SWOT Analysis of Flextronics with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis
Flextronics International Ltd
IT and Technology
Impossible is where breakthrough begins
Speed in product ramp-up, leveraging on LEAN and Six Sigma practices
Electronics; supply-chain management
SMEs, corporates, OEMs
As a brand that can make anything possible (in supply-chain solutions)
1. Over 100 manufacturing and over 25 software and service locations all across the world which provide economies of scale 2. Global, integrated presence in over 30 countries with OEMs, supply chains and service networks all integrated, to provide flawless service to its clients 3. Approximately three-fourth of the company’s manufacturing is located in low-cost countries like India, China, Brazil 4. Strong presence across different kinds of production technologies 5. Leader in global procurements and a strong workforce of over 200,000 6. Balanced portfolio of products
1. High customer concentration i.e. a small base of customers account for a large percentage of total sales, this means high dependence on these customers
2. Reduction in HVS segment could prove to be a drag on the overall growth of the company 3. High concentration of manufacturing facilities in China – fluctuations in China will considerably affect its operations
1. The company expects to grow revenues as the hardware market will grow 2. Flextronics’ HRS segment outperformed the market and the company expects its revenue from the segment to grow substantially 3. The automotive markets the company serves are expected to grow alongwith its IEI segment
4. More marketing and brand awareness would boost global penetration
1. The labour and other costs in low cost Asia economies have been increasing causing margin pressures for manufacturing companies such as Flextronics 2. The high cost inflation across Asian countries where Flextronics has most of the manufacturing facilities is likely to pressurize the margins 3. Supply chain disruptions caused by factors outside company control – like the tsunami in Japan
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