...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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...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, vertically integrated manufacturer of PCs, components and peripherals that it sells under its own brand name and on an OEM basis for other PC makers. Acer’s diversified product line resembles that of giants such as IBM, Hewlett-Packard, Toshiba and NEC, yet it is only a fraction of their size. Acer’s strategies and culture are the product of founder and chairman Stan Shih. Shih started the...
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...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 annual Acer revenue of $100,000 or more. The ACE Program is designed to provide comprehensive pre- and post- sales support to drive revenues for...
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...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 and market. Mandarin being the language spoken by both Chinese and Taiwanese, there will not be any language barrier unlike the other companies where in they need to put in extra efforts. Acer being familiar with both the Chinese...
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...use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain; The value equation (V =B/P) expresses the relationship between values and the marketing mix. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix and a localization (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Companies that engage in global marketing can also engage in coordination of marketing activities. Finally, a firm’s GMS will address the issue of global market participation. The importance of global marketing today can be seen in the company...
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...PART 1 Introduction CHAPTER 1 Introduction to Global Marketing Case 1-1 The Global Marketplace Is Also Local onsider the following proposition: We live in a global marketplace. McDonald’s restaurants, Sony digital TVs, LEGO toys, Swatch watches, Burberry trench coats, and Caterpillar earthmoving equipment are found practically everywhere on the planet. Global companies are fierce rivals in key markets. For example, American auto industry giants General Motors and Ford are locked in a competitive struggle with Toyota,Hyundai,and other global Asian rivals as well as European companies such as Volkswagen. U.S.based Intel, the world’s largest chip maker, competes with South Korea’s Samsung. In the global cell phone market, Nokia (Finland), Ericsson (Sweden), Motorola (United C States), and Samsung are key players. Appliances from Whirlpool and Electrolux compete for precious retail space with products manufactured and marketed by China’s Haier Group and LG of South Korea. Now consider a second proposition: We live in a world in which markets are local. In China, for example, Yum Brands’ new East Dawning fast-food chain competes with local restaurants such as New Asia Snack.1 France’s domestic film industry generates about 40 percent of local motion picture box office receipts; U.S.-made movies account for about 50 percent. In Turkey, local artists such as Sertab account for more than 80 percent of recorded Exhibit 1-1: England’s Burberry Group celebrated its...
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...Briefing SECTION B: Discussion Questions 1. What are the basic goals of marketing? Are these goals relevant to global marketing? 2. What is meant by “global localization?” Is Coca-Cola a global product? Explain. 3. Describe some of the global marketing strategies available to companies. Give examples of McDonald that use the different strategies. 4. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric management orientations. 5. Define leverage and explain the different types of leverage utilized by companies with global operations. 6. What is “global marketing” and how does it differ from “regular marketing?” Giving examples of at least one major corporation explain these differences. SECTION C: CASE STUDY CASE 1-3: Acer Inc (page 57) 1. How did the “global markets-local markets” paradox figure into Shih’s strategy for China? 2. Can Acer become the world’s third largest PC company, behind Dell and Hewlett-Packard? 3. Growth in the U.S. PC market has started to slow down. Despite strong competition from Dell and Hewlett-Packard, Acer’s U.S. market share increased form 1 percent in 2004 to 3.3 percent by the end of 2006. What are Acer’s prospects for gaining further share in the United States? ABDT 3213 – International Marketing Week 3 Tutorial 2: The Global Economic & Trade Environment SECTION A: Discussion Questions 1. Explain the difference between market...
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...University of Singapore, 1 Arts Link, Singapore 117570 (Tel: 65-6516 6810; Fax: 65-6777 3091; Email: HenryYeung@nus.edu.sg; Homepage: http://courses.nus.edu.sg/course/geoywc/henry.htm) Forthcoming in Asia Pacific Viewpoint, Vol.48(1), pp.1-30, 2007. Acknowledgement An earlier version of this paper was presented as the Asia Pacific Viewpoint Lecture at the International Geographical Union Regional Congress, Brisbane, Australia, 3-7 July 2006. I would like to thank Asia Pacific Viewpoint and the editor, Warwick Murray, for inviting and funding me to deliver the lecture. Conference participants also offered some useful comments. The paper was subsequently revised and reworked while I was a Visiting Researcher at the International Centre for the Study of East Asian Development (ICSEAD), Kitakyushu, Japan, 10 July to 9 September 2006. I am very grateful to ICSEAD for its generous Visiting Researcher scheme and ICSEAD colleagues for their comments on an earlier version of this paper that was presented at an ICSEAD public seminar and appeared as an ICSEAD Working Paper (No.2006-16). Further helpful comments from anonymous reviewers are much appreciated. The NUS Academic Research Fund (R-109-000-050-112) supports the research project underpinning this paper. I am grateful to all corporate and institutional interviewees for their generosity and helpfulness, my research collaborators, Jang-sup Shin and Yong-Sook Lee, for their significant intellectual inputs, Angela Leung for her excellent research...
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...Indonesia Course Name : Managing International Business (MIB) Class : Executive Program, July 2008 Facilitators : Handry Satriago (Course Leader) Guest Speakers : Subject to confirmation from the guest speakers - Riri Riza/Mira Lesmana, MILES Film (Session 5) Topic: Indonesia Movie Industry - Richard Matalon, President Director L’Oreal Indonesia (Session 12) Topic: L’Oreal strategy entering Indonesia - Vikram Reddy, GM Four Seasons Hotel Jakarta (Session 16) Topic: Four Seasons Global Strategy Background Companies today confront an increasing array of choices of markets, of locations for value adding activities, and of modes of crossing borders. This course focuses on the international dimensions of strategy and organization, and provides a framework for formulating strategies in an increasingly complex world economy, and for making those strategies work effectively. Operation in an international environment gives the manager access to new markets, additional natural resources, and low-cost-factor endowments. More importantly, it opens up new sources of ideas and knowledge to stimulate future innovation. Above all, global markets provide a vast new source of the scarcest of all corporate resources: management talent. On the other hand, these new opportunities present the challenges of managing in more complex, diverse...
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...2010 Chen and Miller 17 E X C H A N G E West Meets East: Toward an Ambicultural Approach to Management By Ming-Jer Chen and Danny Miller Executive Overview In the aftermath of the recent economic crisis, the world is looking for fresh ideas and new perspectives. Business reality has transformed from “West leads East” to “West meets East.” A thriving Chinese business culture represents not only a source of economic partnership but a potential fount of managerial wisdom that can help renew Western economies. Unfortunately, the cultural distance between East and West makes Chinese examples too different, and at times inappropriate, for Western firms to emulate. Outstanding entrepreneurs such as Stan Shih, who have taken the best managerial practices from the East and the West while avoiding the shortcomings, represent ideal “intermediate” role models. By employing such an “ambicultural” approach to management, Shih provides a model for both bridging cultures and instructing organizations in the East and West. In this essay, we discuss these linkages and some of the useful lessons for managers from both cultures. Indeed, “Chinese” as a way of thinking, with its emphasis on balance and self-other integration, offers the promise to bridge global divides and facilitate the formation of global-minded executives. T he global economic crisis has destroyed vast amounts of wealth— both public and private— and eliminated tens of millions of jobs...
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...MANAGEMENT CASE describes a real-life situation faced, a decision or action taken by an individual manager or by an organization at the strategic, functional or operational level HCL: Facing the Challenge of the Laptop Market Jaydeep Mukherjee and Mahalingam Sundararajan M r. Ajai Chowdhry, Chairman and CEO at HCL Infosystems Limited, a major technology hardware player in India, was pondering upon the company’s marketing strategies to build its laptop sales in 2010-111. Driven by powerful and sustained marketing campaigns by the multinational companies (MNC), namely Dell and Acer, during 2009-10, the laptop market had witnessed tremendous growth. Dell’s 1,500 million Indian Rupee (INR) marketing initiative had catapulted it from the fifth position (in terms of sales revenues) in 2008-09 to a second position in 2009-10 in the Indian laptop market2. Similarly, Acer had gone on a marketing and distribution blitz that catapulted it from No. 6 to No. 3 in the market, thereby more than doubling its market share. The reason for this sustained effort by the players could be attributed to the major structural changes that were taking place in the rapidly growing Indian computer marketplace. Traditionally, consumers preferred desktops due to lower costs. However, in 2008-09, consumer preference started shifting to laptops because of the mobility advantage and the falling prices of laptops leading to an exponential growth of the laptop market. Households accounted...
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...Chapter 1 expanding abroad: motivations, means, and mentalities Case 1-1 Cameron Auto Parts * Alex Cameron got the family biz when graduated in 2001, when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity ...
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...Achieving and Maintaining Strategic Competitiveness in the 21st Century: The Role of Strategic Leadership Author(s): R. Duane Ireland and Michael A. Hitt Source: The Academy of Management Executive (1993-2005), Vol. 19, No. 4, Classic Articles from AME (Nov., 2005), pp. 63-77 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/4166206 Accessed: 10-05-2015 07:37 UTC REFERENCES Linked references are available on JSTOR for this article: http://www.jstor.org/stable/4166206?seq=1&cid=pdf-reference#references_tab_contents You may need to log in to JSTOR to access the linked references. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/ info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Executive (1993-2005). http://www.jstor.org This content downloaded from 203.101.161.82 on Sun, 10 May 2015 07:37:52 UTC All use subject to JSTOR Terms and Conditions I Academy of Management Reprinted from 1999, Vol. 13, No. 1 Executive...
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...launched its eagerly anticipated iPad amid great hype. The multimedia computer tablet was the third major innovation that Apple had released over the last decade. CEO Steve Jobs had argued that the iPad was another revolutionary product that could emulate the smashing success of the iPod and the iPhone. Expectations ran high. Even The Economist displayed the release of the iPad on its magazine cover with Jobs illustrated as a biblical figure, noting that, “The enthusiasm of the Apple faithful may be overdone, but Mr. Jobs’s record suggests that when he blesses a market, it takes off.”1 The company started off as “Apple Computer,” best known for its Macintosh personal computers (PCs) in the 1980’s and 1990’s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996. Then Jobs went to work, transforming “Apple Computer” into “Apple Inc.” with innovative non-PC products starting in the early 2000’s. In fact, by 2010, the company viewed itself as a “mobile device company.”2 In the 2009 fiscal year, sales related to the iPhone and the iPod represented nearly 60% of Apple’s total sales of $43 billion.3 Even in the midst of a severe economic recession, revenues and net income both soared (see Exhibits 1a through 1c). Meanwhile, Apple’s stock was making history of its own. The share price had risen more than 15fold since 2003 (See Exhibit 2). By almost any measure, Apple’s turnaround was a spectacular accomplishment. Yet Steve Jobs knew...
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...This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work’s original creator or licensee. Organization The overarching logic of the book is intuitive—organized around answers to the what, where, why, and how of international business. WHAT? Section one introduces what is international business and who has an interest in it. Students will sift through the globalization debate and understanding the impact of ethics on global businesses. Additionally, students will explore the evolution of international trade from past to present, with a focus on how firms and professionals can better understand today’s complex global business arena by understanding the impact of political and legal factors. The section concludes with a chapter on understanding how cultures are defined and the impact on business interactions and practices with tangible tips for negotiating across cultures. WHERE? Section two develops student knowledge about key facets of the global business environment and the key elements of trade and cooperation between nations and global organizations. Today, with increasing numbers of companies of all sizes operating internationally, no business or country can remain an island. Rather, the interconnections between countries, businesses, and institutions are inextricable. Even how we define the world is changing. No longer classified into simple and neat...
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