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The Acer Group

The Acer Group

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Published by millimehra

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Categories:Types, Business/Law
Published by: millimehra on Mar 30, 2010
Copyright:Attribution Non-commercial


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An Asian Multinational

Acer¶s beginnings 
Company created in 1976 as Multitech International  Renamed in 1981  Capital stock: 25, 000 USD  Workforce: 11 employees  Activity: IT products distributor

Acer: 30 years later...! 
3 more brands belong to Acer Group : Gateway (2007), E-machines (2007) & Packard Bell (2008)  EMEA Leader in Notebook Sector  Rank 2 (Globally) : for total PC¶s & Notebooks  Capital stock: 805 million USD  Revenue : $17.9 bn  Workforce: 7000



Global PC Market Share by Units, Percent. 2006-2010. Rank 1 2 3 2006 Dell HP Le 15.9 15.9 7.0 5.8 3.8 2007 HP Dell Acer Le 18.2 14.3 8.9 7.4 4.0 47.1 2008 HP Dell 18.4 2009 HP 19.3 2009Q4 HP 19.8

14.3 Acer 13.0 Acer 13.5 Dell Le 12.2 8.1 5.1 42.3 Dell Le 11.5 8.7 5.3 41.1

Acer 11.1 Le 7.2 4.5 44.5

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y 1983: Acer begins manufacturing PC clones. y 1988: Acer Incorporated goes public. y 1991: Acer posts its first loss. y 1994: Acer Computer International (Asia-Pacific distributor) completes its initial public offering (IPO). y 1995: Acer is top selling PC brand in Mexico, Bolivia, Chile, Panama, Uruguay, Thailand, Philippines, and Taiwan. y 1996: Acer expands into consumer electronics. y 1998: Company reorganizes into five units.

y 2000: Acer restructures, breaking off several operating units; contract manufacturing spins off to become Wistron Corporation. y 2003: Acer becomes the world's fifth largest PC maker. y 2005: Stan Shih retires; J.T. Wang is named CEO and Gianfranco Lanci becomes president y 2007: Purchase of Gateway & Packard-Bell brand

Going International Local touch, global brand
Positionning/Product Strategy: 
Acer has long positionned it-self as a follower (first assembling for OEM)  High quality but affordable products (innovative but seldom pioneer)  Progressive product diversification: focusing on value-added segments  Building a global brand

Going International Local touch, global brand
Production Strategy: Decentralisation 
Centralized R&D and (large scale) manufacturing of value-adding

components in low cost countries (economies of scale, low cost structure) 
Decentralised assembling process, together with local marketing and

distribution operations (low inventory cost, Äjust-in-time³) 
Local politic of joint ventures and partnerships (good knowledge of local


Going International Local touch, global brand
Management/Ownership strategy: 
Decentralized and highly independant management (flexibility to demand)  Locally highered operationnal and managerial workforce (local expertise)  Participation of local shareholders: Ä21 in 21³  The client-server organisation

Organisation Structure

Price war and costs efficiency
y Economies of scale from the competitors y Attruition war with prices

not just at lower end portable computers market, but for higher end products too.

y SOLUTION: y Fast Food Business Model y Joint ventures to compete more efficiently with costs

savings on components and distribution network. y Decentralize everything, give autonomy to the RBUs and SBUs

Innovation in Competition
y The Design, Manufacturing and Service Division (DSM) in

charge of R and D, y DSM was spun-off in 2001 and renamed Wistron Corporation y RESCUECOM s Computer Reliability Report- Acer ahead of Apple y R & D Centre at China- development of Smartphones, TDSCDMA technology

y Multibrand strategy  The 4 brands cater to different customer segments:

e machines for price conscious 2) Gateway (in US) and Packard Bell (in Europe) for the middle tier 3) Acer for technophiles This strategy also helps to gain shelf space in stores
1) y Acer will be selling netbooks with Google's Android free operating

system (OS) Google has moved over the years from offering a software with much less functionality to one that can hit at the core of Microsoft's cash cow operating system with. With ACER¶s move, Microsoft's core business is very likely at risk

y Acer Joins Open Patent Alliance to Advance Mobile 4G WiMAX

Acer Inc. has joined the Open Patent Alliance (OPA), a group

dedicated to offering intellectual property rights (IPR) solutions that support the development and widespread adoption of WiMAX.  The first global PC OEM board member, Acer will help the proliferation of WiMAX technology, devices and applications around the world.

y Introduction of Netbooks
In 2008, Acer became one of the first 2 companies to offer netbooks using the free Operating System backed by Google (called Android). To expand the user base, the netbooks of Acer will run on both XP (Microsoft¶s OS) and Android and allow the users to switch between the two. In response to this move by Acer, Dell and HP are also came out with their own Android notebooks. But, because of the first mover advantage, Acer is the market leader in the netbook category.


: a tablet leader ACER was working with Microsoft to produce a first-generation tablet computer in 2002.Even though being a tablet pioneer, this didn't work out well for Acer

yFocus on corporate clients

2009 onwards, Acer is planning to focus on the corporate clients as the margins here are roughly double of those in the retail PC market. New line of servers have been rolled out and additional staff devoted to corporate sales

Thank you !!!
Ishu Kapoor- 541 Milli Mehra-553 Sonam Anand-544 Sumedh Tucker-551 Tarun Tahiliani-525

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