EEB10203

INTERNATIONAL MANAGEMENT

CASE ANALYSIS
Case Study 6: Acer Restructures for Global Growth

CLASS:
IB82B

PREPARED BY:

NO NAME STUDENT ID
1. FARAH SYAMIMI BINTI MASOM 62215224340
2. NUR NADIAH ELEESA BINTI ABDULLAH 62215224367
3. MUHAMMAD SHAZLIEY BIN AZIZAN 62215224073

LECTURER:

PROF DATO DR WAN TOREN BIN WAN YUSOFF

 TABLE OF CONTENT

Question 1................................................................................................................................... 1-2

Question 2................................................................................................................................... 3-4
Question 3................................................................................................................................... 5-7
Reference................................................................................................................................... 8
1. In your opinion, can Acer’s growth in the global arena be attributed to the restructuring

of its operation? Give reasons to support your answer.

In my opinion, Acer's growth in the global arena can be attributed to the restructuring of

its operations. This could happen because it is profitable for Acer, as it splits its PC system

manufacturing business unit into new divisions. This also led to Acer Communication and

Multimedia being converted to BenQ and operating as an independent BenQ brand.

Acer also acquired Gateway, Inc (Gateway), this acquisition also led to the acquisition of

Packard Bell which is a major player in the PC market in Western Europe to Acer as Gateway has

a controlling stake in Packard Bell. And it is because of this operational restructuring that has

generated income and benefited BenQ and Gateway.

Furthermore, Acer's restructuring enabled the business to reduce operating expenses,

giving it the ability to price PCs aggressively while also offering bigger incentives to its channel

partners. Besides, by incentivizing its distributors to promote and sell its products more

aggressively, via offering larger incentives such as higher margins or marketing help. This could

lead to increased visibility and availability of Acer products in the market, boosting sales and brand

recognition.

In addition, Acer can shift its marketing efforts away from direct sales and toward indirect

sales, which are backed by sales marketing. The company is driven to accomplish complete growth

by forming strong partnerships with dealers, offering competitive pricing to clients, and providing

innovative product enhancements. With sales marketing support, Acer may persuade sales

associates to choose Acer products over competitor offers. Acer's strong collaboration relationship

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with dealers ensures improved cooperation and communication, making their products more

inexpensive and competitive in the market.

Overall, Acer's operational reorganization is expected to play an important role in driving

its global expansion by allowing the company to become flexible, focused, and competitive in

today's changing business climate.

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2. Write a note on the growth part adopted by Acer in India. What should Acer do now to

take advantage of the opportunities presented by the India market?

Among the things Acer needs to do now to capitalize on the opportunities offered by the

Indian market are to leverage its strong brand presence, strategically expand its retail footprint,

and increase its focus on tailored solutions for diverse customer segments.

Strategic shifts and targeted expansion have marked Acer's growth path in India.

Initially focusing on government and corporate sales, Acer later ventured into the consumer market

through channel partners. The company leveraged brand ambassadors like Hrithik Roshan to

increase brand recognition and engaged in aggressive retail expansion, aiming to establish a

significant presence in key urban centers.

To continue its growth trajectory in India, Acer should now focus on several key

strategies. First, leveraging its strong brand presence is important. Acer should continue to invest

in brand-building initiatives and maintain visibility through effective marketing campaigns and

brand ambassador engagements to strengthen its position in the Indian market.

Strategically expanding its retail footprint is another important step for Acer. While the

company has made significant progress in retail expansion, it should now focus on penetrating

smaller towns and cities where there is untapped potential. Acer can capitalize on rising consumer

affluence outside metropolitan centers by establishing a strong presence in these areas.

Furthermore, Acer should increase its focus on customized solutions for diverse

customer segments. With India's diverse market landscape, offering customized solutions that

meet the specific needs and budgets of different customer segments, such as education, youth and

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enterprise, will be critical. By developing innovative products and services tailored to this segment,

Acer can strengthen its competitive position and capture a larger market share.

In short, Acer's growth path in India has been characterized by strategic initiatives aimed

at expanding its presence across various customer segments. To capitalize on the opportunities

presented by the Indian market, Acer should focus on leveraging its brand presence, strategically

expand its retail footprint, and increase its focus on customized solutions. By implementing this

strategy effectively, Acer can further strengthen its position as a major player in the Indian PC

market.

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3. Do some research on acer and give an update on the company's situation in India and also

globally as of the time of your reading this case.

My most current information source states that Taiwan-based multinational hardware and

electronics company Acer has continued to have a big impact both domestically and

internationally, especially in the computer hardware industry. The state of Acer both domestically

and internationally is outlined below.

India:

We start with strategy and market presence. Acer has been present and steadily expanding

in India since the start of the new millennium. Together with growing disposable incomes and

digitization, the government initiatives Digital India and Make in India have driven the laptop and

desktop computer market in India. Acer has purposefully positioned itself as a provider of

affordably priced, feature-rich computer systems, catering to a broad clientele ranging from

professionals and students to gamers and businesses.

Second place is product portfolio. Acer sells everything from high-end to entry-level

laptops, fashionable desktops, vibrant monitors, cutting-edge tablets, and peripherals like

keyboards and mouse in India. Understanding the requirement of localization and personalization,

the company offers models with features like bilingual keyboards and better cooling systems

suitable for the country's tropical climate that are specific to Indian demands and preferences.

The third place goes to the distribution network. Acer has invested heavily to build a robust

distribution system that reaches both rural and urban parts of India. Through its partnerships with

authorized distributors and retailers nationwide, the company ensures that its items will be readily

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available. Working with well-known online merchants, Acer has also leveraged India's booming

e-commerce sector to attract tech-savvy consumers and expand its market share.

Customer support and brand image are the last things to think about. Acer has worked hard

to improve the perception and image of its brand in India by giving product quality, dependability,

and creativity first priority. The business has also made establishing service centers in strategic

metropolitan regions and offering prompt and efficient customer assistance to address any issues

or questions a top priority in order to enhance its post-sales service infrastructure. Acer has given

building trust and developing enduring connections with Indian customers top priority.

Globally:

First, the competitors and market position. With respect to shipment volumes, Acer

continues to be a major force in the worldwide PC market. But the market is fiercely competitive,

with well-known behemoths like HP, Lenovo, and Dell fighting for market dominance alongside

upstarts like Apple and ASUS. Through its Predator brand of gaming laptops and desktops and its

Chromebook products, Acer has set itself apart by catering to particular niches, such gamers.

Second, to maintain their leadership in technical innovation and product development,

innovation and R&D have made investments in R&D. Among the ground-breaking goods and

services, the business has unveiled are immersive gaming experiences, convertible 2-in-1 devices,

and ultra-thin laptops. Acer is committed to innovation not just in hardware but also in software

and services; programs like Acer Cloud and Acer Academy improve user experience and promote

digital literacy.

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 Next, expansion and diversification. Understanding how quickly technology is changing,

Acer has broadened its product line and entered related areas such wearables, virtual reality, and

smart home solutions. Long-term relevance and competitiveness of the company have been

ensured by its strategic acquisitions, partnerships, and investments, which have allowed it to seize

fresh growth prospects and address new trends.

Finally, with regard to sustainability and corporate responsibility, Acer has made

sustainability a fundamental component of its business plan, aiming to reduce its environmental

impact and make a constructive contribution to society. To cut waste, emissions of carbon, and

energy use, the company has included environmentally friendly procedures into its product design,

packaging, and production operations. To empower underprivileged communities and promote

inclusive growth, Acer has also launched a number of corporate social responsibility projects,

including community outreach and education programs.

To sum up, Acer keeps using its advantages in product innovation, market diversity, and

customer-centric approaches to negotiate the ever-changing and competitive global technology

market. While globally, Acer is positioned to take advantage of new prospects and promote

sustainable growth through strategic alliances and forward-looking projects, in India the company

is still dedicated to satisfying the changing needs of Indian consumers through customized offers

and improved service capabilities.

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 Reference

Acer India: Latest News & videos, photos about Acer India: The Economic Times - page 1. The
Economic Times. (n.d.). https://economictimes.indiatimes.com/topic/Acer-India

Traditional to trendsetting: Acer’s journey towards cultivating a lifestyle-centric innovation. ET

Edge Insights. (2023, July 28). https://etinsights.et-edge.com/traditional-to-trendsetting-
acers-journey-towards-cultivating-a-lifestyle-centric-innovation/amp/#

www.ETTelecom.com. (2023, December 11). Acer reiterates “make in India” commitment; to

venture into AI pcs, Consumer Electronics, e-mobility - ET telecom. ETTelecom.com.
https://telecom.economictimes.indiatimes.com/news/devices/acer-reiterates-make-in-india-
commitment-to-venture-into-ai-pcs-consumer-electronics-e-mobility/105901991