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Share of DRAM has reduced from 80% to 67% due to saturation I computer. Flash memory and SRAM market was expanding by extensive use of memories in telecommunication and consumer electronics.
Rivalry within industry: Industry was experiencing fierce rivalry by increase in industry capacity and normal cyclical downturn. Many Chinese firms were ready to enter the market. Chinese competitors were willing to sacrifice profits for market share.
Suppliers: With the growth of industry, supplier become more concentrated and would offer 5% discount on bulk purchases.
Substitute: There was no effective substitute for memory chips...
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