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Acer is the third largest PC manufacturer in the globe using a transnational strategy to procure components to maintain cost leadership.
On the basis of the analysis a series of recommendations have been made to ensure that Acer remains competitive, retains the number 3 ranking and are sustainable into the future. It is recommended that Acer find blue ocean against competitors through the use of the premium branding of product, whether this be Ferrari or another premium luxury brand and determine if some of this can be derived from sustainable and green materials.
Once these are determined it is recommended to use a balance scorecard with alliances to help drive innovation together with a tried and tested sales system to increase Acer market share. Although Acer experienced growth inincreasing its sales by This is partly due to the fierce competition in the industry which has reduced profits for all competitors.
In this competitive landscape Acer is seeking to increase market share and therefore profits to shareholders. The strategy includes acquisitions, development of new technology, growing the emerging EMEA and Japanese regions and solidifying strategic alliances with firms such as Microsoft and McAffee.
However, while Acer strategy is true for the EMachines and Acer brands, more premium offerings, such as Gateway and Ferrari, are targeted at other competitive strategies. Gateway has a focused low-cost strategy while Ferrari has a niche market strategy based on differentiation Porter,pp.
Acer has also adopted a transnational strategy Hill,pp. This is unlike Dell which has taken an international strategy to source from a narrow range of producers and then to manufacture close to the market.
While this provides efficiencies to Dell, it also allows Acer a competitive advantage to source product at a lower price. This is especially evident in laptops where the Acer product equivalent is considerably cheaper than Dell. The Acer business model is to provide low cost, premium PCs that suit the local conditions.
This is appealing to the public and is successful due to: This allows emerging markets consumers to afford a quality and trusted PC while in mature markets the consumers can choose to upgrade Matthews,p.
Unlike competitors Acer offers alternate brands for different customer segments rather than one brand with many variables. This allows Acer to maintain margin for each brand without cannibalization.
Most brands within the PC industry offer one brand.
However, as demonstrated in the strategic group map see side panel out of the top 5 brands only Acer offers different brands for different segments. For example, Dell takes a price leadership position, whereas HP and Lenovo take a higher price position.
The key aspect is that Acer stands alone as compared to competitors in offering a range of brands that target various segments. Porters Five Forces Porter,p. Rivalry is the fiercest force Porter,pp. There are also substitute players such as Apple introducing devices such as the iPhone and iPad that will challenge the need for a PC for some consumer segments.
If these suppliers decide to forward integrate into the value chain Porter,pp. This analysis shows that the PC industry is cluttered with a number of players in what is largely a commodity product. This is putting downward pressure on pricing thereby diluting profits Porter,p.
The side panel presents the Acer value chain. The competitive advantage over other brands, especially Dell, is that Acer is prepared to build each PC on a transnational basis Hill,pp. This allows a competitive advantage over other brands that build their product close to the market.Acer therefore set out to pursue a strategy which would create for them what was described as a “global brand image”.
One such strategy was the change of name from Multitech in to Acer.
This new name was shorter and thought to have a more global reach, while embracing the qualities of the company. High Level Statement Message from the Chairman and CEO. As a multinational company and one of the world’s top PC brands, corporate social responsibility is a key focus or Acer, parallel to our ongoing pursuit for innovation, and fully aligned with our long term mission of .
These are the factors leading Acer and Lenovo to infer a story that is heart-quaked. In the world of global PC market, Europe, North America and Asia-pacific region is the most essential core markets that many enterprise targets to occupy.
Acer’s Strategy has been described as “divided and conquer.” Compare and contrast this to Lenovo’s strategy. Acer Computer Company was founded in Taiwan in Acer is known to be one of the leading exporter and the world’s seventh-largest personal computer brand.
Acer therefore set out to pursue a strategy which would create for them what was described as a "global brand image". One such strategy was the change of name from Multitech in to Acer.
This new name was shorter and thought to have a more global reach, while embracing the qualities of the company. Acer’s Strategy has been described as “divided and conquer.” Compare and contrast this to Lenovo’s strategy. Acer Computer Company was founded in Taiwan in Acer is known to be one of the leading exporter and the world’s seventh-largest personal computer brand.
Lenovo Computer Company came into business around