SWOT OF ACER

Acer Inc. is a PC manufacturer and global internet-enabler compan !it" strong

International sales and "as seen tremendous gro!t" o#er t"e past $% ears. T"e
operate in nearl &% countries' and eac" business unit is operated as a decentrali(ed
strategic business unit. Acer ran)s as t"e !orld*s +o. , #endor for total PCs and +o. $ for
noteboo)s' !it" t"e fastest gro!t" among t"e top--#e plaers.
Strengths
First and foremost Acer s"o!s patience. In $%%% Acer began t"e transformation to
mar)eting and ser#ice of IT products. Since t"at time Acer "as strengt"ened t"eir
corporate competiti#eness b adopting a uni.ue C"annel /usiness 0odel' !"ic" allo!s
-rm control of brand name' mar)eting' tec"nolog and products' global logistics' and
ser#ice capacit. T"e model also permits better understanding of consumer demand and
pro-t s"aring among partners. As a result' Acer ran)s t"e !orld*s fourt" largest PC brand
in $%%1' and is !or)ing aggressi#el to secure t"ird place b $%%2. 34lobal.acer.com5
Competiti#e ad#antages lie in its brand management strengt"' e6tensi#e global sales'
mar)eting net!or)' sstem implementation' and IC design 34lobal.acer.com5
Acer*s global e6pansion and di#ersit "as spread its subsidiaries t"roug"out t"e !orld.
7T"e group !as operating 8% o9ces in ,8 countries around t"e !orld' emploing more
t"an :;'2%% sta< from 1% di<erent nations7 34lobal.acer.com5. Furt"ermore' it "as 7=oint
#entures !it" local partners...to de#elop into a publicl traded local compan in #arious
di<erent countries !"ile maintaining a global brand7.
Fle6ibilit allo!s mar)et penetration faster t"an t"e competition. Acer is >e6ible
because it acts in man di<erent countries depending on speci-c c"aracteristics' and it is
able of satisfing demand b using national suppliers. 7T"e >e6ible client ser#er business
model...responding to t"e trend to!ard increased dispersion and local autonom7
34lobal.acer.com5. Furt"ermore' its subsidiaries constantl update rele#ant mar)et
information !it" t"e aim of acting !"en ne! products or mar)et c"anges are re.uired.
7T"is structure allo!ed for faster decision ma)ing7 34lobal.acer.com5. Faster decision
ma)ing can mean s"ort turnaround time. 7T"e turnaround time from idea to mar)et
dropped to onl one or t!o mont"s7 7T"e "ig" turno#er aided Acer in ac"ie#ing a ,&?
return to e.uit7 30int(berg' @ampel' Auinn' B 4"osal' $%%,' pg $$$5. T"an)s to t"is'
Acer can o<er t"e ne!est products before an ot"er compan. Acer*s >e6ibilit also lies in
t"e products t"at t"e mar)et and ser#ice. Acer is t"e largest manufacturer of mobile
p"ones in Tai!an. And lastl a #er important strengt"' "ealt" -nancial status' Re#enues
in $%%1 reac"ed CSDE.2 billion.
Weaknesses
Ine6perienced international managers and cultural di<erences bet!een its national and
international sta< lead to inade.uate access to distribution centers. 7Outsiders
sometimes found di9cult dealing !it" t"e intricacies of Acer*s organi(ation7 and 7People
from ad#anced countries tended to feel t"e )ne! better t"an "ead.uarters7
Image of Tai!an as lo!-cost' lo!-end product manufacturer !as damaging to t"e name
and image of Acer. Tai!anese industr is percei#ed as not as a .ualit products supplier.
For instanceF 7Tai!an*s reputation is for lo!-end products7' 7Consumers could not belie#e
a Tai!anese compan !as capable of sop"isticated tec"nolog7 and 70ade in Tai!an7
"ad a lo! .ualit and lo! price perception. 30int(berg' @ampel' Auinn' B 4"osal' $%%,' p.
$:E5 T"is a<ects compan*s .ualit image.
T"e customers are not a!are of Acer*s brand name. T"e compan is still su<ering from
lo! brand a!areness in t"e CS despite its top-ten position. Contributing to t"e lo! brand
a!areness' Acer mig"t confuse consumers !it" too broad of a range of products.
Opportunities
Impro#e Acer*s brand name a!areness. T"e compan is in a good position for creating a
!ell-)no!n brand name in all its mar)ets because it "as de#eloped structures t"roug"out
t"e mar)ets. 7T"e use of =oint #entures to build international capabilit . . . and "elp raise
a!areness of t"e Acer brand7 30int(berg' @ampel' Auinn' B 4"osal' $%%,' p. $$,5. Csing
its broad product base puts Acer in a good position because of t"e current con#ergence of
t"e computer and consumer electronics mar)ets.
T"e compan*s structure is arranged for a possible return to its roots. E#en t"oug"t t"e
compan !ants to direct its strateg to!ards being an international IT distributor' it "as
t"e option to come bac) to its origins if t"e situation is bad. 7...Acer al!as retained t"e
option of returning to being a supplier of components and sstems sold b t"e big brand
names7 30int(berg' @ampel' Auinn' B 4"osal' $%%,' p $$85. T"e strengt" of Acers si(e
and >e6ibilit !ill allo! t"e compan to adapt to t"e rapidl c"anging computer industr.
Threats
T"ere is a possible e6pansion barrier due to Acer*s p"ilosop" to spread its s"ares
t"roug"out all its subsidiaries and partnersG t"e compan could "a#e problems of
e6pansionism. 7Tai!an enforced strict protectionist barriers against outside capital...no
foreign institution permitted to o!n more t"an 2.1? of a listed compan in Tai!an7. @ose
of compan*s control is a negati#e conse.uence of Acer*s s"are p"ilosop" and t"e
compan*s c"ief could lose control. 7Wit"out ma=orit control some .uestioned !"et"er
"e 3S"i"5 could maintain "is "old o#er t"e group7
Increased competition due to t"e mo#ement to!ard disintegrated computer components.
7+ort" American and European mar)ets are dominated b 7big guns7 li)e Intel and I/0 -
and Acer cannot compete on its o!n in t"ese mar)ets7. 3Sa"ai' n.d.' p.85 T"e ris) of
substitute in t"e mar)et is "ig" because t"e competition is al!as de#eloping ne! )inds
of tec"nologies !"ic" can be a substitute of t"e current products. T"is creates a "ig"
a!areness among t"e companies t"at !ant to produce t"e ne!est products in t"e
s"ortest time