Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video
What happens when an original design manufacturer (ODM) firm tries to transform itself into a branded goods seller? The case traces the evolution of ASUSTeK from a motherboard supplier, to an ODM manufacturer of desktop and notebook PCs, through its split into three companies that separately pursue the branded business, ODM, and contract manufacturing. Chairman Jonney Shih has to not only confront the challenges of brand building, but he also must build new organizational capabilities in ASUSTeK, while Pegatron struggles to win business from ASUSTeK's former customers and now competitors. The case offers an opportunity to apply the lense of disruptive innovations to a discussion of outsourcing, examining the consequences for firms like HP and Dell that have outsourced most of their computer product design to ODM firms like ASUSteK,only to watch them morph onto competitors. Students can also examine how organizational resources, processes, and values can shape or limit its ability to move into new areas.
Swot Analysis of "Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video" written by Willy Shih includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Asustek Odm facing as an external strategic factors. Some of the topics covered in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video case study are - Strategic Management Strategies, Disruptive innovation, IT, Manufacturing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video casestudy better are - – increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%,
geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Asustek Odm, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Asustek Odm operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video can be done for the following purposes –
1. Strategic planning using facts provided in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video case study
2. Improving business portfolio management of Asustek Odm
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Asustek Odm
Strengths Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Asustek Odm in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video Harvard Business Review case study are -
Successful track record of launching new products
– Asustek Odm has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Asustek Odm has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Asustek Odm in the sector have low bargaining power. Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Asustek Odm to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Asustek Odm has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Asustek Odm in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Asustek Odm are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video firm has clearly differentiated products in the market place. This has enabled Asustek Odm to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Asustek Odm to invest into research and development (R&D) and innovation.
Innovation driven organization
– Asustek Odm is one of the most innovative firm in sector. Manager in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Asustek Odm is present in almost all the verticals within the industry. This has provided firm in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to lead change in Strategy & Execution field
– Asustek Odm is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Asustek Odm in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Asustek Odm has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Asustek Odm has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video are -
Capital Spending Reduction
– Even during the low interest decade, Asustek Odm has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Asustek Odm has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Asustek Odm has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih suggests that, Asustek Odm is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Asustek Odm is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video, it seems that the employees of Asustek Odm don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Asustek Odm supply chain. Even after few cautionary changes mentioned in the HBR case study - Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Asustek Odm vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Asustek Odm has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video, in the dynamic environment Asustek Odm has struggled to respond to the nimble upstart competition. Asustek Odm has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Asustek Odm has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Asustek Odm is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Asustek Odm needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Asustek Odm to focus more on services rather than just following the product oriented approach.
Opportunities Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Asustek Odm can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Asustek Odm is facing challenges because of the dominance of functional experts in the organization. Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Asustek Odm can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Asustek Odm can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Asustek Odm to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Asustek Odm to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Asustek Odm can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Asustek Odm can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Asustek Odm can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at Asustek Odm can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Asustek Odm can use these opportunities to build new business models that can help the communities that Asustek Odm operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Asustek Odm can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Manufacturing automation
– Asustek Odm can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Asustek Odm can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video are -
High dependence on third party suppliers
– Asustek Odm high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Environmental challenges
– Asustek Odm needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Asustek Odm can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Asustek Odm can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Asustek Odm needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Asustek Odm business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Asustek Odm needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Consumer confidence and its impact on Asustek Odm demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Asustek Odm can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology acceleration in Forth Industrial Revolution
– Asustek Odm has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Asustek Odm needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Shortening product life cycle
– it is one of the major threat that Asustek Odm is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Asustek Odm will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Asustek Odm
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Asustek Odm.
Weighted SWOT Analysis of Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Asustek Odm needs to make to build a sustainable competitive advantage.
