This finding resulted in the change of focus for the company from the US market to the growing market of China. Also, it needs to be mentioned that during the year 2001, the inclusion of mainland China in the WTO resulted in the eradication of limitations in regards to investment of foreign nature. This provided significant amount of momentum to the new focus of Acer. Also, the factor associated with low cost skilled manpower that is available in the Chinese markets ended up in providing strong potential for growth. It is of considerable importance to state that while concentrating on the process of altering the focus of the company, the top management realized that the key to achieving growth in the foreign markets is highly linked to the factor of attaining significant strong point in the local market. Talking more specifically in regards to what has been desired as the ‘divide and conquer approach of Acer’, it can be said that the company’s top management assumed that by gaining the economies of scale in the local market of China, it will develop an upper hand in regards to developing more innovative products that will help the company to strengthen its position in the local market as well as develop an edge in regards to capturing the international market (Electronic Business Asia, p .34).
It is of considerable importance to highlight the fact that the paradox related to the company’s focus on the global and local markets is part of company’s long terms strategy. It is relevant to mention that during the middle of the 90’s period, the company was facing issues of depreciating sales in the markets of the United States. Significant analysis by the company in regards to the causes associated with the slowdown in sales resulted in a strategic change of the company. The top management of Acer realized that for ...Show more