This case study report is based on the case of Acer’s restructure for enhance its global growth. During the process, its development in India achieved a good result in these years yet the concerns for this market could be never ignored since its distinctive situations. This report is going to review the process of restructuring for the operation, the elements which contributed during the process, and then give a note for the further developmental path for Acer in India, as well as the SWOT analysis for the current situation.
1. Introduction on Acer to enter India market
Acer has been known as a Taiwanese multinational electronics and hardware company in these years. The corporation ranks the third in the list of the personal computer company all over the world from the year of 2007 (Acer, 2012). The products that they produced include laptop PCs, relevant servers, smart phones, and other peripherals. The company provides e-business services to governments as well in Taiwan. Acer implemented has been taken as a manufacturer in early 2000s, and now it would like to swift as a designer, marketer and distributer. Besides the headquarters in Taiwan, the company also had been aggressive for entering the market in India, and in the year of 1999, the company opened the subsidiary as the Acer India Limited, it was an entire owned subsidiary for the Acer Computer. This case study is going to research the process of Acer’s restructures for global growth, especially for its development in the country of India (Acer, 2013).
2. Acer’s strategy of restructuring in seeking for its Global Growth
As known to all that the Acer had ranked the third largest computer company all over the world in the aspect of personal computer shipment in the year of 2007 (Acer, 2013). According to the known numbers, 2.43 million units sold in that year, the market share even achieve 7.6%. The brand was so competitive that it beat the Hewlett-Packard (HP) as 1% more in the growth rate and 10% more for beating Lenovo Group Ltd (Acer, 2013). In the beginning of 2008, the advantage of the company was still being kept which could make the growth rate more than Dell Inc. All the good achievements that the company made in global arena could be attributed to the restructuring efforts that the company did since the year 2000.
2.1 Splitting the business as different new divisions
The PC-system manufacturing unit had been separated and seen as a new company for the business. The new one had been known as Wistron Corporation in 2002 (Acer, 2012). The brand is an original design manufacturer, besides offering the normal notebook PC, the desktop PC. It also focuses on providing different kinds of technology services which involving the process of design, manufacturing, and customer service for interacting for meeting various requirements.
The BenQ was also had been changed from the Acer Communications and Multimedia from the year of 2001. This independent brand mainly concentrated on the Acer-brand IT products for people’s daily life usage, as well as offering relevant products for enriching the digital life devices, the LCD and CRT monitors were included. The company got its own board without Acer involved, since the Acer would like to be conflicted with it (Acer, 2013).
From these two examples, it could be seen that the restructuring behaviors made the company reduce the expenses and extra costs from operating process. Moreover, the pricing of PC could be aggressively for both the two brands, so the higher motivation and incentives could be offered to their channel distributors. As the result, the Acer may keep its advantages in the field more other brands who merely offer their products from the only one channel.
2.2 Establishing the foreign subsidiary with good reputation
The company had built its subsidiaries all over the world. They include the subsidiaries in North America, Australia, India and...