Case Study - Acer's Growth Strategies

industry covers services and platforms with a vast variety of focal markets. The portion of the

The weekly performance of the stock has a trend of constant growth with a significant growth in price compared to the IBM stock which happened in week four to six (09/30/11-10/06/16). A major factor for the large jump in the stock price is due to the shocking current news of Google acquiring Motorola Mobility for $12.5 billion. Right after the announcement of

The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by

This is case study of what caused the increase and fall of Nortel and what might be done to stop it. problems with misreported monetary information, board structure and the potential for fraud might are prevented if Nortel had taken preventative measures and had a written fraud interference policy. Having a Code of Ethics and a Code of Conduct in situ helps to align managers with the interests of the stakeholders and is for the bigger sensible of the corporate. It additionally permits the corporate to proceed with prosecution of the party or parties concerned within the fraud. Processes place into place to stop fraud by workers

The growth strategy will help to ensure that the company expands its market, penetrates those markets that it has not been currently reaching, diversification, acquisition and product expansion. Since the Company has a rock-solid financial base, it can utilize it to invest in the efforts to penetrate new markets. The recent acquisition of the Beats Electronic has been a strategic move to see it diversify into the music industry. To repossess its pricing power, the company can choose to heavily invest in the innovation so as to sustain the interest of the customers in the products that it is providing. The company can also choose to invest heavily in the production of the products so that the process is streamlined. In this regard it will be

Another factor which is interesting to examine is the One Year Change in Market Value. Inditex is on top position compared to all competitors with an impressive growth rate of 47%. H&M has the closest result and is the only company besides Inditex whose market value has been growing in 2001.

Market Share Growth: Gain 64% market share in year 1, 66% market share in year 2, 68% market share in year 3

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.

No wonder CyraCom is placed within the Top 15 companies reporting an average rate of growth of 72.75 percent growth in 2008. ("Second annual ranking," 2011)

IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42%

The outlook for growth is risky considering this company is very volatile, but if corrections are made to better the industry (i.e. expand

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,

The company was profitable once again by the third quarter of 1985. To maintain market share, the company invested heavily in research and development in 1987 and was ranked by a leading trade journal, Electronic Business, as second in R&D spending, based on a 131.7% increase from 1986 to 1987. The company’s share price bounced back from a low $1 in 1985 to $13 in July 1988. With all these developments, it seemed that the company had indeed made a comeback and was on its way to becoming a billion-dollar company.

Although both companies have diversified into other industries, PC industry is still their most important source of revenue. For years, these two giants are battling for lead in PC market. When measured by market share, HP has taken place of Dell as No.1 seller in PC market since 2007 (FIGURE 1). When measured by revenue, HP also wins over Dell for almost five years (FIGURE 2). Also, Acer grew rapidly in market share partly because of its merger with Gateway in 2007 (Einhorn 2007), and almost matched Dell in 2009.

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