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International Business Strategy - Acer, Inc.: Taiwan's rampaging dragon

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documents in English
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case study
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8 pages
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  1. Resources and capability analysis, Acer's core competencies
    1. In-and-Outbound Logistic:
    2. Operations
    3. Marketing & Sales and Services
    4. The procurement
    5. Technology development
    6. Human resources
    7. Firm infrastructure
    8. Acer's core competencies: linkages between activities in Value Chain
  2. Acer's international competitive strategy and recommend for the new aspire development
    1. Acer's Internationalization Process and Strategy
    2. The new Aspire development

Acer was set up in 1976 under the company name Multitech, by Stan Shih, in Taiwan. This family entrepreneurial start up has grown rapidly based on a distinctive culture to become an international global brand competitor. For thirty years, the firm has met many challenges to face in the highly competitive and fast technologically moving computer market.
We can sequence Acer's evolution in three major stages through three decades; Mutlitech, Acer's birth and rebirth under Shih's transformation program during the 1990s, and last but not least the international success giving Acer the third position in global market.

In this case study we will observe Acer's first twenty years, and especially focus on the challenging reconstruction throughout the 1990s. We are going to analyse and understand how Acer has faced the PC competition to become a major actor worldwide. To get a critical view, we will appreciate its distinctive background and evaluate its way to compete.
In the first part, we will analyse Acer's resources and competences, then identify its core competences leading to its competitive position.
Responding to the second question, we will focus on the transfer of Acer's core competencies to support its international strategy, and illustrate by an evaluation of the new Aspire strategic development.

[...] Consequently, the Firm's Infrastructure and its Human Resources embody the activity system under the ?Global Brand, Local Touch Philosophy' Acer's international competitive strategy and recommendations for the new Aspire development Three strategic perspectives are required to simultaneously achieve to build up a competitive advantage for a company that operates on an international basis: Global-scale efficiency, Multinational flexibility, Learning from its international exposure. Three fundamental tools are essential to develop a worldwide competitive advantage: national differences, Scale economies, Scope economies Acer's Internationalization Process and Strategy Regarding the corporate management, Acer proposes a delegation philosophy to extend abroad. [...]


[...] Shih, founder and CEO, has a strong leadership described as charismatic and pragmatic. Firm infrastructure The main concept illustrating the rampaging dragon is the ?client server organization model' which coordinates the Acer group. The Taiwan Headquarter acts as a ?server' that uses its resources (finance, people, and technology) to support the ?client business units' which control the operating activities. The company operates as a ?network' developing speed and flexibility as a competitive advantage. The basic assumption lies in the independence of each unit. [...]


[...] The ?Client Server Organization Model' defines the role of the Taiwan Headquarter as a ?server' that uses its resources to support ?client business units' which control key operating activities. Under its network, speed and flexibility are developed as a competitive advantage. The underlying principle is the independence of SBU and RBU heads, which allows higher profits and the sharing of knowledge, investments and risks. The ?Fast Food Business Concept' creates new back to the basics initiatives (Uniload production concept, chip up concept). [...]

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