SWOT StrengthsAcer group employs 8000 employees across the
globeOperational Efficiency, tight control on Overhead CostsIt has
huge network, in around 38 countries so it works on Economies of
ScaleAcers aggressive price strategy, particularly suitable to a
time of economic recession
Economic downturn, which favors low-price productsGrowth of
Mobile PCs in Homes in emerging markets, where brand preferences
are weaker Growth into the Chinese marketGrowth into
midsize-business marketsReaching large numbers of customers by
targeting various segments through multiple brands and by joint
ventures in various countriesOpportunitiesThreatsContinued Price
Decline in Mobile PCs, due in part to mini-notebooks, tablets,
smartphones which erodes margins and profitabilityDell's expansion
into indirect salesSamsungs entering into Computer mobile
PCsIncreased competition due to the movement toward disintegrated
computer components
WeaknessesLess presence in B2B market when compared to Dell or
LenovoIt has limited product portfolio for midsize businessMarket
share growth is slow due to competition; Fake products/ imitations
affects sales
***1976 - Acer was founded by Stan Shih (), his wife Carolyn
Yeh, and a group of five others as Multitech in 1976, headquartered
in Hsinchu City, Taiwan.
It began with eleven employees and US$25,000 in capital.
Initially, it was primarily a distributor of electronic parts and a
consultant in the use of microprocessor technologies. It produced
the Micro-Professor MPF-I training kit, then two Apple II clones;
the Microprofessor II and III before joining the emerging IBM PC
compatible market, and becoming a significant PC manufacturer. The
company was renamed Acer in 1987.
1990S - Considering two consecutive quarters of net losses in
Q2+Q3 2011 and realization they are selling too many products; 101
individual notebook, netbook and chromebook SKUs in the United
States alone, Acer will cut product lines by two thirds beginning
in 2012.
2005 - Acer increased worldwide sales while simultaneously
reducing its labor force by identifying and using marketing
strategies that best utilized their existing distribution channels.
By 2005, Acer employed a scant 7,800 people worldwide. Revenues
rose from US$4.9 billion in 2003[6] to US$11.31 billion in
2006.
Acer's North American market share has slipped over the past few
years, while in contrast, the company's European market share has
risen.[7]
In the mid-2000s years, consumer notebooks have been almost the
sole growth drivers for the PC industry, and Acer's exceptionally
low overheads and dedication to the channel had made it one of the
main beneficiaries of this trend.[8] Acer grew quickly in Europe in
part by embracing the use of more traditional distribution channels
targeting retail consumers when some rivals were pursuing online
sales and business customers. In 2007 Acer bought Gateway in the
USA and Packard Bell in Europe and became the Number 3 world
provider of computers and number 2 for notebooks, and achieved
significant improvement in profitability. Acer has been striving to
become the world`s largest PC vendor, in the belief that the goal
can help it achieve economy of scale and garner higher margin.[9]
But such a reliance on the high-volume, low-value PC market made
Acer exposed when buying habits changed.
Growth and netbook raise[edit]Acer increased worldwide sales
while simultaneously reducing its labor force by identifying and
using marketing strategies that best utilized their existing
distribution channels. By 2005, Acer employed a scant 7,800 people
worldwide. Revenues rose from US$4.9 billion in 2003[6] to US$11.31
billion in 2006.
Acer's North American market share has slipped over the past few
years, while in contrast, the company's European market share has
risen.[7]
In the mid-2000s years, consumer notebooks have been almost the
sole growth drivers for the PC industry, and Acer's exceptionally
low overheads and dedication to the channel had made it one of the
main beneficiaries of this trend.[8] Acer grew quickly in Europe in
part by embracing the use of more traditional distribution channels
targeting retail consumers when some rivals were pursuing online
sales and business customers. In 2007 Acer bought Gateway in the
USA and Packard Bell in Europe and became the Number 3 world
provider of computers and number 2 for notebooks, and achieved
significant improvement in profitability. Acer has been striving to
become the world`s largest PC vendor, in the belief that the goal
can help it achieve economy of scale and garner higher margin.[9]
But such a reliance on the high-volume, low-value PC market made
Acer exposed when buying habits changed.
2013 re-organization[edit]On November 2013 Chairman and CEO J.T.
Wang, and President Jim Wong, both resigned due to the company's
bad financial performance. Wang had already been reportedly due to
leave Acer at year's end to be replaced by Wong. Acer founder Stan
Shih has taken over as board chairman and interim president as the
company searches for a new candidate to assume the role of
presidency. The position of CEO will be eliminated and its
responsibilities transferred to the chairman or president,
according to Acer in order to improve decision-making
efficiency.[10][11][12] On December 23 Acer named Jason Chen, vice
president of worldwide sales and marketing at Taiwan Semiconductor
Manufacturing, as its new president and CEO, effective Jan. 1.[13]
Entertainment industry executive and former actress Nancy Hu was
named CFO and Spokesperson as of May 1, 2014.[14]
*****Vendor HighlightsLenovocontinued to push hard in EMEA,
expanding channels and capturing consumer holiday demand. The
company also outpaced the market in the U.S. though by a smaller
margin and was closer to market growth in other regions. Shipments
reached a record 16 million units in 4Q14 with year-on-year growth
of 4.9%, and annual shipments up over 10% from last year.HPalso saw
a tremendous quarter with 15.9 million units and year on year
growth surpassing 15%. A particularly strong quarter in the U.S.
was a key driver, along with some volume for public projects in
Asia/Pacific and Africa.Dellshipped over 10.8 million units growing
8.5% on the year, much of it based on a strong performance in
notebooks in the U.S. and APeJ. Rising growth in APeJ also helped
offset slowing growth in the U.S. and Europe.Acergrew over 3%, in
part due to low volume a year ago but also from the success of its
Chromebooks and entry-level notebooks. Acer's recovery in the U.S.
and Europe slowed, in part due to higher year ago numbers.Applekept
the number 5 position on a worldwide basis, maintaining its lead
over ASUS. The company's steady growth, along with recent price
cuts and improved demand in mature markets, has helped it to
consistently outgrow the market.
*****
