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Report: Acer Inc - Dissertation Example

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Report: Acer Inc

Strategy implementation 18 4.1. Weakest Section of Last Year’s Report 18 4.2. Outline Plan for Implementation Strategies 19 4.3. Main Actions to be executed 19 Reference List 20 Appendix 22 1. Strategic Analysis The researcher in the context of the paper will analyze the various types of business strategies adopted by the company and would also frame some future productive business strategies that can be adopted by it in the next five years. 1.1 Industry Analysis In order to execute the industry analysis, the researcher would be using the analysis method of Porters five forces. Bargaining Power of the Buyers (relatively high): The demand of the buyers is relatively elastic because the hardware and the software products are fairly differentiated in nature. Increasing popularity of the online shopping has augmented the bargaining power of the buyers. The cost of switching to a new brand is less for the buyers. Bargaining Power of the Suppliers (low): The industry has a massive global supply chain management process. Thus, the power of a single supplier is insignificant. Many electronic companies start producing the supply parts in their own business warehouses to enjoy scale economies. The supplier does not possess much power to manipulate the prices. Existing Rivalry in the Industry (high): The product life cycle for each component is small. Imitation of technology used in a product is common. High investments to be made by the firms in research and development. Many counterfeit products (Porter, 1998). Threat of New Entrants (low): The existing firms in the industry enjoy lower average cost with the benefits of economies of scale in production. New firms would need to incur huge investments in order to enter in the industry. The government rules and regulations to be sufficed by the new firms are costly as well as elaborate (Anderson and Srinivasan, 2003). The technical knowledge used by the existing firms is patented. So, a new firm needs to introduce a complete new technology for production. The capital requirement for the new entrants is high and the switching cost required is also massive (Papadopoulos, 2011). Threat of Substitutes (low): Computers are indispensible in the modern world. The substitute of computers would mean using the non-technical approaches (manual) for working. 1.2. Profile of the Company Acer Inc. is an electronic and hardware multinational company, based in Taiwan. The headquarters of the company is in Xizhi, New Taipei City (Acer Inc., 2007). The company manufactures personal computers of different types. These include desktops, tablets and laptops of various innovative designs and features. It also sells internet servers, storage devices and different types of smartphones and peripherals. Acer Inc. is also a provider of e-business services and they sell these services to the business, household and government clients. As recorded in 2012, the company had become the fourth largest vendor of personal computers in the market. In 2000, the company had shifted its primary business strategy from manufacturing to marketing, distributing and designing. Since then, the computers sold by Acer Inc. are actually made by the contract manufacturers in the industry. It is also claimed by the market researchers that the company has some of the biggest retail chains for personal computers in Taiwan. The company is a publicly treated company. It was founded long back in 1976 and the present chairman of the organization is Stan ...Show more


Acer Inc. Contents 1 Contents 2 1. Strategic Analysis 4 1.1 Industry Analysis 4 1.2. Profile of the Company 6 1.3. Stated Organizational Purpose 6 1.4. External and Internal Analysis 7 2. Strategy Development 11 2.1. Existing Strategies 11 2.2. Strategy Toolbox 12 2.3…
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