Assignment 1: Case 1-3 "Acer"

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Assignment 1: Case 1-3 "Acer"

"Acer" Kamilla Simpson Dr. Gary White Marketing 505 July 17, 2012

"Acer" Founded in Taiwan, Acer is known as a multinational manufacturer of electronics. They not only own the largest franchised personal computer retail chain in Taipei, Taiwan but also the 3rd largest personal computer manufacturer in the world behind Hewitt Packard and Dell incorporated. The product line consist of various computer products such as desk tops systems, displays, laptops, servers and storage, ebusiness services for businesses, education and government as well as home users. The company was originally founded under the name Multitech in 1976 by Shih, his wife Carolyn Yeh, along with a group of five other developers and by 1987 the company was known as Acer. (www.acer-group.com)/public/The_Group/ milestones.htm

1. Acer's strategy has been described as "divide and conquer." Compare and contrast this to Lenovo's strategy.

From the beginning Acer had been a component and equipment manufacturer for relabeled products marketed and sold by recognized global companies. When the demand became frequent and started to grow larger the PC industry needed to produce PC components a little faster, cheaper and more efficiently; this open the door to many companies including Acer. Strategic management theories have taught many that when companies face market saturation, the most effective way to grow is to engage in expanding its operations, marketing and selling activities to another market. In this particular case, Acer was eager to take the company into the global electronics and personal computer market. "Strategic decisions of a company are influenced by market conditions, conditions of the economy, regulations affecting the industry,

degree of competition, its own growth targets and the interactions with it own business units". (Collis & Montgomery, 2002).

Acer adopted initiatives that placed the company in a better position than its closer...
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