Acer Case Study

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Acer inc. is a leading marketer of notebook and desktop PCs. In 2006 the company sales reached $11.3 bullion dollars. The company also produces other technologies such as, flat screens, monitors, as well as personal digital assistants. ( Keegan, 2011). Due to the success of Taiwan hard work and reputation Acer became Taiwan number one exporter. They manufactured and marketed computers that were sold under their own brand. Acer is known as a multinational manufacturer of electronics. They not only own the largest franchised personal computer retail chain in Taipei, Taiwan but also the 3rd largest personal computer manufacturer in the world behind Hewitt Packard and Dell incorporated. 1. Acer's strategy has been described as "divide and conquer." Compare and contrast this to Lenovo's strategy. The most effective way for Acer to grow was to engage in expanding its operations, marketing and selling activities to another market. In this case Acer decided to take the company globally and begin building a solid market in China. (Keegan, 2011). Acer interest was to gain power, and lessen the power of Lenovo. Shih believed that building brands in the business to business market is would be more profitable than building brands. (Keegan, 2011), It's believed that if China becomes Acer’s "home" market, Acer will capture critical economies of scale that will allow it to develop innovative new products that will succeed in China as well as the rest of the world. (Keegan, 2011). Acer's chief technology officer believes that Acer's knowledge of China's market will help the company achieve its growth and market share objectives. In comparison Lenovo shares the passion for innovation, quality and service. (Keegan, 2011), Lenovo acquired IBM’s ThinkPad notebook business in a move that catapulted the company into third place among the words computer market. However
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