Flextronics SWOT Analysis, USP & Competitors

Posted in IT & Technology, Total Reads: 2341
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SWOT Analysis of Flextronics with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Flextronics

Parent Company

Flextronics International Ltd

Category

Electronics

Sector

IT and Technology

Tagline/ Slogan

Impossible is where breakthrough begins

USP

Speed in product ramp-up, leveraging on LEAN and Six Sigma practices

STP

Segment

Electronics; supply-chain management

Target Group

SMEs, corporates, OEMs

Positioning

As a brand that can make anything possible (in supply-chain solutions)

SWOT Analysis

Strengths

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

Weaknesses

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

Opportunities

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

Threats

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

Competition

Competitors

1. Jabil Circuit, Inc.

2. Celestica Inc.

3. Benchmark Electronics, Inc.

4. CTS Corporation

5. Nam Tai Electronics, Inc.

6. SMTC Corporation

7. ALSTOM

8. Avnet, Inc.

 


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