ALL ABOUT ASUSTek

Computers
By- Bhakti Bhadra
BBA 3

Introduction to Enterprenurship
Submitted to – Prof. Nilesh Pandya

Amity Global Business School

Assignment 1

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INTRODUCTION

ASUSTeK Computer Inc. which is commonly known as ASUS is

primarily a computer, communications and Consumer electronics
solutions company. ASUS is headquartered in Taipei, Taiwan and
operates in about 32 countries. ASUS has a revenue of about $ 16000million.

ASUS has been recognized as o n e o f T a i w a n ’ s t o p p e r f o r m i n g

international brands. ASUS receive a record high 4326 local and global
awards in 2014. It also featured in the world’s most admired companies in 2014 by
f o r t u n e m a g a z i n e . T h e S t r o n g brand image provides the
credibility to the company which helps the company to deliver sustainable
business growth.

ASUS is among the top five players in the PC market with about 7.6 percent
market share, in addition to that, it has a significant market share in the
motherboard
Segment too.

A fantastic advantage of ASUS over its competitors is its product portfolio. It

has a complete range of products which are known for its in-depth product
line and p r o d u c t d e p t h a s w e l l . F o r e x a m p l e – T h e c o m b i n a t i o n o f
products in ASUS are Desktops, Laptops, 2-in-1’s etc.

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Asustek Computer SWOT Analysis, Competitors,
STP & USP

SWOT analysis of Asustek Computer analyses the brand by its strengths,

weaknesses, opportunities & threats. In Asustek Computer SWOT Analysis, the
strengths and weaknesses are the internal factors whereas opportunities and
threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like
Asustek Computer to benchmark its business & performance as compared to the
competitors. Asustek Computer is one of the leading brands in the IT & Technology
sector.

The table below lists the Asustek Computer SWOT (Strengths, Weaknesses,
Opportunities, Threats), top Asustek Computer competitors and includes its
segmentation, target market, positioning (STP) & Unique Selling Proposition (USP)

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 Asustek Computer Brand Analysis

Parent Company Asustek Computer Inc.

Category Computer Hardware

Sector IT & Technology

Tagline/ Slogan All-in-one is no longer in one; Good things come to those who wait

USP Innovation with quality

Asustek Computer STP

Asustek Computer Worldwide Computer hardware, computer, mobile phones and electronic
Segmentation purchasers

Asustek Computer Companies selling notebooks, computer equipments, motherboards and other
Target Market electronic items

Asustek Computer
Inspiring Innovation and Persistent Perfection
Positioning

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 SWOT Analysis of Asustek Computer

Below are the Strengths in the SWOT Analysis of Asustek Computer:

1. Its in-house manufacturing of hardware components
2. Strong R&D department focusing on new advancement
Asustek Computer 3. Innovative product building
Strengths 4. Asus operates around 50 service sites across 32 countries and has over 400
service partners worldwide
5. Market Leadership
6. Strong relationship with customers

Here are the weaknesses in the Asustek Computer SWOT Analysis:

Asustek Computer
1. Lack of Scale
Weaknesses
2. Poor Marketing

Following are the Opportunities in Asustek Computer SWOT Analysis:

Asustek Computer 1. Huge Emerging market still to penetrated for computers
Opportunities 2. Strategic Acquisitions and Alliances
3. Outlook for PC Shipment

The threats in the SWOT Analysis of Asustek Computer are as mentioned:

1. Geopolitical risk for Asustek Computers
Asustek Computer 2. Decreasing demand of Netbooks and laptops
Threats 3. Low profit margins
4. Technology becoming obsolete

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 Asustek Computer Competition

Below are the top 4 Asustek Computer competitors:

1. Compal Electronics
Competitors 2. Benq Corporation
3. Celestica Inc.
4. Quanta Computer

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Asustek Computer Strengths
1. Its in-house manufacturing of hardware components-
ASUS has vertically integrated operation into various subsidiaries to
manufacture components. It also has an integrated supply chain operations.
This allows ASUS to reach faster to the market and also superior capabilities
of development.

2. Strong R&D department focusing on new advancement

To be a cost leader, you have to have a continuous grip on the latest
technology. You have to break ground and create better products at lower
cost. Hence, it can be safely said that ASUS is a R&D focused company and its
major focus lies in creating better products for its consumers day by day.

3. Innovative product building

It has a complete range of products which are known for its in depth product
line and product depth as well. For example – The combination of products in
ASUS are Desktops, Laptops, 2-in-1’s, All in One PC’s, portable monitors, sound
cards, media receivers and many other such IT and technology related
products.

4. Asus operates around 50 service sites across 32 countries and has over 400
service partners worldwide- ASUS has been recognized as one of Taiwan’s top
performing international brands. ASUS receive a record high 4326 local and
global awards in 2014. It also featured in the world’s most admired companies
in 2014 by fortune magazine. The Strong brand image provides the credibility
to the company which helps the company to deliver sustainable business
growth.

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5. Market Leadership
ASUS is among the top five players in the PC market with about 7.6 percent
market share, in addition to that, it has a significant market share in the
motherboard segment too.

6. Strong relationship with customers

The company also took part in “recycling for a better future” a campaign
where they recycled old computers and refurbished them and ultimately
donated them to 122 schools as completely new machines.

Asustek Computer Weaknesses

1. Lack of Scale

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 Although ASUS has fantastic manufacturing potential, distribution is not upto mark. In
comparison with its major competitors such as IBM, Lenovo and Apple. ASUS’ revenue
is about $ 16000 million which is about 30 percent of Lenovo’s revenue, 15 percent of
IBM’s revenue and about one-twelfth of Apple’s revenue. ASUS’ lack of scale may affect
its ability to compete with its competitors.

2. Poor Marketing
Asus lacks marketing skills like those of Apple or even Lenovo. While Apple is a legend
in Marketing, Lenovo also regularly takes part in branding itself through differentiating its
products as well as through its marketing communications.

Asustek Computer Opportunities

1. Huge Emerging market still to penetrated for computers

In the emerging nations, internet penetration has increased and so has disposable
incomes. People are more aware of technological devices now and hence ASUS can
take advantage of its presence in such countries.

2. Strategic Acquisitions and Alliances

The two ways that ASUS can increase its market share even further and make itself
more sustainable is by differentiating its business offering through marketing and
therefore increasing customer loyalty and customer satisfaction. To do this, it needs to
involve its internal customers such as dealers and distributors and build good relations
with them as well.

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 3. Outlook for PC Shipment
The ASUS chromebooks are being loved by chromebook enthusiasts as the
chromebooks are sleek and stylish and at the same time they get the work done. ASUS
has been an early adopter of the Chrome OS and has used the same to make the
Chromebook.

Asustek Computer Threats

1. Geopolitical risk for Asustek Computers

ASUS faces intense competition in the computer markets from some of the industry

giants like IBM, Apple etc. whereas it also faces stiff competition in the smartphone and
tablet market with existing as well as new local and global entrants.

2. Decreasing demand of Netbooks and laptops

The Global demand for PC, Laptops and Notebooks are expected to decline at 2
percent CARC till 2018. This can adversely affect company’s top line.

3. Low profit margins

As the competition increases, the major pricing strategy which is used by all competitors

is penetration pricing, as a result of which the profit margins decline for all the players
involved. As ASUS is not differentiating itself, the decline in profit margins is expected to
be profound over the years.

4. Technology becoming obsolete

In this fast-paced growing technology there is difficulty of growing products

with growing technology and surviving competition.

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Asustek Computer SWOT Analysis, Competitors,
Segmentation, Target Market, Positioning, USP &
Brand Analysis Table

THANK YOU

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