ASUSTeK Computer Inc.
ASUSTeK introduced a new computer on the market specifically for easy, personal use. They marketed the product to children, teenagers, the elderly, and house wives. This new computer was called “Eee.” As soon the computer it the shelves, it sold out. The company recently closed out 2007 having sold over 350,000 units in the last quarter year. The company is beginning to face several issues including competition entering the market, keeping an advantage over competitors, and not disrupting the company’s core notebook business. We believe in order for the company to stay competitive they must put the focus back on their core source of revenue, which is the notebook business. The company should also continue to develop the new team specifically for the new “Eee.” With all the new competitors on the market they must continue to produce a better computer by finding the best, affordable companies to outsource from.
ASUS was a leader in motherboard development. The company shipped 55 million motherboards in 2006, accounting for 1 in 3 desktop PCs sold. The company used their motherboards in their own notebook computers, making the company the world’s fourth-largest notebook computer manufacturer by units shipped. The company was seeing major success. The company forecast high volume, low margin component contract manufacturing unit to hit $878 million. The company then noted a need for a low-cost , portable, easy to use lap top.
In 2006 Jonney Shih, the company chairman, began to see the PC platform as too complicated for a majority of the population. He wanted to create a product that would tap into a market that doesn’t normally buy computers. Shih’s demographic for his new computer included children, teens, seniors, and homemakers. Jerry, head of the motherboard division, fully backed Shih’s idea. The company built a huge team, mostly members from the Motherboard unit, to build their new product. This new product took time and money away from the company’s best selling product. The company