Case Study 1: Acer
Dr. Linda Harris
April 28, 2013
1. Acer’s Strategy has been described as “divided and conquer.” Compare and contrast this to Lenovo’s strategy.
Acer Computer Company was founded in Taiwan in 1976. Acer is known to be one of the leading exporter and the world’s seventh-largest personal computer brand. Lenovo Computer Company came into business around 2004. Both Acer and Lenovo are leaders in the computer industry of personal computers and software. When the PC industry began to grow, there was a demand for more PC components to be produced at a much faster paste at a reasonable cost along with efficiently. Strategic management theories have taught when the companies face a market over saturation the most effective way to grow is to expand the operation along with their marketing activates to another market. Acer made the decision to take their company into the global electronics field. According to (Collis& Montgomery, 2002)" Strategic decisions of a company are influenced by market conditions of the economy regulations affecting the industry degree of competition, its own growth targets and the interactions with its own business unit”.(Collis & Montgomery,2002).
Acer adopted initiatives that placed the company in a better position than its competitor, Lenovo. A previous attempt for Acer in the past to become global was not successful. The company was perceived as a poorly developed and not reliable. In 2007 Acer acquired Gateway for $710 million according to (InfoWorld). Acer’s acquisition deal with Gateway also derails rivals with Lenovo Group’s plans to acquire Packard Bell. In the later year of 2000, Acer saw their market share increase by selling and manufacturing smaller laptop computers. This was a competitive way for Acer to be the first to introduce the notebook laptop to the market.
Lenovo purchased IBM in the year of 2004 for $1.25 billion (Info World). With...
Please join StudyMode to read the full document