Micro-Star International (MSI) SWOT Analysis
Micro-Star International is a renowned multinational information technology corporation. It is based in Taiwan and it also have manufacturing plants in Mainland, China. MSI produces computers, laptops, graphic cards, motherboards, all-in-one pc, bare-bone, notebook, mobile workstations, and other computer related products. In 2012, MSI’s gaming notebook “GT780DXR” was given International Innovations Design and Engineering Awards. MSI has an extensive and wide-ranging distribution and sales network. MSI is a famous brand and it has very good reputation in industry. Qualified leadership, skilled and economical team has helped MSI in expanding its business. Although there are some threats to the business of MSI such as emerging competitors and overall economy, but it can counter these threats by using its strengths. MSI has expanded a lot and its business will continue to grow in future as well if it continue to adapt itself according to new trends and demands of clients.
Table of Contents
- Abstract. 1
- Introduction. 3
- Investigation Methodology. 3
- Company Outline. 4
- SWOT Analysis. 5
- Strengths. 5
- Weaknesses. 5
- Opportunities. 5
- Threats. 5
- Analysis. 5
- Conclusion. 8
- References. 9
This report is based on Micro-Star International which is a Taiwanese multinational informational technology company. Report will give brief information regarding the history, business, services, products, and important financial statistics of the Micro-Star International. It will be followed by a SWOT analysis of the MSI. SWOT analysis will comprise of strength, weaknesses, opportunities, and threats to the business of MSI. SWOT analysis will be done using a table which will be followed by thorough discussion regarding the strengths and weaknesses MSI. I’ll try to focus on strengths of MSI and try to answer how these strengths can be used to utilize new opportunities and handle the threats posed to the business of Micro-Star International. Report will be closed by conclusion section.
For this report, the Audit report of Micro-Star International was used to get an idea about the financial situation of the company. The website of Taiwan stock market also gave important information regarding the business history and stock value of MSI. The official website of Micro-Star International was helpful in understanding the business of the company and its products. Moreover, its official website also provided information regarding the history, vision and services of the company. All these information was very helpful in analyzing the business of the company. CE website provided information regarding the award won by MSI. In short, I’ve relied on online resources for this assignment.
Micro-Star International or MSI is a renowned multinational information technology company. MSI is a Taiwanese company and headquarter of MSI is located in New Taipei City, Taiwan. It was established in 1986. MSI is known for manufacturing of computer related products. It design and manufacture computer hardware, motherboards, graphics cards, servers, all in one pcs, industrial computers, car infotainment products, and PC peripherals (Anon., n.d.). Its famous gaming notebook “GT780DXR” was given International Innovations Design and Engineering Awards in 2012 (Horn, 2012). Since that, company gained more popularity for its gaming series. Company also provides global warranty service in Asia, Central and South America, Australia and Europe (Anon., 2015).
Micro-Star International is financially a strong company. Its business has been continuously expanding. The audit report of Micro-Star and financial statements are a proof that company has been progressing financially day by day however, there has been few bad patches as well. Its retained earnings for December, 2014 were NT$12,693 Mil. Retained earnings were increased to NT$13,641 Mil in March, 2015. However, company faced bit of crisis and its retained earnings decreased to NT$11,661 Mil in June, 2015. The current stock price of Micro-Star International is 34.00 TWD in Taiwan Stock Market. (Anon., 2015)
Micro-Star International (MSI) SWOT Analysis
– Brand Name
– Pioneers in computer manufacturing
– Wide-ranging distribution and sales network
– Skilled workforce
– Economical labor
– Already established a good reputation
– High revenues
– Well reputed in Gaming equipment
– High competition
– Investment in research and new technologies
– Competitive market
– Small business units
– Tax Structure
– Future Profitability
– Increase in demand of computer and related products
– Expanding economy
– Growing demand in gaming industry
– New products and services according to new demands of clients
– Inability to cope with Technological Advancements
– Overall economic situation of world
– Growing competition
– Decrease in profit margin
– Increase in cost of raw materials
– Rise of labor costs
– Increase in Taxes
Strength, Weaknesses, Opportunities and Threat Analysis of Micro-Star International gives us detailed information about the company. Micro-Star is an old company which has famous and well-reputed brand name. It has skilled workers and highly qualified leaders who understands the market. It has won International Innovations Design and Engineering Awards in 2012 for its gaming notebook which has contributed to its good reputation. Moreover, manufacturing plants of Micro-Star are based in Taiwan and Mainland China where cost of labor is comparatively low as compared to USA or Europe. Most importantly, MSI has an across-the-board and wide-ranging sales and distribution network. This enables MSI to cover a huge number of clients all over the world. Considering all these advantages of MSI, it can be said that company is in a very good position to catch new opportunities. World is getting more and more digital and people are switching to advanced computers, laptops, and other electronic devices. MSI is a well reputed brand and it can fulfill the needs of the customers. If it continues to launch new products which are according to the needs of clients then business of MSI will surely continue to prosper. Moreover, gaming industry has become a huge market. A significant portion of products of MSI is related with gaming industry. As we know, gaming industry is expanding day by day. If MSI continues to focus on gaming industry then it is most likely that it will grab the maximum share in gaming industry. Nowadays, new games require highly advanced pcs, graphic cards and similar accessories. MSI must continue to hold the firm grip in producing quality products which are required in gaming industry.
SWOT analysis of MSI can be used to counter threats to the business of MSI. Lack of investment in research and modern technologies is a weakness of MSI. It was observed that company wasn’t investing much in this area as compare to its competitors. It is necessary that MSI spends enough in this area which will keep it ahead of its rivals. Another threat to MSI is tough competitors and narrow market. MSI needs to use its extensive distribution and sales network to compete with competitors. Moreover, they need to continue to bring more advanced products. World’s economy faced a crisis in past years which effected the business of almost every company. MSI should make full use of friendly tax structure and economical labor to counter this threat in future. Moreover, these can also help it increase its profit margin. The competition in industry is very high and profit margin is very low. MSI needs to expand its products which will give it an edge over its rivals. Last but not the least, the most important thing MSI must do is spend more on research. It will help the company a lot in expanding its business.
We have witnessed massive advancement in computer manufacturing. There are only few companies like Micro-Star International who’ve adapted themselves according to advancements and new trends. MSI, basically a computer manufacturer, now produces advanced notebooks, graphic cards, and other gaming equipment. Company has managed to expand its business because it adapted according to new needs of clients. MSI has also looked for other options such as gaming notebooks which has helped it to sustain it business growth. The statistics provided by Audit Repot of MSI also supports this statement. It must be noted that MSI has a huge distribution and sale network which is vital for its business. This network can be used to cope with the challenges presented by competitors. Reputed brand name, skilled team, and a proud history are advantages of MSI which are key to advancement and growth of its business.
- Anon., 2015. Global Warranty Service Locations. [Online] Available at: http://www.msi.com/page/service-location [Accessed 3 November 2015].
- Anon., 2015. Micro-Star International Co Ltd (TPE:2377). [Online] [Accessed 3 November 2015].
- Anon., n.d. MSI Products. [Online] Available at: http://www.msi.com/index.php [Accessed 3 November 2015].
- Horn, R., 2012. Innovations 2012: Design and Engineering Awards. [Online] Available at: http://www.ce.org/i3/VisionArchiveList/VisionArchive/2012/January/Innovations-2012-Design-and-Engineering-Awards.aspx [Accessed 3 November 2015].