Description
SWOT ANALYSIS OF FLEXTRONICS

Flextronics

Parent Company

Flextronics International Ltd

Category

Electronics

Sector

IT and Technology

Tagline/ Slogan

Impossible is where breakthrough begins

USP

Speed in product ramp-up, leveraging on LEAN and Six Sigma practices

STP

Segment

Electronics; supply-chain management

Target Group

SMEs, corporates, OEMs

Positioning

As a brand that can make anything possible (in supply-chain solutions)

SWOT Analysis

1. Over 100 manufacturing and over 25 software and service locations all across the world which provide economies of scale 2. Global, integrated presence in over 30 countries with OEMs, supply chains and service networks all integrated, to provide flawless service to its clients 3. Approximately three-fourth of the company’s manufacturing is located in low-cost countries like India, China, Brazil 4. Strong presence across different kinds of production technologies 5. Leader in global procurements and a strong workforce of over 200,000 Strength 6. Balanced portfolio of products

1. High customer concentration i.e. a small base of customers account for a large percentage of total sales, this means high dependence on these customers 2. Reduction in HVS segment could prove to be a drag on the overall growth of the company 3. High concentration of manufacturing facilities in China – fluctuations Weakness in China will considerably affect its operations

1. The company expects to grow revenues as the hardware market will grow Opportunity 2. Flextronics’ HRS segment outperformed the market and th e company expects its revenue from the segment to grow substantially

3. The automotive markets the company serves are expected to grow alongwith its IEI segment 4. More marketing and brand awareness would boost global penetration

1. The labour and other costs in low cost Asia economies have been increasing causing margin pressures for manufacturing companies such as Flextronics 2. The high cost inflation across Asian countries where Flextronics has most of the manufacturing facilities is likely to pressurize the margins 3. Supply chain disruptions caused by factors outside company control Threats – like the tsunami in Japan

Competition

1. Jabil Circuit, Inc. 2. Celestica Inc. 3. Benchmark Electronics, Inc. 4. CTS Corporation 5. Nam Tai Electronics, Inc. 6. SMTC Corporation 7. ALSTOM Competitors 8. Avnet, Inc.



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