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Acer Case
GROUP TWO
Group Two Members
Khuong
M997z212
Thao
M997z216
Jarinthon
M997z225
Rattaya
M997z230
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Huong
M997z226
Son
M997z209
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Contents
1. Background & History of Acer
2. Company Objective and Product Line of Acer
3. Competitors
4. SWOT Analysis
5. Acer Strategies
6. Conclusion
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Background & History of Acer
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Overview Acer Group

The Acer Group is a family of four
brands -- Acer, Gateway, Packard Bell
and eMachines

Acer’s Slogan
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Milestones & Innovations
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Company Objective and
Product Line of Acer
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Company Objective

Provide the customer the new freshest
technology at the most reasonable price.

Become the fifth-largest computer company
by the turn of the century.
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Hope to achieve more success by targeting
small and medium-size businesses.

Establish a quality name and high-end
image.
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Company Objective (Cont)

From 1999, Acer focus on a vast, fast-growing
market much loser to home “China”.

Try to overtake local mainland firms (Legend,
Founder) to become a leader in PC sales in
China.

Develop a strong brand image in China by
pursuing regional & global market.

Acer claims to capture approximately 20
percent of the worldwide total.
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Product Line

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Desktops - High-performance desktop PCs with
full-featured and practical functionality for all
kinds of users and working environments.
Servers & Storages - Acer’s servers provide
sophisticated and dependable technologies to
deliver the level of excellence required by serious
businesspeople.
TVs - A cutting-edge technology with superb
picture and sound quality.
Projectors - Acer projector provide an
exceptional image performance with portable and
ergonomics design.
Digital Cameras - Lightweight, compact, easyto-use.
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Product Line (cont)
Notebooks Aspire series - Design for the
casual household user or small business use that
expect both productivity and entertainment.
 Notebooks TravelMate Series - Built to
support fast-moving business and professional.
 Netbooks Aspire One - All-new ultra-compact
stylish design, ultra-lightweight and ultra
portable netbook for maximum portability.
 Monitors : With the Gamers, Office and Value
lines, it will deliver extraordinary graphic
resolution, true-to-life gaming and super-sharp
images.

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Acer Competitors
Acer
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Table 1
Preliminary Worldwide PC Vendor Unit Shipment
Estimates for 2Q10 (Thousands of Units)
Company
2Q10 2Q10 Market
Shipments
Share (%)
2Q09 2Q09 Market 2Q09-2Q10
Shipments
Share (%) Growth (%)
HP
14,455.2
17.4
12,869.0
18.8
12.3
Acer
10,796.0
13.0
8,203.4
12.0
31.6
Dell
10,283.2
12.4
8,644.2
12.6
19.0
Lenovo
8,310.8
10.0
5,645.8
8.2
47.2
ASUS
4,317.9
5.2
2,419.2
3.5
78.5
Toshiba
4,222.3
5.1
3,312.5
4.8
27.5
Others
Total
30,481.8
36.8
27,537.4
40.1
100.0
10.7
82,867.2
100.0
68,631.5
Note: Data includes desk-based PCs and mobile PCs.
Source: Gartner (July 2010)
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20.7
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Competitor Analysis

Acer continued to record strong
shipment growth worldwide, fueled
by solid PC sales in Asia/Pacific.

Dell registered its second
consecutive quarter of double-digit
growth. Uptake in the professional
PC market secured Dell's PC
business, but the consumer market
was still a challenge for the
company.

Lenovo's PC shipments increased
47.2 percent in the second quarter
of 2010, but there were some
concerns over profitability as
Lenovo was aggressive on pricing
in key regions.
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ASUS had the strongest growth rate among
the top five vendors worldwide in the second
quarter, as its shipments increased 78.5
percent. ASUS was able to mix its product
lineup from mini-notebooks and focused on
selling more standard mobile PCs for better
margins.
HP continued to be the industry leader in
the U.S. PC market in the second quarter
of 2010
Dell maintained the No. 2 position, supported
by its sales into the professional PC market.
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• Acer experienced flat growth
due to slowing sales of mininotebooks and low-end
notebooks.

Apple recorded strong Mac
shipments with no signs of iPad
cannibalization. Gartner's PC
group does not track media
tablet sales in this PC shipment
data.
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SWOT
Analysis
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STRENGTH
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Change the public perception that product
made in Taiwan is cheap and not good.
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Decentralize assembly in many locations
around the world.
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Combine local components and those
shipped in from Taiwan.
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Develop a policy of “ global brand, local
touch”.
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STRENGTH (Cont)
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New product with Internet access when it is
hooked up to a TV set.

Impressive nationwide netbook.
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Acer presented the Tempo Smartphone series in
2009 to compete in the lucrative mobile phone
market.

Acer main factory is located in Taiwan which
has low-cost labor and distribution advantage in
the US market and Asian market.
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WEAKNESSES
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Sometimes obsolete when launching new
products to the market.
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The PC, laptop and mobile phone markets
are extremely competitive and require
frequent innovations to keep up or exceed
the customers’ expectations.

Innovations and changing market demand
needs strong and flexible supply chain to
execute the successful innovations and
deliver them to the market before the
competition.
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OPPORTUNITIES

Producing a wide range of hardware
components helps Acer become one of
Taiwan’s No.1 exporter by manufacturing
and marketing computers sold under its
own brand name.

Be able to become one of well known global
companies.

Get many benefits when China joined WTO
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OPPORTUNITIES (Cont)

Lead in PC sales in China.

The Asian market is huge and would
consume many of Acer’s products if
marketed well.

The success in acquiring Gateway©, emachines and pockard bell (Acer inc.,
2010) will help Acer to integrate its existing
assets or set up new manufacturer to
producer e-Reders or similar products that
does iPad functions.
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THREATS

The laptop and PC market are extremely
competitive. Acer needs to compete faceto-face with some rivals.
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Difficulty in building a business- toconsumer market.
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Getting poor images about products
produced in China.
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Threat from the Government and General
Public if they do not support local
products.
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Acer Strategies
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BRAND STRATEGY

Change its name to “Acer”
– Old name “Multi-tech International
Corporation” was too long and it did not
convey the image of technical innovation.
– New name “Acer” means “sharp” in Latin
and implies “energetic” and “capable”.

Develop a organization structure
Hierarchy and top-down corporate structures
couldn’t act quickly in the fast-moving
computer industry.

Building brands in the business-to-business
market is easier than building brands in the
business-to-consumer market.
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THE POLICY “GLOBAL BRAND, LOCAL TOUCH”
- Local touch: Acer’s local management teams in
individual country or regional market are empowered to
make decision on a wide range of marketing mix elements.
(e.g. Acer America_is a wholly owned subsidiary, but
Marketing Vice President was afforded frerein to target the
home user market segment by distributing Acer’s sleek
and stylish Aspire line through the Best Buy chain).
- Local touch has financial ramifications. Shihtrust that
joint venture partners could make prudent decisions.
(e.g. South Africa_Acer became the number two brand by
expanding during the shift from apartheid to majority rule.
and Mexico_Acer commanded a 30 % share of the
market).
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THE POLICY “GLOBAL BRAND, LOCAL TOUCH”
(cont)

Encourage employees to speak up and share ideas
without bowing their heads in deference to higherranking personnel.

Doing a joint venture is very necessary.
– (e.g. Acer combined with Texas Instruments
produces dynamic random-access memory chips
in Hsinchu, Taiwan).
• Global brand gives Acer coherence and “local
touch” gives the responsiveness.
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CONCENTRATING ON CLOSER MARKETS
Hong Kong, Taiwan, mainland
China
ACER has 3% of mainland’s
computer market share

A cornerstone of Acer’s Strategy
for the mainland is its first PC made in
China from start to finish.

The potential of China is not just big
markets and low cost labor. There
also has highly educated engineers
or professionals.

ACER posses more international
“know-how”

ACER has poor brand recognition in
the mainland
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Acer desktop PCs sales develop
slowly than expected

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Conclusion
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Conclusion
Foreign regions: “Global brand, local touch”,
“21 in 21”.
 In Taiwan: encourage sharing ideas in
company to create something new…
 Intergration into global market is not easy
and Shih have had many moves to reach
this target despite some of these moves are
venture.
 Acer should focus on the China market
because they not only have closer “cultural”
but also product preference.

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Conclusion (Cont)
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There is an advantage to Acer when they have
more technologically advanced and have
better corporate experience due to their
global.
Acer should rise their reputation and customer
satisfaction by improving their product quality.
Acer’s success changed the perception that
“Made in Taiwan” was synonymous with cheap
and low-tech products.
Acer has become one of the most famous
computer brand in the word.
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Thank You For Listening