How the ASUS Company Can Continue To Be an Industry Leader and a Cash Research Paper

How the ASUS Company Can Continue To Be an Industry Leader and a Cash Cow - Research Paper Example According to the research findings, it can, therefore, be said that the primary strength of ASUS is its strong presence in the market. It could be realized from the fact that it is the world’s number one brand in Asia, US, and Europe. It has outperformed technology giants like Intel, IBS, and Microsoft in many segments. Its strong presence in the market has helped it to aggressively acquire market share compared to many other companies that only have a strong presence in their local markets. The company has the largest market share in MB and motherboard segments selling approximately 22 million pieces in FY09. ASUS is one of the rear technology companies that had made operating profits even though global economy was undergoing a recession. Another Strength of ASUS is its advanced and excellent Research & Development capability, efficient and effective supply chain, and mass production at a competitive production cost. These competitive strategies of ASUS have helped it to beco me a market leader in many products. In 2009, the company came up with first of its kind notebook and motherboard that was compatible with USB 3.0 securing a leading position in the segment. This was a sheer display of Research initiatives of the company. With the use of technologies like e-commerce, the company had created an efficient supply chain which helps it with a seamless flow of information and products among resources. Mass production done by ASUS helps it achieve economies of scale thereby increasing operating profits of the company. Weakness The primary weakness of the company is that it is investing a lot of amounts in restructure activities involving spin-off of certain subsidiaries and disposal of assets. It could be realized from the fact that it spin-off OEM and 2008 and has disposed of several assets since then. In the same year company also recognized impairment charges from such transactions. These activities may be beneficial in the long wrong if executed correc tly but they reduce profit-making capability of the company. The company should concentrate more on the activities involving expansion and research for innovative technologies. Another Weakness of ASUS is its low market share in emerging economies. To be a cash cow for the future every technology company should be in search for opportunities in the emerging markets as they give the advantage of escalated growth compared to developed markets where growth stagnates after a point of time. It should be noted that ASUS has a low presence in emerging economies e.g. India whilst many other companies like Microsoft and IBM are aggressively gaining market share in these countries. To retain market capitalization ASUS needs to expand its operations aggressively to emerging countries. Opportunities Primary opportunity for ASUS is expanding into markets with the help of joint ventures, tie-up, and agreement with other companies.