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 …show more content…
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
Describe the characteristics of the industry in which Intel operates. How is Intel positioned in the industry?
1. What are the lessons useful for their future microprocessor business that you think Intel should have taken away from their experience in the DRAM industry?
Organizational culture could almost be considered the roots of a company. The way a company’s employees think, the way the customers feel, and the company’s decisions are made are all based around the culture that the company has laid for itself. An employee’s values, thoughts, and actions should reflect those stated in the company’s mission. Southwest Airlines and American Airlines, while both attempting to create a culture that is comfortable and pleasing to their
Intel is the preeminent supplier of semiconductor chips and platforms geared toward the global digital economy. Intel’s strategy involves competition in each relative market segment and the use of core competencies in the design and production of integrated circuits. Intel is also notable for their financial assets, global existence, and their significant brand recognition. Intel’s current principal component-level product line includes chipsets, flash memory, and microprocessors. Also, Intel Corporation retains, “A set of integrated and harmonized abilities that distinguish the firm in the marketplace” (Schilling 123). Furthermore, the three applicable tests used to determine a firm’s core competencies, according to Prahalad and Hamel, suggests that
2. What do the results say about how firms in this industry can deliver strong financial returns in different ways?
4. How effective have competitors been in responding to the challenge posed by Dell 's advantage? How big is Dell 's advantage?
The case study focuses on an employee, Paul Keller, who is being affected by a number of factors. His job performance is hindered by constraints such as his work environment, his home environment, stressors, mood, and the management style of his superior. The case study demonstrates how his job performance is affected and what the consequences could be as a result of his poor job performance and lack of concentration.
1).They was losing the support and trust of their stakeholders due to their business operations in Burma. Their brand was deterring and they were losing continuous
Taking into account the efforts and allowances spilled by AMT on its research and development aspect, and in invading new markets, it is not unexpected that it had gained an extraordinary growth and rapid expansion of its sales force for just a few years of being established. Like any other companies who were in their infancy/growth stage, it is a normal thing to put the best shoe forward in order to gain an A+ mark.
The large capital requirements to enter the computer industry combined with established brand identities of the current incumbents make barriers to entry high, not to mention the economies of scale and distribution channels that incumbents enjoy which make entry barriers even higher. The current PC incumbents enjoy demand-side benefit of scale in the business sector where PC buyers prefer to buy products from large trusted companies, raising the level of entry barriers.
and let them see my side of the business. I have to cut costs, so we
Q.3 Why Superior Improved Profitability during the period January 1 to June 30, 2005? How useful was the data in Exhibit 4 for the purpose of this analysis?
MICROSOFT (windows server) 2. INTEL ( cutting-edge technology) 3. SAP ( IT infrastructure) 4. VMWaRE ( virtual infrastructure solutions) 5. ORACLE ( database solutions) 6. BMC (data centre automation.) 7. BROCADE ( networking solutions) Cost structure36 1. Cost of Revenue $48260m 2. Sales & Admin expense $7664m 3. R&D Expense $856m 4. Capital Expenditure $675m 5. Total Acquisition $2562m 6. Total Operating expense $57640m 7. Software&network 33 %&39% increase Revenue streams21 Key resources35 1. Acquisition 2. Brand equity 3. Long ability (as high per company) 4. Intellectual property 5. R&D and revenue stream 6. Human resource 7. Core competence Key activity37 1. Support & deployment Services 2. Cloud & security services 3. Software & peripherals ( Printer, TV, networking, wear less product, anti-virus) 4. Client product (PC, Monitor, note book, work station, tablet, Smart phone) 5. Developing technologies ( in 2011 its open the dell silicon valley research and development centre ) Value proposition 1. Dell customization 2. Direct sell approach 3. Product configuration 4. Pre & post sell customer
As indicated in the table above, Dell and HP are the strongest players in the computer industry. These results are also supported by the market share statistics presented in case Exhibit 3. Conversely, the table above indicates Acer as the industry’s weakest rival in part because it focuses on producing low priced computers,
Acer's dominance as a global manufacturer of IT hardware products can be attributed to the company's extensive electronics component expertise, depth of experience managing global electronics component supply chains, and well-planned acquisitions. Through a series of successful acquisitions, the company has four successful brands including Acer, eMachines, Gateway and Packard-Bell (DiDominico, Kartika, Sibeck, 1996). Of these three strategic areas that Acer excels in, their logistics and supply chain expertise across each of the geographies they compete in continue to deliver the greatest time-to-market and cost gains (Honi, Taring, Po-Young, 2000). Acer is organized into two segments, the device business group and consolidated products and services or other business group. This second group continues to be instrumental in the success of the "divide and conquer" strategies that Acer is successfully using relative to Lenovo. It is also a critical success factors in their success with global markets and local market competitive strategy. The combination of their depth of expertise with electronic components and supply chain prowess in the high technology industry also give the company a formidable competitive advantage against Dell and the troubled PC marker Hewlett-Packard (Honi, Taring, Po-Young, 2000). Despite all these strengths however, Acer continues to struggle with the areas of consumer branding and consumer awareness