Case 1-3 Acer Inc.
1. Acer strategy has been described as " divide and conquer". Compare and contrast this to Lenovo's strategy.
Marketing Secret #1 – Divide & Conquer
Underlying all of the many things that the most successful marketers do is one important principal. The principal of “divide and conquer”. This time tested method for segmenting your market into smaller and smaller “sub-markets” is the key foundational idea behind all successful marketing.
So what do I mean by “divide and conquer”? It’s really simple, but requires some thought…not a lot, but some. Let’s take by way of example an engineering firm that sells design services. They can design any type of commercial building—offices, retails stores, restaurants, fast-food joints, strip malls, schools and fire stations. All of these building sites require essentially the same design services, done by the same people in the firm.
Logically, the firm creates a brochure, business cards and a website that talks about the design work they do, the qualifications of their engineers and the places they work. And, somewhere on each marketing piece they list, in bullet form, the various types of building sites that they can design.
All the money the firm spends on it’s pretty brochures, cards and website will be wasted because in trying to speak to ALL of the possible types of customers they want, they’re not speaking to any of them. Prospects are people. People who have a plate full of problems in their own world. If you’re not talking to them in their world, individually, you will be ignored. So in the case of our engineering firm, they need to divide their prospects into categories like: office building owners/developers, retail store owners fast food franchisees ect.
When you separate it out like this and think about each type of client and what problems they face every day, it’s pretty clear that you need to communicate with the office folks differently than the restaurant people and differently still from the school district’s facilities planner.
Now that we’ve divided the firm’s universe of potential clients into logical groupings, we can devise a plan to conquer each sub-market. Instead of one brochure and website, I’d create 7, one to two page brochures and 7 sub-market focused websites. I’d even look for web addresses like retail-site-engineering.com or fast-food-engineering.com for each sub-market. With each marketing piece, we’re now able to focus the message on the specific individuals in each sub-market.
So set aside an hour to think about who you’re marketing too. Divide them into groups and conquer each one. [ (Gordon) ].
We can see this strategy, divide and conquer in Ace's case, for example, Shin, the company founder, has discovered that building brands in the business -to business market is easier than building brands in the business-to consumer market. Business to consumers brands have more value but also face more challenges. People involved in business-to business are usually rational, but consumers in business-to consumer are usually emotional in choosing their brands. [ (keegan, 2011) ]. Ace discovered that it was better to focus on the business-to business market , they segmented their target market in a very effective way.
Another example of divide and conquer strategy in the Aces case was when in 2000, Shin refocused the company distribution and marketing on the fast-growing China market. It was a good idea to take advantage of the similar culture and language among China and Taiwan to build a solid market base and then expand from there to the rest of the world. Shin understood that it was crucial to be stable and secure in the local market before pursuing regional, then global markets.
Lenovo is a mainland local brand that dominates with about one-third of the market, however , Wang thinks that Acer's international identity gives the...
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