Asus Industry Analysis

As a leading manufacturer AsusTek is able to perfectly meet the needs of today’s digital home and office. Inspiring Innovation is the foundation that we stand by. We strictly adhere to our â€Å"Asus way of total quality management† within every line we offer. Computer manufacturing company AsusTek offers a wide variety of technology consisting of laptops, personal computers, motherboard, broadband products, graphic cards, liquid crystal display, mobile telephones, pocket pc’s, server motherboards, server systems, computer accessories and peripherals. Jonney Shih (Chairman of ASUSTek Computer Inc. ) â€Å"Success stems from the generation of new ideas to create a world of constant flux and change, an open environment where exciting possibilities emerge. That is inspiring innovation† is the philosophy that the company stands behind. AsusTek strives to not only be the leading consumer technology brand but to remain focused on safeguarding our planet by producing eco-free products. We produced the industries first lead-free and halogen-free motherboard. Overseas a green supply chain management system maintains an online database of green vendors. According to the RoHS industry guidelines they restrict 6 hazardous substances but we further restrict an addition 31 substances for the safety of our customers, employees, and the earth From Environmental Analysis To Industry Analysis. Environmental to industry analysis * 2008, joined with Intel and Tsann Kuen Enterprise, to launch â€Å"PC Recycling for a Brighter Future† (collects and recycles old notebooks, PCs, and LCD monitors) * 1,200+ used products were refurbished and donated to needy users * Produced first lead-free and halogen-free motherboard First notebook manufacturer to receive EPD and EU Flower Eco certificates * Received recognition for efficient design at 2011 Energy Star Award Ceremony Apple products are lead, BFR, PVC, and mercury free. Glass used for production is arsenic-free. Determinants of Industry, Profit, and Competition * I remember you saying something about the chart below 4/15/2011 ASUS Recognized for Energy Efficient Product Design at 2011 ENERGY STAR Award Ceremony 1/6/2011 ASUS Ranked Highest Among Environmentally Friendly Electronic Products in the 2010 Greenpeace Electronics Survey 10/20/2010 ASUS Receives Top Marks from Electronics TakeBack Coalition for Recycling Efforts 10/19/2009 ASUS Produces the Worlds First Notebook Computer to Receive Carbon Footprint Certificate 10/12/2009 ASUS EPD and Carbon Footprint Experience Sharing and Awarding Ceremony   7/31/2009 ASUS Releases Corporate Sustainability Report for Fiscal Year 2008, Receiving the GRI-checked Application Level B Icon 4/10/2009 ASUS Strikes EPEAT Gold Again with VH Series LCD Monitors 2/2/2009 ASUS Leads the Way for Greener Computing with Launch of Halogen-free Product Processes across Major Product Lines   12/26/2008 ASUS N20A Notebook receives WinHEC Award 12/10/2008 ASUS Conferred Worlds First EuP Certification for Portable Notebooks for Its N Series Notebooks 11/21/2008 ASUS Becomes Worlds First to Receive Both EU Flower and Czech Eco Label Awards for Computers   10/1/2008 ASUS New N series Notebooks First to Earn EPEAT-Gold The Determinants of Industry Profit. Demand and Competition Despite growing consumer demand for PCs and tablets, industry profit will continue to fall because of intense price competition. To boost profitability, manufacturers will shift their focus away from consumer PC ales to more enterprise-oriented offerings, such as servers. The proliferation of cloud computing will prompt companies to increase their server investments. Analyzing Industry Attractiveness Porters 5 Forces of Competition: 1. In a continuously growing industry ASUSTek finds itself among large amounts of competition. Its direct rivals include Apple Inc. , Dell, and HP. 2. Threat of substitutes is low due to a very brand loyal industry with the top 5 manufacturers holding over half of the market share. 3. Threat of new entrants is low considering the top competitors are so powerful. Computer Technology as an industry that see’s new companies entering and exiting each year, but brand loyal customers who demand cutting edge technology stick with those powerful manufacturers. 4. There isn’t a certain supplier that has control over the market. 5. There is not one customer in particular that has an effect on this industry. Technology: In recent years technological advances have assisted everyone from parents, to businesses and their employees in simplifying everyday tasks. Advanced PC’s, netbooks, tablets, and smartphones of recent years have started becoming our main source of communication and information collection. Computer manufacturers see new trends like touchscreen, wireless capabilities, or voice command enter the industry, and suddenly all of them are altering their products to not only stay competitive but to meet their suppliers derived demand. Extended battery life, overall size, faster processing, cloud computing, and sync capabilities are some of the new technologies that each manufacturer offers in their own way. Competition from Substitutes Taiwanese website NCCC have posted images of what they claim to be the next generation Asus EEE Pad, codenamed â€Å"TF300T†. From the images the only specs known are a 10. 1? screen and a rear camera. The model number â€Å"TF300T† suggests that this could be the next version in the Transformer lineup after the original Transformer (TF101) and Transformer Prime (TF201). Threat of entry ASUSTek is the world’s top 3 leading consumer notebook vendor and maker of the best-selling and most award winning motherboards. Operating at such a high level in an industry like computer technology is not an easy task, even more difficult for those companies in their infancy stages. New entrants in computer technology face the daunting task of competing with organizations like ASUSTek whose reputation is as strong as their customer’s loyalty. In an industry as advanced as computer technology, large amounts of funding are necessary to test and develop new pieces of hardware. This also makes competition more difficult for new entrants whose budget may not allow them the ability create and test several lines of product. Asus has not only developed over 16 tried and true product lines, they are now altering them with renewable materials like leather and bamboo, revolutionizing the industry yet again. In order for ASUSTek to succeed in this ultra-competitive IT industry, they focus on speed-to-market, cost and service. Asus has developed a strong advantage in their product design, technology, quality, and value/cost. These strengths are marketed directly to the hearts of our loyal consumers, and have created a formula for success that is hard to duplicate. Rivalry Between Established Competitors * ASUS: Eee Pc VS. Lenovo ThinkPad Trends The current trend has been the tablet pc. It is light-weight, convenient and fairly cheap to purchase. Laptops with the highest performing components are also high in demand. I did some cross-referencing research by looking at who has the best product out today and compared it to the overall leading company in the industry. I found the companies with the best current products They are as follows; 1. HP had 17. 7% market share, compared to 17. 3% in last year’s third quarter. 2. DELL had an 11. 6% share of the market, compared to 12. 2% last year 3. APPLE took third place, with 12. 9% share. 4. ACER had a 10. 6% share in the third quarter, compared to a 14. 2% share last year. 5. SONY has a 11. 6 share in the third quarter, compared to a 12. 2% last year Then, the leading manufactures (based on consumer reports, link above) 1. ACER had a 10. 6% share in the third quarter, compared to a 14. 2% share last year. 2.