07-11-2012, 03:18 PM
Acer Growth Strategies
Acer.pptx (Size: 1.73 MB / Downloads: 49)
Introduction
A Taiwan Based MNC & Electronics Corporation that specializes in manufacturing Desktop & Laptop PC’s, servers, PDA’s & other computer peripherals.
The company has its headquarters in Xizhei, Taipei County
The Company was started by Stan Stih & his wife Caron Yeh
Timeline of Acer’s Indian Operations
1994- Acer starts off as the No. 8 player in the global PC market
1999 – Acer after having a brief partnership with Wipro InfoTech Ltd. opened its own full – fledged Indian subsidiary
2000- Splits its PC manufacturing unit & turns it into a new company
2001- Acer changes its name to BenQ and starts operations as an independent brand dealing in Desktop PC’s, Mobile Pc’s, Servers while also catering to the digital lifestyle products such as Cell Phones, LCD monitors, projectors etc.
2003- Entered the consumer Business by introducing consumer desktops & laptops.
2006- Split ways with BenQ in order to avoid conflicts.
2007- Acer establishes itself as the third largest computer company in terms of world – wide PC shipments.
2008- Establishes market share of 9.5%
Growth Strategies adopted
Partnering with Wipro in order to gain knowledge & experience about the Indian markets.
Initially focusing its attention & resources selling to the govt. organizations & corporate customers in order to build a strong consumer chain
Starting operations with a changed name BenQ in order to create variety in the products that they could offer.
Entering into acquisitions with Gateway & Packard in order to consolidate its hold on the market.
Marketing Strategies
Refocusing its efforts from direct sales to indirect channel driven sales
Building strong relationships with its dealers
Offering higher incentives to its channel distributors for promoting its sales
As an effort towards building a strong bond with the Indian Customers & the youth on a larger scale they signed Hrithik Roshan as their brand ambassador.
Key Points That Facilitated Growth
Acer’s growth in the IT segment was due to the following factors.
An increase in the consumer demand for notebooks
Providing new & innovative technologies at competitive prices
The Indian Govt’s push towards automation and the increase in the usage of computers in education
The increase in wages of the people of India helped in increasing PC sales
Building a strong relationship by having its presence in 40 customer verticals in sectors like Banking, Education, Telecom etc..
Conclusions
According to me, I feel that the restructuring of its operations allowed Acer to grow in a positive way as it lowered its operating expenses and also allowed it to provide the dual advantages of pricing & promoting its products.
For the 2nd question I would like to state that Acer needs to further improve its already strong network in order to fully utilize the opportunities presented by the Indian market. This would allow them to also venture into the Rural areas and thus increase its market share.