Introduction
Asus is a Taiwanese multinational computer and phone company a based in Taipei. Asus is the world’s 5th-largest PC vendor by unit sales as of January 2021. Asus’s Business Model involves its business plan, revenue model, its competitors, SWOT Analysis and many more.
Business Plan
ASUS Business is a subsidiary of ASUS that primarily focuses on catering to the computing demands of end-users with its laptops, all-in-one PCs, desktops, monitors, servers, networking, and storage solutions. ASUS, a technology-oriented company with a global staff of more than ten thousand and blessed with one of the world’s top R&D teams, is renowned for high-quality products and cutting-edge innovation. As a leading company in the new digital era, ASUS offers a complete product portfolio to compete in the new millennium.
Competitors
Asus is a leading company, which is also makes it vulnerable to big league competitions. Some of its competitors are:
SWOT Analysis
Strengths
- Brand Name: Asus has a strong brand image and has been a recognized and trusted brand for the past many years. It is one of the top-performing international brands in Taiwan. It has received about 4385 awards and is also featured as the most admired company by Fortune magazine.
- Huge and Increasing Market Share: ASUS is one of the top five players in the PC market with a market share of about 7.6 percent, and also has a major market share in the motherboard sector. Its market share is increasing due to its product quality and performance.
- State of Art Manufacturing: Asus has a large manufacturing ability and this is another major strength of the brand. It has this advantage over its rivals. Also, this is a durable benefit as Asus can expand the scale and manufacturing abilities, when electronic use increases worldwide.
- Diversified Product Portfolio: ASUS’s diversified product portfolio is a fantastic benefit over its rivals. It has a large variety of products renowned for everyone’s needs. ASUS mainly manufactures laptops, desktops, projectors, WiFi Devices, computer motherboards, graphic cards, storage devices, wearable, workstations, servers, tablet PCs, mobile phones, consumer electronics, and networking equipment.
- Eco-Friendly Activities: This is an unusual characteristic of electronics and computing businesses, but ASUS is renowned for its eco-friendly activities. The organization is considered to have initiated the GREEN ASUS project in 2000, which contributed to the introduction of a broad variety of eco-friendly initiatives. Asus took part in a campaign called “recycling for a better future” which reused old computers by renovating them and donating it to schools as new machines. This is a great deed for the company and is a key strength of the brand.
- Research and Development: To remain a cost leader, ASUS is constantly adopting new technologies. This helps ASUS to produce quality goods at a cheaper rate. It is also fair to assume that ASUS is an R&D-focused organization and its key emphasis is on making quality goods for its customers.
- Employees: ASUS’s employees are experienced and come with a rich technical background. The company gives special importance to employee training, employee motivation, and career development. Due to this, employees are motivated and get quality work from the employee. This result is seen in their product.
Weaknesses
- Distribution System: ASUS has a great output capacity, but the distribution system is not good as compared to other leading brands like IBM, Apple, Lenovo, HP, Intel, Dell, etc. Due to this, the revenue is less compared to its competitors. This is seen as Asus’s weakness as it lacks scalability.
- Controversies: Asus lost a big legal case during the year 2016 that has a huge impact on its brand equity. Asus was identified as having vulnerabilities in its software that were loaded to hardware.
- Communication System: ASUS lacks communications abilities like those of Apple or Lenovo. Although Apple is a legend in marketing, Intel often regularly engages in identifying itself through the distinction of its goods as well as through its marketing communications. However, some separation attempts are observed to be missing from the ASUS.
- Marketing Strategies: ASUS is not using aggressive Marketing strategies like promotion on Social Media, Advertisement on Internet, Advertisements.
Opportunities
- Tie-Ups: ASUS can do tie-ups with various laptop and computer manufacturing companies to supply motherboards, graphic cards, and other devices. ASUS can also tie-up with software companies, colleges, and schools to provide PCs and Laptops at a cheaper price.
- New Promotional Strategies: Growing Promotional channels like YouTube, Adwords, Instagram, and Facebook Marketing. ASUS can take advantage of these channels to attract more customers and can create more awareness of its products.
- Rise in disposable incomes: in developing countries, the reach of the Internet has risen, and so has disposable incomes. Citizens are now more conscious of technical devices and so ASUS will take advantage of its existence in these countries.
- Smart Phone Market: According to industry analysts, smartphone shipments are expected to rise at a CAGR of 13 percent. In addition, demand for tablets is also on the rise, projected to increase by around 7 percent of CAGR. The strong optimism for the future would certainly boost the revenues of ASUS. ASUS can launch new phones in competition to Mi and Oppo. Asus Zenphones are a big hit in the market.
- Growing IoT and Cloud Computing: Asus can take enter into the current technology of IoT and cloud computing so that it can scale up its business. It provides cloud services and IoT solutions to the customer benefit with a practical approach. Hence, the growing market can contribute to the organization’s growth.
- Tap New Markets: Developing Markets in Developed and Developing Nations can be targeted by the company.
- Competitive Pricing: ASUS must follow competitive pricing and extended warranty support to attract more customers.
Threats
- Intense Competition: ASUS faces intense competition in computer markets from leading players such as IBM, HP, Intel, Apple, etc., although it also faces tough competition in the mobile and tablet sector from both current and new local and foreign entrants.
- Decreasing margins: As rivalry grows, the primary competitive tactic employed by both rivals is penetration pricing, which decreases the profit margins among all players concerned. As ASUS does not distinguish itself, the decrease in profit margins is projected to be profound over the years.
- New Entrants: New Entrants in the market can ruin the business of ASUS. ASUS must try to promote its products heavily to compete with new entrants.
Conclusion
As shown above, Asus is an international brand with a huge customer base and brand loyalty. Its market share is not only comprised of Chinese and Taiwanese citizens but at a global level.
