Acer

Acer case study

Johnnie Farmer

International Marketing 505

January 19, 2012

Dr. Eva M. Ananiewicz

Strayer University

Introduction

Since its founding in 1976, Acer has achieved the goal of breaking the barriers between people and technology. Globally, Acer ranks No. 2 for total PCs and notebooks. A profitable and sustainable Channel Business Model is instrumental to the company's continuing growth, while its multi-brand approach effectively integrates Acer, Gateway, Packard Bell, and eMachines brands in worldwide markets (About Us, 2012).

Acer strives to design environmentally friendly products and establish a green supply chain through collaboration with suppliers. Over 30 years of making history in the fast-paced IT industry, Acer’s far-reaching strategy of focusing on R&D and marketing development has laid the foundations and created a company ready to embrace the challenges of the future. The Acer Group employs 8,000 people worldwide. Estimated revenues for 2010 reached US$19.9 billion.

Acer's strategy has been described as "divide and conquer." Compare and contrast this to

Lenovo's strategy

One of Lenovo’s strategies is to maintain a strong presence in China’s pc market. China is the world’s second largest pc market. Lenovo led the overall PC market in China with 33.5% of its market share in 2010. The group recorded a 37.4%, from one year to the other, increase in unit shipments in 2010 by focusing on capturing high growth opportunities in the rural market and government stimulus projects, refining the small and medium sized business model, strengthening cross-selling capability in the large enterprise segment, and enhancing storefront competitiveness. In 2010, China accounted for 47.5% of Lenovo Group Limited’s total revenues. By Lenovo having a strong presence in a growing market like China they will be assured steady revenues in the coming years (Datamonitor, 2011).

Lenovo has also formed many strategic agreements in recent times. In...