SWOT: Asus, PC Business, Worldwide

ID Number: G00169616

30 July 2009

Annette Jump Tracy Tsai Isabelle Durand

This SWOT analysis examines the strengths, weaknesses, opportunities and threats for the No. 6 worldwide PC vendor, Asus. Asus is one of the Asian vendors challenging the innovation pace of the leading PC vendors.

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Table of Contents

Analysis

SWOT Analysis

Strengths

		Continuous R&D Innovation and Fast Adoption of the Latest Technologies
		Close Relationship With ODM Pegatron, Which Offers Special Terms and Flexibility With Multiple Product Lines
		One of the Leaders in Mini-notebooks
		Good Brand Recognition in Europe and Asia/Pacific

Weaknesses

		Lack of Experience as a Major Volume PC Player (Management, PC Forecasting, Inventory Control, Financials and Marketing)
		Too Focused on Innovation and Latest Technology vs. Recognizing the Market Demand
		Struggling to Turn Volume Gains Into Profitable Growth
		Weak Presence and Lack of Brand Recognition in Some Mature Markets (Americas)
		Higher ODM Costs and Lack of Focus Due to Number of PC Models and Other Product Lines

Opportunities

		Mini-notebooks, MIDs and Smartphones
		Further Expansion in Entry-Level and Thin and Light CULV Mobile PCs
		Explore the Opportunities in Low-Cost All-in-One Desktop PCs
		Expand in Selected Mature Markets (U.S. and Japan)
		Expand and Develop Relationship With TSPs (Outside of EMEA)
		Mini-notebooks in Education (Opportunities Vary by Region)

Threats

		Other PC Vendors Are Quick Followers of Asus in Their New Products
		Not Enough Economies of Scale to Compete With the Top Five Worldwide PC Vendors
		Eroding Technology Advantage and Profit Margins for Mobile PCs
		PC Market Decline in 2009 and Further Consolidation in the PC Market
		Increased Competition in Mini-notebooks and Differentiation Challenges With Standard Notebooks

Implication for Asus PC Business

Company Overview

		Key Facts
		Company Description
		Financial Performance — Asus

Methodology

Recommended Reading

List of Figures

	Figure 1.	Graphical Representation of SWOT for Asus PC Business

	Figure 2.	SWOT for Asus PC Business

	Figure 3.	ASUSTeK's Annual Revenue and Net Income (Millions of New Taiwan Dollars), 2007 and 2008

	Figure 4.	Asus' Revenue by Geographic Market, 2008

	Figure 5.	Asus' Revenue by Product, 2008

Personal Computing Client Hardware
Desktop Personal Computers
Mobile Personal Computers

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Resource Id: 1104614