COMPANY PROFILE -Compal Electronics
Business Sector :Electronic Manufacturing Services
Operating Geography :Taiwan, Asia, Global
About Compal Electronics :
Compal Electronics is a contract computer hardware manufacturer and assembler with headquarters located in Neihu, Taipei, Taiwan. It handles all the manufacturing of notebook computers, monitors and televisions for major brands around the world like Acer, Apple, Hewlett-Packard, Lenovo, Dell, Toshiba and Fujitsu. Today, the company is the second largest notebook manufacturer globally. The company was founded in 1984 as a manufacturer of computer peripherals. Over the years, it has formed partnerships and joint ventures with numerous brands. A joint venture with Lenovo has given it the license to manufacture laptops in China. Toshiba has licensed the rights over to Compal, instead of manufacturing televisions itself in the USA, due to pricing competition. A high demand for Apple watches has also led Apple to give over a second manufacturing contract to Compal by virtue of which it manufactures the Apple Watch Series 4. Compal also plays a major part in Intel's Common Building Block initiatives.
The company has offices located in the USA, UK, South Korea and the People's Republic of China. As per 2019 records, the entire workforce of the company is more than 64,000 people. Compal Electronics’ Vision is “To be the No.1 Notebook ODM Company and Top3 TV ODM Company.” The USP of the Company is “Delivering IT products which are more in line with consumer’s need”.
Compal Electronics Revenue :
NT$ 967,706 million – FY ended Dec 2018 (year-on-year growth of 9%)
NT$ 887,657 million – FY ended Dec 2017
Competitive Analysis of Compal Electronics
The SWOT analysis for Compal Electronics will be published shortly.
On purchase the Compal Electronics SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed SWOT Analysis of Compal Electronics
The PESTLE/PESTEL analysis for Compal Electronics is presented below:
Political | Economical |
1. US China trade war to impact manufacturing operations | 1. Global economic growth to have a multiplier effect on electronics manufacturing growth
2. Increase in raw material and labour costs
3. Fluctuation in exchange rate impacting revenues
|
Social | Technological |
1. Leveraging technology to boost healthcare | 1. Investments and collaborations with global technology leaders
2. Application and research of new technologies
|
Legal | Environmental |
1. Risks from changing laws and regulations | 1. Focus on environmental sustainability across operations
2. Initiatives towards sustainable supply chain
3. Energy efficient and low-carbon design in products
|
On purchase the Compal Electronics SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Compal Electronics
Political
This section is available only in the 'Complete Report' on purchase.
Economic
1. Global economic growth to have a multiplier effect on electronics manufacturing growth: The global GDP growth brings a multiplier growth effect in emerging and innovation based industries. Almost 40% of all assembly and production of electronics products in 2017 were determined by the worldwide electronics manufacturing services (EMS) market. As per industry estimates, this is only likely to increase to $1.7 trillion by 2022. A growing demand for EMS services will further see the contract manufacturing industry grow at a 7.5% CAGR to go from $471 billion in 2017 to $675 billion in 2022.
2. Increase in raw material and labour costs: The electronics manufacturing industry in China is facing a lot of issues since 2017, owing to labor shortage and increased costs of components. Apart from this, other materials like metals, oil and petroleum have also seen a hike in pricing due to scarcity of resources, rise in demand and a slowdown in production. Pollution control has moreover caused more than 80,000 factories to be shut down and this coupled with a lack of people willing to work in factories has led to both a shortage of labour and increase in wages. A dip of almost 3% or 25 million of the working age population of China from 2012 to 2017 has also affected the margins of electronics manufacturers and assembly companies such as Compal.
3. Fluctuation in exchange rate impacting revenues: Changes in exchange rates have a very high impact upon the revenues of Compal Electronics as it is essentially an export-oriented firm. To avoid too much impact, the company employs methods like forward foreign exchange contracts and swaps, which help in reducing the risks of exchange rate movements. Compal suffered a NT$(2,003.6) million forex loss in FY17 which was approximately 25.6% of its FY17 profit before tax.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
On purchase the Compal Electronics SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Compal Electronics SWOT & PESTLE Analysis Report
1. Compal Electronics 2017 Annual Report: https://www.compal.com/mediafiles/sh-meeting/annual-report/2017_ENG_Annual_Report_Compal_FINAL.pdf
2. Compal CSR Report 2017: https://www.compal.com/CSR/Upload/ReportImages/2018103111491091.pdf
3. Compal Supply Chain Management: https://www.compal.com/CSR/EN/page.aspx?CId=5
4. Material Costs Could Drive Prices Higher in 2018, Suppliers Warn: https://www.asicentral.com/news/newsletters/promogram/november-2017/material-costs-could-drive-prices-higher-in-2018-suppliers-warn/
5. Apple Supplier Clean Energy Program Update April 2018: https://www.apple.com/environment/pdf/Apple_Supplier_Clean_Energy_Program_Update_April_2018.pdf
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