Essay about Acer Case Study

1639 Words Mar 26th, 2013 7 Pages
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
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That person or company must learn, understand, and interpret the culture in which they are trying to act locally in. China is the fastest growing PC market and Acer ranks fifth in the market due to poor recognition (White, B., 2009). Acer decided to increase their sales training and increase their retail presence by as much as 30% in order to try and surpass companies like HP, Dell, and Lenovo.
Determine what strategies Acer can apply to become the world’s third-largest PC Company behind Dell and Hewlett-Packard.
Acer ranked number four in worldwide PC sales for 2012 behind HP, Lenovo, and Dell according to International Data Corporation (IDC) (IDC, 2013). In order for Acer to become the third-largest PC Company and surpass Dell, Acer has got to increase sales in the United States and China. China is the fastest growing PC market as PC sales in China surpassed the United States in 2011 (Kan, M., 2011). Acer is currently in the top three in China, but Lenovo is substantially ahead holding about 30% of the market share compared to Acer’s 10%. In the United States, Acer did not even rank in the top five of PC sales for 2012 according to IDC.
I believe Acer has a good strategy for operations, logistics, and supply chain which have allowed them to streamline their processes, drive out costs, and increase profitability. The company has made some strategic acquisitions of companies such as Gateway and Packard Bell, but it’s still not enough to surpass Dell.

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