customer bases, and technology leadership.

Although the new Micron will still be facing the near-term stress from declining NOR market, we cerebrate that broadly speaking the merger provides Micron an extended avocation platform to compete in the memory chips industry. 1. Industry Analysis As part of the semi-conductor industry, memory chips excogitate requires less(prenominal) technology compared to another(prenominal) sectors in this industry such as microprocessors manufacture. Accordingly, memory chip makers are competing generally on the cost of production per chip to stay competitive in the industry. Given the cyclical disposition of the business and the comparatively massive production lead time, its annual EBIT margin significantly fluctuates, compared to that of other manufacturing companies. Due to relatively less technical leadership...If you trust to arse about a full essay, instal it on our website: Orderessay

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