ASUSTeK Computer Incorporated

SUBMITTED BY:-
AMRIT SINGHANIA

ROLL NO: 18063.

ASUS, a technology-oriented company blessed with one of the world's top R&D teams, is well
known for high-quality and innovative technology. As a leading company in the new digital era,
ASUS offers a complete product portfolio to compete in the new millennium.

HISTORY
Tung, Ted Hsu, Wayne Hsieh, and MT Liao founded ASUS in 1989 in Taipei, Taiwan —
all four founders worked as computer engineers for Acer. The company explains the
name ASUS as originating from Pegasus, the winged horse of Greek mythology. The
new organization used only the last four letters of the word to give the resulting
name a high position in alphabetical listings.

Asus is a company that produces a variety of computer components for leading manufacturers,
such as Hewlett-Packard and IBM, as well as PDAs and notebook computers. On January 3,
2008, Asus split into three separate companies, ASUStek, Pegatron and Unihan.

ABOUT ASUS
In 2007, one in three desktop PCs sold was powered by an ASUS motherboard; and the
company’s 2007 revenues reached US$6.9 billion.

ASUS products' top quality stems from product development. It's like learning Chinese Kung-Fu;
one must begin with cultivating the "Chi" and inner strength. Besides innovating cutting-edge
features, ASUS engineers also pay special attention to EMI (electromagnetic interference),
thermal, acoustics and details that usually go unnoticed to achieve complete customer
satisfaction. ASUS notebooks are the first TCO'99-certified notebooks worldwide.

The requirements for this honor include radiation emission control, energy (battery
consumption), ecology (environment friendly) and ergonomics. To succeed in this ultra-
competitive industry, great products need to be complimented by speed-to-market, cost and
service. That's why all 8,000 over employees of ASUS strive for the "ASUS Way of Total
Quality Management" to offer the best quality without compromising cost and time-to-market
while providing maximum value to all customers through world-class services.

With unyielding commitment to innovation and quality, ASUS won 2,568 awards in 2007,
meaning on average, the company received over 7 awards every day last year. BusinessWeek has
ranked ASUS amongst its“InfoTech 100” for the 10th straight year; and the company is ranked
as No.1 in quality products and services by the Wall Street Journal. ASUS has also achieved the
number one title on the annual league table of Taiwan Top 10 Global Brands with a brand value
of 11.96 billion US dollars.

VISION & VALUES:

Corporate Vision:

Imagine innovations that simplify our lives and enable us to realize our full potential. It is
technologies' responsibility to accommodate us, not the other way around, because all devices
should perform and communicate seamlessly anytime, anywhere.

ASUS thrives to become an integrated 3C solution provider. (Computer, Communications,

Consumer electronics.)

Mission and Value:

 • As a major player of the IT industry, ASUS has established its corporate mission: Provide
innovative IT solutions that empower people and businesses reaching their full potential.

The philosophy of ASUS product development is to do the fundamentals well first before
moving forward. Started with computer components such as motherboards, graphic cards,
and optical storage devices, ASUS now has now over 16 product lines, including desktop
barebone systems, servers, notebooks, handhelds, network devices, broadband
communications, LCD monitors, TVs, wireless applications, and CPT (chassis, power
supply and thermal) products.

Management Philosophy :
 Inspire, motivate and nurture our employees to explore their highest
potential

• Commit to integrity and diligence; focus on fundamentals

and results

• Endlessly pursue to be number 1 in the areas of quality,

speed, service, innovation and cost-efficiency

• Strive to be among the world-class high-tech leaders and to

provide valuable contributions to humanity..

COMPETITORS:

Competitive analysis of the Fonera 2.0 vs Belkin,

Linksys, Asus and D-Link
Below is a comparison table listing features and prices of the Fonera 2.0 and its closest
competitors. Companies like ASUS, Planex, D-Link, Belkin and Linksys all sell wireless routers
with USB ports and storage features, but none of these provides the same functionality as the
Fonera 2.0 and none can match its 49€ price. This makes the Fonera 2.0 the best deal on the
market if you are looking for a smart router that not only gives you wifi, but also allows you to
share hard drives, printers and webcams in your network and delegate your downloading and
uploading activities to an inexpensive tiny router, letting you keep your PC off while
downloading at night, helping you save money and reduce carbon emissions.

The closest competitors for the Fonera 2.0 are WiFi routers from Planex and ASUS that let you
download files from BitTorrent to a USB hard drive and share a printer on your network. Both
lack most of the Fonera 2.0’s features, like Youtube, Flickr and Picasa uploaders, out-of-the-box
support for 3G modems and the Megaupload and Rapidshare downloaders. Both ASUS and
Planex products let you stream your files to iTunes equipped PCs or media devices and we’ll
soon release the same iTunes server functionality for the Fonera 2.0. On top of that, the Fonera
2.0, like a normal Fonera, lets you share some of your bandwidth at home, make some money
with your WiFi connection and roam the world for free. This unique feature is not available in
any other router. The Fonera continues to be the only social router in the world.

Planex BitTorrent routers are hard to find in Europe or the US (or at least I couldn’t find recent
pricing information for them), while the ASUS WL-500g Premium and its bigger brother, the
WL-700 (equipped with a 250GB drive), cost respectively around 100€ and 220€. The other
routers in the table provide only basic file sharing features and nonetheless all cost more then our
Fonera 2.0. The Belkin N+ router and D-Link DIR-855 offer greater coverage thanks to
the 802.11n standard, that the Fonera 2.0 (which is 802.11g) can beat using our Fontennas. We
decided to keep the price of the Fonera low by not including a hard drive as there are 1 tera HDD
now for only 99 euros. The Fonera works best with a USB 2.0 hub so you can combine pen
drives, hard drives, web cams, 3G dongles, or whatever USB device you fancy.

Relationship with Intel:

In the early 1990s, Taiwan-based motherboard manufacturers had not yet established their
leading positions in the computer hardware business. Intel would supply any new processors to
more established companies like IBM first, and the Taiwanese companies would have to wait for
approximately six months after IBM received their engineering prototypes.

When Intel released its 486 as engineering samples, ASUS decided to design its own 486
motherboard without having a 486-processor engineering sample on site, using only the technical
details published by Intel and the experience they gained while making the 386-compatible
motherboards. When ASUS finalized its 486 motherboard prototype, they took it to Intel's base
in Taiwan for testing. Unsurprisingly, they received no formal greeting when they arrived. It
turned out that Intel's own 486 motherboard prototype had encountered design flaws, and Intel's
engineers were rectifying it. The ASUS founders exercised their experience with the 486 and had
a look at Intel's malfunctioning motherboard. Their solution worked, to the Intel engineers'
surprise. Intel then tested the ASUS prototype, which functioned perfectly. This marked the
beginning of an informal relationship between the two companies – ASUS now receives Intel
engineering samples ahead of its competitors.

ASUS has become one of the main supporters of Intel's Common Building Block initiatives.

PRODUCTS
ASUS also produces components for other manufacturers, including:

• Apple Inc. (iPod, iPod Shuffle, MacBook)

• Alienware
• Falcon Northwest
• Palm, Inc.
• HP
• Sony Computer Entertainment (Playstation 3)
Manufacturing facilities and service centers
As of 2009 ASUS has manufacturing facilities in:

• Taiwan (Taipei, Lujhu, Nankan, Gueishan)

• Mainland China (Suzhou)
• Mexico (Juarez)
• Czech Republic (Ostrava)

Asus claims a monthly production capacity of two million motherboards and 150,000 notebook
computers.

The ASUS Hi-Tech Park, located in Suzhou, China, covers 540,000 square meters, roughly the
size of 82 soccer fields.

ASUS operates 50 service sites in 32 countries and has over 400 service partners worldwide. It
provides support in 37 languages.

Sub-brands
Eee

Since its launch in October 2007, the Eee PC netbook has garnered numerous awards, including
Forbes Asia’s Product of the Year, Stuff Magazine’s Gadget of the Year and Computer of the
Year, NBC.com’s Best Travel Gadget, Computer Shopper's Best Netbook of 2008, PC Pro's
Hardware of the Year, PC World's Best Netbook, and DIME magazine’s 2008 Trend Award
Winner.

ASUS has since added several products to its Eee lineup, including Eee Box, a compact nettop,
Eee Top, an all-in-one touchscreen computer housed in an LCD monitor enclosure, and Eee
Stick, a plug-and-play wireless controller for the PC platform that translates users’ physical hand
motions into corresponding movements onscreen.

On March 6, 2009, Asus debuted its Eee Box B202, which PCMag saw as "the desktop
equivalent of the Asus EeePC". With its price range between US$269 and US$299, this desktop
competes directly with the Apple Mac Mini.

Corporate restructuring or Diversification:

In January 2008 ASUS started restructuring its operations. The company will split into three
distinct operational units: ASUS, Pegatron, and Unihan.

The ASUS brand will apply solely to first-party branded computers. Pegatron will handle
motherboard and component OEM manufacturing. Unihan will focus on non-PC manufacturing
such as cases and molding.
In the process of restructuring, the highly criticized pension-plan restructuring effectively zeroed
out the current pension balances. The company paid out all contributions previously made by
employees.

REASONS FOR DIVERSIFICATION:

Why are organizations going through diversification? The answers are

Globalization, International competition, the spread of information technology. All
of these factors have escalated competition and the need to change in order to
maintain competitive. The purposes of ASUS diversification are given below.

 Use of expertise and knowledge: The main purpose of diversification of

ASUS is to use the expertise and knowledge gained in one business by
diversifying into a business where it can be used in a related way.

 Builds synergy: value added by corporate office adds up to more than the
value if different businesses in the portfolio were separate and independent.
It one of the major reasons of ASUS diversification.

 Gain market power relative to competitors: ASUS have very tough

competitors, so to gain market share ASUS have to go for product
diversification.

 Reduce the risk: one of the objectives of diversification of ASUS is to

reduce the huge risk on a single product.

 Marketing: After diversification the company can reduce their marketing

cost by doing some promotional activity for the company. It will help to gain
mileage for all the products of ASUS.

 Distribution channels: ASUS can use their existing distribution channels

and also the distribution channels of those companies which ASUS took
over to sell their whole product range.

 Economies of scope: By successful sharing of its resources and capabilities

or transferring one or more corporate-level core competencies that were
developed in one of its businesses to another of its businesses ASUS can
reduce the total cost of operation.
 So, by this we can say that diversification is showing a positive sign.

Open Handset Alliance:

On 9 December 2008, the Open Handset Alliance announced that ASUSTek Computer Inc. had
become one of 14 new members of the organization. These "new members will either deploy
compatible Android devices, contribute significant code to the Android Open Source Project, or
support the ecosystem through products and services that will accelerate the availability of
Android-based devices."

Timeline:

• 2002: Formed subsidiary ASRock.

• September/October 2003: debuts in the cellphone market with the J100 model.
• September 2005: releases their first PhysX accelerator card.
• December 2005: enters the LCD TV market with the TLW32001 model, initially only
available on the Taiwan market.
• January 2006: ASUS announced that it would cooperate with Lamborghini to develop its
VX series.
• March 9, 2006: ASUS announced as one of the producers of the first Microsoft Origami
models, together with Samsung and Founder. Samsung and ASUS devices expected by
April 2006.
• August 8, 2006: announced joint venture with Gigabyte Technology.
• June 5, 2007: ASUS announced the Eee PC at COMPUTEX Taipei 2007.
• September 9, 2007: ASUS started to support Blu-Ray by announcing the release of a BD-
ROM/DVD writer PC drive, BC-1205PT. The release of several Blu-Ray based
notebooks followed.
• October 31, 2007: launched a PDA/smartphone range to the UK market.
• January 3, 2008: ASUS formally splits into three companies: ASUSTeK, Pegatron and
Unihan.
• May 2008: Incompatibility of ASUS A8N32-SLI Deluxe motherboard with Windows XP
SP3 first discovered
• August 2008: ASUS refuses to accept responsibility, or provide support, for the
incompatibility between its A8N32-SLI Deluxe motherboard and Windows XP SP3,
thereby tacitly refusing to guarantee that any of its manufactured components' will
remain compatible throughout the entire lifespan of a given Windows platform (in this
case, the widely-used Windows XP operating system).
• August 12, 2008: ASUS creates a new motherboard (ZT23) capable of clocking a
processing speed of 120GHz, a record
• August 22, 2008: details of the N10 leaked online
• December 2008: ASUS quietly, and without apology, releases a beta BIOS update that
potentially fixes the Windows XP SP3 incompatibility with the ASUS A8N32-SLI
Deluxe motherboard. Registered consumers of the motherboard receive no notification of
the release. The company website's software-update service urges users only to update to
this version if their systems display relevant symptoms.
 FINANCIAL IMPACT:

Revenue ▲ US$ 22.9 billion (2008 [1])

Net income ▲$0.84 billion USD (2008 [1])

ASUS appears in BusinessWeek’s "InfoTech 100" and "Asia’s Top 10 IT

Companies" rankings. It is the number one in quality and service according to
Wall Street Journal Asia and leads the IT Hardware category of the 2008
Taiwan Top 10 Global Brands survey with a total brand value of US$1.324
billion

After diversification ASUS is showing Revenue Maximisation.

Corporate responsibility
Green ASUS

In 2000 Asus officially launched Green ASUS, a company-wide sustainable computing initiative
overseen by a steering committee led by Jonney Shih, the Chairman of ASUSTek Computer Inc.
Green ASUS pursues what the company calls the "Four Green Home Runs", namely: "Green
Design, Green Procurement, Green Manufacturing, and Green Service and Marketing".

Green ASUS measures

• As of 2009 Green ASUS restricts 37 hazardous substances, 31 more than the 6 stipulated
by the European Union RoHS.
• ASUS designs its notebooks to meet Energy Star standards. As of 2009 over 50 ASUS
notebooks have Energy Star certification.
• In 2005, ASUS launched Taiwan’s first GPMS (Green Product Management System)
information-technology platform.
• In 2006, ASUS became the first computer manufacturer in Taiwan to develop an easy-to-
reuse and easy-to-recycle end-of-life "green design" system.
• In September 2006, ASUS initiated a free take-back program for all ASUS-manufactured
products in the USA.

Recognition

In 2006 ASUS obtained IECQ (IEC Quality Assessment System for Electronic Components)
HSPM (Hazardous Substance Process Management) certification for its headquarters and all of
its manufacturing sites.
In 2007 oekom research AG (an independent research institute specializing in corporate
responsibility assessment) recognized ASUS as a "highly environmental friendly company" in
the Computers and Peripherals Industry.

In October 2008, ASUS received 11 EPEAT (Electronic Product Environmental Assessment

Tool) Gold Awards for its products, including four of its N-Series notebooks, namely the N10,
N20, N50 and N80. In the following month, it received EU Flower certification for the same N-
Series notebooks at an award ceremony held in Prague. In December 2008, Det Norske Veritas
conferred the world’s first EuP (Energy-using Product) certification for portable notebooks on
these machines.

Recycling campaign

In April 2008, ASUS launched its "PC Recycling for a Brighter Future" program in collaboration
with Intel and Tsann Kuen Enterprise. This program collected more than 1,200 desktop
computers, notebooks and CRT/LCD monitors, refurbished them and donated them to 122
elementary and junior high schools, five aboriginal communities and the Tzu Chi Stem Cell
Center.

Key Dates
1. 1989: Asus founded
2. 2003: Debuts their J100 model cellphone
3. 2005: Released first PhysX Accelerator
4. 2005: Enters the LCD Market with the TLW32001 model
5. 2006: Asus and Gigabyte form joint venture
6. 2007: Announces the Eee PC
7. 2007: Announces release of BD-ROM/DVD writer PC drive, BC-1205PT
8. 2008: Breaks into three companies, ASUStek, Pegatron and Unihan