Asus 2011 Annual Report Download - page 71

67
4. Competition
The continuing volume growth of notebook is expected; however, low-price effect
remains in effect due to severe market competition; therefore, product design is
focusing on personalization to stimulate demands. ASUSTeK goes for product
differentiation and segmentation in accordance with the demand of each consumer.
The importance of marketing strategy is more than ever in order to create profit
niche for each enterprise.
At the same time, the development of notebook is moving towards upgrading
product value by integrating it with new technology, for example, light-weighted,
thin, portable, energy and power saving, and green environment to help ASUSTeK
outperform competitors in the minds of consumers. In addition to the quality of
light-weighted, thin, and long-lasting effect, ASUS notebook is designed with
unique power management technology to increase using time and power efficiency;
also, is with LED and nature material such as bamboo blended in response to the
calling for environmental protection.
MB, VGA, and CD-ROM are computer elements industry that has a supply chain
formed with CPU, module, PCB, and Connector. ASUS has kept a profound and
excellent relationship with the aforementioned businesses currently. ASUS has setup
subsidiaries to manufacture the aforementioned components for refining product
development technology and securing stable supply of components. Therefore,
ASUS has a comprehensive deployment of vertical integration substantiated. In
terms of global distribution structure, ASUS has worked with over 300 agents and
over twenty thousand distributors closely worldwide. ASUS is the world number one
brand in Europe, Asia, and America; in other words, ASUS is a dominant brand
name in market.
(III) Research and Development
ASUS has striven in R&D since the day of incorporation to control self-developed
technology for the R&D, production, and marketing of advanced MB, Graphics Cards,
Notebook, Eee PC, Server, mobile phone and to develop 4C (computer, communication,
consumer electronics, and automobile electronics) integrated products. ASUS has ATEC
setup in 2003 and with three R&D divisions setup including broadband wireless
communication, wireline / wireless exchanger, and VCD / DVD key technology. For
ASUS, R&D Division and R&D Center work together reciprocally. R&D Center focuses
on technology study and commercialization of creativity. R&D Center is entrusted with
the responsibility to conduct preliminary study and assessment on the software and
hardware key technology, module, and applied program development platform in depth
for the reference of R&D director in judging technology movement and selecting partners.
R&D Division focuses on system integration and product introduction and
commercialization. Technology is transformed into income eventually; also, part of the
income is contributed to the creativity or technology supplier reasonably. R&D Center
will be operated permanently under such a positive cycle. The attention of and incentives
provided by the company’s management will allow ASUS to recruit R&D talents for
technology R&D continuously. In the constantly changing computer world, the company
has key technologies and leading products to compete in market and to create product
value. ASUS was with a R&D expense of $4,924,199 thousand booked in 2011.