Flextronics Intl Ltd Flextronics International (Flextronics) is one of the leading global providers of electronics design and electronics

manufacturing services to original equipment manufacturers. The company primarily offers services to different markets including communications; automotive, marine and aerospace; health care; and consumer electronics. The company primarily operates Asia. It is headquartered in Singapore City, Singapore and employs 162,000 people
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths Robust inorganic growth Strong production base Diversified customer base

Weaknesses Fluctuating margins High debt burden

External

Opportunities Positive outlook for electronics manufacturing services market Growing global computers and peripherals industry Growth in semiconductors market

Threats Slowdown of the global economy Intense competition The ROHS and WEEE directive

Flextronics Parent Company Category Sector Tagline/ Slogan Flextronics International Ltd Electronics IT and Technology Impossible is where breakthrough begins

USP

Speed in product ramp-up, leveraging on LEAN and Six Sigma practices STP

Segment Target Group

Electronics; supply-chain management SMEs, corporates, OEMs

Positioning

As a brand that can make anything possible (in supply-chain solutions)

SWOT Analysis

Strength

1. Over 100 manufacturing and over 25 software and service locations all across the world which provide economies of scale 2. Global, integrated presence in over 30 countries with OEMs, supply chains and service networks all integrated, to provide flawless service to its clients 3. Approximately three-fourth of the companys manufacturing is located in low-cost countries like India, China, Brazil 4. Strong presence across different kinds of production technologies 5. Leader in global procurements and a strong workforce of over 200,000 6. Balanced portfolio of products

1. High customer concentration i.e. a small base of customers account for a large percentage of total sales, this means high dependence on these customers 2. Reduction in HVS segment could prove to be a drag on the overall growth of the company 3. High concentration of manufacturing facilities in China fluctuations in China will considerably affect its operations

Opportunity

1. The company expects to grow revenues as the hardware market will grow 2. Flextronics HRS segment outperformed the market and the company expects its revenue from the segment to grow substantially 3. The automotive markets the company serves are expected to grow alongwith its IEI segment 4. More marketing and brand awareness would boost global penetration

Threats

1. The labour and other costs in low cost Asia economies have been increasing causing margin pressures for manufacturing companies such as Flextronics 2. The high cost inflation across Asian countries where Flextronics has most of the manufacturing facilities is likely to pressurize the margins 3. Supply chain disruptions caused by factors outside company control like the tsunami in Japan

Competition

Competitors

1. Jabil Circuit, Inc. 2. Celestica Inc. 3. Benchmark Electronics, Inc. 4. CTS Corporation 5. Nam Tai Electronics, Inc. 6. SMTC Corporation 7. ALSTOM 8. Avnet, Inc.

 Flextronics International Ltd. (simply known as Flextronics or Flex) is an American supply chain solutions company that offers design, manufacturing, distribution and aftermarket services[1] to original equipment manufacturers (OEMs). Flex is a Global Fortune 500 company based in the Silicon Valley (filing in Singapore) and is the second largest global Electronics Manufacturing Services (EMS) company by revenue. Flextronics has manufacturing operations in over 30 countries, totaling approximately 27.2 million square feet and 200,000 employees.

Customers
Below is a list of major customers to which Flextronics provides design, manufacturing or after-market services:[9]

Company Alcatel-Lucent Apple Cisco Ericsson Ford Motor Company Hewlett-Packard Huawei Technologies Lenovo Microsoft

End Product Business telecommunications systems and core routers and switches Smartphones, notebooks and desktop computing, tablets and consumer entertainment devices Core routers and switches, wireless and enterprise telecommunications infrastructure Radio base stations for Long Term Evolution and GSM infrastructure SYNC Modules, Lighting Products, Solenoids and Motion Control Electronics Notebook and netbook computers, inkjet printers and storage devices Wireless and enterprise telecommunications infrastructure and smartphones All-in-one desktop, desktop and notebook computers Computer peripherals and consumer electronics products