|Abstract: ||As one of Fortune 500, Flextronics, headquartered in Singapore, is a leading Electronic Manufacturing Service (EMS), provider by offering a complete array of design, engineering, manufacturing, logistics services. Being the top EMS supplier, Flextronics, partnerships span the entire technology landscape including Motorola, Ericsson, Hewlett Packard, Alcatel, Siemens, Dell and Xerox etc, number of customer exceeding 100. Presently, Flextronics’s global footprints lie on 87 operations, 12 design & engineering center and 8 industrial parks. Current workforces are approximately 200,000 employees, including approximately 3,500 design engineers.
Due to many customers and variety of end products with different kinds of technology needed, it is a must for Flextronics top management to identify the market segment, target market and its positioning, in order to have better control of facilities and talented employees. This is a must, which Flextronics need to position itself in order to maximize their competitive advantage and serve their target markets in the most effective manner. A well thought out policy of segmentation plays a pivotal role in the determination of success.
The nature and purpose of segmentation is, in essence it is the process of dividing a varied and differing group of buyers or potential buyers into smaller groups within which broadly similar patterns of buyers’ needs exist.
A situation analysis to be conduct in order to segment its customer by business and technology nature as well as geographically, follow by targeting its potential customers (which customer needs EMS service).
A few analysis need to be analyze during the STP (Segmentation, Targeting and Positioning) process, which are SWOT (Strength, Weakness, Opportunity & Threats), and Michael Porter’s 3 Generic Competitive Strategies and 5 Forces.
By doing so, Flextronics will be able to segment & targeting its existing & potential customers into proper segmentation, in order to utilize right talent and resources to satisfy the customers. In addition, positioning itself as one stop solution EMS company, in order to differentiate itself from other competitors.