COMPANY PROFILE -Foxconn
Business Sector :Contract Electronics Manufacturing
Operating Geography :Taiwan, Asia, Global
About Foxconn :
Foxconn also known as Hon Hai Technology Group is a Taiwanese multinational electronics contract manufacturer with its headquarters in Tucheng, New Taipei City, Taiwan. It was founded in 20 February, 1974 by Terry Gou. It is the leading technological solution provider and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies. As of 2020, the company has a global footprint that spans over 20 countries with more than 83,500 patents. The company has capitalized on its expertise in Cloud Computing, Mobile Devices, Iot, Big Data, AI, Smart Networks, and Robotics/Automation. The Group has not only expanded its capabilities into the development of electric vehicles, digital health and robotics, but also towards the utilization of three key technologies- AI, semiconductors and new- generation communications technology – which are the passport to driving its long-term growth strategy. Its four core product pillars comprise of Consumer Products, Enterprise Products, Computing Products and Components and Others. The company has established R&D and manufacturing centres in other markets around the world that include China, India, Japan, Vietnam, Malaysia, Czech Republic, U.S. and more.
Foxconn’s vision statement reads, “Creating comprehensive smart living experiences for our customers across the globe.” Foxconn’s unique selling proposition or USP lies in its being the world’s largest electronics manufacturer and being ranked 25th in the Top 100 Digital Companies.
Foxconn Revenue :
NT$ 5,342,811 million – FY ended 31st December 2019 (y-o-y growth of 1%)
NT$ 5,293,803 million – FY ended 31st December 2018
Competitive Analysis of Foxconn
The SWOT analysis for Foxconn is presented below in a table followed by the detailed analysis report.
Strengths | Weaknesses |
1. Strong global footprint for efficient value delivery
2. Pioneer of advanced manufacturing and industrial internet ecosystem
3. Diversified supply network giving edge over peers
4. Leading technological solutions provider with a strong history of milestones achieved
5. Diversified product portfolio in automotive components
| 1. Employment practices and worker conditions drawing scrutiny
2. Dependent on Apple for over half of its revenues
|
Opportunities | Threats |
1. Strategic partnerships to focus on the automobile industry such as joint ventures with FCA and Yulon
2. Leveraging robotics and AI to reduce costs
| 1. Political threats arising from the US-China trade war
2. The risk of AI based technologies disrupting the existing business model
3. Increasing competition from emerging players
|
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Detailed SWOT Analysis of Foxconn
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.
The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
The PESTLE / PESTEL analysis for Foxconn is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Potential threats arising from the escalating trade war between the US and China
2. International disputes and trade tensions causing economic cold war
| 1. Fluctuations in macroeconomic indicators such as rising inflation rates |
Social | Technological |
1. Work-from-home lifestyles to offer new growth opportunities
2. Decreasing shipment rate of smartphones
| 1. Launching next-gen AI processing solutions
2. Intensive investments in setting up industrial AI R&D centres
|
Legal | Environmental |
1. Violations of imposed labour laws and working conditions
2. Feuds related to royalty payments
| 1. Efforts towards creating a zero-waste facility
2. Addressal of issues concerning climate change by energy conservation
|
Foxconn SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of Foxconn
Political
This section is available only in the 'Complete Report' on purchase.
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
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.
The remaining section of “Legal” is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Jabil
- Toshiba
- TDK
- NN LABS
- Celestica
- Veo Robotics
- Quanta Computer
- Pegatron
- Wistron
Major Brands :
- SHARP
- APTG
- Nokia
- FLnet.tw
- YongLin Farm
- HONG SENG
- Belkin
- Linksys
- WeMo
- Phyn
Foxconn SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Foxconn SWOT & PESTLE Analysis Report
1. Foxconn: why the world’s tech factory faces its biggest tests –
https://www.ft.com/content/0f57109e-8845-11e9-a028-86cea8523dc2
2. 2019 Annual General Shareholders’ Meeting Meeting Handbook –
http://www.foxconntech.com.tw/Agm/2019_FTC_AGM_handbook_e.pdf
3. Foxconn plans to invest up to $one billion to expand a factory in southern India. –
https://www.firstpost.com/tech/news-analysis/apple-supplier-foxconn-invest-one-billion-dollars-expand-factory-south-india-sources-8584321.html
4. Foxconn Is Under Scrutiny for Worker Conditions. It’s Not the First Time. –
https://www.nytimes.com/2018/06/11/business/dealbook/foxconn-worker-conditions.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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