...Management of marketing strategies: The study of Acer Group in business specification 1. Introduction Competition continues to develop at a bewildering pace, amount of businesses acquire unique marketing strategies to overcome the existing problem of how to sustain the core competency and maintain the market share (Doyle & Newbpuld, 1975). As the world third largest PC maker, Acer implemented a series of business models to improve its production and conduct shifting of weight on the manufacturer. This paper is aimed to introduce the general information of the Acer Group and describe how it manage the marketing strategies to cope with the intensive competitive environment. Acer is a famous Taiwanese multinational hardware and electronic corporation headquartered in New Taipei City which was founded by Stan Shih in 1976, the representative of a new type entrepreneur in the world (Engardio & Burrows, 1996). Acer provides a broad range of PC products from multimedia desktop computers and industry-leading high-end PC servers, and it also offers e-business services to consumers and governments (Peter, 1998). There is an announcement presented that Acer is also the leading Internet enabler offering the network technologies, devices and component of Internet services which including wireless communications, mobile phones, projectors, e-corp solutions, end-to-end solutions and TFT screens (Amelia & Leong, 2000). The Acer Group employs more than 35,000 staffs in 120 enterprises...
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...Company History: Acer Incorporated was called "the region's most impressive technology company" in a 1996 article in The Economist. The company also ranks among the world's ten biggest manufacturers of individual components like keyboards, monitors, and CD-ROM drives, and is America's ninth-largest personal computer producer. By 1995, the company was producing four million PCs annually, 25 percent of them OEMs (products sold under other companies' labels). Under the guidance of Chairman and CEO Stan Shih, Acer used ground-breaking strategies to bounce back from a US $22.7 million loss in 1991, earning US $205 million on sales of US $3.2 billion in 1994. Shih hoped to increase Acer's global sales to US $15 billion by 1999, by which time the company would operate as a "federation" of local manufacturing, assembly, and marketing units. http://www.fundinguniverse.com/company-histories/Acer-Inc-Company-History.html Business Origins: Acer Incorporated is Taiwan's leading exporter and the world's fifth largest computer manufacturer. The company designs, manufactures, and sells computer hardware and software products; it ranks among the world's largest manufacturers of individual components such as keyboards, motherboards, set-up boxes, storage drives, monitors, CD-ROM drives, keyboards, printers, scanners, and software. Acer's nearly 30 years of growth results primarily from its business of manufacturing and assembling branded and contract PCs in several locations throughout the world...
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...Student’s Name Instructor’s Name Class Name Date when Due Strategic Alternatives for Acer, Inc: Taiwan's Rampaging Dragon Acer, Inc: Taiwan's Rampaging Dragon has been in the business of PC selling and other stuff for a while now. It has been able to transverse across several nations in attempts to do business. In doing so, it has come across a number of issues which some have strengthened its operations and others have been identified as area which need new strategies to mitigate the arising risks. That being the case, this section deals with such strategies which will see Acer, Inc: Taiwan's Rampaging Dragon remain in business internationally. Firstly, for this organization to win, it must not relent on its already established operation policies that are already working for the good of the organization. For example, targeting neglected small groups of people and organization should be accentuated. Nevertheless, the organization should now venture into aggressive scramble for new large clients who will see the company’s turnover increase and make the organization partake other benefits which come with dealings of large clients. This way the company will have diversified its client target base thus spreading the risk across all the types of clients i.e. large and small. As the company is increasingly establishing its international presence, decentralization of its offices from Taiwan to other countries where it has operations in is inevitable. Though this might complicate...
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...Acer group employs around 6000 people worldwide and revenues for 2012 reached nearly US$ 18 billion, it was founded in 1976 with $25.000 capital and 11 employees Since its founding in 1976, Acer has constantly pursued the goal of breaking the barriers between people and technology. Focusing on marketing its brand-name IT products around the globe, Acer ranks as the world's No. 3 vendor for total PCs and No. 2 for notebooks, with the fastest growth among the top-five players. A profitable and sustainable Channel Business Model is instrumental and fundamental for Acer's continued growth, while the successful mergers of Gateway and Packard Bell complete the company's global footprint by strengthening its presence in the U.S. and emerging markets Acer philosophy is to deliver better performances at lower price than the competition, there are able to manage it thanks to their size (e.g. large buying power, strategic partnerships with key partners like Intel, Microsoft or Amd) and their willingness to compromise on certain aspects of their products, this to meet the customer demands for cost-effective performance. Acer Channel Excellence (ACE) Program, is a new channel partner initiative that was born with the aim to deliver enhanced tools and offers for best-in-class value-added resellers (VARs). The next phase in Acer’s continued commitment to its channel partners, the ACE Program ensures successful sales and support of Acer products for qualified authorized resellers with...
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...Acer’s strategy has been described as “divide and conquer.” Compare and contrast this to Lenovo’s strategy. To compare both Acer’s and Lenovo, they were both leaders in personal computers and software. They both had a market share worth millions of dollars. Lenovo had emerged as the market leader in the personal computer industry in the Asia Pacific Region except in Japan with a market share of 11.3% for leading PC Companies in terms of market share. Acer’s had the leading marketer of Notebook and desktop PCs in greater China. Acer’s posted sales of 11.3% billion which also produces other products such as flat-screen monitors and personal digital assistants. Acer’s was able to become Taiwan’s number one exporter by manufacturing and marketing computers sold under its own brand name. In my opinion, the divide and conquer with Acer’s means it is easier to handle the little companies instead of one large company. Acer’s believed that it was important to build a name locally (regional) before going global. With Lenovo they wanted to move straight to global. Lenovo wanted to start marketing out of the Asia Pacific region to areas such as Hong Kong and Spain. Explain how the “global markets-Local Markets” paradox figures into Stan Shih’s strategy for China. Global Markets are the products of the company. The company is trying to expand their products across the board but with the Local Markets it’s all about the people; the people in the company and the customers. The...
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...Acer Incorporated Financial Statement Analysis Project Company History: Acer Incorporated was called "the region's most impressive technology company" in a 1996 article in The Economist. The company also ranks among the world's ten biggest manufacturers of individual components like keyboards, monitors, and CD-ROM drives, and is America's ninth-largest personal computer producer. By 1995, the company was producing four million PCs annually, 25 percent of them OEMs (products sold under other companies' labels). Under the guidance of Chairman and CEO Stan Shih, Acer used ground-breaking strategies to bounce back from a US $22.7 million loss in 1991, earning US $205 million on sales of US $3.2 billion in 1994. Shih hoped to increase Acer's global sales to US $15 billion by 1999, by which time the company would operate as a "federation" of local manufacturing, assembly, and marketing units. http://www.fundinguniverse.com/company-histories/Acer-Inc-Company-History.html Business Origins: Acer Incorporated is Taiwan's leading exporter and the world's fifth largest computer manufacturer. The company designs, manufactures, and sells computer hardware and software products; it ranks among the world's largest manufacturers of individual components such as keyboards, motherboards, set-up boxes, storage drives, monitors, CD-ROM drives, keyboards, printers, scanners, and software. Acer's nearly 30 years of growth results primarily from its business of manufacturing and assembling...
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...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...
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...peripheralsindustry through analysis of thecompany strategy, business model, distribution channels, competencies and value chain to provide a series of recommendations for Acer’s Board of Directors. Acer is the third largest PC manufacturer in the globe using atransnational strategy to procure components to maintain cost leadership. By using strategic group maps, Porter’s five forces, SWOT analysis, value chain review and the Dranove model a comprehensive analysis of the Acer external and internal forces are reviewed. On the basis of the analysis a series of recommendations have been made to ensure that Acer remains competitive, retains the number 3 ranking and are sustainable into the future. It is recommended that Acer find blue ocean against competitors through the use of the premium branding of product, whether this be Ferrari or another premium luxury brand and determine if some of this can be derived from sustainable and green materials. Once these are determined it is recommended to use a balance scorecard with alliances to help drive innovation together with a tried and tested sales system to increase Acer market share. Background and Context Acer is the third largest PC Company in the world (9.5% market share) with growth being experienced outside the mature USA market, predominately in emerging nations. Although Acer experienced growth in 2007, increasing its sales by 32.9%, the PC and peripherals industry is very competitive and Acer, while being the third player, is well...
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...ACER: AN IT COMPANY ACER: AN IT COMPANY LEARNING TO USE INFORMATION LEARNING TO USE INFORMATION CENTER FOR RESEARCH ON INFORMATION TECHNOLOGY AND ORGANIZATION University of California, Irvine 3200 Berkeley Place Irvine, California, 92697-4650 AUTHORS Jason Dedrick Kenneth L. Kraemer Tony Tsai October, 1999 Center for Research on Information Technology and Organizations TECHNOLOGY TO COMPETE Acknowledgement: This research has been supported by grants from the CISE/IRIS/CSS Division of the U.S. National Science Foundation, and the NSF Industry/University Cooperative Research Center, whose members include: ATL Products, The Boeing Company, Canon Information Systems, IBM Global Services, Nortel, Rockwell, Seagate Technology, Sun Microsystems and Systems Management Specialists (SMS). The authors would like to acknowledge the research assistance of Bryan MacQuarrie. They would also like to acknowledge the cooperation and assistance of numerous Acer Group executives and managers who agreed to be interviewed and provided vital data and information Acer_case_10-99.doc 2 Acer: An IT Company Learning to Use IT to Compete Jason Dedrick, Kenneth L. Kraemer, Tony Tsai I. INTRODUCTION Acer Computer is an unusual company in the personal computer industry. Companies such as Dell, Compaq and Gateway focus on designing, configuring, marketing and servicing PCs and increasingly leave the manufacturing to contract manufacturers and OEM producers. By contrast, Acer is a diversified...
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...The Acer Group is one of the world's largest PC and computer component manufacturers. Associated Acer companies include the world's third largest PC manufacturer, and Acer's mobile computers, network servers and personal computers are ranked in the world's top ten most popular brands in their respective product categories. Acer is the market leader in many countries around the world, and is ranked in more than 30 countries globally owing to the strength of its core business. On the distribution side, in 2007 it is the world's No.4 PC branded PC vendor, number one in South East Asia, Latin America and Middle East, etc... Since spinning-off its manufacturing operation, Acer has focused on globally marketing its brand-name products: mobile and desktop PCs, servers and storage, LCD monitors and high-definition TVs, and handheld/navigational devices. Acer's unique Channel Business Model is instrumental to the company's continued success. The model encourages partners and suppliers to collaborate in a winning formula of supply-chain management, allowing Acer to provide customers with fresh technologies, competitive pricing, and quality service. Established in 1976, Acer Inc. employs 5,300 people supporting dealers and distributors in more than 100 countries. Estimated revenue for 2006 is US$11.31 billion (Acer Annual Report 2005). Stan Shih, the founder and chairman of the Acer group and widely regarded as a high-tech visionary, had a long term vision to transform the Group into a...
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...Case 1-3 Acer Inc. Acer Inc. is a leading marketer of notebook and desktop PCs. The company, which posted sales of $11.3 billion in 2006, also produces other products such as flat-screen monitors and personal digital assistants. As Taiwan gained a reputation as the “tech workshop of the world,” Acer was able to become Taiwan’s number one exporter by manufacturing and marketing computers sold under its own brand name. Acer also produced equipment on an original equipment manufacturer (OEM) basis for well-known global companies such as IBM, Dell, and Hitachi. As company founder, chairman, and CEO, Stan Shih built Acer Inc. into one of Taiwan’s most successful companies. Despite Acer’s success, the company had trouble breaking into the American market. Between 1995 and 1997, Acer’s U.S. market share dropped from 15 to 5 percent. In the late 1990s, Shih noted, “In the United States and Europe, we are relatively weak. The local players there are very strong. The problem is that we don’t have good experience in marketing in those regions. It’s a people issue, not a product issue.” Shih has discovered that building brands in the business-to-business market is easier than building brands in the business-to-consumer market. “Business-to-consumer brands have more value but also face more challenges. People involved in business-to-business are usually rational, but consumers in business-to-consumer are usually emotional in choosing their brands,” he says. In 2000...
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...Harvard Business School 9-399-011 Rev. April 9, 2001 Acer America: Development of the Aspire In early 1998, Stan Shih, CEO of Taiwan-based personal computer (PC) manufacturer Acer, Inc., was reviewing the first estimates of 1997 year-end results. With revenue of $6.5 billion from own brand and sales to original equipment manufacturers (OEMs) such as IBM, the company was now acknowledged to be the third largest PC manufacturer in the world. Although the performance was respectable in the wake of a dramatic drop in memory chip prices that had plunged the company’s semiconductor joint venture into losses, Acer’s extraordinary growth period of the mid-1990s was clearly over. (See Exhibit 1.) The ever-restless CEO was wondering how to re-ignite the fire. Shih was convinced that Acer’s mid-1990 successes were due at least in part to the revolutionary “client-server” organizational structure he had introduced in 1992. The concept was inspired by the network computer model, where “client” computers—the strategic business units (SBUs) and regional business units (RBUs) in Acer’s organizational metaphor—were capable of complete independence but could also take on the “server” role, adding value for the entire network. To Shih, proof of the client-server structure’s potential had come with the 1995 introduction of the Aspire multimedia home PC. Created by Acer America Corporation (AAC), Acer’s U.S. marketing subsidiary and one of Acer’s five RBUs, this new product confirmed Shih’s...
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...Hsin Tai Wu Rd., Sec 1 Hsichih, Taipei 221 Taiwan Company Perspectives: Acer ranks among the world's top five branded PC vendors, designing and marketing easy, dependable IT solutions that empower people to reach their goals and enhance their lives. History of Acer Incorporated Read more: Acer Incorporated - Company Profile, Information, Business Description, History, Background Information on Acer Incorporated http://webcache.googleusercontent.com/search?q=cache:GLjJKFtD2DAJ:www.referenceforbusiness.com/history2/90/AcerIncorporated.html+determine+what+strategies+acer+can+apply+to+become+the+world's+third+largest+pc+company+behind+Dell+and+Hewlett+Packard&cd=4&hl=en&ct=clnk&gl=us#ixzz12MuHMLNY Acer Incorporated is Taiwan's leading exporter and the world's fifth largest computer manufacturer. The company designs, manufactures, and sells computer hardware and software products; it ranks among the world's largest manufacturers of individual components such as keyboards, motherboards, set-up boxes, storage drives, monitors, CD-ROM drives, keyboards, printers, scanners, and software. Acer's nearly 30 years of growth results primarily from its business of manufacturing and assembling branded and contract PCs in several locations throughout the world. The company sells its products through dealers and distributors in more than 100 countries. Taiwan's high-tech industry pioneer Stan Shih cofounded Acer. Over the years Shih guided his company through several corporate restructuring...
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...1. Acer’s strategy has been described as “divide and conquer. Divide and conquer means its easier to defeat a group of small companies than it is to defeat one large company , in this context I think that Acer used the right strategy They were going to divide the company in many different sections and dissipate around the world. The strategy In 2007 Acer acquired the following companies as their way to divide and conquer the pc world. Well known American company that was built on a good reputation from the black and white cows was established in 1985 which is gateway. Not only the American company Acer felt they needed more to continue their growth and acquired another company that was established in 1998. And very present in Europe , Packard Bell which started in 1926 which was reflecting radius television and they proceeded to pc in 1987. By buying these two well known companies the Taiwanese company is about to become the leader of pc beside dell and Apple as we can see from this move that Acer going globally by not only developing their image by buying well known companies but also by adding a new channel of distribution that give them a strong access to two largest market in the world beside the Asiatic market . 2. 2. Explain how the “global markets-local markets” paradox figures into Stan Shih’s strategy for China. I believe that Shih know that Acer has the tools the compete very well in the chines market how ? Acer has more power to...
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...BACKGROUND Acer was founded by Stan Shih, his wife Carolyn Yeh, and a group of five others as Multitech in 1976, headquartered in Hsinchu City, Taiwan. It began with eleven employees and US$25,000 in capital. Initially, it was primarily a distributor of electronic parts and a consultant in the use of microprocessor technologies, but over time it emerged as a PC manufacturer. The company was renamed Acer in 1987. In 1993, Acer posted record profits of $80 million. Total sales grew to $3.2 billion in 1994, and net income increased to $205 million, as Acer America turned its first annual profit in the 1990s. From 1994 to 1995, Acer advanced from 14th to ninth among the world’s largest computer manufacturers, surpassing Hewlett-Packard, Dell, and Toshiba. Acer’s operate in more than 38 countries, and each business unit is operated as decentralized strategic business unit. Acer’s Canadian business had in a past served as an intermediation between Acer America to deliver products to Canadian distributors, but in 1996 Anthony Lin was chosen as general manager of Acer’s operation in Canada. Previously the Canadian operation was selling no products directly to consumers in Canada, but Lin saw this as an opportunity to use local distribution and assemble the computers in Canada, “to order,” and sell directly to consumers. VISION To have a line product sold to three different target groups- Commercial, Home and non-profit. Acer in Canada envisions itself to be...
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