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Asustek Case Solution

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Submitted By saurabh6250
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SUPPLY CHAIN MANAGEMENT
CASE SUBMISSION REPORT
Transforming ASUSTeK: Breaking from the Past

Submitted To

PROF. JISHNU HAZRA
INDIAN INSTITUTE OF MANAGEMENT, BANGALORE

Submitted by: Group 6
1311147 Akhil Mittal
1311200 Shashank Shekhar
1311197 Supriya Shailesh Kumar Sehgal
1311195 Sameer Gupta
1311196 Saurabh Kumar
Introduction

ASUSTeK is a Taiwanese multinational computer hardware and electronics company. It started in 1989 as a motherboard manufacturer and ventured into diverse streams in the coming years. Its motherboard business model was based on white box manufacturers and by early 2000s, ASUSTeK became the number one manufacturer of motherboards in the world. Keeping a firm focus on innovation and technical expertise, ASUSTeK ventured into the Notebook market and gained significant market share. Their attempt to enter the PC market failed due to lack of efficient supply chain expertise and a mismatch in their organisational goals with those needed to succeed in the PC market.
ASUSTeK positioned itself as a high-end product manufacturer earning a premium price. It eventually started subsidiaries like AsRock and ASUSALPHA to deal with various market segments like low end motherboards.
In a bid to build their own brand name and move away from anonymity, ASUSTeK separated from its contract manufacturing arm (Pegaatron) and retained only their ASUS brand along with the sales and marketing organization. ASUSTeK now targets to become a global leader in the PC industry.

ASUSTeK has two major product lines – motherboards and notebooks. The value chain for both these products can be represented as follows:
OBM
OBM
ODM
ODM

While motherboards are only a subsystem that go inside the final Desktop PC and/or Notebooks, the Notebooks themselves are the finished products that are sold to the end customers. As it turns out in case of the PC

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