mkt101 individual assignment asus

- In 2015 and 2016, Fortune magazine recognized ASUS as one of the World9s Most Admired Companies, and for the past four years Interbrand has ranked ASUS Taiwan9s most valuable internati

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MKT101 - Individual assignment

An Individual assignment presented to the

Marketing Principles (MKT101)

Hoa Lac, Hanoi, Vietnam

Partial Course Requirement for the Marketing Principles (MKT101) MC1713

Nguyễn Tu n Anh ấ

Summer 2022, Sep 30, 2022

iii Analysis of Micro-Environment Players iv Consumer Segmentation

v Attractiveness of each of the segments b Competitor Analysis (SWOT)

i Strengths and Weaknesses ii Opportunities and Threats

III COMPANY’S MACROENVIRONMENT

a The Three Macro-Environment Factors i Economic Environment ii Cultural and Social Environment iii Technological Environment

IV CONCLUSION

V REFERENCE LIST

3 I INTRODUCTION

- ASUS is a Taiwan-based, multinational computer hardware and consumer electronics company that was established in 1989 Dedicated to creating products for today9s and tomorrow9s smart life, ASUS is the world9s No 1 motherboard and gaming brand as well as a top-three consumer notebook vendor

- ASUS became widely known in North America when it revolutionized the PC industry in 2007 with its Eee PC™ Today, the company is pioneering new mobile trends with the ASUS ZenFone™ series, and it is rapidly developing virtual and augmented reality products as well as IOT devices and robotics technologies Most recently, ASUS introduced Zenbo, a smart home robot designed to provide assistance, entertainment, and companionship to families

- In 2015 and 2016, Fortune magazine recognized ASUS as one of the World9s Most Admired Companies, and for the past four years Interbrand has ranked ASUS Taiwan9s most valuable international brand The company has more than 17,000 employees, including a world-class R&D team Driven by innovation and committed to quality, ASUS won 4,385 awards and earned approximately US$13.3 billion in revenue in 2016

- Its products include desktop computers, laptops, netbooks, mobile phones, networking equipment, monitors, wi-fi routers, projectors, motherboards, graphics cards, optical storage, multimedia products, peripherals, wearables, servers, workstations, and tablet PCs The company is also an original equipment manufacturer (OEM)

- As a major player in the IT industry, ASUS9 corporate mission is to provide innovative IT solutions that empower people and businesses to reach their full potential ASUS9 philosophy behind product development4which is to accomplish the fundamentals well first before moving forward has resulted in a 4dependable backbone of computer components such as motherboards, graphics cards, and optical storage devices ASUS has now over 16 product lines, including its industry-redefining Eee products, desktop barebone systems, servers, notebooks, handhelds, network devices, broadband communications, LCD monitors, TVs, wireless applications, and CPT (chassis, power supply and thermal) products

- The ASUS brand is founded on four core values known as ASUS DNA ASUS DNA comprises <the 5 ASUS Virtues of Humility, Integrity, Diligence, Agility and Courage=, <Focus on Fundamentals and Results=, <Innovation and Aesthetics= and <Lean Thinking= In order to achieve our vision of turning ASUS into the world9s most admired leading enterprise in the new digital era, our employees are encouraged to practice and develop these four foundational <genes=

5 II COMPANY’S MICROENVIRONMENT

a Marketing Analysis i Main suppliers

Figure1: The main suppliers for Asus

- At first, Asus was a small company that made motherboards for mainframes Asus has steadily drawn inspiration from and learned from Dell when it comes to inventing and putting together computer parts on its own Because of this, when Asus created

PCs, the company had a lot of knowledge and worked with numerous big businesses, like Intel, Microsoft, IBM,

- IBM:

+ International Business Machines Corporation (IBM) is an American multinational technology corporation headquartered in Armonk, New York, with operations in over 171 countries The company began in 1911, founded in Endicott, New York, by trust businessman Charles Ranlett Flint, as the Computing-Tabulating-Recording Company (CTR) and was renamed "International Business Machines" in 1924 IBM is incorporated in New York

+ IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology IBM is also a major research organization, holding the record for most annual U.S patents generated by a business (as of 2021) for 29 consecutive years

- Microsoft:

+ The software used on Asus computers includes basic software (operating system: DOS, Window 98/2000 XP, translation programs, application software (text editors) copies, Excel, software specialized in design, graphics ) are licensed by Asus for distribution from major manufacturers such as Microsoft - the world's largest computer software manufacturing corporation Headquartered in Washington

- Intel and AMD:

7 + Intel is a corporation specializing in the manufacture and distribution of

electronic products and electronic components such as microprocessor chips for computers, motherboards, flash drives, networks and other computer equipment-based headquarters located in California, USA Currently, Asus's computers use most of Intel's computer processor chips, which include chips such as: Intel core i3, i5, i7, intel Z77, Intel H87, Intel H81, Intel X79 In addition to providing microprocessor chips, Intel also provides Asus with computer sockets (Socket is a pin to contact on the Mainboard, responsible for making contact points and also a CPU rack

+ AMD is the world's second-largest manufacturer of x86 microprocessors (CPUs) after Intel and one of the leading manufacturers of flash memory in the world; In addition, AMD also manufactures chipsets and other semiconductor electronic components AMD also has a role in providing components for Asus as well as Intel Asus also uses ADM chipsets and sockets including: AMD AM3), AMD socket FM2, FM3; chips like AMD 990FX.990X, 970X, 7606,780L, AMD A50, A50M, A88X, A85X, A78, A75, 55, 58

- In addition, a huge advantage for other computer companies is that Asus computer company is formerly a very famous manufacturer of motherboards and graphics cards (VGA) in the technology market Thanks to that, they research and design their own Asus computer components perfectly Asus is a famous name in technology, especially in computers Computer enthusiasts do not know that Asus is famous for manufacturing and designing motherboards (mainboards) and VGA graphics cards) ASUS is planning to promote outsourcing (outsourcing) some of their graphics cards and mainboard products This outsourcing action of Asus is said to be aimed at

two purposes increasing the profit rate on the product, as well as reducing the dependence on their main outsourcing partner, Pegatron The new

counterpart that Asus intends to cooperate with this time is Elitegroup Computer Systems (ECS) Asus is currently the world's No 1 motherboard manufacturer, with a market share of 40% of motherboards Today, if you send 3 computers, there will be 1 computer using Asus motherboards

ii Marketing intermediaries

- Asus distribution channel works in 2 ways One of it is Asus sell its own products to users directly through Asus stores This technique is useful as it increases the margin by cutting down the income of intermediaries but also restrict the no of sales as Asus stores are not necessarily be at every location and also it is not necessary for every user to go to Asus store for purchasing anything Secondly it functions as the third party purchases the items from Asus and then sell it to the consumers In this channel no of products increases as the end client sale does not depends on Asus but it also reduces the margin as the third party always purchase product on a low cost in order to get its own profit Retailers generally purchase products from Asus where all the accessories i.e., supplement products are also available along with the core product Asus products moves all over the country mainly through the retailers and merchants, from e-commerce sites to the distributor and then to the end consumer One of the good things about Asus is that it9s all items can be easily discovered in all locations which helps the consumer in buying any item

- With its strong chain of dealers and merchants like Redding ton it is available in more than 32 nations

9 iii Analysis of Micro-Environment Players

- One key player of importance to laptops is the motherboard Motherboard plays a significant role in relation to ASUS This is because ASUS uses a motherboard to manufacture laptops Without a motherboard, a laptop cannot function well Therefore, the supplier who supplies motherboards plays a key role ASUS has 40% of the market share for the motherboard business In 2008, 24 million motherboards were sold This means that on average, three computers are using ASUS9s motherboard

- According to ASUS (2017), ASUS9s motherboard has been voted as the <Best Motherboard Brand= for 6 consecutive years In 2009, ASUS9s engineer creates and improves the motherboard which is The Ultimate Force (TUF) This motherboard will not break easily and it has a fast-cooling process If the motherboard did not function well, it will affect the laptop9s performance speed For instance, the user cannot finish their task on time due to the deficient performance of the laptop

- Moreover, if the motherboard9s manufacturer cost increases, it will automatically increase the cost of the laptop Thus, increasing the cost of motherboards will cause sales of Asus to drop This is because consumer demand is decreasing Therefore, ASUS cannot gain profit and will make a loss from it

iv Consumer Segmentation

Figure 2: Table for Age

- Demographic segmentation is a market segmentation whereby it is grouped in terms of age, gender, income, family, education, race, and religion Therefore, the Asus product is segmented based on demographic segmentation in terms of age According to Zickuhr (2011), Generation Y which is aged between 18 to 34 years old has the highest percentage of 70% in terms of owning a laptop Moreover, according to Statista (2017), in the age group of 16-24 years old of Generation Y, 72% own a computer or laptop whereas, in the age group of 25-34 years old, 65% own a

11 computer or laptop which is lower Lastly, for the age group 35-54 years old, 76% own a laptop or computer which is the highest among 3 different aged groups

v Attractiveness of each of the segments

Figure 3: Table for Attractiveness of Each of the Segments

- Demographic segmentation can be divided into a few segments For example, the age group of Generation Y can be divided into three groups such as young adults who are between 22-25 years old, working adults who are 26-30 years old, and middle-aged adults who are 31-36 years old In addition, the attractiveness of each

of the segments is based on three elements; size and growth, structural attractiveness, and the resources and objectiveness of the company

- Firstly, size and growth are divided into three parts which are the income for each segment, the size of the market, and how much each segment is willing to spend on the product For young adults aged between 22-25 years old, the size of the market is big due to laptops being a must for young adults as most of them are still university or college students This age group is willing to purchase this product which has a price range of around 20 million dong and above Although it is a must for them, they have low incomes They may not be able to purchase products that are expensive such as MacBook Pro from the brand Apple Meanwhile, for working adults from 26 to 30 years old, there is also a big market as they start to involve themselves in the workplace and they are starting to have their income without relying on their parents Therefore, they may be willing to spend their money on purchasing a laptop In addition, for middle-aged adults who are 31 to 36 years old, there is also a big market size Their income may be higher than working adults as they are in the field for quite a long time and they are probably willing to spend their money to purchase it

- Next, structural attractiveness for young adults is communications through social media and they are able to fulfill their needs and wants Besides, the competition for this age group is weak For working adults and middle-aged adults, communications are through social media and advertisements They can also fulfill their needs and wants However, the competition for working adults is moderate and it is strong for middle-aged adults

13 - Last but not least, company objectives and resources for young adults are that

technological advancement can affect them While for working adults and aged adults, technology should be improved The company9s objective is to make a high profit from three of the segments

middle-b Competitor Analysis (SWOT) i Strengths and Weaknesses

- The competitors of ASUS are Apple, Acer, and Hewlett-Packard (HP) Based on the table given below, laptops are placed in many different countries and places

- Apple9s laptop is the most expensive among all the other brands although the laptops have the same size which 13-inch Furthermore, ASUS has the highest memory which is 16GBcompared to other brands which have only 8GB Besides, the battery life of ASUS is the least which can only use up to 9 hours and the most is Hewlett-Packard (HP) which can use up to 14 hours and 15 minutes once the laptop is fully charged Bhasin (2017) stated that ASUS is known to have a strong brand image and recognition, which may be a strength or weakness of ASUS An example of this is, ASUS has been recognized as one of Taiwan's top-performing international brands Nevertheless, according to Lauren (2017), it can also be a negative attribute of the brand It will be attached to the brand such as a recall of a product can tarnish a company9s brand and image, causing the company to build a new brand to recapture the market For Apple, innovative products can also be strengths or weaknesses This is because Apple produces hit products such as iPhones, iPods, and more This does increase the sales of Apple However,

consumers may expect products that are greater as the year passed If Apple does not have the ability to do so, it may be a weakness to Apple As for Acer, cost advantage can also be a strength or weakness Acer has a lower cost compared to other brands such as Hewlett-Packard (HP) However, when the price of the product is low, the quality of the product may not be as good as others (Bhasin 2017)

- ASUS began venturing into maximizing graphics performance for tech enthusiasts, hardcore gamers and overclockers since 1996 with the introduction of world9s first 3D graphics card Since then, ASUS engineers (and gaming devotees), have been developing product with enhanced cooling and power delivery to maximize pixel perfection in games along with record-breaking performance ASUS graphics cards are engineered in the pursuit of maximizing performance These innovative features have made ASUS graphics cards the world9s most awarded graphics card brand in the world If you are planning your next PC build, then ASUS graphics cards are the best choice for faster, cooler, quieter and more stable gaming, in any PC form factor you need

ii Opportunities and Threats

- According to Bhasin (2017), the opportunities for ASUS are differentiation and marketing ASUS can take this as an advantage and differentiate its business by offering through marketing and hence increasing customer loyalty and customer satisfaction To do this, internal customers such as dealers and distributors will be involved and needed to build good relations with them The threat is competition with other brands ASUS also faces competition in the smartphone and tablet market with the existing market as well as new local and global markets