I have completed this research project "Dissertation report on Industry analysis on Electronic industry with special focus on Asustek Computer Inc and Lenovo Group Ltd." for the partial fulfillment of the requirement for the award of Master's in Business Administration.

1. DISSERTATION REPORT OF INDUSTRY ANALYSIS ON
ELECTRONIC INDUSTRY WITH SPECIAL FOCUS ON A
COMPARISON ANALYSIS BETWEEN ASUSTEK
COMPUTER INC. AND LENOVO GROUP LTD.
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF MASTER’S IN BUSINESS ADMINISTRATION
SUBMITTED BY-
Hridoy Kr Deb
(MBA 2019-2021)
Department of Business Administration
Tripura University
(A Central University)
Agartala, Suryamaninagar, 799022, Tripura

2. CERTIFICATE
This is to certify that the project entitled, “Dissertation Report of industry analysis on
electronic industry with special focus on a comparison analysis between ASUSTEK
Computer Inc. and Lenovo Group Ltd.” submitted by Hridoy Kr Deb, Enrolment no:
1906460035 to the Department of Business Management, Tripura University is a bonafied
record of work carried out under my supervision guidance. This report has fulfilled the entire
requirement as per the regulation of the University.
Department of Business management
Tripura University (A Central University)
Date:
Place:

3. ACKNOWLEDGE
The accomplishment and final outcome of this project required a-tons of guidance and
supervision from many people and I am extremely glad to have got this all along the completion
of my project.
I am thankful and fortunate enough to get constant encouragement, support and
guidance from all the faculty members, Tripura University in the completion of the industrial
project.
I would like to express my special thanks of gratitude in completing the project report
especially my Head of Department Dr. Debarshi Mukherjee sir and other faculties of
Department of Business Management, Tripura University.
I would also like to thank each and every person who is directly and indirectly helped
me in completion of this project report. Thanks to my parents and friends for their support.

4. TABLE OF CONTENT
SL No. Title Pg. No.
1. Introduction of the Industry
 The ASUSTEK Computer Inc.
 Lenovo Group Ltd.
 The Competitors of ASUSTEK Computer Inc. Lenovo
Group Ltd.
1
2. Literature Review 8
3. Objectives of the study 9
4. Financial Analysis 10-13
5. Porters Five Forces Model Analysis 14
6. SWOT Analysis 15-16
7. PESTLE Analysis 17-18
8. Findings 19
9. Conclusion 20
10. Reference 21
11. Plagiarism Report 22-23

5. Page | 1
INTRODUCTION OF THE INDUSTRY
The Electronic Industry has emerged as one of the biggest and fastest growing industry right
from its origin. The profit margin brought out of this is more than other olden industries. This
industry’s presence has indirectly transformed every other industry’s performance as well as
every facet of society. Electronic industry has emerged as a gigantic industry though it has a
lot more potential to be the biggest in future. This industry made a lot of changes in our lifestyle
by providing the basis of revolution of information, by providing crucial support system of
many society, also by providing support and crucial engagement in necessities as food, water,
transportation, energy telecommunication, health care, finance and trade.
Speedy advancement of technology in 21st
century to serve the consumer and also in other
industry urges electronic industry to become bigger and opportunistic. Basically the electronic
sector produces all the electronic equipment whatever is needed in the society and other
consumer electronic that cater our day-to-day life and also produces electronic components that
are needed in other industries as well. The rapid growth of the electronic industry is accelerated
by the consumer demand and spending all over the world. R&D plays a crucial role in this
industry as its growth most of the time driven by innovation. China is one of the biggest
electronics producer for long period of time and henceforth also a major market for consumer
and industrial electronics.
Indian electronic industry has done a great job in recent past. The electronic industry’s market
size in India is almost $118 billion. Electronic industry of India contributes 2.7% GDP of the
country. Exports of Indian electronic industry reaches $11.7 billion during the financial year
of 2019-2020. Indian electronic industry provides more than 13 million employments directly
or indirectly. Consumer Electronic market size was valued at over 1 trillion in the year of 2020
and is estimated to grow at a CAGR of more than 8% from 2021 to 2027.

6. Page | 2
ASUSTEK COMPUTER INC.
ASUSTek Computer Inc. founded on 2 April, 1989, in Taipei City, popularly known as ASUS
is a Taiwanese MNC which deals with computer hardware and electronics predominantly
engaged in the manufacture and distribution of computers, mobile phones and other consumer
electronics. It provides desktop motherboards, server motherboard, three-dimensional graphic
display cards, audio cards, all in one computers, notebooks computers, PCs, smart mobile
phones, Asus IOTs, LED & LCD monitors, broadband as well as servers and also other
electronic equipment’s.
Besides, ASUS in the World’s No.1 motherboard and gaming brand as well as ASUS in one
of the top three consumer notebook vendor. In the year of 2019 ASUS received more than 11
awards from some of the world’s most admired companies by Fortune, and among the Top
Regarded Companies by Forbes.

7. Page | 3

8. Page | 4
ASUSTEK COMPUTER INC.
Sector: Electronic Equipment, Smartphones, Computers, Communicating
Devices, Peripherals.
Headquarter: Beitou District, Taipei (Municipality), Taiwan
Chairman: Jonney Shih
President: Jonathan Tsang
CO-CEO: Samson Hu
CO-CEO: S.Y. Hsu

9. Page | 5
LENOVO GROUP LTD.
Lenovo is an electronic and technology brand founded by Liu Chuanzhi in 1984. The company
was incorporated in 1988 and the initial name of the company was ‘Legend’. With this name
the company continue its business for almost 18 years, in 2002 the company name as changed
to ‘Lenovo’ to expand its presence in global market.
The company provides a wide range of products – smartphones, personal computers to
notebook, tablets, workstations, electronic storage devices, servers, smart wearable and other
information technology related software’s.
The company is listed now in fortune’s 500 lists and holds 286th
rank which considered to be
remarkable milestone. Today, the company has more than 57000 employees in more than 60
countries around the world but also serves in more than 160 countries through its well-designed
distribution channels.

10. Page | 6
LENOVO GROUP LTD.
Sector: Electronic Equipment, Smartphones, Computers, Communicating
Devices, Peripherals.
Headquarter: Beijing, China
Chairman: Yang Yuanqing
CEO: Yang Yuanqing
President: Gianfranco Lanci
LENOVO PRODUCTS PORTFOLIO

11. Page | 7
THE COMPETITORS OF ASUSTEK COMPUTER INC. & LENOVO
GROUP LTD.
Samsung Electronics Co. Ltd.:
Samsung is a South Korean MNC which was founded as a grocery trading store by Lee Byung-
Chull in in March 1938. The company later on entered into the electronic industry in 1969 and
the first product as an electronic company was black and white television. Samsung also has a
large variety of products which include Television, tablets, mobile phones, air conditioner,
refrigerator, IOTs, LED & LCD, all in one computer, smart pc’s, laptops, notebooks. Due to
its product quality and product offering Samsung holds an important position in the market and
also puts tough competition for Asus.
Acer:
Acer is Taiwanese Multi-National electronics and hardware company. Headquarter of Acer is
situated in Taipei, Taiwan. Acer known for its quality products like laptops, desktops,
smartphones as well as gaming smartphones, gaming laptops and desktops, virtual reality
devices, servers and computer peripherals as well. Carolyn Yeh, Stan Shih and George Huang
founded Acer in 1976. In 2020, Acer was amongst the top six pc vendors in the world with
more than 8000 employees around the world. The company is also famous for its gaming
accessories.
Hewlett Packard (HP):
Hewlett Packard popularly known as HP is am American MNC famous for manufacturing high
quality computers and laptops for a long period of time in the history. It was founded by Bill
Hewlett and Dave Packard in 1939, however, the mother company split up in November 2015,
where Hewlett Packard Enterprise and HP Inc. emerged as different entities. HP also offers
different kinds of laptops and computers, tablets, printers, other computer peripherals. Due to
its well-known high quality product and goodwill in the industry HP is always considered as a
huge competitor in the industry.
Apple:
Apple is always known for its high-end premium computers, laptops and mobile phones in the
market. Product quality, privacy and technology always help Apple to uniquely stand-out in
the market. It is an American MNC which was founded on April 1, 1976 by Steve Jobs and
Steve Wozniak. The company leads the industry in regards to sales and revenue and because
of its premium and lavish product quality this brand always considered as one of toughest
competitor in the industry.

12. Page | 8
LITERATURE REVIEWS
Till date the features of the emergence of the global electronic industry are mirrored in a
number of theoretical works of researchers from the whole world. Few of the literatures
discussed below which highlight the topic of study and gives us proper knowledge about the
industry. Jiang Zemin, (2010) in his article said that the electronic industry needs to
persistently serve traditional industries by offering them new and modern electronic equipment
and devices and develop production and enhance the economic performance of other industries
with the help of technology and innovative devices. To maintain a sustainable growth of a
nation it requires all the industries perform efficiently but in order to perform efficiently all the
other industries will require electronic technologies as a base. Hence, the importance of
electronic industry for the growth of other industries is inevitable. Sindhu, (2017) in her article
said that the time from when “Electronic Revolution” hit the telecommunication industry the
level of competition in the field has increased immensely which leads to greater innovation and
also helped for the betterment of digital economy. She also said that the importance of
electronic industry in 21st
century’s daily life is foreseeable. Electronic technologies such as
robotics, animation, IOT has made our lives smarter than ever before. Demenko O, Savina N.
(2019) have done a systematic analysis of the process of digitalization, which straightaway as
well as indirectly models of other industry market as well as the electronic market. The study
of Simoes W. and Wessolowski L. (2017) analyses that the development of path to improve
the sustainability of the companies in the arena of electronic industry. In the work of Fausiah
Che Leh (2016) in his work described the role of Research & Development in the betterment
of electronic industry is the key and the industry should not tolerate any kind of ignorance
regarding the R&D. Skvortsova N.V., Koptyakova S.V., Balynskaya N.R. (2016) worked
together and provided a reasoning for the role of electronics in the technological and innovative
development as well as the sustainable development of the state. Dahlgaard-Park and
Dahlgaard (2010) advised in their work that a company must develop and improve their areas
of leadership, partnership and people before improving their process of innovation and new
product launch.

13. Page | 9
OBJECTIVES OF THE STUDY
To analyse the financial position and draw a comparison between of ASUSTEK Computer Inc.
and Lenovo Group Ltd. in electronic industry with the help of Financial Analysis, Porters Five
Analysis, SWOT Analysis and PESTLE Analysis.
SOURCES OF DATA COLLECTION
This dissertation report is totally based on Secondary Data. All the required and relevant
information regarding the study has been collected from company websites, articles, journals,
reports, newspaper and annual report of the company.

14. Page | 10
FINANCIAL ANALYSIS
Financial position of ASUSTEK Computer Inc.
Unit – NT$
Interpretation: From the above depicted data we can see the financial position of ASUSTEK
Computer Inc. According to the data we can see that the operating revenue of ASUSTEK
Computer Inc. for the FY20 increased by a goo rate of 19.82% against the previous year. The
Company’s operating cost has also increased by a rate of 18.66% during the FY20 against the
previous year. ASUSTEK Computer Inc. has achieved a good gross profit during the FY20
which has increased by 33.3% against the previous FY19. The company’s realized gross profit
has also increased by 57.26% in FY20 which is considered as a tremendous growth rate.
ASUSTEK Computer Inc. profit for the FY20 has also increased by leaps and bounds at a rate
of 118.79 % which is amongst the highest by brand in the whole electronic industry around the
world.

15. Page | 11
Financial position of Lenovo Group Ltd.
Interpretation: From the above depicted data we can see the financial position of Lenovo
Group Ltd. From the data we can see Revenue of the company decreased by 0.63% in FY20
against the previous FY19. Gross Profit of Lenovo Group Ltd. increased by 13.3% in the FY20
against the previous year. The operating profit of the company has also increased in the FY20
by 22.1 % which is considered to be a good growth of the company. Earnings per share of
Lenovo Group Ltd. has also increased in the financial year 2020 by 11.3 % against the previous
year. The operating cost or expenses of the company has also increased in the FY20 at a rate
of 11.7 % against the previous year. As compare to Asustek Computer Inc., Lenovo group Ltd
growth rate of revenue, gross profit, operating profit is lower in the FY20. Which shows that
the company needs to perform better in the upcoming years to compete with the industry giants.

16. Page | 12
Report of comparison of Profitability of various companies in this industry
FY20
1. Lenovo Group Ltd. 2. ASUSTEK Computers Inc.
3. Dell Technologies Inc. 4. HP Inc.
Interpretation: From the above profitability index of various companies in the electronic
industry we can clearly see that Asustek Computer has the highest net margin amongst the
above mentioned companies in FY20 of 5.81%. HP Inc. has the second highest net margin of
5.03%. The net margin of Dell is 3.45 % whereas Lenovo has the lowest net margin of 1.87%.
Basically net margin of a company shows how much efficiently a company can convert its
sales into actual profit. The higher the net margin of a company is the higher the company is
earning revenue from its sales.
Return on assets basically suggest that how much a company is profitable relative to its assets
or the resources that a company owns or controls. HP Inc. has the highest return on asset of
8.35% which clearly shows that the company is doing a good job. Asus has the second highest
return on assets of 6.41% which is also considered to be a good margin according to a multi-
national company. The return on assets for Lenovo is descent at a rate of 3.23 % and Dell has
the lowest return on assets amongst the above discussed companies which is only 2.68%.

17. Page | 13
Comparison of Revenue Growth Rate for the FY19 to FY20
Interpretation: Revenue growth (increase or decrease) of a company basically describes a
company’s overall growth or decline in a fiscal year against the previous year which shows the
company’s revenue state. From the above data we can clearly because of the Covid-19
Pandemic most of the companies faced a decline in revenue growth in FY20. But after the first
quarter of the Covid when the world accepted the new normal, most of the things gone online
from then we can see a rise of revenue growth of the electronic companies.
ASUSTEK Computer Inc. faced a negative growth rate of -6.10% in the FY19. And then the
company manages to grow its revenue growth when things gone online and a surge of
electronic products have been seen then the company achieved a revenue growth rate of
15.10%. Dell Technologies Ltd. achieved a revenue growth rate 14.65% during the FY19 and
1.69% in the FY20. Dell managed to achieved a positive revenue growth rate despite the
pandemic which is commendable. The revenue growth for HP Inc. in FY19 was 0.49% and the
company achieved a negative growth rate of -3.60% in FY20. The revenue growth rate for
Lenovo Group Ltd. in the FY19 was 12.54 which is good but in FY20 the company achieved
a negative growth rate of -0.63% which should have better than this considering the company’s
performance in FY19.
-10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00%
ASUS DELL HP LENOVO
2020 15.10% 1.69% -3.60% -0.63%
2019 -6.10% 14.65% 0.49% 12.54%
Revenue Growth in %
2020 2019

18. Page | 14
PORTERS FIVE FORCES MODEL ANALYSIS
ELECTRONIC INDUSTRY
1. Threats of New Entrants: Low
The electronic industry is highly concentrated. Since, Goodwill and quality assurance
matters the most in this industry and also start-up cost in electronic industry is high
hence the threat of new entrants is low. This industry requires Economies of scale to be
efficient therefore this is a threat for new entrants to attain that. This industry requires
innovativeness to compete and for that companies needs to invest more on R&D rather
than its marketing hence the threat of new entrants is low in this industry.
2. Bargaining Power of Supplier: Medium
Since it is a manufacturing industry, the company requires to outsource its raw material
to make its products. Electronic products like Mobile Phones, Laptops, All-in-One PCs,
LED & LCD etc. needs various raw material to be a complete product hence the
bargaining power of supplier is there to a certain level.
3. Bargaining Power of Buyers: Medium
Bargaining power of buyers in electronic industry seems to be medium because the
market is well penetrated by all the other renowned, established companies as well. And
the industry provides a wide range of variety of products and brand hence the company
sometimes changes the price of its products to attract more number of customers.
4. Threats of Substitute: Low
The threats of substitute for the company and the industry for that matter seems to be
low. Because each and every product segments offers some unique characteristics
industry. For instance, a mobile phone is used to communicate with other people and
nothing can substitute a mobile phone, same goes for a laptop which can be used for
various reasons but can’t be substituted with desktops because of its portability
characteristics.
5. Competitive Rivalry: High
This Industry have some major and well know brand competitor which is also
dominating the industry. As I have already mentioned in my study that there are several
brand competitors are available to compete within this industry like Dell, HP, Apple,
Acer, Microsoft, IBM, Samsung and many more reflects the competitive rivalry is high
in this industry. This goes for all the other companies as well because the market is well
penetrated by well-known established brands.

19. Page | 15
SWOT ANALYSIS
ASUSTEK Computer Inc.
STRENGTHS
 Brand Image & Recognition: ASUS have done a good job over the years and hence
was successful to make a brand image and recognition as Taiwan’s top performing
international brand. Recognition and strong brand image helps the company to retain
the old customer as well as making new customers as credibility of the company plays
a huge role.
 Strong in-house manufacturing: The company has vertically integrated operations
into various divisions to manufacture or produce various electronic components.
 Deep Product Portfolio: ASUS always have a competitive advantage of having a
fantastic product portfolio. ASUS has a complete range of products which are also
known for its depth of product line and as well as product depth.
WEAKNESSES
 Lack of Scale: ASUS has a good fantastic manufacturing potential and product
portfolio but distribution of the company is not upto the mark in comparison to other
major competitors in the industry.
 Poor Marketing: One thing that the company lacks is good marketing. The competitors
of the company like HP, DELL etc. are very good in terms of marketing. Lack of
participation in branding programmes is also a part of poor marketing.
 R&D: Launching new products with new technology, bringing innovation and change
in new products is required to compete in this industry. R&D plays a crucial role in
bringing innovation and technology.
OPPORTUNITIES
 Growth in the Smartphone market: Smartphone market is one of the fastest growing
market in the world. ASUS have launched quite a few smartphones but it was not that
successful. The company have a good brand image hence with right innovation,
technology and right marketing of the product can make it successful.
 Growth in Disposable income: In the emerging countries, the use of internet and
internet penetration has increase and so has disposable income. People are more aware
and used to of technological devices which they use in their daily life. Hence, there is
always a chance of penetrating the products in countries like these.
 Brand Image: ASUS has a good brand image when it comes to electronic devices.
With good promotion and marketing an opportunity lies here for the company to retain
its loyal customers and also promote their other products such as smartphones etc.
THREATS
 Competition: ASUS faces an immense competition by its competitors in the industry.
There are several giant companies which gives ASUS an intense competition such as
DELL, HP, LENOVO, APPLE etc.
 Decreasing Margins: As competition grows, the pricing tactics become more crucial.
If ASUS failed to distinguish its product from competitors, margins will be decreased.

20. Page | 16
LENOVO GROUP LTD.
STRENGTHS
 Leading Market Player: Lenovo Group Ltd. is one of the largest market player in the
world. In Computer market Lenovo is the largest computer vendor in the world. In 2015
Lenovo had the highest market share in PC market of 20.7%. Lenovo is also performing
good in tablets and smartphone market.
 Superior Performance Across Product Lines: Just like ASUS Computer Inc. Lenovo
Group also have a large product portfolio and it is also considered as one of the strength
of the company. The Company always believed in that instead of sticking with a single
source of revenue the company should expand its product lines.
 International Growth: Lenovo has achieved a good international growth within its
limited lifespan. Lenovo’s international growth is so impressive that they sell their
products across 160 countries in the world. The company also have its presence in
almost 60 countries around the world.
WEAKNESSES
 Slow Market Share Growth: Due to extremely high and intense competition in the
electronic industry the company’s growth is slower than its rivalries despite having a
large and quality product portfolio.
 Lagging in Marketing: Lenovo looks less aggressive when it comes to promotion and
marketing of its products than its competitors. Marketing strategy of its rivalries such
as Apple, HP and Dell looks more aggressive and promising.
 Late Entry in Key Areas: While Lenovo is there in the electronic industry for a long
period of time but its entry in key areas such as smartphone market, all-in-one pc,
gaming pc was late as compare to its competitors.
OPPORTUNITIES:
 Growing Smartphone Market: Smartphone market is growing at a high pace and
expected to grow more in near future. Lenovo has a good opportunity to invest in the
market.
 Strategic Acquisitions: Lenovo has strategically acquired a number of company in
past and there is a scope to acquire more if the company perform well in near future.
 Cloud Computing: Cloud Computing is a growing market and Lenovo as one of the
market leader has all the potential and opportunity to invest in this market.
THREATS:
 Intense Competition: Lenovo as a part of global electronic industry always have to
face a intense competition by other giant companies such as Apple, HP, Dell, Asus etc.
in all the segment of its product line such as smartphones, PC’s etc.
 Decline ASPs: As the competition grows aggressive pricing of various products can
hamper the Average Selling Prices of the company. Hence, to compete in the market
the company should always work on its production and manufacturing process.
 Trade Wars: Chinese brands are getting affected by the US-China trade wars. While
Lenovo has not faced any significant trouble but there is always a chance to get affected.

21. Page | 17
PESTLE ANALYSIS
ASUSTEK Computer Inc.
Political Factors: Political factors plays a crucial part in maintaining the stability or instability
of the company. ASUS is a Taiwanese’s brand. Countries that have poor relation can impact
the ASUS as a brand. The political stability of importing country as well as the exporting
country is a matter of concern. The government control on the industry on various factors such
as usage of internet can also have an impact on the company’s sales.
Economic Factors: The economic environment in which the company participates can bring
out a lot of prospects. Cost of raw material and also the fluctuation of the foreign currency
always affect the company how it does its business. Sales and profitability always gets
influenced by the attractive prices of the company along with quality products. Taxes in
economic factor plays a crucial role which affect a company’s business.
Social Factors: Social factors can affect a business severely. The increased use of social media
and internet over the years increased the business of various companies under this industry.
The demand has increased over the years because people wants more mobility, wants to stay
connected, wants more entertainment etc. all these things has helped the industry to grow more.
ASUS has invested in gaming pc’s considering the latest trend of gaming PC’s and gets a warm
response by the gamers all over the world. Sales and profitability also increased when the
standard of living increases of a country.
Technological Factors: This industry is based on innovation, technology and changes. ASUS
as a competitor of this industry should always invest more on Research and Development get
valuable results. Not doing so could affect their business severely. Technology can be used in
their own production, packaging to make the end products more attractive and valuable for the
customers. The technologies can include various things such as material, products process. To
compete in this industry against the giant companies like Apple, Dell, HP, Lenovo etc. Asus
must focus on this.
Legal Factors:
Any company in this industry may face issues regarding technological issues and so as ASUS
hence legal compliance is an important issue that the company should take care of. As multi-
national company, ASUS sells its products to various countries, hence the company must be
aware of the local laws of that country. Profitability, sales, operational efficiency might get
affected if the safety laws, labour laws and some tax related laws are not followed properly by
the company. This laws also differ country to country and hence the company’s implication of
these laws should also differ.
Environmental Factors: As a part of the electronic industry each and every company holds
some key responsibilities and so as Asus has some responsibility to take care and plan where
and how to dispose technological or electronic waste. Electronic waste or e-waste basically
describes the absolute devices discarded electrical which no longer serves its purpose. By not
disposing them correctly companies can contribute in major environmental effects and health
of human that could be profoundly serious. Hence, all the companies should take initiatives to
ensure the environment friendly operations. ASUS should also focus reducing use of
energy/power and to be self-reliant company that uses its own energy.

22. Page | 18
LENOVO GROUP LTD.
Political Factors: Political factor plays a significant role in maintain the stability or instability
of a company. Though the Chinese Govt. always promote their local companies like this and
try to maintain the stable political environment but because of US-China trade wars the
companies get affected often. The Chinese Govt. helped their local companies like Lenovo to
grow after joining WTO, when China have given relief in restrictions.
Economic Factors: After the recession, the global economy has changed a lot where the
spending of the consumer and level o0f employment had given up. Lenovo is a Chinese
company and the economy of China is growing rapidly which helps the company directly or
indirectly. The fluctuation of the global currency always creates challenges for a multi-national
company like Lenovo. A well-developed economical structure of a country always
compliments the local companies which Lenovo has as an advantage.
Social Factors: A company’s organization culture always get influenced by the values, trends
and most importantly societal norms. Understanding the local and international societal laws,
trends and values as a multi-national company is always crucial. Lenovo sells their product in
160 countries around the world and definitely the societal norms, values and trends will also
differ country to country, therefore understanding different norms and trends of different
country can help the Lenovo’s marketing department to attract target consumes.
Technological Factors: As a player of electronic industry, Lenovo always needs to consider
this factor as the top most factor. The rapid growth of technological advancement across the
globe have increased immensely and hence the company should take strategic decision to
compete in the industry. To achieve a sustainable growth Lenovo must invest more on Research
and Development to match the level of rapid and constant changing technological development.
Legal Factors: Lenovo as a well-established multi-national company which sells its products
in 160 countries and also have a presence in more than 60 countries around the world must
comply with the legal obligations and laws of different countries. As a MNC, Lenovo always
needs a careful evaluation of legal aspects and regulatory structure of different countries to
operate in different countries. If the company fails comply with a particular country’s legal
factors, then the company can face serious troubles to operate within that particular company
for long period of time.
Environmental Factors: The rapid growth of climate change and growing environmental
pollution comes with technological advancement has forced the business organization to adopt
various initiatives and innovative waste management and recycling practices. Many countries
now-a-days offers subsidies for taking initiatives in renewable technologies hence Lenovo can
take benefit from it by investing in renewable technologies. Going green and other eco-friendly
trends is emerged around the world. CSR spending of Lenovo can be invested in such
initiatives.

23. Page | 19
FINDINGS
 The electronic market is expected to grow at a CAGR of 5.3% in 2020-2027 period
around the world.
 Indian electronic industry is expected to grow at a CAGR of 24.4% in 2020-2025
period.
 The electronic industry is growing rapidly and the competition amongst the major giant
companies is immense.
 ASUSTEK Computer achieved a brand revenue growth rate of 15.10% in the FY20
which is much higher than Lenovo Group revenue growth which was in negative -
0.63% in FY20
 Threats of substitute product is lowest in the electronic industry in comparison to other
industry.
 ASUSTEK Computer has one of the highest net margin of 5.81% during the FY20 in
comparison to Lenovo Group Ltd. 1.87%.
 Lenovo’s return on equity (33.57%) is higher than Asus’s return on equity which is
only (12.66%) in the FY20.
 ASUSTEK Computer Inc. should work on its promotions and marketing to compete
the giant companies in the industry.
 Lenovo Group Ltd. should focus more on smartphone market as the market is growing
rapidly.
 ASUSTEK Computer Inc. should invest more on its Research and Development
programmes before launching new products of its smartphone segment.
 Net income of ASUSTEK Computer Inc. has increased significantly in FY20 by
249.4% and higher than Lenovo which has 77.3% growth in net income.
 All the companies of electronic industry should take some initiatives to deposit its waste
or e-waste in an environment friendly way.
 As innovation and technology is the main key of electronic industry, both the
companies should invest more on their R&D to grow as market leaders in future.

24. Page | 20
CONCLUSION
The growth of global electronic industry is significant. According to a study, it is expected to
grow with CAGR of 5.42% during 2020-2025. In the above dissertation report I have
mentioned about the global electronic industry with special focus to ASUSTEK Computer Inc.
& Lenovo Group Ltd. in electronic industry. With the passage of time and rising standard of
living driving the technological advancement hence both the companies have significant
opportunities to grow in future. Asus and Lenovo offers a wide range of products which attracts
the consumer all over the world. The quality of product and service by the company matters
the most for the customer and hence both the companies should constantly work on their
process of manufacturing and production. Both the companies are performing well especially
Lenovo have achieved a significant growth rate in recent past. Whereas, Asus’s performance
in recent past was not upto the mark but in FY20 Asus has performed significantly and achieved
several milestones. This report analyses both the company’s financial condition with financial
analysis, swot analysis, porters five and pestle, and from that it is found that both the companies
have great potential to perform exponentially well and also have the capability to be the market
leader.

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REFRENCES
 www.google.com
 www.wikipedia.com
 www.asus.com
 www.lenovo.com
 www.asus.com/EVENT/Investor/ir_report
 https://investor.lenovo.com/en/publications/reports.php