Acer Case Study
Assignment # 1: Case Study 1: Acer Case
Strayer University
Course Title: International Marketing (MKT505)
Acer’s strategy has been described as “divide and conquer.” Compare and contrast this to Lenovo’s strategy Acer is a global corporation headquartered in Taiwan. The company’s products include desktop PC’s, laptop PC’s, tablets, monitors, and smartphones. Acer is a brand of the Acer Group which also owns Gateway, eMachines, and Packard Bell. The Acer Group’s long-term mission is to break the barriers between people and technology through the creation of empowering hardware, software, and services (Acer Group - The Brands, 2013). The company believes the four different brands provide the company with different characteristics that allow them to target different customer needs in the global market. Acer is currently ranked the fourth largest computer maker in the world. The company has over 8,000 employees and had sales of $15.7 billion dollars in 2011 (Acer Group - Overview, 2013). Lenovo is anther global corporation that operates with centers of excellence versus a traditional headquarters model. The large centers of excellence are housed in the United States, China, and Singapore. Lenovo is very similar to Acer as they too manufacture desktop PC’s, laptop PC’s, tablets, monitors, servers, workstations, and accessories. The company’s long-term mission is to become the leading personal technology company in the world (Lenovo – About Lenovo, 2013). Lenovo is currently the second largest computer company, has over 26,000 employees, and sales of $21 billion dollars (Lenovo – About Lenovo, 2013). Both Lenovo and Acer have enjoyed successes but have utilized different strategies in order to get there. The Acer Group adopted a divide and conquers type of strategy while Lenovo has adopted the strategy of developing and succeeding locally before going globally. In both cases, each company struggles with worldwide recognition. In the case of Acer, they
Strayer University
Course Title: International Marketing (MKT505)
Acer’s strategy has been described as “divide and conquer.” Compare and contrast this to Lenovo’s strategy Acer is a global corporation headquartered in Taiwan. The company’s products include desktop PC’s, laptop PC’s, tablets, monitors, and smartphones. Acer is a brand of the Acer Group which also owns Gateway, eMachines, and Packard Bell. The Acer Group’s long-term mission is to break the barriers between people and technology through the creation of empowering hardware, software, and services (Acer Group - The Brands, 2013). The company believes the four different brands provide the company with different characteristics that allow them to target different customer needs in the global market. Acer is currently ranked the fourth largest computer maker in the world. The company has over 8,000 employees and had sales of $15.7 billion dollars in 2011 (Acer Group - Overview, 2013). Lenovo is anther global corporation that operates with centers of excellence versus a traditional headquarters model. The large centers of excellence are housed in the United States, China, and Singapore. Lenovo is very similar to Acer as they too manufacture desktop PC’s, laptop PC’s, tablets, monitors, servers, workstations, and accessories. The company’s long-term mission is to become the leading personal technology company in the world (Lenovo – About Lenovo, 2013). Lenovo is currently the second largest computer company, has over 26,000 employees, and sales of $21 billion dollars (Lenovo – About Lenovo, 2013). Both Lenovo and Acer have enjoyed successes but have utilized different strategies in order to get there. The Acer Group adopted a divide and conquers type of strategy while Lenovo has adopted the strategy of developing and succeeding locally before going globally. In both cases, each company struggles with worldwide recognition. In the case of Acer, they
References: * Acer Group. (2013). The Brands. Overview. Retrieved January 27, 2013 from http://www.acer-group.com/public/The_Brands/index.htm * Acer Group. (2013). The Group. Overview. Retrieved January 27, 2013 from http://www.acer-group.com/public/The_Group/overview.htm * International Data Corporation. (2013). Soft PC Shipments in Fourth Quarter Lead to Annual Decline as HP Holds Onto Top Spot, According to IDC. Retrieved January 27, 2013 from http://www.idc.com/getdoc.jsp?containerId=prUS23903013#.UO9S3HD0Q68 * Kan, M. (August 23, 2011). China Overtakes US in PC Sales Earlier Than Expected. Retrieved from http://www.pcworld.com/article/238628/article.html * Lenovo. (2013). About Lenovo. Retrieved January 27, 2013 from http://www.lenovo.com/lenovo/us/en/our_company.html * Statista. (2013). Sales of Tablets and iPads in the U.S. from 2010 to 2012 (in million units). Retrieved January 27, 2013 from http://www.statista.com/statistics/180656/sales-of-tablets-and-ipads-in-the-us -until-2012/ * White, B. (December 19, 2009). Acer Sets China Sales Strategy As It Chases Hewlett- Packard for Top PC Spot. Retrieved January 27, 2013 from http://www.bloggingstocks.com/2009/12/19/acer-sets-china-sales-strategy-as-it -chases-hewlett-packard-for/