SWOT Analysis of Asus

SWOT Analysis of Asus

Asus (AsusTek Computer Inc.) is a Taiwanese multinational hardware and electronic company. The headquarter of Asus is in  Taipei, Taiwan. It was founded in the year of 1989. The founders of Asus are T.H. Tung, Ted Hsu, Wayne Hsieh and M.T. Liao. [1]

The main products of Asus are  desktops, monitors, laptops, servers, optical storage,  netbooks, mobile phones, networking equipment, projectors, motherboards, graphics cards, multimedia products, peripherals, workstations, and tablet PCs. [3]

 

Asus at a Glance

Founded1989
FoundersT.H. Tung, Ted Hsu, Wayne Hsieh and M.T. Liao
HeadquarterTaipei, Taiwan
IndustryComputer hardware & Electronics
Area ServedWorld Wide
RevenueNT$472.4billion (2015)

 

SWOT Analysis of Asus

 

Asus Strengths [Internal Strategic Analysis]

  1. Manufacturing Firms in Cheap Labor Cost Areas – ASUS has manufacturing firms in the areas where labor cost is lower than that of developed areas. By this, it achieved cost efficiency in production. It helps Asus to offer the products at lower costs than its competitors.[1] It is also planning to setup its production plant for manufacturing smartphones in a large market like India. [2]
  2. Worldwide Service Partners – Asus has 50 service sites in 32 countries. It has more than 400 service partners worldwide. [3] Through those service sites and partners, they provide best possible services worldwide.
  3. Diversified Portfolio of Products – They have offered a good number of products through different brand names in the market. The main products of Asus are Desktops, Laptops, Mobile Phones, Monitors and Projectors, Mother Boards and Graphic cards, Tablet PCs and workstations, and smart phones under the brand name Zenfone. This diversified portfolio allows Asus to earn stabilized profit from the market. When one brand experiences lower sales, other one experiences better. [4]
  4. Portable and Gaming Technology – Asus has been providing portable gaming machines to the game loving people. For the last decades, it has been welcomed by many people around the world.
  5. Product Innovation – recently Asus revealed the world-beating products from Republic of Gamers including the world’s first water-cooled gaming laptop. The products they revealed are ROG Maximus VIII Extreme/Assembly, G752 gaming laptop, ROG Swift PG348Q,  ROG Matrix GTX 980Ti, ROG 7.1 headset, and ROG G20 Special Edition. Like that, from the beginning they have been offering innovative products to its market. [7]
  6. Strong Brand Image in the Market – From the beginning, Asus has been offering durable and quality products and by that it has built strong brand image in the market.
  7. Shifting of R&D towards Smartphone – In the year 2015, it took a decision to shift the R&D to its smartphones which was a right decision as the market was moving toward smartphones.

 

A Chart By IDC shifting demand of Smartphones

A Chart By IDC, shifting demand of Smartphones; provided by Forever-Investor

 

Asus Weaknesses [Internal Strategic Analysis]

  1. Small Market Shares – compering to its competitors, Asus has smaller market shares.
  2. Disadvantages of Asus ZENFONE 4 / 5 / 6 – according to Disadvantages website, ZenFone 6 has a very large screen which will not be liked by the users as a big phone is pretty hard to carry comfortably. Because of the light flash, Zenfone 4 is not efficient of taking pictures. Therefore, it will not be liked by camera lovers. Absence of light at soft button below the LCD screen makes it harder to use Zenfone 5. [6]

 

Asus Opportunities [External Strategic Analysis]

  1. Demand of Smartphones – Cell phones are by far the most popular device among American adults, especially for adults under the age of 65. [8] According to IDC, the demand of tablet pc will be increasing and the demand for desktops will be decreasing. [9]
  2. Production Plants in India – it has set a production plant in India. It was a right decision. With the collaboration of Foxconn, it planned to start manufacturing 150,000 smartphones per month. India has cheap labor base. Also, it is a large consumer market. It can also supply smartphones to other neighboring countries like Bangladesh, Pakistan etc.
  3. Focus on Commercial Sectors – It should focus on commercial sectors such as schools, colleges, business organizations, government offices etc.

 

Asus Threats [External Strategic Analysis]

  1. Demand of Smartphones –The demand of smartphones is increasing in the market. People are becoming more interested in smartphones as those are being developed to be compatible with every aspects of technology. This phenomena is resulting a reduction of sales of desktops or laptops.
  2. Demand of Notebook and Laptops – The demand of these products starts falling. According to the chairman, Jonney Shih, “The PC market is slowly showing signs of decay as the world is moving to a cloud first, mobile first platform. [10] As a result, the sales of related products such as monitors, computer peripherals, batteries will be slowing down as well.
  3. Intense Competition – There is intense competition in the technology market. This competition results in price war and offering innovative products by the competitors. Because of this reason, Asus has to set lower price which results in lower profit.
  4. Currency Exchange – Asus is a global brand. The products are sold in more than 32 countries. The India, China, and other Asian markets are big consumers of Asus smartphones. So, most of the revenue comes from other countries. A negative currency fluctuation may affect its revenue badly.

In Conclusion

Asus is a smart company and will do better in future.  As soon as they understood that the public demand is shifting to smartphones, they started to switch the manufacturing plants from computers and laptops to smartphones.


Competitors’ SWOT


Sources:

  1. https://en.wikipedia.org/wiki/Asus
  2. https://www.asus.com/in/News/Be4vckF6335p5MNt
  3. http://office-r-us.com/asus/
  4. http://www.marketing91.com/marketing-mix-asus/
  5. https://prezi.com/zdg40_f0lcu-/asus-swot-analysis/
  6. http://www.disadvantages.info/android/do-not-buy-asus-zenfone-4-zenfone-5-zenfone-6-before-read-our-important-disadvantages-and-advantages-review/
  7. https://press.asus.com/PressReleases/p/ASUS-Showcases-Complete-Lineup-of-ROG-Gaming-Innovations-at-IFA-2015#.WHe2ZNJ97cc
  8. http://www.pewinternet.org/2011/02/03/generations-and-their-gadgets/
  9. http://forever-investor.com/individualstocks/intel-intc-2015q4/
  10. http://www.androidheadlines.com/2015/08/asus-looks-to-shift-rd-towards-smartphones.html
  11. https://en.wikipedia.org/wiki/Foxconn
  12. http://indianexpress.com/article/technology/tech-news-technology/asus-to-manufacture-zenfone-3-max-in-india-4402766/

Author: faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.

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faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.