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A focus on ASUS strategic Management

Updated on January 26, 2016

ASUS is a Taiwanese based multinational computer hardware and electronics company headquartered in Beitou District. ASUS are initials derived from the last four letters of Pegasus. Pegasus is the winged horse in Greek mythology that represents the inspiration of art and learning. ASUS is a representation of strength, creative spirit and purity is represented by this regal and agile mythical creature. ASUS soars to new heights of quality and innovation upon its product release to the market. Their product includes desktop computers, notebooks, laptops, mobile phones, LED/LCD panels, networking equipment and many other multimedia products. ASUS also operates around 50 service sites across 32 countries and over 400 worldwide service partners. (“Origin of the name ASUS,” 2015).

Strategic analysis and Managerial scope of ASUS

To succeed in the competitive information Technology industry, ASUS targets speed-to-market, cost and service. Every ASUS employee is tasked to master the "ASUS Way of Total Quality Management". Most employees closely fulfill Persistent Perfection promise of the brand. As Guided by these perceptions, ASUS, has come up with a strong advantage in product design, quality and value/cost and technology. These adopted policies in turn constitute ASUS’ formula for success thus allowing marketing to communicate these strengths to win consumers’ hearts.

Quality is the most important aspect to ASUS. They continue to refine their quality management processes ensuring customers receive the highest quality solutions cost-effectively. ASUS believes in growing with their partners at all level inclusively of customers, the media, shareholders or consumers. ASUS also maintains strong ties with key stakeholders. They refer to it as one of the most important factors of their ever streamlined success. They also inspire, nurture and motivate their employees to attain their highest potential. (“Laptops brands 2015,” 2015).

As the name suggests, ASUS stands as a giant of art and learning. Their management tailored new dimensional and purposive take on the future of the company. Kevin Huang, the vice president of marketing in the United States, is taking the front to change the overall perception of Asus from just another low-priced alternative. The much praised and the giant netbook is to be versed to a more desirable lifestyle brand. Asus' marketing strategy has heightened its efforts to reinvent itself. A recently carried out VivoBook campaign, shifted from the usual back-to-school and holiday push electronics to built advertisements around Mother's Day, Father's Day and summer graduations.

The campaign which had been created by Whirled in Los Angeles, received Google Zeitgeist 2012 year in a review video. Whirled Creative Director and founder, Scott Chan, agreed that lifestyle branding is picking a place in the tech marketplace. This marketing style is new for Asus; Scott Chan added that the advantage is in the execution. Steve Baker, an analyst with National Purchase Diary, seconded that lifestyle is the key theme of tablet and PC touch computing. (Bulik, 2013)

The company also follows several strategies for success;

  1. The company is committed to diligence and integrity; focusing on fundamentals and results.
  2. Endlessly, the company pursues to be a leader in the areas of quality, speed, service, innovation and cost-efficiency.
  3. It also aspires to be among the world class greatest valuable contributors to humanity in terms of green high-tech.

Strategic directions, strategic objectives, projections and achievements of Asus

In 2007, ASUS achieved mainstream recognition in the U.S. for the creation of the netbook category. By then, the netbooks stormed the computer market, captivating the consumers’ attention for smaller and lighter notebooks. The company was capable of selling 4 million devices less than a year. The netbook started to occupy laptop market share gathering about 20% of the PC market. ASUS, is also the manufacturer of Google’s Nexus 7 tablet thus its portable market share, specifically in tablets, is tremendously picking. The company’s already existing reputable status stands as a base for garnering fan base. (Bulik, 2013)

Their mission; to deliver unquestionable innovative solutions that further inspire consumers to explore their full potentialities. It is also inspired by the diversity of needs by consumers in all areas and phases of life. Their strategic understanding of the requirements of today's digital home leverages its intimate digital office and digital person. In environment conservation principles ASUS embarked ingeniously on use of renewable materials like leather and bamboo in notebooks. It also incorporated proprietary ultra power saving technology into its notebooks and motherboards. By being the pioneers in many new innovations, trends and technologies it impacts on its customers' lives and the Earth at large. (“The ASUS winning formula,” 2015)

ASUS’ philosophy backs product development by accomplishing the fundamentals well first before moving forward. The company’s philosophy has given birth to dependable backbone of computer components such as motherboards, graphics cards, and optical storage devices. ASUS currently proudly owns over 16 product lines. (Royal Holloway University of London, strategic entries, n.d.)

Jonney Shih toured United Arabs Emirates purposively to discuss various priorities and further investing in the region. This is a step forward to strengthen several functions like after-sales services. United Arabs Emirates posed challenges and Shih laid down possible broader plans for Middle East. A team was fit with broader plan and tasked for excellence of Asus in Middle East. ASUS purposive tour was to break the dominance of HP, Acer and Dell after recently seizing top three position in the worldwide rank by 2011. (Seymour, 2010)

Key broad business-level and international strategies

Their stabilized foundation in technology has foreseen Asus be the manufacturers of one in three desktop PCs sold. In 2007, the company’s revenues hit 6.9 billion dollars. Currently statistics show that ASUS have managed to completely achieve complete customer satisfaction. ASUS notebooks were the first notebooks to be TCO’99-certified worldwide. The requirements for this certification included radiation emission control, environment friendly, energy (battery
consumption) and ergonomics. To attain this in a competitive industry, great products need to be accompanied by speed to market, cost and quality service. (“Aus channels products to USA,” 2008)

As a relatively leading player of the information technology industry, ASUS has invested its corporate mission to do products development and fundamentals well first before moving forward. When Taiwan based manufacturers hadn’t been in a position to established their position in the computer hardware business, Intel would supply range of new processors to more established companies like IBM. By then, Taiwanese companies had to wait approximately six months after IBM received their engineering prototypes.

This, however, changed lately after ASUS designed their own 486 motherboard prototype. By the time it was presented to Intel it was fully compatible with their new processor, meanwhile Intel’s own 486 motherboard prototype had been succumbed by design flaws. ASUS took a look at Intel’s malfunctioning motherboard and their solution worked. This new aspect of ASUS improved relationship between these companies. Currently ASUS now receives Intel engineering samples way before other competitors. (“relationship with Intel,” 2011)

In January 2008, ASUS gradually restructured its operations. The company had to split into three distinct operational units: ASUS, Pegatron and Unihan.
The ASUS brand applies solely to first-party branded computers. Pegatron on the other hand handles motherboard and component OEM manufacture. Unihan focuses on non personal computer manufacturing such as cases and molding. (“Asus reconstruction,” 2015)

ASUS Recycling campaign was started in April 2008. The company launched its program by the name “PC Recycling for a Brighter Future” in collaboration with Intel and Tsanri Kuen Enterprise. This program was capable of collecting more than 1,200 desktop computers, CRT LCD monitors and notebooks. They were refurbished and donated to elementary and junior high schools. (Junker, 2014)

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