AsusTek Computer Inc. is a multinational technology company that operates in the computer hardware industry. As with any company, AsusTek has internal strengths and weaknesses, external opportunities, and threats. SWOT analysis is useful for assessing a business’s advantages, disadvantages, opportunities, and threats.
This SWOT analysis will analyze AsusTek’s internal strengths and weaknesses, such as its brand reputation and product quality, and external opportunities and threats, such as emerging technologies and increasing competition in the industry. By examining these factors, we can better understand the company’s current position and potential for growth and identify areas needing improvement.
Brief Company History
AsusTek was founded in 1989 by a group of computer engineers initially focusing on manufacturing motherboards for personal computers. In the early 2000s, AsusTek expanded its product offerings to include laptops, desktops, and graphics cards, establishing a presence in international markets. In 2007, AsusTek launched the Eee PC, a line of low-cost, lightweight laptops that helped to establish the netbook market. In 2013, AsusTek announced the launch of its Zenfone series of smartphones, which helped to establish the company as a major player in the smartphone market.
In 2016, AsusTek launched its Republic of Gamers (ROG) line of gaming laptops and desktops, becoming a popular brand among gamers and helping the company establish a foothold in the gaming market. In recent years, AsusTek has continued to innovate in areas such as artificial intelligence, virtual reality, and internet of things (IoT) devices, as well as expanding its product offerings to include smart home products. Throughout its evolution, AsusTek has maintained a strong focus on innovation and quality, which has helped the company to establish a reputation as a leading player in the technology industry.
ASUSTek Computer Inc. at a Glance
| About ASUSTek Computer Inc. | |
| Company: | ASUSTek Computer Inc. |
| Subsidiary: | ASUSTOR Inc., ASMedia Technology Inc, Askey, AAEON, UniMax Electronics Inc., Asus Technology Pte. Limited, Asus Global Pte. Ltd and others. |
| CEO: | Samson Hu and S.Y. Hsu since 2019 |
| Founders: | Ted Hsu, M.T. Liao, Wayne Tsiah, T.H. Tung, Luca D.M. |
| Year founded: | 2 April 1989. |
| Headquarters: | Beitou District, Taipei, & Taiwan. |
| Type: | Public |
| Ticker Symbol: | TWSE: 2357 |
| Annual Revenue (FY 2022): | $19.20 Billion |
| Net income (FY 2020): | $1.6 billion |
| Products & Services: | Personal computers, monitors, projectors, motherboards, graphics cards, optical storage, peripherals, wearables, servers, workstations, etc. |
| Competitors: | Apple, Acer, Intel, Pegatron, HP, GIGABYTE, EIZO, etc. |
Recent Performance of AsusTek
Stock Performance
TSE AsusTek stock is TWD 456.00 as on February 21, 2023. For the previous year, the stock has steadily risen. The stock traded at TWD 392.00 on February 19, 2022, up 16.3% year-over-year. AsusTek pays stockholders at least 40% of their net profit. Based on the stock price, the corporation paid a TWD 5 cash dividend in 2021, yielding 1.1%. Compare AsusTek’s stock performance to similar firms. The TSE’s benchmark TAIEX index rose 15.9% last year, somewhat less than AsusTek’s stock price.
Market Performance
On February 21, 2023, AsusTek’s market cap was TWD 275.3 billion, or $9.8 billion. PC, Mobile, and Others are AsusTek’s product categories. The PC sector generated 63.3% of the company’s revenue in 2020, while the Mobile segment generated 16.7%. Gaming, smart home, and AR goods comprised the remaining 20%. AsusTek’s e-commerce revenues are growing. E-commerce sales increased from 32.9% to 35.3% of business revenue in fiscal 2020.
Revenues Performance
Due to its robust product portfolio and growing market presence, AsusTek’s revenue has grown significantly. Revenue rose 4.4% to $10.17 billion in fiscal 2020. Throughout five years, revenue has grown by 1.8%. AsusTek’s gross profit margin has remained steady. The company’s gross profit margin rose 14.7% from 14.4% in fiscal 2021. The corporation has maintained pricing power and reduced its cost of products sold. Due to revenue mix changes, operating expenses, and income taxes, AsusTek’s net profit margin has changed. The company’s net profit margin dropped from 3.6% to 3.3% in 2021. This suggests that the company’s income tax or interest expense may have increased.
Strengths of Asus
Strong Brand Reputation: AsusTek has built a strong brand reputation over the years for its high-quality and reliable products. The company is recognized as a leading technology solutions provider and has won many awards for its products. It created a loyal customer base as well.
Diversified Product Portfolio: AsusTek offers various products in different categories, including personal computers, mobile devices, gaming products, smart home devices, and augmented reality products. This diversification allows the company to tap into various market segments and reduces its dependence on any one product category.
Innovative Product Design: AsusTek is known for its innovative product design, which includes cutting-edge technology, sleek design, and user-friendly features. The company’s innovative products have helped it to stand out in a highly competitive market. They are good at making customer appeal.
Strong Research And Development Capabilities: AsusTek has invested heavily in research and development to create innovative products and stay ahead of the competition. The company has a team of experienced engineers and designers who work on developing new products and improving existing ones.
Strong Global Presence And Supply Chain: AsusTek has a global presence, with operations in over 50 countries. This global footprint allows the company to tap into various markets and reach a wide customer base. AsusTek has excellent supplier and manufacturing partnerships. This provides high-quality product components and cost management.
Weaknesses of Asus
Dependence on the PC Market: While AsusTek has diversified its product portfolio, the company is still heavily reliant on the PC market. This dependence on the PC market may affect the company’s performance if the market declines or there is a shift in consumer preferences.
Limited Brand Recognition In Some Markets: While AsusTek has a strong brand reputation, the company’s brand recognition may need to be improved in other markets. This may make it difficult for the company to gain market share and compete effectively in these markets.
High Competition Monitoring Obligation: The technology industry is highly competitive, with many established players and new entrants constantly vying for market share. This competition may make it difficult for AsusTek to maintain or increase its market share, especially in highly competitive segments.
Dependence On Key Suppliers: AsusTek’s supply chain is critical to its operations. However, the company depends on key suppliers for some components, which may expose it to supply chain risks if these suppliers face disruptions or price changes. This makes the company vulnerable to the bargaining power of the supplier.
Economic And Political Setbacks: As a global company, AsusTek is exposed to various economic and political risks, including changes in government policies, tariffs, and economic downturns. These risks may affect the company’s sales and profitability in different regions. That would affect the stock prices as well.
Opportunities for Asus
Growing Demand For Gaming Products: The global gaming industry is growing rapidly. AsusTek is well-positioned to take advantage of this trend with its range of gaming products. The company can continue to expand its offerings in this segment and cater to the growing demand for high-quality gaming products.
Expansion Into New Markets: AsusTek has a global presence, but the company can still expand into new markets and increase its market share. The company can explore new markets and segments where it has a limited presence or can gain market share.
Technological Advancements: AsusTek has a strong research and development team. The company can use technological advancements to develop innovative products that meet customers’ changing needs. For example, the company can explore using artificial intelligence, virtual reality, and other emerging technologies in its products.
Growing Demand For Mobile Devices: The global demand for mobile devices is growing, and AsusTek can take advantage of this trend by expanding its range of smartphones and tablets. The company can also explore opportunities in the Internet of Things (IoT) and smart home devices.
Strategic Partnerships And Acquisitions: AsusTek can form partnerships, acquire companies that complement its product offerings, or expand its market reach. This can help the company to enter new segments or gain a competitive advantage in existing ones. This would help them expand in the long run.
Threats for Asus
Intense Competition: The technology industry is highly competitive, and AsusTek computer inc. faces strong competition from established players and new entrants. The company must continue to innovate and differentiate its products to maintain or increase its market share.
Fluctuations In The Pc Market: Variations in consumer taste can cause fluctuations in demand for personal computers. The shift toward mobile devices may hurt the personal computer market, which would have a knock-on effect on AsusTek computer inc.’s business.
Economic And Political Instability: AsusTek operates globally, and economic and political instability in different regions could affect its sales and profitability. For example, tariffs, trade disputes, and changes in government policies could impact the company’s operations. The instability of these macro-environmental elements are uncontrollable.
Dependence On Key Suppliers And Cybersecurity Threats: AsusTek’s operations depend on key suppliers for some components, and any disruptions in the supply chain could negatively impact the company’s operations and profitability. The increasing reliance on technology also increases the risk of cybersecurity threats, including data breaches and hacking attacks.
Rapid Technological Changes: The technology industry is characterized by rapid technological changes. AsusTek must continue to innovate and adapt to these changes to remain competitive. The market share could be lost to rivals if the corporation doesn’t act upon it.
SWOT Comparison Chart
| ASUSTek | Apple | Intel | Hewlett- Packard | |
| Strengths | Strong Brand Reputation. Diversified Product Portfolio. Innovative Product Design. Strong Research And Development Capabilities. Strong Global presence and supply chain. | Iconic Brand Image. Top Technology. Proficient Research & Development. Sustainability made Possible through Liam. Differentiation. | Technology leader. Top Ranked. Brand Value. High Market Share Value. | Distribution Network. Research & Development. Customer Service. Target Market. Market Share. |
| Weaknesses | Economic And Political Setbacks. Dependence On Key Suppliers. High Competition Monitoring Obligation. Limited Brand Recognition In Some Markets. Dependence on the PC market. | High-Priced Products. Limited Advertisement & Promotions. Incompatibility With Other Software. | Not Diverse. Overproduction. Service in Developing Countries. | Slow In The Digital Entertainment. Lack Of Customization. Fake Products. |
| Opportunities | Strategic Partnerships And Acquisitions. Growing Demand For Mobile Devices. Technological Advancements. Expansion Into New Markets. Growing Demand For Gaming Products. | Consistent Customer Growth. Expansive Distribution Network. Opportunity in the growing Green Technology practices. Utilize Artificial intelligence. Expanding into Chip Manufacturing. | The era of Technology and Computers. Drones production. Automatic Cars Production. | Service Industry. Digital Awareness. |
| Threats | Rapid Technological Changes. Dependence On Key Suppliers And Cybersecurity Threats. Economic And Political Instability. Fluctuations In The Pc Market. Intense Competition. | After effects of Coronavirus Outbreak. No Effective Countermeasure for Air Tags. Apple Bullied By Counterfeits. Increasing Competition. | One product demand supremacy. Competitors. Competitive Pricing. | Economic Recession. Competition. Low Price. Increasing Cost. |
Recommendations For the Company
Here are some suggestions for AsusTek based on the SWOT analysis results:
Expand Its Presence in Emerging Markets
AsusTek can explore opportunities in emerging markets such as Asia and Africa to increase its market share and revenue.
Diversify its Product Offerings
While AsusTek has a strong presence in the gaming industry, the company should consider diversifying its product offerings to reduce dependence on a single segment.
Continue to Invest in R&D
AsusTek has a strong research and development team, and the company should continue to invest in R&D to develop innovative products that meet customers’ changing needs.
Strengthen Partnerships and Strategic Acquisitions
AsusTek should form partnerships or acquire companies that complement its product offerings or expand its market reach. This can help the company to enter new segments or gain a competitive advantage in existing ones.
Mitigate Supply Chain Risks
As AsusTek’s operations depend on key suppliers, the company should develop contingency plans to mitigate supply chain risks and ensure business continuity.
Enhance Cybersecurity Measures
Given the increasing risk of cybersecurity threats, AsusTek should enhance its cybersecurity measures to protect its operations and customers’ data.
By implementing these recommendations, AsusTek can drive growth, increase its market share, and maintain its competitive position in the technology industry.
References
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- Laptop ASUS Intelligent Performance Technology AIPT | ASUS Global. (n.d.). ASUS Global. https://www.asus.com/content/laptop-asus-intelligent-performance-technology-aipt/
- Asus – Wikipedia. (1989, April 2). Asus – Wikipedia. https://en.wikipedia.org/wiki/Asus
- Official Support | ASUS USA. (2001, July 1). Official Support | ASUS USA. https://www.asus.com/us/support/information/
- SWOT Analysis of ASUS – ASUS SWOT Analysis [Explained]. (2021, November 22). SWOT Analysis of ASUS – ASUS SWOT Analysis [Explained]. https://www.projects4mba.com/swot-analysis-of-asus/5160/
- ASUSTeK Computer Inc (2357) – Financial and Strategic SWOT Analysis Review. (2022, June 23). ASUSTeK Computer Inc (2357) – Financial and Strategic SWOT Analysis Review. https://www.marketresearch.com/GlobalData-v3648/ASUSTeK-Computer-Financial-Strategic-SWOT-31849634/
- Team, M. S. (2021). Asustek Computer SWOT Analysis, Competitors & USP | MBA Skool. Asustek Computer SWOT Analysis, Competitors & USP | MBA Skool. https://www.mbaskool.com/brandguide/it-technology/5057-asustek-computer.html
- Asus / Muhammad Luqman Zulkifli – UiTM Institutional Repository. (2022). Asus / Muhammad Luqman Zulkifli – UiTM Institutional Repository. https://ir.uitm.edu.my/id/eprint/61580/
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