In the light of increased competition in the PC industry, there is a need to capture and maintain market share, not only be profitable but to be sustainable. The Acer Company has over the years moved from being a little known Taiwanese PC maker to being ranked among the world's top five branded PC vendors.
Since the modernization and inevitable commercialization of computers, brand recognition and market share in the personal computer market has always been very competitive.
In the mid 1990's the personal computer market took off primarily by the boost the industry received in the business-to-consumer sector. The offering of financing options made it easier for individuals to acquire computers.
Since the beginning of the PC revolution, the market has been dominated by four major manufacturers: Dell, HP and Gateway. By the latest part of 2000s, Acer and Lenovo have gain brand recognition and market share. The latter two companies growing strategy involved the acquisition of Gateway by Acer and IBM’s personal computer division by Lenovo. This paper will compare these two companies business strategies, as well as their operating differences. .
1. Acer's Strategy Has Been Described as Divide and Conquer. Compare and Contrast This to Lenovo Strategy
From its inception, Acer had been a component and equipment manufacturer for relabeled electronic products marketed and sold by recognized global companies. Along with the booming of the PC industry came the need to produce PC components faster, cheaper and more efficiently; this need gave birth to several companies akin to Acer, which in turn contributed to market saturation.
Strategic management theories have taught us that when a company faces market saturation, the most effective way to growth is to engage in expanding its operations, marketing and selling activities to another market. In this case, Acer determined that they would take the company into the...