Dr. Benjamin Bao
Dr. Benjamin Bao
By: Brandon Lamond Meadows
By: Brandon Lamond Meadows
Founded in Taiwan, Acer is a multinational manufacturer of electronics. They also happen to own the largest franchised personal computer retail chain that exists in Taipei, Taiwan. It is also the 3rd largest personal computer manufacturer in the world behind Hewlett Packard and Dell Incorporated. Their product line incorporates a variety of personal computer products including laptops, desktop systems, as well as servers and storage, peripherals, displays, e-business services for business, government, education, and even home users, and personal digital assistants which are also commonly referred to as PDA’s. The company was originally called Multitech, and was founded in 1976 by Stan Shih, his wife Carolyn Yeh, along with a group of five other developers. By 1987 the company was known as Acer ( webhosingreport.com)
As time has progressed, so has the company and its marketing strategies. As it fights to become a global entity the real challenge has been to fight, first for dominance in the homeland an in the surround local regions. Today Acer competes in the global market and is a front runner in the European market and garnishes billions of dollars in sales every year. It has managed to develop a diverse portfolio of products and has ventured off into other arenas such as sports sponsorships which all help strengthen the brand. In this paper I will analyze Acer’s marketing strategies and business model by answering the following: 1. Acer's strategy has been described as "divide and conquer." Compare and contrast this to Lenovo's strategy. 2. Explaining how the “global markets-local markets” paradox figures into Stan Shih’s strategy for China. 3. Determining what strategies Acer can apply to become the world’s third largest PC company, behind Dell and Hewlett-Packard. 4. Even before the current economic crisis deepened, growth in the U.S. PC market had begun to slow down. Despite strong competition from Dell and Hewlett-Packard, Acer’s U.S. market share increased from 1 percent in 2004 to 3.3 percent by the end of 2006. Analyze Acer’s prospects for gaining further share in the United States. 5. Provide evidence from at least three qualified sources with the answer to number four, e.g., textbook, peer-reviewed journals, government or professional organizations websites. Note: Properly cite your sources in the report and on a separate reference page that follows the APA style conventions. After reading this analysis the reader should have a better understanding of the interworkings of Acer’s marketing strategies and business model.
1) Acer's strategy has been described as "divide and conquer." Compare and contrast this to Lenovo's strategy.
Acer originated as an equipment manufacturer for relabeled electronics and handled most of its business as a business to business entity. Acer remained one of the leading entities in this enterprise, until the resurgence of the PC industry, which led to several other players entering the market. This of course posed a threat to the company and called for a strategic decision to be made. Market expansion was the choice made by the company which moved towards becoming a global power. Acer struggled becoming a global entity mainly because of its poor brand recognition which led to it attempting to develop local sales more, which brought it into completion with Lenovo. Lenovo’s strategy consisted of acquisitions and global partnerships. The global company IBM sold its PC group to Lenovo in a deal valued at $1.75 billion and took a minority stake in the company. The joint venture will made Lenovo the third-largest PC maker in the world, while still giving IBM a hand in the PC business. (news.cnet.com) In this retrospect the two companies shared a strategic approach because Acer...
References: BBCNEWS.com (2012) “Coca-Cola Sales Boosted by Emerging Markets”, http://www.bbc.co.uk/news/business-17742632
Einhorn, Bruce, (2009) “Acer Closes In on Dell 's No. 2 PC Ranking”, http://www.businessweek.com/globalbiz/content/jan2009/gb20090115_682079.htm
Nystedt, Dan, (2007) “Acer Completes Gateway Acquisition”, http://www.infoworld.com/t/business/acer-completes-gateway-acquisition-290
Riedel, Chris, (2009) “Schools 'Test-Drive ' Acer Netbooks with Seed Unit Channel Program”, http://www.edchannelpartner.com/articles/71837/
Spooner, John (2004) “IBM Sells PC Group to Lenovo” , http://news.cnet.com/IBM-sells-PC-group-to-Lenovo/2100-1042_3-5482284.html
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