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 - – talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, 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 -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Asustek Odm digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Asustek Odm has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
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.
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.
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.
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.
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.
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.
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.
Learning organization
- Asustek Odm is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Asustek Odm is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Organizational Resilience of Asustek Odm
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Asustek Odm does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 -
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.
High cash cycle compare to competitors
Asustek Odm has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Asustek Odm products
– To increase the profitability and margins on the products, Asustek Odm needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Asustek Odm 's lucrative customers.
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.
No frontier risks strategy
– After analyzing the HBR case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
Slow decision making process
– As mentioned earlier in the report, Asustek Odm has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Asustek Odm even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
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.
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 -
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.
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.
Creating value in data economy
– The success of analytics program of Asustek Odm has opened avenues for new revenue streams for the organization in the industry. This can help Asustek Odm to build a more holistic ecosystem as suggested in the Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video case study. Asustek Odm can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Asustek Odm has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Asustek Odm can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Asustek Odm can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Asustek Odm to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
Learning at scale
– Online learning technologies has now opened space for Asustek Odm to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Asustek Odm to increase its market reach. Asustek Odm will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
Using analytics as competitive advantage
– Asustek Odm has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Asustek Odm to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 -
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Interview with Jonney Shih, Chairman, ASUSTeK Computer, Inc., Video, Asustek Odm may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Asustek Odm in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
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.
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.
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.
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.