Originally founded in 1976 as “Multitech,” Acer played a crucial role in popularizing PCs in Taiwan. In 1987, the brand name was solidified and Acer became a globally recognized computer brand. One of Acer’s strengths lies in its numerous innovations, such as the Aspire One laptop, which allows users to connect to the internet from almost anywhere and offers up to 8 hours of battery life. Additionally, Acer ventured into the competitive mobile phone market with its Tempo Smartphone series in 2009. With its main factory situated in Taiwan, Acer benefits from low-cost labor and enjoys a distribution advantage in both the US and Asian markets.
Acer establishes competitive pricing for its products to compete with strong rivals and gain a substantial share of the affordable laptop market. However, the PC, laptop, and mobile phone industries are intensely competitive, necessitating ongoing innovation to meet or surpass customer expectations. Laptop customers expect new features and improved computing capabilities at least once annually. To effectively implement innovations and outpace competitors in bringing them to market, a robust and flexible supply chain is essential.
Opportunities: Acer has gained recognition for providing reliable PCs and laptops at competitive prices. Using a similar market entry approach, Acer can potentially enter both the eBook Reader and iPad markets successfully.
Acer’s proven ability to compete in the eBook Reader market positions them as a strong contender. They have the option to either enter this market themselves or acquire an existing manufacturer. Acer’s history of successful acquisitions, such as Gateway, emachines, and Packard Bell, further enhances their capabilities (Acer Inc., 2010).
This success paves the way for Acer to integrate their existing assets or establish new manufacturing facilities to produce eReaders or similar products with iPad-like functionality. Furthermore, Acer can leverage their low price model to compete effectively in the Asian market.
The Asian market presents a significant opportunity for Acer’s products, provided they are effectively marketed. However, the laptop and PC market are highly competitive, posing a threat. It is important for management to back investments in the Research and Development departments of both products. Collaboration between these departments will result in the creation of new competitive products that can be produced using Acer’s subsidiaries’ existing integrated capabilities. As long as employees are fairly compensated and the subsidiaries are willing to make compromises for the benefit of the holding company, innovation will continue.
