Strategic Management: Analysis of ASUS Tek Computer

This report analyzes the strategic management of ASUS Tek Computer, a Taiwan-based international computer and phone hardware organization. It discusses the company's competitive advantage, external environment, strategic drift, and possible defense strategies for its core business.

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................4
Application of effective model in order to review external environment...................................4
A critical discussion about organization competitive advantage with its direct competitors.....6
The probable industry scenarios facing the company within its existing market domains.........6
Task 3...............................................................................................................................................8
Task 4...............................................................................................................................................9
Possible strategies which is followed by company defend its core business. ............................9
Task 5.............................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
Books & Journals......................................................................................................................15

INTRODUCTION
Strategic management define as managing, planning, monitoring, organizing, analysing
as well as determining various organisational resources for attaining business goals and
objectives in an effective manner. This will assist the business organisation in order to make
appropriate strategies and policies in order to beat the competition arise at the marketplace.
Therefore, it can easily be identified that strategic management is quite essential for determining
their threats, capabilities as well as opportunities in an effective manner (Okumus, 2019). The
present report is based on an organisation named as ASUS Tek Computer which is a Taiwan
originated international computer and phone hardware business organisation. The main
headquarter of the business entity is established at Beitou District, Taipei, Taiwan. ASUS Tek is
an organization mainly is an original equipment producers deals in electronic industry. The is the
report which covers different strategies which is used by business entity in order to compete with
its rivalry firms and for gaining competitive advantages at the market. In addition to this, there
are various models which are going to be discussed in this report which highly affects the overall
performance of the company. Apart from this, mission as well as vision of business entity are
also going to be discussed in detail manner. At last, it consist of Business Canvas Model which
describes how a business entity can easily deliver as well as creates value at the marketplace.
Task 1
Strategic direction that the company has followed in past
ASUS is a renowned and a successful organisation that has a high level of competition in
both domestic and international market as well. The main strategy of Asus is to emphasis on
providing quality service ,market trends and cost as well. By the assistance of these three
elements, the company is gaining high success and strengthen its market position in an effective
manner. Its staff members are skilled and trained whose main motive is to give quality as well as
on-time service to customers as it assist in increasing number of loyal customers and enhance
performance level of Asus (Teece, 2019). Moreover, it also help company to develop a good
brand image in market and earn higher profits in an appropriate manner. It is determine that Asus
is focusing on developing unique and strong design of products as well as service by considering
factors such as cost, upgraded technology, market trends, quality and so on. With the help of

such strategies, it is able to provide higher customer satisfaction and retain them for longer-time
which in turn help in maintaining performance level of company.
The company mainly emphasis on quality and make use of quality management process
technique that assist in declining cost and improve profit and revenue level as well. Along with
this, Asus has a strategy to make good relation with its shareholders, partners, customers and
other stakeholders as well. All such things assist in gaining success and growth at the
marketplace. The various strategies adopted in gaining success is given below:
 The company is contributing for the protection of society ad environment as well that
help company to develop an image in market and attract more number of customers
towards products as well as services.
 It is committed to diligence and integrity by focusing on the basics and its results. one
common base is important for carrying out the activities without any errors.
 The company aims to become a leaders in market in terms of service, quality, cost,
innovation as well as efficiency. All such factors is significant in order to compete with
rivals and attain growth and success at marketplace (Pröllochs and Feuerriegel, 2020) .
Task 2
Application of effective model in order to review external environment.
In present report, Asus is an organization which is selected as the base organization deals
in different sort of electronic products like desktops, mobile phones, laptops, motherboards,
electronic devices, graphics cards & so on. This is the organization deals across all over the
world, established in 1989. In this reference, higher authority of the business entity wants to
determine and analyze the external situation so they will understand the current situation as well
as future growth of the organization. For this managers use PESTLE analysis which are as
follows:
Political Factor: First element of this model is political factor which includes all the
regulations established by legal authorities. Government of the nation create some regulations
needs to be adopted by every business organization so they can conduct all their work

effectively. In reference to Asus, political condition of the country is quite strong and help the
company in an effective and appropriate manner. This assist in conducting all the business
functions effectively at the marketplace.
Economical Factor: This is the factor which includes exchange rate, interest rate,
employment rate and many more which shows the economic situation of the Nation. In relation
to the present organization which is Asus, labor cost at the marketplace of UK is quite high
which as a result negatively affect on the overall performance (Certo, 2020). Apart from this,
inflation rate of the country also affects the economic stability.
Social Factor: It is the element which includes belief, culture, values, lifestyle,
preferences and taste of individuals. All these factors highly affects the overall performance of
the company in both positive and negative way. In the present relation of Asus, it is said that
individual within UK requires highly advanced technology and for this it becomes essential to
develop high quality technology which satisfy the requirements of customers.
Technological Factor: Another element is technology factor which assist in grabbing
opportunities as well as for maintaining the growth of business entity at the marketplace. Asus is
a technological organization where managers adopt various new and innovative technology so
that they can beat competition level present at the marketplace in an effective manner.
Legal Factor: Each and every nation have their own rules and regulations which is quite
different from other countries. These are the factors which influences the performance and
efficiency of the company in a high manner. In relation to Asus, if the managers adopt all legal
factors effectively then it will create positive impact on the goodwill and profitability of the
company.
Environmental Factor: Last element is environmental factor where managers need to
adopt various environment related laws and regulations. The present organization is an electronic
company which face high pressure from the government to limit the use of hazardous materials
while manufacturing their products and services.

A critical discussion about organization competitive advantage with its direct competitors
Competitive analysis refers to the most effective method adopt by ample number of
business entity. This framework is used to examine the level of competition in an effective way
so that policies and strategies can easily be developed by the management team accordingly.
Features Asus Dell Samsung
Products Desktop, laptops,
WIFI routers, ,
motherboards, mobile
phones, & so on.
Laptops, Personal
computer, printers,
camera, & more..
Smartphones,
Refrigerator, TV,
Desktops laptop.
Strengths Highly advanced and
good quality products,
upgraded technologies.
Allow users to provide
top-notch services in
both before and after
sales services.
Strong image at the
competitive
marketplace all over
the world.
Weaknesses Update products &
services in a quick
manner which
develops confusion in
customers related to
products.
Low or ineffective
relationship with
retailers, not able to
attract college
students
Highly based on
Android OS as well as
on American market.
Price Affordable and lower
prices
low to high cost High medium as well
as low price.
The probable industry scenarios facing the company within its existing market domains
Porter's five force analysis model is used to examine the current market situation. All the

elements are going to be discussed in detail manner below which provides accurate information
to the management team.
Threat of New Entrant: In reference to electronic sector, it is said that the threat for new
entrants within the business sector is quite low. Main reason is that it needs huge investment
which is difficult for many organization (Khosiev, 2019). In terms of Asus, management team of
the business organization create some strategies which help them to maintain a competitive
image at the marketplace which makes it difficult for the organization to enter into the
marketplace.
Bargaining Power of Suppliers: According to the present situation of marketplace,
bargaining power of the suppliers are low. Main reason behind this is that the switching cost is
quite high for the company which as a result reduces the chances for bargaining for suppliers.
Asus higher authorities convince their suppliers and develop a contract with them for a specific
period of time.
Bargaining Power of Buyers: If talking about customers bargaining power it is quite
high as wide range of rivalry organisation are there deals in similar sector. It is said that
customers requires high quality goods within specific amount which as a result increases the
competition level. This as a result directly affects the business operations along with the
profitability. It is said that switching cost of customers are less which raises the whole power of
users at the marketplace.
Threat of Substitute: This is the factor within electronic industry where threat of
substitute is from mid to high as number of business entity is large at the marketplace deals in
similar sort of products and services. If customers get high quality products from different
organizations within lower cost then they can easily switch to other company (Thorén and
Vendel, 2018). Therefore, it is quite necessary to maintain long term sustainability of the
enterprise at marketplace.
Rivalry among the current players: Competition level within electronic industry is quite
high and the main reason is that large number of business entities deals within similar sector.
High competition level within the sector is high which influences the overall performance in
adverse way.

With the help of Porter's five force model, higher authority of can easily examine the
present level of competition as well as current market position effectively. Apart from this, threat
of substitute as well as competition available at the marketplace is quite high which affects the
whole performance of the company.
Task 3
Examination of strategic drift
Strategic drift- It define as the gradual deterioration of the competitive action which
resulted in failure of a business entity to identify as well as respond to modifications in the
environment. In reference to ASUS, company is facing strategic drift within a considerable
extent as a result hampered its business functions (Drobyazko, 2019). When the business entity
was established, it develops a brand image by offering high quality product and service. It failed
to consist the quality in products developed by them which as a result reduces their market share
as well as customer base.
Mission & vision statement
Mission – Mission statement of the company is that they wish to develop a major player within
information technology sector by giving unique solutions to empower to individuals as well as
business organisation to reach their potential.
Vision- ASUS vision is that they deliver innovative products so that they can simplifies the lives
of customers by offering them outstanding offerings.
The present needs of the market is highly innovative range of products and services like
computers, phones, laptops and many more. In addition to there must be affordable so that large
number of customers will be attracted towards them. Therefore, ASUS is an organization which
consider the similar as well as manufacturing the products according to the requirements of
customers.
Business Canvas Model- It refers to a tool which help a business entity in order to understand
the whole business in a well structured manner. It is quite beneficial in order to collect
information related to the targeted customers of the organization (Richard, 2019). This model

was developed by Alexander Osterwalder which are discussed in detail manner as follows:
Customer segments- The customers are of millennials elements between the age of 18-30 in
addition to this, individuals earning sufficient amount of profitability at the competitive
marketplace.
Value proposition- Main offerings are desktops computers, laptops, smartphones and many
more. They ensure that they produce high quality of services.
Channels- The present method of communicating with customer is social media platform along
with personal chat box as well as email.
Customer relationships- There are some loyalty programs conducted for the customers who are
linked with the business entity for longer period of time and buy goods on a regular basis from
long period.
Key activities- ASUS is the organisation carries operation of developing new offerings with the
help of innovative technology to satisfy the customers in an efficient manner.
Key resources- The major assets are staff members of the company who have effective
knowledge about the technology and are expertise in this field.
Key partners- The company have their partnership with various organisations such Dell, Apple
and HP.
Task 4
Possible strategies which is followed by company defend its core business.
Porter's Generic Strategies Model: The is the model which explains how business
organization get advantages as well as competitive edge at the market place. The position of a
business entity shows that whether the company is in profit or suffer loss (Kerzner, 2019). The
Porters model includes three main strategies which are differentiation, cost leadership along with
cost focus. The main aim of this model is that it assist business organization in order to gain
market share. At competitive marketplace. This model is discussed in detail in reference to Asus
are as follows:

Cost Leadership: This is the strategy where organization provide products and services at
low cost in order to raise their customers base. It has been said that the cost advantage is
commonly based on the structure as well as size of the business organizations. In the present
context of Asus, the managers brings new and innovative product at the competitive market
within affordable price which as a result attract customers as well as rise its sales.
Differentiation Strategy: This is the strategy which is basically emphasis on the
development of offering in a creative and unique manner which is quite different from the rivalry
company. For this, I higher authorities of the organization develop policies as well as strategies
so they can beat the competition in an effective manner (O'Brien, 2019). In relation to ASUS, the
organization bring new and innovative feature in the electronic devices that it helps in measuring
pulse rate while doing their work. This is the feature which grab attention of large number of
customers towards them which as a result automatically increases the sales.
Focus Strategy: In this strategy, business organisation mainly consider both the strategies
along with emphasises on the niche market. Apart from this, business organisation mainly
focuses on a specific group as well as develop various effective strategies and plans in order to
earn profitability as well as for strengthen the market share. This is the strategy which mainly
consist of two elements which are cost focus as well as differentiation focus.
 Cost Focus: In this type of strategy, the higher level of authorities within the business
organization primarily emphasize on internal elements of the entity because of the
external factors. It can easily be understood with the help of an example, the business
environment adopt this sort of strategy in order to offer high quality, unique and
innovative products to their end users at affordable as well as minimum price. This as a
result grab the attention of customers towards them and this leads towards the
enhancement of profitability at the competitive marketplace.
 Differentiation focus: For effectively surviving at the competitive market along with
gaining huge profits at the market it becomes essential for the companies to manufacture
as well as offer those services along with commodities which are innovative, creative and
unique in nature and can easily grab the attention of customers. In the present context of
ASUS, the business entity mainly focuses on differentiation strategy as well as brings

new and innovative feature in their digital watches (Barney, 2020). This as a result will
capture huge market share as well as enhance the level of profitability at the competitive
marketplace.
With the help of above strategies it is said that managers of ASUS needs to choose
differentiation strategy so they can develop large customer base at the marketplace. Apart from
this, organization decided to manufacture electronic watch within affordable price for attracting
customers towards them at the competitive market. This as a result raises the whole profit margin
along with sales of the business entity of ASUS.
Ans off growth vector matrix:
This matrix consist of four basic strategies that can be adopted by organization for the
purpose of achievement of higher growth in a business organization. This matrix consist of four
basic strategies that are combined together to form a particular strategy that can be adopted by
the organization for achievement of long run sustainability and high growth in the market.
Mentioned below are four basic strategies that are part of Ans off matrix and can be used by
ASUS for the purpose of considerations to survive in the external dynamic environment.
Market penetration: It is a strategy that is related with use of existing products and its
expansion in the existing markets where the organization has already achieved higher growth and
high sales. This strategy can be used by ASUS if they are willing to expand their present share of
market in already established market scenario by not approaching to any new market (Putz,
2019). ASUS is a original equipment manufacture brand if they will be launching some low
priced products in their existing market then it will help them in enhancement of present market
share.
Market development: This is a strategy in which there is use of new product development
as a strategy for the purpose of expansion of the market share of a existing business organization
by development of new products. This strategy is very impact for increasing the present level of
satisfaction of present customer base for every organization as they get some new variety of
products apart from the existing range that helps the brand in achievement of higher competitive
advantage. In case of ASUS they are already dealing in products like computer monitors, DVD,
computer cases, computer cooling system, networking devices, sound cards, motherboards,

graphic cards if they will be launching some new range apart from this existing range then they
will be working on the product development strategy to enhance their market share.
Product Development: According to this strategy, company develop its new products and
services in existing market area in order to improve their sales and profitability. In terms of this,
company is already familiar with the market area but still conduct market research for the
expansion of their products and services. Along with this, ASUS has strong knowledge to
understand the perspective of customers and also offer suitable solutions in order to meet the
requirements and preferences of existing market. For this, ASUS innovate new products
considering the advanced technology and also offer it to their existing area in which company
currently deal.
Diversification: As per this strategy, company enter in new market area with new product
and considered as the most risky strategy for expansion. In relation with this, it need proper
research and development team in order to identify the requirements of new market area.
Moreover, it can proven as the suitable strategy for ASUS in order to increase their revenues and
profitability if offered product achieve success in market as it leads to opens new revenue stream
for the company. In relation with ASUS if company wants to adopt this strategy then they must
have efficient research and development team.
Task 5
Analysis as well as evaluation of the resource implication
It has been said that it becomes essential to examine, analyse as well as evaluate the resources in
an effective manner so that higher authorities of the business entity can easily perform all their
functions and develop positive outcomes effectively. Some of the main elements in order to
analyse and evaluate the resources implications are going to be discussed as follows:
 ASUS is an organisation which have sufficient and required number of staff members
within their workplace which are highly skilled employees and have proper knowledge as
well as understanding about various latest technologies taking place at the competitive
and advanced business environment. This will assist the business entity in order to grow
at the marketplace in a well defined manner. Therefore, it can easily be said that human

resources are the most essential asset for any business entity.
 Along with this, it has also been said that company having sufficient amount of funds in
order to invest for conducting effective research & development related to the innovative
technologies. This will help them in modifying their current and existing technologies in
order to beat the level of competition arise at the workplace.
 Apart from this, management team of the company emphasis on the distributors as well
as suppliers in order to make healthy as well as strong relationship with them. This as a
result assist them in order to buy high quality raw materials from the distributors in low
price. Therefore, by maintaining positive and healthy relationship with the distributors
leads towards gaining success of the business entity at the competitive marketplace.
 Furthermore, company have strong legal team within their workplace who can provide
authentic as well as valuable information to the management team of the organisation
related to specific laws in order to avoid any kind of legal consequences. This is one of
the most effective activity of the business organisation which help them in order to
maintain positive image of the business entity at the competitive marketplace (Wunder,
2019).
 Another thing is the range of products offered by the business organisation ASUS is quite
wide which satisfy the needs and requirements of the customers by selecting suitable
products for them as per their requirements. However, marketing team of the company
conduct market analysis on a regular basis so that they can identify the requirements of
customers which are dynamic in nature.
CONCLUSION
It has been said that with the assistance of above mentioned information, strategic
management plays quite important role in the overall development and growth of the business
entity. This is the report which includes information related to PESTLE analysis adopted by
large number of business organization for understanding the political and economic stability of
the company before entering into the marketplace. This will help them in order to perform their
business functions at the competitive market. In addition to this, another model which is used by

management team is Porter Five Force model which assist the company in order to know the
current market analysis. This will assist them in order to create innovative policies as well as
strategies according to the situation and requirement.

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