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Detailed SWOT Analysis of Asus – One of the World’s Largest PC Vendors

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In our previous blog, we did a detailed SWOT Analysis of one of the world’s top laptop brands, Acer. Here we will be doing a detailed SWOT Analysis of Asus.

It is one of the largest personal computer vendors in the world by market share. It is also one of the top 10 laptop brands in the world.

It has gained such large success in the market due to some of the best marketing techniques by them. With the increase in the use of social media and other digital platforms, it is crucial for every business nowadays to market its business online. Thus digital marketing is something that everyone should know about. If you are intent on learning what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us keen to know how Asus has gained its position in the market. To understand that we have given a detailed SWOT Analysis of Asus. But before we start with its SWOT Analysis let us learn about Asus as a Company, its products, competitors, financials, and more.

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About Asus

SWOT Analysis of Asus | IIDE

Asus is a multinational computer and mobile hardware company, headquartered in Taipei, Taiwan. It was founded in 1989 by Ted Hsu, M.T. Liao, Wayne Tsiah, T.H. Tung, and Luca D.M. It belongs in the computer hardware and electronics industry. 

Asus products include computer and mobile hardware like laptops, computers, motherboards, wifi, projectors, netbooks, graphical cards, networking equipment, etc. Asus also produces pieces of equipment and parts of hardware that can be marketed by other manufacturers. This feature makes Asus an Original Equipment Manufacturer (OEM).

Its mission is to provide innovative IT solutions that empower people and businesses to reach their full potential. Its philosophy behind product development—is to accomplish the fundamentals well first before moving forward.

Asus strives to be an integrated 3C solution provider that delivers innovations that simplify our customer’s lives and enable them to realize their full potential.

 

Quick Stats About Asus
Founders Ted Hsu, M.T. Liao, Wayne Tsiah, T.H. Tung, and Luca D.M.
Year Founded 1989
Origin Taipei, Taiwan
No. of Employees 5,892 (2020)
Company Type Public
Market Cap NT $139.1 Billion (2020)
Annual Revenue NT $382.44 Billion (2020)
Net Loss NT $26.56 Billion (2020)

 

Products of Asus

Asus is one of the top electronic brands in the world and has been providing its customers with some of the best products in the market. Following are some of the products that Asus provides:

  • 2-in-1s
  • Smartphones
  • Laptops
  • Computers
  • Motherboards
  • Wifi
  • Projectors
  • Netbooks
  • graphical cards
  • networking equipment

 

Close Competitors of Asus

As we are aware, every brand or firm has to face some competitors in the market. Below mentioned are the top competitors of Asus:

  • Apple
  • Intel
  • HP
  • Acer
  • Pegatron
  • EIZO
  • GIGABYTE

Now that we have seen the company overview, let us start with the SWOT Analysis of Asus.

 

SWOT Analysis of Asus

 

Infographics - SWOT Analysis of Asus | IIDE

SWOT Analysis is the calculation of the strengths, weaknesses, opportunities, and threats of Asus. Strengths and weaknesses are the internal factors of Asus and opportunities and threats are its external factors.

For any organization, a SWOT analysis proves to be a simple yet powerful bodywork to analyze the standing of a firm or brand in the market, as compared to its competitors and even within itself. A SWOT analysis of Asus will also give their decision-makers insight into their marketing strategies, and how to improve the same.

Let us now start with its SWOT Analysis by first looking at the Strengths of Asus.

 

Strengths of Asus

Strengths are the positive factors of Asus that help it hold its position in the market. The following points act as the strength to Asus:

  • Goodwill of the brand – The brand has made its place in the books of its consumers and even its nation, quite rightfully. The company built itself from the bottom up and has been consistent with its performance ever since. These act as goodwill for the brand and the general consumer is more emotionally invested in such companies from the get-go. Hence, the brand name itself builds up as the strength of the company.
  • Huge market share – A large market share is enjoyed by Asus, especially in Taiwan. It enjoys a share of 7.6% in the global computer market and hence can deliver huge sales, making it among the Top 5 brands in the global PC market. A sizable share of the motherboard market is also under Asus.
  • Environment friendly – In the year 2000, Asus launched Green Asus, a part of Asus CSR, as a step towards making its products and actions more sustainable and eco-friendly. The sustainability goals for 2020 include green products and sustainable operation which ensures a 90% waste conversion rate, 50% GHG emissions reduction rate, and 85% halogen-free products among other such beneficial measures. This aspect of Asus serves as not only a necessary step for the environment but also raises its value as an ethically and morally right company in the eyes of its customers.
  • Deeply research-oriented – Perhaps what has helped keep Asus an edge over its competitors throughout the years is the heavy investment in the research and development stages of the products. Taiwan in itself is a technologically advanced country and hence the environment is all the more conducive for such developments. Such a research-oriented approach has helped Asus make futuristic and seemingly difficult products in advance, taking them ahead in the global market, where time is considered a rather sensitive factor.

 

Weaknesses of Asus

Asus lacks in the following areas, which can be improved through marketing strategies and product development:

  • Less exposure outside Taiwan – Though it is quite commendable how Asus made itself a household name in Taiwan and is a market leader in the country, the same position has not been well reflected in its international endeavors. Asus’ competitors- namely Lenovo, Acer, and Dell- have made themselves well-known and well-accessible throughout the globe, leading to much better coverage of their products. Asus needs to make its brand and products more recognizable, especially in today’s dynamic world.
  • Poor service accessibility – There are much fewer service centers available for Asus in countries other than its host. Even the stores selling Asus laptops and other products are lesser as compared to its competitors. Consumers usually go for electronics that are not only easier to buy, but also easier to maintain. Asus faces a major drawback in this aspect.
  • Lack of quality – There have been several complaints about Asus products, but mostly its motherboards. Having invested much in research and development would not lead to interested customers in itself if the company does not focus on other aspects of the products, like style and design, quality, etc.

 

Opportunities for Asus

Opportunities are some of the factors that help the company to grow in the market. Thus Asus can avail opportunities and make them their strengths to grow. Following are some of the opportunities for Asus:

  • Growing digital world – The pandemic has led to the expansion of the digital world at an unprecedented pace. This can prove to be a huge advantage to an electronic industry-oriented company like Asus. If the company correctly markets its products, it can bring in huge sales at this point.
  • Marketing opportunities – Asus can up its marketing game and bridge the gap between itself and its competitors. Marketing their products to their target audiences can go a long way. Investing in marketing and advertisement is not something that the company would regret, it would result in more exposure and ultimately keep them on the level of their competitors.
  • Ventures and tie-ups – Asus has previously collaborated with companies like Intel and Tsann Kuen Enterprise Co. After being recognized as an environmentally friendly and established brand, the company has the opportunity to make itself a part of many ventures, which may also help to diversify its already deep portfolio.

Threats for Asus

Asus has to tread carefully in the aspects given below since they pose as threats:

  • New firms – The modern world is much more dynamic than it was even a decade ago. With efforts being made by all nations to produce indigenously as many products as possible, new entrants will prove to be a threat to Asus. Deeper accessibility of technology only increases the number of minds that might chance upon geniuses, and this can be a danger to the advanced technologies that Asus is usually dependent on. 
  • Cut-throat competition – The competition has been very narrowly maintained as of late, due to the increase in the number of competitors and the constant urge by brands to outrun others. Hence, lacking in any aspect of the brand or its products may cause a downfall or stagnation.
  • Decreasing profit margins – Most of the world’s consumers are still highly price sensitive. To make their products available to a larger section of the market, all the brands in the electronics industry have been trying to make their products more affordable than the rest of their competitors, leading to lesser profit margins for everyone involved, especially to a company like Asus, which usually sells higher-end products and has to adjust itself to the requirements of its consumers as well as the availability of raw materials.
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Conclusion

On the study of the SWOT Analysis of Asus, we have seen that it is one of the largest PC vendors in its industry. It has a huge market share and it is working towards environment-friendly methods. Even with such strengths, it faces some flaws in the market which holds its growth.

It has less exposure outside Taiwan and the cut-throat competition are some of the points that Asus needs to eliminate. It can improve its brand presence in other countries with the use of advanced digital marketing techniques. As most people nowadays are using online platforms it is easy for them to find their target audience. Thus digital marketing is very essential for any business. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you would like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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