case summary: Acer Inc.
Chin Wui Khong CEB110009
Osama Khalid CEB120702
Case 1-3
Acer Inc.
Acer is a leading marketer of notebook and desktop PCs. Besides computers, flat-screen monitors, and personal digital assistants, Acer also produced equipment for global companies on an original equipment manufacturer (OEM) basis.
Having troubles to break into the United States market had been a great challenge to Acer, due to their lack of experiences in the region. With that, Acer’s target was to focus on the China market, in hope to be benefited from closer economic ties with the mainland. The founder of Acer, Shih, believed that expanding businesses from the greater China will be a suitable strategy for Acer, where a higher return on investment in innovation was envisioned given the big market and low labor cost.
To pursue from local to regional and ultimately global, Acer is to be locally stable and strong first. In this sense, the support of local government and general public play a vital role. And here, the poor image of product in the region is another challenge to Acer. The company is, however, confident that they can build a strong home market with their good knowledge of the China’s market. Shih also believed that Acer is more local than global competitors and more global than local competitors in winning market shares over the markets.
Shih also understand that Acer was rather old-fashioned and new and more aggressive middle and high level managements are required to keep the company grow perpetually. The current mission of Acer is to overtake Lenovo and build a strong marketing base in the United States and Asia.
Osama Khalid CEB120702
Case 1-3
Acer Inc.
Acer is a leading marketer of notebook and desktop PCs. Besides computers, flat-screen monitors, and personal digital assistants, Acer also produced equipment for global companies on an original equipment manufacturer (OEM) basis.
Having troubles to break into the United States market had been a great challenge to Acer, due to their lack of experiences in the region. With that, Acer’s target was to focus on the China market, in hope to be benefited from closer economic ties with the mainland. The founder of Acer, Shih, believed that expanding businesses from the greater China will be a suitable strategy for Acer, where a higher return on investment in innovation was envisioned given the big market and low labor cost.
To pursue from local to regional and ultimately global, Acer is to be locally stable and strong first. In this sense, the support of local government and general public play a vital role. And here, the poor image of product in the region is another challenge to Acer. The company is, however, confident that they can build a strong home market with their good knowledge of the China’s market. Shih also believed that Acer is more local than global competitors and more global than local competitors in winning market shares over the markets.
Shih also understand that Acer was rather old-fashioned and new and more aggressive middle and high level managements are required to keep the company grow perpetually. The current mission of Acer is to overtake Lenovo and build a strong marketing base in the United States and Asia.