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Strategic Management Report on Acer - Essay Example
Author : jleffler
Pages 11 (2761 words)
When thinking of notebooks and home PCs, one of the several manufacturers name that strikes ones head is of Acer. Some years back it was not the same, Acer was not a very successful manufacturer of computers and notebooks. Although Acer was in the business of computers since 1980s, it was unable to enter the US market until recently…
The general trends and strategy of the industry and the strategy of Acer will be compared and contrasted briefly. Reasons for Acer's growth and some recommendations for the strategic direction of Acer will be discussed. Towards the end of the paper the success and the factors that accounted for Acer's success will be put in the picture.
There are more than a dozen PC manufacturers who lead the computer industry. In such a competitive environment only that manufacturer can survive who has got competitive edge over its competitors. When Acer first entered the PC industry, there was already fierce competition in the industry. Price cutting was the major trend in the 1990s, instead of differentiating their products from others, the players in the industry indulged into price wars.
Technology in the PC industry was changing rapidly; observing competitor's moves and strategic responses to those moves were changing the global PC industry. Strategic direction of most of the producers of PC at that time was to design their own PC and sell it through their distribution channels according to the demand forecast. As the existing players in the industry were in the business for several years now, they marketed their product with competitive price and fresh technology. ...