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Foxconn SWOT and PESTLE Analysis

ID : 52779653| Feb 2023| 11 pages

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

SWOT
PESTLE
The SWOT analysis for Foxconn is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
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
OpportunitiesThreats
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

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Opportunity

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Threats

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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
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TABLE OF CONTENTS
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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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In-text: (SWOT & PESTLE.com, 2024)

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