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Mba International Strategy Acer Case R&D China Decision

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Mba International Strategy Acer Case R&D China Decision
ACER GROUP’S R&D STRATEGY
THE CHINA DECISION

 Position the PC & Acer’s strategy  Back to 1998 !

 12 years old is another age in PC industry !  Internet
– Speed Experience using… 56 Kbits modem ! – No ADSL

 1st iMac
– 1800€

 Average PC
– – – – – PC Pentium II 333 MHz (x10) Disque Dur 5 Go (x50) 64 Mo de Mémoire (x40) Windows 98 (+4th generation) 1500€
2

PC Industry : Value Chain & Key Figures
Semiconductors • Microprocessor • Memory • WLAN Radio Hardware Components • HDD • Motherboard

PC Platform Design

Support & Maintenance

Software

PC Platform Assembly

Sales • Direct Sales • Distribution • Retail

PC Industry : Value Chain & Key Figures
Retail & Distribution 15%

• Microsoft - Monopolistic ? • Intel is facing only one concurrent (AMD) • Retailers and distributors very large and powerful

PC Makers 10%

Microsoft 40%

Other Components 25% Intel 10%

Leaves very little in the value chain for PC makers to work with !!!

Acer: Company profile
Taiwanese company founded by Stan SHIH - is one of the leading manufacturers of IT hardware product in the world. Key facts • Market leader in 13 countries,Top-5 in more than 30 nations globally. • World Top-10 most popular brand

Mission statement: “fresh technology enjoyed by everyone, everywhere"
Innovative organizational structure and management approach were implemented to achieve globalization:

21 in 21 strategy • 21 publicly listed companies in the 21st century  performance driven by entrepreneurial mindset. • Strategic Business Units (SBU): R&D, manufacturing of component and products. Ensuring coherence and profitability. • Regional Business Units (RBU): Local sales and services operations, ensuring local responsiveness Client server structure • global efficiency and ability to transfer knowledge across the company Fast food business model

• achieving the mission while building competitive advantages

fast food business model
SBU (R&D)

ODM /
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