Acer Swot Analysis/Pest Analysis
1 Background to Acer
Acer is a global force in the IT market. The company’s goal (September 2009) is to become the world’s number one netbook vendor. Acer was founded by Stan Shih and his wife, with a group of fi ve others, as Multitech in 1976. The company was renamed Acer in 1987. It began with eleven employees and US$25,000 in capital.
Initially, it was primarily a distributor of electronic parts and a consultant in the use of microprocessor technologies, but over time it began to develop as a PC manufacturer.
The global headquarters are located in Hsinchu City, Taiwan.
Acer began its entry into laptops with the purchase of the mobile PC division of Texas Instruments in 1997. In 2000, Acer divested its manufacturing operations in order to focus on sales and marketing of their core brand. Acer grew worldwide while simultaneously minimising its labour force by identifying and using marketing strategies that best utilised its existing distribution channels. By 2005, Acer was employing 7,800 people worldwide. Revenues rose sharply from
US$4.9billion in 2003 to US$11.31billion in 2006.
Acer’s North American market share has slipped over the past few years; in contrast, market share in other regions has risen.
On 27 August 2007, Acer announced plans to acquire its US-based rival, Gateway Inc,
(see APPENDIX 1) for US$710million. Acer’s chairman stated that the acquisition “completes
Acer’s global footprint, by strengthening our US presence”.
In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell
(see APPENDIX 2).
2 Global Operations
Australia
The Australian part of Acer is Acer Computer Australia (ACA). The subsidiary was established in
1990, and is currently Australia’s third largest personal computer vendor, behind Hewlett-Packard
(HP) Australia, and Dell Australia and New Zealand. Acer Computer Australia has the country’s highest overall market share in notebook PC and tablet PC sales, and is also
Acer is a global force in the IT market. The company’s goal (September 2009) is to become the world’s number one netbook vendor. Acer was founded by Stan Shih and his wife, with a group of fi ve others, as Multitech in 1976. The company was renamed Acer in 1987. It began with eleven employees and US$25,000 in capital.
Initially, it was primarily a distributor of electronic parts and a consultant in the use of microprocessor technologies, but over time it began to develop as a PC manufacturer.
The global headquarters are located in Hsinchu City, Taiwan.
Acer began its entry into laptops with the purchase of the mobile PC division of Texas Instruments in 1997. In 2000, Acer divested its manufacturing operations in order to focus on sales and marketing of their core brand. Acer grew worldwide while simultaneously minimising its labour force by identifying and using marketing strategies that best utilised its existing distribution channels. By 2005, Acer was employing 7,800 people worldwide. Revenues rose sharply from
US$4.9billion in 2003 to US$11.31billion in 2006.
Acer’s North American market share has slipped over the past few years; in contrast, market share in other regions has risen.
On 27 August 2007, Acer announced plans to acquire its US-based rival, Gateway Inc,
(see APPENDIX 1) for US$710million. Acer’s chairman stated that the acquisition “completes
Acer’s global footprint, by strengthening our US presence”.
In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell
(see APPENDIX 2).
2 Global Operations
Australia
The Australian part of Acer is Acer Computer Australia (ACA). The subsidiary was established in
1990, and is currently Australia’s third largest personal computer vendor, behind Hewlett-Packard
(HP) Australia, and Dell Australia and New Zealand. Acer Computer Australia has the country’s highest overall market share in notebook PC and tablet PC sales, and is also