Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Flextronics analyses the brand by its strengths, weaknesses, opportunities & threats. In Flextronics SWOT Analysis, 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. Flextronics is one of the leading brands in the IT & Technology sector.
The table below lists the Flextronics SWOT (Strengths, Weaknesses, Opportunities, Threats), top Flextronics competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
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)
SWOT Analysis of Flextronics
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
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
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 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
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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