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Thursday, 14 February 2013

Acer

Should Stan Shih support the Aspire project, change it or put it on hold?

Company Profile
Acer
Original name: Multitech
Founding: by Stan Shih in 1976
Changed name to ACER because of trademark infringement with a US company
 To promote the application of the emerging microprocessor technology
 setoff commercial crop: Microprofessor in 1981
1989: Leonard Liu becomes CEO

Macro Environment
Technological:
 increment interest in Internet
Developments in audio, video, multimedia, etc.
Taiwans disapproving macro-environment to sophisticated development
Poor reputation for Taiwans high-tech products
Developing Global PC securities industry
Taiwanese were suspicious of mystical companies that went public
Industry Anlysis
Dramatic decline in the market for minicomputers in the 1980s.

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Changing competitory dynamics
Dell: direct sales model
Packard cost: major computer retailers
Result: dramatic PC worth reductions
Expansion meant more capital
Increase in Competition
Shortened product cycles
Important to reach the market early
New opportunities in basis Computing
Working at home: 29 million in 1994
Growing interest in Internet
Developments in audio, video, multimedia, etc
Multimedia market: 10.4 million units, 20% annual increase

Internal Analysis
Capital strained A poor mans philosophy
Moonlighting at second jobs
Just enough commercial space
Commoners Culture
Employee ownership
Delegated accountability
Frugality
JV
Build a global brand and maintain competitive advantage
Less control vs. more control
Internal suppliers were preferred
STRENGTHS
- profitable OEM business
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