Acer case study

Essay by FrancataB-, August 2006

download word file, 10 pages 4.2

Question 1

1. Analyse Acer's situation.

First, to conduct this analysis I am going to develop in-depth the SWOT analysis which I consider to be the most representative and the one that outlines the most important aspects of a company.

Secondly, I will use the Poter's five forces framework which aims to identify the competitive background of a company.

SWOT analysis summarises the key issues from the business environment and the strategic capability of an organisation that are more likely to impact on strategic development (P 148, Johnson G. et al.).


Privilege position in its markets. Acer has become a very competitive company in the IT world. For example: it is the "fifth computer company in the world", "a leading brand name in more than 30 countries, holding top position in 13 markets", "8th position in the overall US market and the third largest supplier to US retail channels" and "in the top three companies in the monitor business and in the top five world-wide in mid-and high-end PC servers and CD-ROM drive production" (ACSP 217).

This situation allows the company to work from an enviable background.

Global expansion. The IT manufacturer has spread its subsidiaries throughout the world. "The group was operating 80 offices in 38 countries around the world, employing more than 16,700 staff from 50 different nations" (ACSP 217). Furthermore, it has "joint ventures with local develop into a publicly traded local company in various different countries while maintaining a global brand" (ACSP 217).

Local customization. Acer due to its "Local-touch, global brand philosophy" allows the management team to decide on product configurations, pricing strategies and promotional programmes depending on the needs for every particular territory (ACSP 223). Thanks to this business model, the company is able of satisfying individual customer needs in each market.