Acer Swot Analysis/Pest Analysis

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  • Topic: Acer Inc., Gateway, Inc., Netbook
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  • Published : March 22, 2011
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1 Background to Acer
Acer is a global force in the IT market. The company’s goal (September 2009) is to become the world’s number one netbook vendor. Acer was founded by Stan Shih and his wife, with a group of fi ve others, as Multitech in 1976. The company was renamed Acer in 1987. 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 began to develop as a PC manufacturer. The global headquarters are located in Hsinchu City, Taiwan. Acer began its entry into laptops with the purchase of the mobile PC division of Texas Instruments in 1997. In 2000, Acer divested its manufacturing operations in order to focus on sales and marketing of their core brand. Acer grew worldwide while simultaneously minimising its labour force by identifying and using marketing strategies that best utilised its existing distribution channels. By 2005, Acer was employing 7,800 people worldwide. Revenues rose sharply from US$4.9billion in 2003 to US$11.31billion in 2006.

Acer’s North American market share has slipped over the past few years; in contrast, market share in other regions has risen.
On 27 August 2007, Acer announced plans to acquire its US-based rival, Gateway Inc, (see APPENDIX 1) for US$710million. Acer’s chairman stated that the acquisition “completes Acer’s global footprint, by strengthening our US presence”. In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell (see APPENDIX 2).

2 Global Operations
Australia
The Australian part of Acer is Acer Computer Australia (ACA). The subsidiary was established in 1990, and is currently Australia’s third largest personal computer vendor, behind Hewlett-Packard (HP) Australia, and Dell Australia and New Zealand. Acer Computer Australia has the country’s highest overall market share in notebook PC and tablet PC sales, and is also Australia’s leading PC vendor in both the government and education markets. Acer Computer Australia had 480 employees as of 2006.

India
Acer’s subsidiary in India is Acer India (Pvt) Ltd, and it was incorporated as a wholly owned subsidiary of Acer Computer International Ltd in 1999. It is a notable vendor in key segments such as education, desktop computers and low profi le notebooks for education purposes. Its headquarters are in Bangalore, India.

Europe, Middle East and Africa
Acer sells laptops in the Europe, Middle East and Africa (EMEA) region. In 2005 Acer ranked among the leading brands in 13 countries of this region.
CS1210 2
North America
Acer America Corporation, headquartered in San Jose, California, is a member of the Acer Group. Acer’s Research and Development (R&D), engineering, manufacturing and marketing operations in the USA and Canada are handled by Acer America. In September 1990, Acer acquired Altos Computer Systems, one of the top manufacturers of multi-user and networked Unix computer systems for commercial markets. In February 1997, Acer acquired Texas Instruments’ Mobile Computing business, including the award-winning TravelMate and Extensa notebook lines, making Acer the fourth-leading notebook manufacturer in the USA. Acer America’s Canadian offi ce, in Mississauga, Ontario, handles the repair of Acer, Gateway, and eMachine Notebooks, and Desktop PCs for Eastern Canada. The repair facility in Temple, Texas handles many service-oriented functions for North America. Acer now owns the Gateway, eMachines and the Packard Bell brands in North America.

3 Acer’s Core Values
Acer’s reputation is built upon creating value - for customers, investors, employees, and business partners.
● Customers are offered a continuous stream of innovative and empowering solutions that anticipate and satisfy their needs.
● Investors are given positive returns every year.
● Employees are motivated to enable Acer to realise its full potential and achieve its corporate...
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