Thesis: Porters Analysis-Semi-Conductor Industry

Sample Thesis Paper

Threat of New Entrants

Exposure to the industry often increases exponentially for Technicians and Engineers working in the Semiconductor Industry. This has often been observed to lead to scenarios where an employee has chosen to quit the current job to start his/her own company. The Initial investment is one that is of an extremely high magnitude if any company is to develop itself in the Semiconductor market (Investopedia ULC, 2008). The investment required to continue the business is largely dependent upon the turn that new technology takes. This gives already established companies in the industry an exceptional edge. The recent trend of the cooperation deals amongst semiconductor companies on the grounds of PRM (Partner Relationship Management) however can serve to take away the brunt from the above mentioned aspect.

Power of Suppliers

There are a large number of suppliers in the Semiconductor industry. This serves to weaken the overall power that suppliers have in this industry. The one area where suppliers are considered to hold a respectable degree of power is in the area of new technology which requires semiconductor producers to rely on a relatively few number of suppliers. However, this situation is expected to change with the advent of new technology and new suppliers in the future. Needless to say, in scenarios such as that of IBM, there is no intervention by external suppliers.

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