Why is the Acer Aspire in such trouble just two and a half years after its launch? What are the sources of the problems in the U.S.? Worldwide?

There are multiple reasons for this:

1. Difference between design and the actual product

Engineers from strategic business units were not involved in the design process which was solely owned and created by Acer American Corporation and Frog Design. So the SBU engineers faced difficulty putting hardware together with that design.

2. Many solutions, many problems

Since client-server organizational structure tempted everyone to pitch-in his idea about this product using his own perception, which resulted in too many configurations resulting in brand dilution and no global support

3. Lack in customer service

Acer aspire was targeting huge consumer market from high to low end. But since they lack in customer service, which is indeed a critical customer oriented approach, it never created the required awareness which never enabled customers to actually able to see the value of the product

4. Market competition

US market was already flooded with huge empires like HP which were putting in a strong competition making it difficult for Acer to reach target figures

5. Marketing strategies

Although successful in some regions, the marketing strategy failed in many regions. Many customers who had seen the fully featured product in a marketing message found the local product not up to the same mark.

How effective has management been in responding to these problems? What is your evaluation of the changes they have made to the product, the marketing strategy, the organizational structure and the management roles and responsibilities?

Acer’s management did take many initiatives to respond to these problems but somehow they