Advanced Energy Industries

The advanced energy corporation of Colorado produces electrical goods which serve the global market. This being individuals from all age groups and all religions. The company specifically supplies its products directly to 1771 end users located in different parts of the globe. The company also sells its products to over 300 original equipment manufacturers (OEM). The OEMs were able to serve as the largest market for Advanced Energy products in the year 2015 where it accounted for over 60% of its total sales (Advanced Energy, 2016).

Applied materials Inc. was the largest consumer of the products developed by Advanced Energy Corporation at 29.8% of the sales both in the 2014 and 2015. This effectively making the company the largest customer of Advanced Energy Corporation. Second in line was Lam Research which accounted for 20.3% of the company’s sale in the year 2015. The fact that its customers consumed a huge percentage of the whole sales reported implies that Advanced Energy Corporation can literally not do without them. In case the company loses either of them, it would suffer great losses.

Identification of a target market is a very important aspect for any company worth its salt. The fact that Advanced energy corporation was able to identify its customers ensured that it could adequately aim toward meeting their specific needs as far as the production of goods is concerned.

The company’s strengths include the following

  • The sales and distribution networks
  • Business units which are experienced
  • High revenues and profitability
  • Reduction in the labor costs

Weaknesses

  • A market which is competitive
  • Dependence on few customers

Opportunities

  • Growth in demand
  • Global markets
  • Profitability and growth rates

Threats

  • Regulations by the government
  • Rising cost of raw materials
  • Increase in costs

The company’s major strengths as highlighted came from its sales network which has enabled it to reach out to many customers across different parts of the word. This has also opened up new opportunities for this company as it is able to serve new customers. This also has been able to create a large revenue pool for the company as highlighted by the financial report for the year 2015 where the company was able to get a revenue of $138million. The efficiencies adopted in the use of technologies has enable the company to cut on labor costs.

The company’s weaknesses are majorly attributed to the fact that it depends on two major customers for its sales. This presents a huge risk for the company. The government on the other hand through its legislations has been able to influence the company’s fortune by being a threat. For instance in the passing of law managing the development of energy efficient products specifically green energy related products.

 

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