Description
SWOT ANALYSIS OF AU OPTRONICS
AU Optronics
Parent Company
AU Optronics Corporation
Category
Electronics
Sector
IT and Technology
Tagline/ Slogan
Bright Innovation. Amazing Life
USP
Innovative technologies to offer advanced display solutions
STP
Segment
Display solutions
Target Group
Phone, tablet, TV manufacturers
Positioning
As an innovative display solutions provider
SWOT Analysis
1. Strong employee base of about 63,000 people 2. Global leader in the manufacturing of TFT-LCD and has a wide variety of products for all uses in the product category 3. Strong R&D capabilities - R&D expenditure accounted for significant part of total revenues, with an employee base of 2000+ research engineers 4. Significant manufacturing capabilities - the company has seven principal manufacturing sites in Taiwan, three module-assembly sites in China, three manufacturing sites in Japan, two module-assembly sites in Europe and Singapore 5. The company manufactures products for Samsung, LG, Dell, Apple Strength and other prominent brands
1. Customer concentration increases business risk – 35% of the company’s revenues came from top 5 customers 2. Legal litigations negatively impact brand image -AUO was ordered to pay $500 million for price fixing on liquid-crystal-display panels 3. Weakening financial position - Further, operating loss of the Weakness company was a concern
Opportunity
1. Growth in smartphones and tablets increases demand for touch panels
2. Positive outlook for growth in smartphones market in the Asia-Pacific - the mobile phones market is forecast to have a substantial growth 3. Poised to benefit from increasing popularity of one glass solution Touch adoption in PCs such as tablets, notebooks, and all-in-ones also grew significantly With the release of Windows 8, which is optimized for touch support
1. AUO continues to experience pressure on its prices and profit margins primarily due to additional and growing industry capacity from competitors in Taiwan, Korea, Japan and China 2.Principally a TFT-LCD manufacturer, it faces competition from alternative flat panel technologies such as plasma discharge panel (PDP), and organic light emitting device (OLED) 3. Declining average selling prices of the display panels - year-on-year basis the ASPs of Threats the company's large-size panels declined
Competition
1. Sharp Corporation 2. Samsung Electronics Co., Ltd. 3. BOE Technology Group Co., Ltd 4. Century Corporation Co., Ltd. 5. Chunghwa Picture Tubes, Ltd. Competitors 6. LG Display Co., Ltd.
doc_513347079.docx
SWOT ANALYSIS OF AU OPTRONICS
AU Optronics
Parent Company
AU Optronics Corporation
Category
Electronics
Sector
IT and Technology
Tagline/ Slogan
Bright Innovation. Amazing Life
USP
Innovative technologies to offer advanced display solutions
STP
Segment
Display solutions
Target Group
Phone, tablet, TV manufacturers
Positioning
As an innovative display solutions provider
SWOT Analysis
1. Strong employee base of about 63,000 people 2. Global leader in the manufacturing of TFT-LCD and has a wide variety of products for all uses in the product category 3. Strong R&D capabilities - R&D expenditure accounted for significant part of total revenues, with an employee base of 2000+ research engineers 4. Significant manufacturing capabilities - the company has seven principal manufacturing sites in Taiwan, three module-assembly sites in China, three manufacturing sites in Japan, two module-assembly sites in Europe and Singapore 5. The company manufactures products for Samsung, LG, Dell, Apple Strength and other prominent brands
1. Customer concentration increases business risk – 35% of the company’s revenues came from top 5 customers 2. Legal litigations negatively impact brand image -AUO was ordered to pay $500 million for price fixing on liquid-crystal-display panels 3. Weakening financial position - Further, operating loss of the Weakness company was a concern
Opportunity
1. Growth in smartphones and tablets increases demand for touch panels
2. Positive outlook for growth in smartphones market in the Asia-Pacific - the mobile phones market is forecast to have a substantial growth 3. Poised to benefit from increasing popularity of one glass solution Touch adoption in PCs such as tablets, notebooks, and all-in-ones also grew significantly With the release of Windows 8, which is optimized for touch support
1. AUO continues to experience pressure on its prices and profit margins primarily due to additional and growing industry capacity from competitors in Taiwan, Korea, Japan and China 2.Principally a TFT-LCD manufacturer, it faces competition from alternative flat panel technologies such as plasma discharge panel (PDP), and organic light emitting device (OLED) 3. Declining average selling prices of the display panels - year-on-year basis the ASPs of Threats the company's large-size panels declined
Competition
1. Sharp Corporation 2. Samsung Electronics Co., Ltd. 3. BOE Technology Group Co., Ltd 4. Century Corporation Co., Ltd. 5. Chunghwa Picture Tubes, Ltd. Competitors 6. LG Display Co., Ltd.
doc_513347079.docx