Foxconn SWOT & PESTLE Analysis

Strength

1. Strong global footprint for efficient value delivery: Over the years, Foxconn Technology Group has established itself as a leader in developing research design and engineering solution capabilities. The dedication of the company to expand into other parts of the world overcoming limitations of restricting operations to Asia alone, is based on its motivation to create a strong global footprint for itself. The strategy adopted by Foxconn revolves around setting up research and development centres in Greater China and the US, design and manufacturing centres in Asia, US and Europe, along with a global complementary assembly and delivery centre. This international widespread presence helps the firm in ensuring timely and efficient value delivery to all its clients with high-end, good quality products matching optimal timing and quantity standards. By the year of 2019, the Group has been successful in establishing more than 200 representative offices and subsidiaries spread over Asia, Americas and Europe.

2. Pioneer of advanced manufacturing and industrial internet ecosystem: Foxconn Technology Group has emerged as the pioneer of advanced manufacturing and industrial internet ecosystem by fully leveraging the new technologies such as AI, Big Data, IoT and Cloud Computing, which have disrupted traditional manufacturing models. With the term “Intelligent Manufacturing” becoming more and more prominent in recent years, Foxconn has adopted the trending processes, systems as well as the models of advanced manufacturing possessing intelligent features like self-sensing, self-adaptive and self-decision-making characteristics. The company leverages this concept’s four key components by setting up an intelligent factory platform at its core that directs the scale of manufacturing with intelligent production lines. Moreover, Foxconn utilizes an end-to-end data flow as its foundation supported by pillars of interconnected networks.

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Weakness

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Opportunity

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Threats

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Political

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Social

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Technological

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Legal

1. Violations of imposed labour laws and working conditions: With increasing scale of business, it becomes quite difficult for the companies to match up to the labour laws and other working conditions. Even the top-notch companies like Apple and Foxconn are finding it difficult to adapt to the imposed regulations. In 2019, both the companies were found guilty of violating a Chinese labour rule. It was alleged that in the world’s largest iPhone factory, Apple and Foxconn had engaged more than permissible number of temporary staff, that is, dispatch workers made up more than 50% of the workforce when only 10% was permissible alongside exposing them to harsh working conditions. Even in the review conducted by Foxconn, it was found that the proportion of contract workers and student interns had exceeded legal threshold standards, with some interns working overtime or nights.

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Environmental

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