Acer Case Study Essay

837 Words Oct 20th, 2011 4 Pages
1. What accounts for Acer’s outstanding start-up? What caused the company to outpace scores of other Taiwanese PC companies?

Acer was established as a company performing multi-sale/service functions. The drive to make profit pushed the founders to grasp every opportunity available which included importing electronic components, providing engineering and design advice to local companies, publishing journals and offering training courses.
Despite being capital constrained, Acer had a brilliant start-up and soon it outpaced all other competitors on the Taiwan PC market. Based on my understanding of this case, Acer owes its outstanding start-up to frugality, organizational culture, and a well defined market focus.
The CEO implemented
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Although this approach came with its challenges but through persistence Acer was able to establish itself in these markets. Shih mentioned that this approach was very advantageous because the supposed smaller markets are becoming bigger and the combination of many smaller markets is not small. Also, this approach opened the company up to international markets and joint ventures.
Conclusively, the most visible factor that caused Acer to outpace other Taiwanese companies is its focus on smaller neighbouring market niches. These markets are fast growing and a combination of these markets gives the company a “Big” market to serve. 2. After such strong decade, why did Acer’s growth and profitability tumble in the 1980’s? How do you evaluate Leonard Liu’s performance? . This reversed trend can be attributed to three main causes which are, changing market trends, unnecessary joint vdntures and drifting from its foundational values and culture, high level of spending and heads on competition with Giant global firms.
The family like foundational values and culture of Acer encouraged employee interaction. As the company grew, a shortage of management employees made Shih to hire new employees who are not familiar with the organizational value and gradually made the company drift from its culture. Leonard

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