Flextronics SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Flextronics, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Flextronics to benchmark its business & performance as compared to the competitors, and make strategic improvements. Flextronics is one of the leading brands in the IT & Technology sector.
The article below lists the Flextronics SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Flextronics SWOT Analysis:
In this article:
For Flextronics, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Flextronics looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Flextronics :
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
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Flextronics SWOT Analysis:
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
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Flextronics SWOT Analysis:
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
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Flextronics are as mentioned:
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
There are several brands in the market which are competing for the same set of customers. Below are the top 8 competitors of Flextronics:
1. Jabil Circuit, Inc.
2. Celestica Inc.
3. Benchmark Electronics, Inc.
4. CTS Corporation
5. Nam Tai Electronics, Inc.
6. SMTC Corporation
8. Avnet, Inc.
Hence this concludes the Flextronics SWOT analysis.
Continue reading more about the brand/company.
Flextronics International Ltd
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)
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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