Flextronics SWOT Analysis
Here is a detailed SWOT analysis of Flextronics covering strengths, weaknesses, opportunities and threats.
Flextronics Strengths
- Over 100 manufacturing and over 25 software and service locations all across the world which provide economies of scale
- Global, integrated presence in over 30 countries with OEMs, supply chains and service networks all integrated, to provide flawless service to its clients
- Approximately three-fourth of the company’s manufacturing is located in low-cost countries like India, China, Brazil
- Strong presence across different kinds of production technologies
- Leader in global procurements and a strong workforce of over 200,000
- Balanced portfolio of products
Above are the strengths in the SWOT Analysis of Flextronics. The strengths of Flextronics looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Flextronics Weaknesses
- 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
- Reduction in HVS segment could prove to be a drag on the overall growth of the company
- High concentration of manufacturing facilities in China – fluctuations in China will considerably affect its operations
These were the weaknesses in the Flextronics SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Flextronics Opportunities
- The company expects to grow revenues as the hardware market will grow
- Flextronics’ HRS segment outperformed the market and the company expects its revenue from the segment to grow substantially
- The automotive markets the company serves are expected to grow alongwith its IEI segment
- More marketing and brand awareness would boost global penetration
Above we covered the opportunities in Flextronics SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Flextronics Threats
- The labour and other costs in low cost Asia economies have been increasing causing margin pressures for manufacturing companies such as Flextronics
- The high cost inflation across Asian countries where Flextronics has most of the manufacturing facilities is likely to pressurize the margins
- Supply chain disruptions caused by factors outside company control – like the tsunami in Japan
The threats in the SWOT Analysis of Flextronics are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Flextronics SWOT analysis.
About Flextronics
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| Flextronics Overview | |
|---|---|
| Parent Company |
Flextronics International Ltd |
| Category |
Electronics |
| Sector | |
| Tagline/ Slogan |
Impossible is where breakthrough begins |
| USP |
Speed in product ramp-up, leveraging on LEAN and Six Sigma practices |
| Flextronics STP | |
| Segmentation |
Electronics; supply-chain management |
| Target Group |
SMEs, corporates, OEMs |
| Positioning |
As a brand that can make anything possible (in supply-chain solutions) |
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