Acer - Global Marketing Study Case

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Mutia Ellis Nurul Afriyani Firgosti F. Benny H

Based on Global marketing / Warren J. Keegan, Mark C. Green.—7th ed.

GLOBAL MARKETING

CASE 1-3 :. Acer Inc.INTRODUCTION TO GLOBAL MARKETING

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Introduction Acer Nowadays Acer Financial Views

Development Stages of Acer Suggestions for Acer

CONTENTS



ACER NOWADAYS


“You have to always look ahead, always be positive. Its your choice, your destiny. You have to enjoy life.”

Stan Shih – Acer Founder

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OVERVIEW OF ACER

Based on Global marketing / Warren J. Keegan, Mark C. Green.—7th ed.4

CEO Jason Chen

Slogan “Explore beyond Limits”

Area served Worldwide

Headquarters Xizhi, Taipei County, Taiwan

Founder(s) Stan Shih

Founded 1976 as Multitech


FINANCIAL VIEWS


Highlighted Notes on Financial Ratios:

As a company, Acer has a good Current Ratio (>120%), means their assets is larger then their liabilities.

But Acer also has high Debt To Equity Ratio (>200%), means their debt is much bigger than their equity.


FINANCIAL VIEWS


Highlighted Notes on Financial Ratios:

Acer has been on rough year on 2012-2013; negative value of profit margin (-0.059), ROA (-11%) & ROE (-36.5%)

But they regain profit on 2014; increasing profit margin (0.008), ROA (1.37%) & ROE (2.95%)

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ACER DEVELOPMENT STAGES




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Acer was founded by Stan Shih (施振榮 ), his wife Carolyn Yeh, and a group of five others as Multitech, the first office was headquartered in Hsinchu City, Taiwan.

Multitech changed its name to Acer.

Acer’s first changes, as they created a multinational company, infamous with their “21 and 21” strategy. Priority was placed on delivering the freshest, most affordable technology to benefit consumers worldwide.

OVERVIEW HISTORY OF ACER


1976

1987

1990-

2000


Acer was transformed from manufacturing to services, restructured and had three companies; WISTRON, ACER INC, and BENQ. Ranked as worlds’s 3rd PC vendor.

Enhance worldwide presence with a new multi-brand strategy; merged Gateway & Packard Bell.

Transforming into a hardware + software + services company; changes on its management; ‘build your own cloud’ announced.

OVERVIEW HISTORY OF ACER


2001-

2007

2008

2014

Classified - Private Use Based on Global marketing / Warren J. Keegan, Mark C. Green.—7th ed.

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SUGGESTIONS FOR ACER




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1. The ‘fast food’ business model for logistics & assembly model“Components” are pre-prepared in large, centralized mass-manufacturing facilities, then are shipped to “assembly sites” close to local customers. This makes it possible to enjoy production economies-of-scale while also tailoring each individual product to suit the needs of each individual customer. The result is standardized quality, customizable products, and lower inventory costs.

2. The “client-server” management modelIt lets each Business Unit act independently but also coordinates each one’s efforts to gain maximum overall benefit from full-use of Acer’s international resources. At the heart of Acer’s “client-server” organization is a closely-linked network of mature and experienced managers who are committed to the success of their own “piece of the Acer Group,” as well as ensuring Acer’s overall long-term growth.

ACER’S STRATEGIES


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Their strategies has become their Core Competence, resulting Acer becomes a PC manufacturer of the world. Today Acer has diversified its range of products to include low-cost desktops, laptops, servers, storage devices, peripherals and also the latest smartphones, tablets, etc.

Acer has been successfully doing Global marketing by combining Polycentric Orientation (client-server management model) and Adaptation (fast-food business model).

Based on that facts, Acer should continue as a Global Consumer Brand as they already has a winning business model that already rolling its virtuous-cycle. But they should do differentiation strategy to adapt technology updates since PC market is decreasing and mobile-tech market is increasing.

SUGGESTIONS FOR ACER

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Mutia Ellis Nurul Afriyani Firgosti F. Benny H


Thank You

Classified - Private Use 14Based on Global marketing / Warren J. Keegan, Mark C. Green.—7th ed.

REFERENCES

Global marketing / Warren J. Keegan, Mark C. Green.—7th ed.http://en.wikipedia.org/wiki/Acer_Inc.http://in.reuters.com/finance/stocks/companyProfile?symbol=2353.TWhttp://successstory.com/companies/acer-inchttp://www.acer-group.com/public/The_Group/milestones.htm

Acer - Global Marketing Study Case

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