Acer Inc, the leading marketer of notebook and desktop PCs Essay

1414 Words Apr 13th, 2013 6 Pages
Case 1-3
Acer Inc.
Acer Inc. is a leading marketer of notebook and desktop PCs.
The company, which posted sales of $11.3 billion in 2006, also produces other products such as flat-screen monitors and personal digital assistants. As Taiwan gained a reputation as the “tech workshop of the world,” Acer was able to become Taiwan’s number one exporter by manufacturing and marketing computers sold under its own brand name. Acer also produced equipment on an original equipment manufacturer (OEM) basis for well-known global companies such as IBM, Dell, and Hitachi. As company founder, chairman, and CEO, Stan Shih built Acer Inc. into one of
Taiwan’s most successful companies.
Despite Acer’s success, the company had trouble breaking
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Keenly aware of the importance of scale in the global computer market, Acer acquired U.S.-based
Gateway in 2007.
Shih had promised his wife he would retire at the end of 2004 when he turned 60. He kept his promise, stepping down in
December of that year. Why? “This way the company can have new blood,” he said. “Acer is solid and stable, but a little bit old-fashioned. Sometimes we are not aggressive enough among the middle and high level managers.” The move is paying off: Acer is currently the top notebook brand in Europe, and its low prices are a crucial selling point in key emerging markets such as India and Eastern Europe. With the Gateway acquisition completed,
Acer was on track to surpass Lenovo and become the world’s third largest PC marketer by the end of 2007. Will the new leadership team headed by J.T. Wang be able to replicate Acer’s European success in the United States and Asia?
Discussion Questions
1. Acer’s strategy has been described as “divide and conquer.”
Explain.
2. How did the “global markets/local markets” paradox figure into Stan Shih’s strategy for China?
3. Can Acer 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 slowing. 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.

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