Strategic Analysis of Asus: External Environment and Strategies Report

This report provides a comprehensive strategic analysis of ASUS, a multinational electronics company. It begins with an introduction to strategic management and its importance, followed by an analysis of ASUS's past strategic direction, focusing on factors like cost, market, service, and speed. The report then reviews ASUS's external environment using a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. It also assesses ASUS's competitive advantages, comparing it to competitors using a feature-based framework and applying Porter's Five Forces to analyze the industry scenario. The report further explores internal analysis tools, specifically addressing strategic drift and its impact on ASUS's performance. It includes a review of the company's mission and vision statements. The report concludes with potential strategies for defending ASUS's core business and offers specific recommendations for future growth and success.

Strategic Management
Table of Contents
INTRODUCTION...........................................................................................................................3

TASK 1............................................................................................................................................3
Strategic direction that the company has followed in past along with the ways in which
strategic thinking has developed in past 5 years....................................................................3
TASK 2............................................................................................................................................4
Review of external environment of company........................................................................4
Company's competitive advantage from its competitors........................................................5
Industry scenario faced by existing market domains.............................................................6
TASK 3............................................................................................................................................7
Using of internal analysis tool to draw valid conclusion.......................................................7
TASK 4..........................................................................................................................................10
Possible strategies which the company can follow for defending its core business............10
TASK 5..........................................................................................................................................12
Recommendations................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Strategic management is defined as an ongoing procedure of effective planning,
monitoring, assessing and analysing of all the requirements an entity needs in order to achieve
objectives and goals. It is important to continuously assess the strategies for attaining success in
this changing business environment. It is analysed that the process of strategic management
assist company to review the current situations, carry out strategies and to analyse their
effectiveness on company performance. For the present report, Asus is taken into consideration.
It is a Taiwan-based multinational electronics company and was established in the year 1989.
The company offer products such as mobile phones, projectors, laptops, Wi-Fi routers, monitors,
workstations, graphical cards and so on. The present report is going to cover different strategies
which an entity is adopt to attain competitive advantage at marketplace. In addition to this, there
is analysis of external environment by using of frameworks that also help in analysing its
influence on business performance and effectiveness. Moreover, analysis of the level the
respective company is facing strategic drift. Business canvas model will be discuss to determine
the core logic about how an entity develop and deliver value in market or customers as well. In
the last, strategies which an organisation can follow to defend its core business is discuss in the
report.

TASK 1
Strategic direction that the company has followed in past along with the ways in which strategic
thinking has developed in past 5 years
ASUS is one of the successful multinational organisation that has a high level of
competition in market whether it is international and domestic. It is analysed that Asus is mainly
focus on four core factors that is cost, market, service and speed as well. Focusing on all such
elements help company to attain success and growth in market. In addition to this, it is analysed
that its staff members main motive is to give on-time as well as quality service to customers that
help in raising number of loyal customers towards brand. Another strategy that Aus is following
is development of unique and smart design that help in attracting large number of people and
increase profitability of company in an effective manner (Akhtar and et. al., 2016). Moreover,
the company is also emphasis on making use of upgraded technology and declining cost without
compromising the quality.
Along with this, it is determine that company has strategy to maintain relationship with
its shareholders, partners, customers and other stakeholders as well. The main reason of such
strategy is gaining of growth and success as their investment help company to grow and sustain
in market for longer-time period. There are also other strategies, which are as follows:
 one of the most important areas in which Asus is working are quality, speed and service
as well. All this assist organisation to compete with its rivals and attain competitive edge
at marketplace.
 Further, the company is also contribute a part of profit towards the development of
environment and society as well. This assist company to enhance its brad image in
market which has positive influence on performance and efficiency of Asus.
 It is analysed that company is committed towards integrity and diligence by centring on
results. It is determine that a common base is significant in order to implement out
activities and operational without any errors.
 Asus is also make use of digital technology in order to reach people at an international
level. It help company to become a leader in market by increasing its customer base level
in an appropriate manner.
The above given strategies are organized by the assistance of alternation in technologies used in
notebooks, laptops, computers and so on. The strategies above is dynamic and can be changes as

per the external environment (Al Shobaki, Amuna and Naser, 2017). The company also focuses
on analysing the requirements and demands of customers that will help in gaining higher growth
and success in market.
TASK 2
Review of external environment of company
In order to study the external environment of Asus PESTLE analysis is conducted on the
company. Below mentioned are all the factors of PESTLE discussed on Asus:
Political Factors: Political analysis consists of all the factors affecting a business regarding the
political parties which are in power in nation or country in which the business is operating. For
Asus it is seen that political holding in nation is strong due to which no drawbacks are faced by
company and also they can effectively carry on their work.
Economic Factors: This contains of a number of other elements including interest rate,
employment rate as well as economic condition of the country. When considering Asus it id
required by company to study the economic environment of company in order to deal with
various factors which can bring profit for the organisation.
Social Factors: Social factors refers to values, believes and preferences of customers. It is
necessary for the organisation Asus to make sure that they are effectively doing market research
in order to make sure that they can fulfil all the needs and requirements of customers. It is
essential for them to fulfil the demands of customers. Bringing in new technologies is major
reason which is required by the customers of Asus.
Technological Factors: Technological advancement is a major factor in electronic industry.
There are a number of advancements coming in the market from day to day. It becomes essential
for the company to make sure that they are giving competition in the market along with bringing
technological advancements in the market (Barros, Hernangómez and Martin-Cruz, 2016).
Legal Factors: There are a number of legal rules and regulations that are leading to a number of
different changes in the functioning and working of an organisation. It s required by Asus to
make sure that they are following a number of rules such as consumer rights, information rights
as well as employee benefits programs. Not following these rules might lead the company
towards negative lawsuits against it and also lead to losses for those lawsuits. Asus also needs to
keep a track of changing laws and work on it.

Environmental Factors:Environmental factors refers to the ways in which an organisation is
affecting the surrounding and nature. It is necessary for company to make sure that they are
effectively following all the pollution control laws developed by government in the region they
are working. It becomes essential for them to treat their chemical wastes before releasing them
into the nature. It is an important step that is required to be followed by Asus as eco-friendly
services and companies are supported by a number of consumers. Following environmental
norms companies can also gain brand value and enhance their reputation in the marketplace.
Company's competitive advantage from its competitors
It is an element used by company to study its competitive power and core strengths.
Below mentioned is this framework developed for Asus:
Features/Company Asus Dell Samsung
Price They deal in
affordable prices
The prices vary from
low to high range
Prices are present in
low, medium as well
as high range
Digital Presence Products and services
are also present on
social media
platforms.
Selling of products
through a number of
online platforms
Official website of
company as well as a
number of shopping
websites sell its
products.
Products Computers, laptops,
mobile phones, routers
etc.
Computers, camera,
laptop, printers,
mobile phones etc.
Television, laptop,
computers, mobile
phones etc.
Strengths Unique designs and
upgraded technologies
Provides best after
sales services to
consumers
Ecologically friendly
products
Weaknesses Huge range of product
line, often confusing
Needs to provide more
importance to
technological
advancements
Highly dependent on
only American
marketplace

Industry scenario faced by existing market domains
In order to understand the current market situation in company it is required by the
managers of the company to analyse using the Porter's five force model. Below mentioned is a
description:
Threats of new entrants: The threat from new entrants to electronic sector is considered
to be low. The major reason for this is huge amount of capital and funding required to carry on
such business (Carroll, Primo and Richter, 2016). Also it is required by company to bring in
regular innovations and technological advancements which requires investment. It is required by
Asus to keep innovating to prohibit new entrants in market.
Bargaining power of supplier: The bargaining power of supplier is also low for Asus.
This happens due to low differentiation between products as well as low switching cost for
materials required. The amount of suppliers present is also high which enables Asus to switch to
any new supplier making the bargaining power of supplier low.
Bargaining power of buyer: Bargaining power of buyer however for Asus remains high.
There are a number of competitors and similar products present in the market. It is therefore
necessary for the managers in company to provide various offers and innovations to the buyers to
grab their attention.
Substitutes available in market: The substitutes available in market for Asus range from
medium to high. Change in technological advancements is leading to a number of substitutes for
company in the market. It is necessary for Asus to make sure that they are continuously bringing
technological advancement in order to beat substitutes and stay in market for a longer period of
time.
Competitive Rivalry: The competitive rivalry for Asus in electronics sector is high. There
are a number of companies ranging form high, medium and low prices which are providing great
competition to Asus (Dyer and et. al., 2017). The competitors for company include Samsung,
HP, Apple, LG, Oppo and Vivo in cellphone sector and so on.
Porter's generic model explains the importance of technological advancement and
consumers attention in order to stay in the competitive market for a longer period of time.

TASK 3
Using of internal analysis tool to draw valid conclusion
Analysis of strategic drift
Strategic drift: It is termed as a gradual deterioration of competitive position which
results in non-accomplishment of company to acknowledge as well as respond change take place
in business environment. It has been analysed that strategic drift gradually happens when a
strategy of an organisation is no longer relevant with the external environment. It is consider as a
negative term that states inability of an organisation to attain organisational objectives. Strategic
drift results out in decline of performance level in market and for this, it is essential for an
organisation to take decision and develop new and effective strategies. With reference to Asus,
the company is at present facing strategic drift that has a high influence on its business
performance. Asus has developed a brand image in market by offering quality products as well
as service in market but the organisation performance is getting down when it make use of the
same quality in manufacturing process. Decline in the overall performance level has negatively
influence on the customer base and market share level.
Mission & vision statement of respective company
Mission: The mission statement of company is “TO gain leading position in the IT sector
by offering quality and unique solutions to customers prevailing in marketplace”
Vision: The Vision statement of Asus is “To deliver innovation and providing
outstanding service which seamlessly accommodate the lifestyle at anytime”.
IN order to achieve all above statements, it is important for company to focus on quality,
new technology, relationship with customers and so on. There are various philosophies used by
respective company to achieve its mission and vision in a proper manner. The ways by which
mission ad vision is attained reflect on the core elements that are present (Flotemersch and et. al.,
2016). The company make use of modern and innovative technology, providing high quality
products and services, developing effective relationship with partners, consumers, review
performance and so on. All this will assist company to attain competitive advantage and assist in
attaining desired goals in an effective manner.
It is determine that the current demand in market is innovation and unique design as well
that is required to be offered by Asus in its products like mobile phones, laptops, computers and

so on. In addition to this, the company should needed to be cost-effective so that it can offer
product at reasonable price and attract large number of customers prevailing at marketplace.
Strategic capabilities
Strategic capabilities refers to the ability of an organisation in acquiring the full of its
skills and resources so that they can gain the competitive advantage into the market. As Asus is a
company which is engaged into electronics business. The company is more into the technological
innovation is will be always in boom in any economy (Heath, 2018). The strategic capabilities
for Asus would be the following:
Investment in Research and Development: The company Asus as an electronic company puts a
lot of investment in Research and Development department. They clearly know that if they want
to get succeed into the market or if they want to survive they have to bring the innovation into
their products which they offered to target market. The research and development department
helps the company in bringing the new and innovative technology through which the company,
Asus, can also attain the competitive advantage into the market. Therefore investment into the
research and development department will help any company a lot in having the strategic
capabilities.
Human resource: The employees whom the company has hired are so good and skilled into the
area or the field of their expertise. It is ultimately the human resource of the company which
helps it into the attainment of its desired goals and objectives, the employees of Asus company
are so excellent into their work be it production, marketing, advertising, accounting and the like,
they perform it with full zeal. This factor helps the company into the attainment of their desired
goals and objectives. Through the hiring or selection of talented candidates or employees the
company can have their strategic capabilities which can benefit them in lot ways.
Strategic value analyses: It refers to making the optimum use of the data and the information
which the organisation can make available. The strategic value can be evaluated through the
internal reports of the company, from some surveys which the company can acquire through the
customer surveys and all. Through these data and information the company can take the required
the company’s decisions. When the data and information are correct, the company can know
about the true position and soundness according to it the company can take the required
decisions. These decisions can help the company in gaining the standard objectives and goals.

Identification of critical competencies: The Company should identify the factors which make
them unique and different form all the other available competitions. Through this the company,
Asus would know that what are the things which makes their identity different from other and
they can work more upon them accordingly. These identifications can help in gaining the
competitive advantage for the company. Strategic capabilities can also acquire form evaluation
of critical competencies (Parakhina and et al., 2017). As in the case with Asus, the company has
a critical competency for bringing the innovative products very often. This factor also helps the
company into the attainment of competitive advantage.
Business canvas model
The business canvas model is a visual representation of the business model in which the
company presents all its products, values, customers, and infrastructure and so on. Now a day the
companies do not prefer to make the pages of their business model, they prefer to make it all
done at a single page and in a single table only. The table represents the company’s model and
how they would go to proceed for that. The business canvas model of the company Asus is as
follows:
Key Partners
Investors
Resellers
Joint ventures with
Gigabyte technology
Open handset
worldwide
Intel as a provider
Logistic provider
Key activities
Design
Engineering
Manufacturing
Procurement
Quality
R&D
Marketing
Maintenance
Logistics
Value
propositions
To improve
much into the
IT sector.
TO bring high
quality designs
and
innovations.
To provide 3G
solutions
Customer
relationships
Passion for
technology.
Focus on
quality
Customer
segments
Consumers
Gamers
Businesses
Cost Structure
Advertising
Manufacturing facilities.
Service sites
Components
Key Resources
Factories
Technology
Cloud computing centres
Intellectual property
Revenue streams
Sales
Royalties
Licensing
Projects

Taxes
Energy
Product portfolio
Logistic network
TASK 4
Possible strategies which the company can follow for defending its core business
There can be various strategies which the company can opt for defending its core business,
some of them includes:
The defensive strategy : This strategy is also known as marketing tool strategy in which the
organisation make its marketing strategy very much strong so that they can educate more and
more audience about the products and services it has to offer. The marketing strategy will enable
the company in attaining more and more customers which were earlier used to buy the
competitors products. When the company’s marketing activities are strong it would help in
gaining more and more customers as more will get educated about the company and the
company’s products. The defensive strategy will help in increasing the market growth and share
of Asus. Through the strong marketing activities the customer base for the company would also
get an increase. And when the customer base would get increase then it will directly impact the
sales and revenue streams for the company. There are various companies who only put major
focus upon their marketing and advertising activities. They come up with the new and innovative
ways for performing the promotion activities for their company which can create the publicity.
The company can only afford such level of marketing when the process for their products are
very much low or are affordable. The company which has the product price high cannot afford
such high level of marketing or defensive strategy.
Sustainable products and systems: The Company should go for the products and the services
which are sustainable in nature. The sustainable products and services not only benefit the
environment but also the company. The customers prefer to purchase the products and avail the
services which promise sustainability (Pederzini, 2016). Through the use of sustainable process
and procedure the company contributes and encourage the sustainable growth and development
into the economy. The systems which the company acquires also are very much sustainable and
make with a view of the future.

Cost leadership: The Company can acquire the cost leadership through making the cost for
the production as low as possible. In this the company major focus is to how they can minimum
their cost so that the prices of the product would also get low. When the company, Asus,
provides the low cost products to the customers with the same features of the products of other
companies also, the customers would automatically get shift to Asus, hence increasing their
customer base. The cost leadership enable the company in gaining the competitive advantage
into the market. As Asus is providing the same product at low price which is an attractive feature
for any customer. Asus can perform the cost leadership through their effective and efficient
supply chain, purchasing of the raw materials from the places which provides the same at lower
cost to the company, through the adoption of advance technology or production activities which
can produce the products at low cost with maximum productivity. The company through the cost
leadership can put focus upon major group of audience as the product can get affordable by
middle class people also. It has been observed that from the total population the middle class
people constitute the more, therefore the company has put its major focus upon this category of
people.
Strong roots at domestic market: To have a strong hold onto the market the company, Asus
should first hold its strong roots at its domestic market, after it should concentrate upon the
international market. The kind of growth and profit a company can gain through its domestic
market, it cannot gain through any international market. The strong roots at the domestic ground
help the company at many places. It can have major support of the country’s government, of
people and the like. This all will help the company in its revenue streams and also in its growth
and survival.
Differentiation: The Company also can put more focus upon innovating and creating the
new products. They can invest more in their research and development department which can
help the company in coming up with the new and innovative products. In differentiation
strategies the company focuses upon making their product unique and different from the
available products of competitors. By providing the different and unique products to the
customers the company can gain competitive advantage through that. In differentiation, the
company does not focus more upon the cost but how they can bring different and innovative
products into the market place very often.