Flash Technologies is a rapidly growing high-tech company primarily in the flash memory cards industry. It manufactures flash memory cards, USB flash drives, and solid-state hard drives for computers and other electronic devices. It sells its flash memory primarily to original equipment manufacturers (OEMs). The company’s strategy is to
1. Provide a full range of services, including designing, programming, and manufacturing of flash memory cards.
2. Increase its manufacturing using various ways, such as purchasing controlling interests in manufacturing companies for OEMs, such as “DCI”.
3. Develop additional features and specialized memory technologies according to OEM requirements. …show more content…
In addition to desktop computer systems, it now includes a broader aspect of electronic systems, such as communication systems, network switches, medical devices, navigation systems, cellular telephones, digital cameras and communications switches. All these devices need technological memory with low power consumption, small size, high speed and vibration tolerance. Flash Technologies believes that flash memory is the best at providing all these features. Thus, the demand for flash memory will increase as the digital storage industry keeps expanding further. The main competing companies in the industry are SanDisk Corporation, Smart Modular Technologies, Flash Technologies, Mitsubishi Electronic Corporation, Intel Corporation, Epson of America and Fujitsu Microelectronics. Since the market is expanding fast, it is expected that the competition will increase as well both from existing competitors and from other companies. The increased competitive pressure may lead to price competition that will result in lower prices and consequently, lower gross margins. Because of industry expansion and increasing competition, firms in the digital storage industry face various industry risks. These risks include rapid technological change and ability to keep up with it, changing industry standards, tough competition, reliance on audited financial statements, and products becoming obsolete due to rapid …show more content…
• Competitive Rivalry: High - Flash Technologies operates in a highly competitive industry. It has a lot of strong competitors but mainly competes with 6 companies: SanDisk Corporation, Smart Modular Technologies, Mitsubishi Electronic Corporation, Intel Corporation, Epson of America and Fujitsu Microelectronics. Several of these competitors also supply Flash Technologies with raw materials. Because of this, these competitors have the ability to manufacture at lower costs compared to Flash Technologies. Competitors are strong. Therefore, the competitive pressure is high.
• Supplier Power: High – Flash Technologies purchases certain components used to manufacture flash memory from the sole-source supplier. Thus, the company depends only on one supplier for some critical components that can cause serious problems, such as frequent shortages. Also Flash Technologies does not have long term contracts with suppliers. In addition, some of its suppliers are company’s competitors as