Inotera Memories: Leader or Dreamer

Yih Wen Shyu*, William Reinfeld

*Corresponding author for this work

Research output: Contribution to journalJournal Article peer-review


This case can be divided into two sections. The first section focuses on how Inotera Memories can effectively analyze capital expenditure and return on investment for long-term capital budgeting in a capital-intensive, highly volatile and competitive industry. The following section is to highlight the strategy shift of Inotera. The DRAM business environment is highly volatile, and continuously requires large amounts of capital to improve process technologies, reduce production costs and achieve economies of scale. The challenge is greater because Inotera Memories is a joint venture of two entities with very different backgrounds, cultures and objectives, but which are not necessarily incompatible. Fei Lin, an assistant vice president in Inotera, and Charles Kau, the president of Inotera, play the central roles in this case study. Fei has been instructed to prepare a report to the board of directors that presents an effective investment evaluation model to ensure the success of Inotera's business model and expansion project. On the other hand, Charles proposed the issue of strategy shift to determine how it has been implemented and whether it needs replacement by a new strategy to meet changed circumstances, new technology, and new market segments.

Original languageEnglish
Pages (from-to)111-131
Number of pages21
JournalAsian Case Research Journal
Issue number1
StatePublished - 01 06 2016

Bibliographical note

Publisher Copyright:
© 2016 World Scientific Publishing Company.


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