...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...
Words: 1408 - Pages: 6
...Acer, Inc: Taiwan’s Ramping Dragon- CASE ANALYSIS 1. Based on the information presented in the case, what type(s) of strategy (i.e., international, multinational, global, or transnational) would you say is used by Acer? Be sure to explain the reasons for your selection. (You will need to refer to Ch. 3 for details on these types strategies.) According to our studies, and based on the information from the case, I would conclude that Acer used a Transnational Strategy. Based on the definition of the textbook, transnational companies have a more complex organization structure. Going more in depth with the concept, Transnationals, as Acer, have investments in foreign markets, with a central corporate facility. When it comes to decision-making, research and development, and marketing strategies, the responsibility is passed to each local business unit, located in each individual market. Acer’s corporate office in Taiwan, only serves to give support to each market, in case needed. Acer’s decision to target smaller markets has contributed enormously to the company’s success. Based on the text, Acer’s decision was rational. By decentralizing command, Acer has able to improve its profit margin and reduce its operational costs. Each market, no matter how small it was, was contributing the company’s success, without neglecting the size of the business unit where it was located. 2. Do you think Leonard Liu’s resignation was beneficial for Acer? Why or why not? Absolutely...
Words: 487 - Pages: 2
...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...
Words: 4001 - Pages: 17
...Patumtip W. ID 5210037 SEC 404 Individual Case Analysis: Acer America I. Strategic Profile and Case Analysis Purpose Case Summary The company was established in 1976 and began to expand internationally in the mid-1980s through strategic alliances. They’ve changed organizational concept into “client-server” model where the strategic business units (SBUs) and regional business units (RBUs) were given greater freedom to manage its unit locally. This led the company evolves towards a federation of locally responsive units close to their markets yet linked by the emerging Acer brand. In 1994, a U.S. based sourcing company; Acer America (AAC) foresees the opportunity to create a home PC with multimedia capabilities to sell in the market which they named it “Aspire”. The AAC’s RBU have outsourced other company to design the product since they aren’t specializing in this field and the development of the product has been kept in secret. Until it’s time to present to Taiwan’s SBU, the engineers felt they could be of only limited help at this stage of the development process that it created many challenges in getting the standard components to fit since they didn’t integrate from the beginning. The computer’s part was then break down into sub-assembly systems responsible by different product managers. The problem then arises as when one of the sub-assemblies delayed, the whole process also been delayed or when the final product has problem, the engineers had to decide where the problem...
Words: 1593 - Pages: 7
...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...
Words: 12392 - Pages: 50
...THE ACER GROUP’S CHINA MANUFACTURING DECISION COURSE: GLOBAL SUPPLY CHAIN MANAGEMENT BACKGROUND Acer is a Taiwanese company specializing in advanced electronics technology. It is one of the world’s largest PC and computer component manufacturers. Acer started major expansion of its business by entering India, Russia and the U.S. Their mission was “Fresh technology enjoyed by everyone, everywhere.” Their focus now is Mainland China. They plan to set up its manufacturing sector in China seeking economies of scale, focusing on large markets, which support volume production and, therefore, reduce operating costs. This case study is an analysis with respect to many factors to determine whether China would fit into Acer’s global manufacturing strategy. This report presents an analysis, which will conclude in a judgment of whether they will succeed, or not. ANALYSIS The advanced electronic industry is characterized by strong competition amongst companies of various national origins. Few among the major competitors for Acer include Compaq, Dell, IBM and etc. (refer to exhibit 1). Among them Acer has an added advantage since China is a well-understood market for Taiwanese. The major step to develop any business is a complete market analysis of the region to ensure Acer understands the market nature. Acer’s aim was to achieve a “Global vision with a local touch” This ‘local touch’ could be achieved with less effort as Acer has complete knowledge about the Chinese cultural...
Words: 1358 - Pages: 6
...CONTENTS Introduction Question 1A Conclusion Question 1B Conclusion Question 1C Conclusion Overall Conclusion References Introduction An overview of what you want to discuss, so the 3 questions and what they are dealing with Qns. 1 offer acceptance or contract Ans 2 dealing with law of fraud, negligence Qns 3 dealing with exclusion clause 150 words Question 1A What action can Packard bring against Hewlett? Your answer should include relevant case laws. Plaintiff / Offeree– Packard Defendant and Offeror – Hewlett Relevant Case Law: Calill, Pg 28 General idea – Same formula use it for other questions * Identifying whether its an offer or invitation to trade * What offer? Unilateral or bilateral offer * Was the offer effectively termination of the offer It is a bilateral offer to a group of identifiable individuals, (only members of the class) as it is not open to outsiders. There is a clear willingness to be bound by a legal relationship. The person has indicated clearly on the intention to enter a contract. He will sell the computer for 800 to any person in his class. Clear intentions with no further bargaining. A promise of a computer to someone who pay 500. No vitiating factors Stare Decisis – According to this doctrine the lower court judges and sometimes the same court might be bound by its decisions. Thus, ensuring that they achieve consistency and certainty, that there is a uniform development. The legal issue is whether Lenin...
Words: 1715 - Pages: 7
...1. Acer's strategy has been described as "divide and conquer." Compare and contrast this to Lenovo's strategy. From the very beginning Acer has been a leading marketer of notebook and desktop PCs that were relabeled electronic products marketed and sold by recognized global companies. Acer struggled growing its business in the American market. To address this issue Acer spun off its manufacturing operations to transform from a global PC manufacturer to a marketing and services powerhouse by producing products faster, cheaper and more efficiently. The most effective way for Acer to grow was to engage in expanding its operations, marketing and selling activities to another market. In this case Acer decided to take the company globally and begin building a solid market in China. It's believed that if China becomes the company's "home" market, Acer will capture critical economies of scale that will allow it to develop innovative new products that will succeed in China as well as the rest of the world. Acer's chief technology officer, believes that Acer's knowledge of China's market will help the company achieve its growth and market share objectives. Acer implemented initiatives that placed them in a better position than Lenovo. At first Acer was suffering from poor brand recognition. Consumers were concerned about the quality and the reliability of its products. One of the ways that Acer overcame this obstacle was acquiring Gateway which created a path for Lenovo to their...
Words: 1033 - Pages: 5
...The case gives us an insight into global business strategies and operations of Acer Group, one of the largest PC and computer components manufacturers. The case study discusses the pros and cons of expanding the business in China and reasons whether the Acer group is ready to start their business in China. As part of their global manufacturing strategy, Acer had adopted the ‘fast food’ business model on inventory management. This model involved shifting assembly sites of computers to local sites i.e. areas where the computers would be distributed. This model provided up-to-date products to the customers, reduced inventory, expedited transportation and developed a highly flexible logistic system. In spite of implementing the mentioned business model, Acer incurred losses worth $75 million. Few possible reasons include - * Internal Communication and Co-ordination - Setting up new assembly sites locally made co-ordination between manufacturing sites difficult and cumbersome. * Forecast mismatch – Since the computer industry was rapidly changing it was difficult to predict sales accurately. A slight mismatch in the forecast meant higher accumulation of inventory in each of its assembly sites. * High operating cost – Increased number of sites meant more number of components in the existing supply chain and more supervisors which in turn raised the operating cost. * Inventory pile up - Unclear understanding of customer demands and market needs resulted in bloated inventories...
Words: 684 - Pages: 3
...The Influence of Sale Promotion Factors on Purchase Decisions: A Case Study of Portable PCs in Thailand Rangsan Nochai 1 and Titida Nochai 2 1 Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Ladkrabang, Bangkok 10520, Thailand, knrangsa@kmitl.ac.th 2 Department of Business Data Analysis, Faculty of Science and Technology, Assumption University, Hua Mak Campus, Bangkok, 10240, Thailand, titida@scitech.au.edu Abstract. The aim of this research is to investigate the sale promotion factors that impact on consumers’ purchasing decision on Portable PCs or notebooks in Thailand. This study was designed to use the survey research method and the convenience sampling technique was used in collecting the sample data. Questionnaires were distributed to qualified respondents in Commart Thailand 2011 Event at Queen Sirikit Convention Center on 17th – 20th March 2011. A total of 191 respondents were participated in this study. The data were analyzed and summarized with SPSS software and binary logistic regression analysis was used to examine which sale promotion factors that impact on consumers’ purchasing decision of Portable PC Acer and Compaq & HP. The results of this research is indicated that the sale promotion factors “Offer member card for discount” , “Extend warranty period” , “Bundled with scanner” , “Billboard, radio, leaflet, and magazine”, and “Able to pay by installments” are the important factors that impact on consumers’ purchasing...
Words: 3120 - Pages: 13
...HP Envy dv7t-7200 Quad Edition Notebook PC Acer Aspire V3-571-9890 1) Compare the following items for your selections: a. Price: HP $999.99, Acer $729.99 b. Delivery Charges: HP Standard shipping $9.99, Acer Standard Ground Shipping $15.00 c. Financing Options: HP No payments/Interest if paid full in 12 months, Acer no current offer d. Discounts: HP additional 15% off accessories with pc purchase, Acer free overnight shipping e. Coupons: Could not find coupons, companies possibly send these with shipped items f. Warranties: HP Two year limited hardware warranty, Acer one year international travelers limited warranty g. Installation Offered: HP windows 8 os, Norton internet security 2012, hp games; Acer windows 8 os h. Recycling of Old Components Offered: HP offers information on recycling different products in your local area, Acer also has a recycling program with information on how to dispose of components in your area. 2) What are some factors that can impact the gross profit of a merchandise company? There are many different factors that can impact the gross profit of a merchandise company including an increase in supplies, labor, and taxes. Anything that increases the cost of producing a product or providing a service affects the gross profit of the merchandise/service. In many markets, companies do not have the ability to increase the price of their product just because of increase in production costs, thus costing them profit. 3)...
Words: 1487 - Pages: 6
...Financial Management CASE STUDY NO.2 IDENTIFYING VALUE CREATORS 1. Defining case issue Based on the issue Linda faced, she needs to assess which company create or destroyed value for investors, it should be included to the value analysis, which means using value ratios to show the “embedded value” in stocks in order to screen and assess the invest value before making investment. So in our case report, we will solve three case issues: (1) To make value analysis of the pairs of Asian and American firms in different industries; (2) To understand how to use EVA, such as the differences between EVA and other financial ratios, advantages and disadvantages. (3) To make value comparison analysis among different industries and market conditions, try to find the reason behind the result. 2. Evaluation of value analysis tools---EVA Economic value added is a quiet new performance measure, which was invented by G. Bennet Stewart and Joel Stern. Simplified, EVA is a measurement tool that determines if a business is earning more than its true cost of capital. This measure is used in managerial purposes, because it gives managers a clearer idea of whether they are creating or destroying shareholder wealth. There are many value drivers that need to be managed, but there can be only one measure that demonstrates success. A single measure is needed as the ultimate reference of performance to help managers balance conflicting objectives. When we are using a NPV value we...
Words: 2179 - Pages: 9
...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...
Words: 2474 - Pages: 10
...[pic] SECTION I. THE BUSINESS Acer® Computer Company Description Acer was founded in 1976 in Taiwan. According to Cartmell, the original name when founded by Stan Shih and his wife Carolyn Yeh was called Multitech. The name was changed to Acer in 1987. The Acer group has four brands: Acer, Gateway, eMachines, and Packard Bell. Acer Inc. global headquarters is in Taiwan. They do business all over the world and have continent headquarters in the United States, Europe, and Asia. This is a global company and has to be treated that way. Acer has marketed itself to branding all over the world and tries to focus on what the customer is changing to in the PC world. Business Mission The mission statement for Acer is: “Serve with honour and work with pride.” Company Values Acer says the value for its company is to provide steadfast service and environmentally safe innovations. They believe their product has the easy-to-use and dependability for their customers. Unique Selling Proposition Acer has built a reputation of having environmentally sound computer products. I propose to introduce a product line to compete with companies like Samsung, Vizio, Sony, and other television companies. The difference is the All-in-one features of the computers they already sell plus the addition of the features of a television. It will create a home computer where we don't need to sit in front of a...
Words: 3076 - Pages: 13
...Case: “Lenovo: Building a Global Brand” Analysis Problem Statement By facing more and more intensive domestic and international competition in the PC market, Lenovo’s global market share shrank by 6.8% in the average of first and second quarter of 2005. It can be said that this result came from the fact that they don’t have a specific, unique, and competitive marketing strategy in the world other than China. If this market share drop continued, it could be obvious that Lenovo would become a loser in global PC market, which result could have been consequently estimated $205 million decrease in revenues in the end of 2005 compared to the result of 2004 (see Exhibit 1). At that time, the Lenovo’s managements decided that they acquired IBM’s personal systems division in December 2004 in order to conquer this situation and become a global leading technology company. The primary challenge for the problem in this case was how to build a global marketing and branding strategy other than China by utilizing IBM’s brand and its well-established products such as ThinkPad laptop and ThinkCentre desktop. Situation Analysis (See Exhibit 2) Costumers needs and characteristics Although there are a wide variety of customers in the world, it can be basically said that individual customers are extremely price sensitive after PC became a commodity product like cell phones. In general, young generation in developing and developed countries pursues cheaper products regardless of PCs’ specification...
Words: 1606 - Pages: 7
