Acer Case free essay sample

How can it sustain its growth? Answer: Acer Inc. , the world’s second-largest computer vendor, needs reengineering and repositioning because its previous winning formula is not effective any more, its founder Stan Shih said Tuesday. Shih, who no longer manages the Taiwan-based multinational computer group but still controls a huge stake in the company, made the suggestion on the sidelines of a cultural seminar. His advice came after Acer unexpectedly lowered its PC sales estimate for the first quarter of this year last Friday and gave a conservative forecast for its Q2 business prospects. Shih acknowledged that smartphones and tablets have had a significant impact on the personal computer industry. He expressed the view that Apple’s products, such as iPhone and iPad, have brought new visions and new concepts to the technology industry. Because of changing business environment, Acer underwent a major re-engineering almost once every 10 years. In 1992, Acer reshaped its increasingly bloated organization under a lean and mean strategy. We will write a custom essay sample on Acer Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Now the company is at a crossroad again. Shih said Acer has only lowered its business forecast and has not incurred any losses. â€Å"But its misforecast indicates that the PC market is undergoing substantial changes, † Shih said. â€Å"The unexpected slow sales in Q1 should serve as a wake-up call. It’s time for Acer to undergo its third wave of re-engineering and re-positioning. Noting that Apple not only sells products but also sell services and that HP has announced its decision to install its Web OS system in its PCs, Shih said Acer should come up with new strategies to sustain its growth. 3. Despite strong competition from Dell and Hewlett-Packard, Acer’s US. Market share increased from 1 percent in 2004 to 16 percent by the end of 2009. what are Acer’s prospects for gaining further share in the United States? Answer: From its inception, Acer had been a component and equipment manufacturer for relabeled lectronic products marketed and sold by recog nized global companies. Along with the booming of the PC industry came the need to produce PC components faster, cheaper and more efficiently; this need gave birth to several companies akin to Acer, which in turn contributed to market saturation. Strategic management theories have taught us that when a company faces market saturation, the most effective way to growth is to engaged in expanding its operations, marketing and selling activities to another market. In this case, Acer determined that they would take the company into the global electronics and personal computer playfield. Right now Dell and Hewlett-Packard are two much positioned brands and I think their market share is way bigger because their market is different, they decided to have different strategies and if Acer decides to gain further share in the US, they should do a new campaign to position Acer as â€Å"choice for a PC†.