preview

Acer Inc, the leading marketer of notebook and desktop PCs

Better Essays

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 …show more content…

That should enable Acer to move a lot of hardware.”
As Acer Group CEO J.T. Wang noted recently, “China and
Taiwan share not just the same language and culture, but a lot of our Taiwanese suppliers are already there. We can take our brand global by building a strong home market.”
Still, Acer faces tough competition in China. Lenovo, a local mainland brand, dominates with about one-third of the market.
Wang believes Acer is well positioned to overtake Lenovo and other local mainland firms to become the leader in PC sales in
China. Shih believes Acer will have an advantage compared to local PC makers because Acer is “more global.” At the same time,
Shih is convinced his company will be able to compete with betterknown global companies that are entering China because Acer is more “local” than they are. Acer’s international identity gives the company access to advanced business practices, technology, and economies of scale that companies like Lenovo do not have. “We have more technology. . . . We have more global exposure. . . . We have more international know-how. . . . We can gradually gain more market share,” Shih says.
Shih admits that sales of Acer’s desktop PCs in China have developed more slowly than he expected. He attributes this to
Acer’s poor brand recognition in the mainland. However, Shih made a strategic bet that the company’s notebook computers would help Acer establish a quality name and high-end image.
Meanwhile, Lenovo

Get Access