Acer Corporation Essay

1602 Words7 Pages
1. Question 1 Many companies use different strategies in order to be successful. Not only to be successful but also to simply exist in the competitive markets or come into the world picture. One of such strategy used to cope with a highly positioned power in the market is known as the ‘divide and rule’ or the ‘divide and conquer’ strategy. This strategy comes from a long line of history, surprisingly from the time of Roman history when they invaded British. Both the parties have used this theory in breaking down superior powers into much more smaller powers in building and destroying power from different countries, in the early days of AD 43’s. Referring to the case given, Acer Inc. originated from Taiwan, was new to the American Market because of the strong local competition and the positioning of the American Companies based there. This lead Acer Inc. to disperse the power held by American companies so that they can enter the Market peacefully. For a company to enter a foreign market, they should be well aware of the customs, practices, norms and cultures. Acer Inc. realized that they should have a strong home market and a business to business concept, in the countries that they wish to enter, so that they can compete effectively. Concurrently, realizing that China is a potential country with resources, especially in skilled engineers, professionals who could contribute to development and innovation of their product and services, they were also trying to enter to China Market. They entered China market, believing that they could adopt a strong home market to build their brand with foreign products if they could stand secure and stable in the China market. If they were able to make Acer a home product of China, chances were higher for the business to grow and expand. Since China was a member of World Trade Organization (WTO), they had confidence that the
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