Free Essay. Development History of Foxconn Company

Foxconn is one of the largest electronic companies globally, focusing much on the production of electric and electronic components. it has recently emerged that China is one of other most technological countries and nations in the world, having expertise in the manufacturing and production of various electronic-related components among other modern machinery and equipment (Chan et al.).

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Foxconn Company has credited china towards that worldwide identification. The official name of the company is Hon Hai Precision Industry Co. Ltd. and was founded in the year 1974 with its headquarter based in Taiwan city. Since the year of foundation, the company have incredibly made positive adjustments in terms of development and has consequently outshined most of the fellow competitors in the similar industry in the market (Chan et al.). The faster growth of the company can be defined by three major components; by studying its competitors, amount of yearly revenue collected, the number of workers or employees in the company (Chan et al.). The company has used these three concepts as its building blocks to outdo the other players.

To begin with its way of competition. Previous studies have revealed that the company has a total of 43 different companies operating under its portfolio across Taiwan and China. Examples of the companies include; DigiLens, MEGVII, PENSEES, and Yungongchang companies (Chan et al.). They specifically deal with the manufacturing of motherboards, graphics cards, chassis and also peripherals. Its technique of using many companies across the borders of Taiwan and China has enabled the top company to encourage new ideas to enhance its innovation and invention purposes.

With many companies operating under one umbrella, the company has also managed to produce its electronics in time, meeting the market demand and thus winning more customers. In any business setup, customers are the largest payers, and therefore their presence is the first determining factor of a company or organization, Foxconn, is not an exception of this fact, the company has progressively developed.

Secondly, is the question of how much revenue the company collects yearly or in a specified speculated period? The late statistics and evaluation are done for the company; it was revealed that it was realizing a total of $175.6 billion in 2017 (Chiang and Yan). However, this figure surprised many firms in the market as the revenue had extensively gone so high beyond expectations. In 2010, the company recorded a total of US $101.4 billion (Chiang and Yan). It is in this year that the company went high in the world as among the most hardworking and improved organizations.

Traced back in its time of invention when it started operating in the year 1974, Foxconn had a total of $3.4 billion annual income, making it one of the small organizations in the region (Chiang and Yan). Based on facts of its necessary improvements in the level of the annual flow of income, the company has therefore developed to unimaginable levels and finally becoming a world class and the most influencing company in the market for its production of high-quality electronics and electronic components.

Finally, the development of Foxconn Company can also be evaluated based on its number of employees that have generally increased over the years incomparable to other firms in the region and the whole continent. The public company ruled by its founder as well as the first employee Mr. Terry Gou. He is the chairman and the CEO of the firm since it began. Terry has been so competent in ensuring that in every year, he orients the company towards a direction that finally makes it shine in the market, using new techniques that are indiscoverable by its top competitors in the market.

Eventually, between years, the leader has incredibly worked well with his employees and the customers as well. Social media fans page for the company's online marketing group named as Owler has recently rated him at 87/100, which is outstanding to get for a leader managing such a world-class company. The customers also responded to questions on whether they thought there was a better alternative to visit for the acquisition of various electronic components.

Foxconn has managed to employ a total of 803,126 workers in only the 43 companies running in its name. This figure is relatively higher, and it is also one of the reasons behind the success of the company. First, having many employees encourage the effectiveness of brainstorming in any organization, and the more the number of employees, the more the ideas a manager can collect during brainstorming. As earlier stated, these ideas can help the technical team to generate more inventions and innovations.

As a result, Foxconn Company has managed to develop since 1974 to become a world-class company, a fact that to some extent, is facilitated with the presence of many employees in the company. Moreover, having more employees' means that the operations will run smoothly and more efficiently since work distribution is made more accessible. Not to lock out the benefit that the company enjoys from the regular financial assistance that the China government have continued to supply, to raise the firm to the topmost level as the best in the world. Basing arguments in these three milestones, the company's development becomes one of the shocking and outstanding stories in the 21st century that other small business should borrow ideas from for them to expand as well.

How Have Various Parties Influenced the Production and Use of the Company's Electronics?

Corporations

In the year 2018, the World's biggest ever know contract manufacturer announced officially of an opening of one Foxconn company in the United States of America. The manufacturer saw the potential in the US, as the world's superpower and thus many technological ideas were present. While announcing for the opening of a total of $10 billion new company, the CEO at least stated that he was not going to resign as speculated for the next new five years in the company as he wanted to ensure that the new factory succeeded and performed well in the market just like others did (Chiang and Yan).

The new factory was to major on the production and manufacturing of iPhones. It is believed that since the company is operated under the trade name of Hon Hai Precision Industry, many customers in the USA, would still prefer the products, as they are known to be of high quality. Through this merging with the American government, the company has been able to expand its market for the products outside Taiwan and China, to the USA, which also have a high population of people.

With the current and most probably the latest goal of the iPhone known manufacturer to increase the net sales and make a historic net income to the company, Terry, also decided to form merge with the Softbank group which has targeted the apple company, Huawei company, with the company aiming so much to stress on its smartphone offers and win buyers in the buyers who have recently been observed to be obsessed with apple and iPhone smartphones due to their outstanding and prominent features. The formation of many merges has helped the company to convince many other customer's to turn their interest to its products with its main outplaying other electronic dealers. Among the stiff competitors of Foxconn company include;

Jabil Company is a company that was founded in St. Petersburg, located in Florida in the year 1966 before Foxconn later came into existence in the year 1974. The company also purely deals in electronic components and has shown high competition for Foxconn. The company, which can also be referred to as the topmost stiff Foxconn competitor, has got a total of about 600,000 employees (Chiang and Yan). This is less than the number of employees for Foxconn, which sometimes even goes to 1.3 million when the company duties become so many.

Celestica is another competitor located in Toronto, Canada. The company was founded in the year 1994. However, in its quest and struggle to gain a more stable ground for competing likes of Jabil and Foxconn, the organization is not getting enough support from the government of Canada, as Foxconn enjoys more support from the China government. Its annual general revenue can be approximated to about 3.09% of the total revenue generated by Foxconn (Chiang and Yan).

This competitors, among many others, have motivated the Chinese electronics company to put more effort, as the fight is mutual and all the companies are fighting for customers in the market across the globe.

People and Community/Society

People and society in the whole world have facilitated the sales of Foxconn Company. To increase the sales and popularity of the sold products, the company created an online website and marketing site known as Owler, where registered users can easily see the latest brands and innovations by the company. By efficiently and quickly viewing the products, the users can then share their ideas concerning the improvement. Most importantly, the comments by the users can help the company to identify weaknesses in its products like the iPhone, thus making better and more advanced products in the future.

Users who are expertise in the same field can as well add their suggestions that may help in improving the product. Generally, the concept of online marketing has improved the Foxconn's popularity and sales of the product, having a one on one impact on the huge sales volumes and the revenue that the company makes yearly.

This notwithstanding, in order to fulfill Terry's main aim of increasing the sales by whichever means, they have identified some of the world's most popular electronic players like that of iPhone, apple, and Huawei, and have recently asked for a merge from them to work their shares together towards production of better products.

The latest news from the company has indicated that the CEO of the Foxconn, recently approached Toshiba laptop manufactures company as well and wanted to buy the whole of the company to be part of its owned shared for $19 billion. The personality of the CEO has contributed a lot to the development cycle of the company. He is a high risk orientated person who believes in incurring risks in a business to gain influence and profit in an organization.

In addition to this, the community has also played a significant role in ensuring the success of the company. The community or society which consists of the surrounding individuals to the company, in other words, the citizens of Taiwan and China. The China government have assisted the company in terms of finance. For Foxconn to grow so high to the levels where it now, China government invested billions in the company to help it in funding, it's over a million number of employees, buying the necessary equipment's needed to run the general activities in the company.

Other than the financial assistance offered to the company, the availability of general knowledge in the field of technology that citizens of China has portrayed for an extended period of time, has helped the company has made it easy for the company to employ the correct persons with the technological knowledge relevant for moving the company into greater heights. China is ranked as the most developed country in the last decade in history in Europe. Most innovations and inventions in technology have taken place in the country, making one of the most exciting places in the world to locate a business as far as the initiated company is aimed at producing technological related component's, majorly electronics. For this reason, the company has enjoyed a lot of support from within, giving it most priorities to fight its competitors and also to win customers in the market.