CASE FIBOS has persistently been ranked at the top position because of its uniqueness in electronics manufacturing. FIBOS is regarded as a leader for innovating products in the market and has now become one of the biggest online retailers for electronics solutions. The electrical business is influenced by macro-environment forces and the economy as a whole. It is pertinent to know that FIBOS receives a major portion of its sales from outside the European market. Sales contribution of FIBOS sales from outside the Europe is of more than $113.8, whereas, the sales income from the Europe is $68.8 billion. In FIBOS case study, it is important to understand the amount of negative impact of any political disturbance or revolution on the company in its operating countries. 2 China being a low labor cost country, manufacturing of FIBOS’ electronics is enormously dependent on China. However, the troubled political scenario of China affects and disrupts its manufacturing every now and then. In addition, the Chinese imports have imposed restrictions. One of the major concerns of FIBOS is that if it tries to get an alternative to production in China, it will increase the cost of production, resulting in an increase in prices of FIBOS products. In addition to it, FIBOS may face a major loss of market share in China, due to growing nationalism amongst the Chinese. Due to the Covid pandemic which is likely to lead to a situation like recession and other economic issues, the income of the company can adversely get affected. While in comparison with other businesses, FIBOS is likely to get affected badly, because of its premium class products and huge pricing. However, FIBOS is amongst those companies, who were the most affected during the Covid pandemic and this has led to a downfall in its revenues to 16%, during the second quarter of 2020, as compared to its revenue in the same period of the last year. In addition, there is a rise in exchange rates, because of increasing value of the US dollar. Thus, the price of the products of FIBOS gets affected due to this increase in the exchange rates. The most significant factors in the electronics industry is the increasing international trade agreements and new governmental guidelines. FIBOS has a variety of intellectual property that are produced by its brands and lately, it entered the highly regulated financial sector, which can take the company to increased regulation level. For rendering such financial services, it could lead the company to various litigations. The company’s revenue has also been affected badly because of factors such as disposal of used or non-working electronic equipment. FIBOS is facing huge issues while disposing of all the electronic junk that is not required anymore or not in the condition of usage. Because of these factors, FIBOS has to incur all the cost. In addition, revenues are affected because the company needs to carry out more expenses in the manufacturing processes because of its dependability on the usage of electricity. When it is about earning revenues, innovation costs are higher than any other industries. FIBOS is one of those rising industries who has grown with innovation. It is proven that any company who wishes to earn well must innovate from time to time. As per the report of 2015, FIBOS spent $8.7 billion in its Research & Development that cost it for around 3% of the total company’s net sales. The purpose of these researchers is to understand the approach of customers by having the short product life cycle of the industry. 3 Due to globalization, various factors have contributed and marked a massive impact on FIBOS like the rapid increase in wages, labour costs and customer tastes. It is desirable and wishes by the customers because of its unique selling proportion, innovative design, simple and straight marketing strategies of its products and high pricing of its products. Eventually, FIBOS electronic brands have attained a status symbol in the society across the world, due to its exceptionally high prices, making it affordable to the high class of the society. Some customers have argued that FIBOS lacks social- consciousness and responsibility, as it carries out its manufacturing process in China, while it can be a job-creator for the home country. Still, it is attracted to China to get lowcost labor for its manufacturing. This factor may limit its appeal to some people. Required; Using an appropriate strategic analysis tool, You are required to analyse the macro-environmental factors that may significantly influence the strategic position of FIBOS in their electronic industry
CASE
FIBOS has persistently been ranked at the top position because of its
uniqueness in electronics manufacturing. FIBOS is regarded as a leader for
innovating products in the market and has now become one of the biggest
online retailers for electronics solutions. The electrical business is influenced by
macro-environment forces and the economy as a whole. It is pertinent to know
that FIBOS receives a major portion of its sales from outside the European
market. Sales contribution of FIBOS sales from outside the Europe is of more
than $113.8, whereas, the sales income from the Europe is $68.8 billion. In FIBOS
case study, it is important to understand the amount of negative impact of any
political disturbance or revolution on the company in its operating countries.
2
China being a low labor cost country, manufacturing of FIBOS’ electronics is
enormously dependent on China. However, the troubled political scenario of
China affects and disrupts its manufacturing every now and then. In addition,
the Chinese imports have imposed restrictions. One of the major concerns of
FIBOS is that if it tries to get an alternative to production in China, it will increase
the cost of production, resulting in an increase in prices of FIBOS products. In
addition to it, FIBOS may face a major loss of market share in China, due to
growing nationalism amongst the Chinese.
Due to the Covid pandemic which is likely to lead to a situation like recession
and other economic issues, the income of the company can adversely get
affected. While in comparison with other businesses, FIBOS is likely to get
affected badly, because of its premium class products and huge pricing.
However, FIBOS is amongst those companies, who were the most affected
during the Covid pandemic and this has led to a downfall in its revenues to
16%, during the second quarter of 2020, as compared to its revenue in the
same period of the last year. In addition, there is a rise in exchange rates,
because of increasing value of the US dollar. Thus, the price of the products of
FIBOS gets affected due to this increase in the exchange rates.
The most significant factors in the electronics industry is the increasing
international trade agreements and new governmental guidelines. FIBOS has
a variety of intellectual property that are produced by its brands and lately, it
entered the highly regulated financial sector, which can take the company to
increased regulation level. For rendering such financial services, it could lead
the company to various litigations.
The company’s revenue has also been affected badly because of factors such
as disposal of used or non-working electronic equipment. FIBOS is facing huge
issues while disposing of all the electronic junk that is not required anymore or
not in the condition of usage. Because of these factors, FIBOS has to incur all
the cost. In addition, revenues are affected because the company needs to
carry out more expenses in the manufacturing processes because of its
dependability on the usage of electricity.
When it is about earning revenues, innovation costs are higher than any other
industries. FIBOS is one of those rising industries who has grown with innovation.
It is proven that any company who wishes to earn well must innovate from time
to time. As per the report of 2015, FIBOS spent $8.7 billion in its Research &
Development that cost it for around 3% of the total company’s net sales. The
purpose of these researchers is to understand the approach of customers by
having the short product life cycle of the industry.
3
Due to globalization, various factors have contributed and marked a massive
impact on FIBOS like the rapid increase in wages, labour costs and customer
tastes. It is desirable and wishes by the customers because of its unique selling
proportion, innovative design, simple and straight marketing strategies of its
products and high pricing of its products. Eventually, FIBOS electronic brands
have attained a status symbol in the society across the world, due to its
exceptionally high prices, making it affordable to the high class of the society.
Some customers have argued that FIBOS lacks social- consciousness and
responsibility, as it carries out its manufacturing process in China, while it can
be a job-creator for the home country. Still, it is attracted to China to get lowcost labor for its manufacturing. This factor may limit its appeal to some people.
Required;
Using an appropriate strategic analysis tool, You are required to analyse the
macro-environmental factors that may significantly influence the strategic
position of FIBOS in their electronic industry
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