Acer Case Study

Strategic design within organizations
Dr. Ir. Rene Samson Group No. 5 José Carlos Ascarza Lucrecia Gastelú Makaly Rivera Chú Renzo Rossi
April, 2004

Phase 1: Commercializing microprocessor technology (1976 – 1986)
1976 Multitech International: founded focusing on trade and product design 1978 Microprocessor Training Center 1979 Designed frirst massproduced computer for export 1981Manufacturing operations were established in Taiwan´s Sciencebased Industrial Park

1981 1982 Multitech Industrial Microprocessor Corporation was founded II: Taiwan´s first Microprocessor I: Acer home computer first branded product

1984 Acer Peripherals Inc and Multiventure Investments Inc were established

1986 Acer beats IBM with 32-bit PC´s

Phase 2: Creating a brand name and going global(1987 – 1995)
1987 Acquisition of Counterpoint (US multi-user system producer) 1988 Acer name was created and became a public listed company 1989 1989 Most of The CEO decided Counterpoint´s to move into more factories had to be sophisticated closed and its segments products discontinued

1991 1989 1990 Introduction of Alliances and Joint Acquisition of Altos Chip up Ventures with (US multi-userWestern system producer). technology: first companies: Texas 1992: Altos was still single chip CPU upgrade solution Instruments unprofitable (most important)

1992 Introduction of the Smiling Curve and first corporate reengineering

Phase 2: Creating a brand name and going global (1987 – 1995)
1992 Acer´s third annual loss 1993 Taipei Stock Exchange downgraded Acer´s stock: earnings to revenueratio not sufficient for a blue chip stock 1994 Acer introduced world´s first dual Intel Pentium PC 1995 Aspire Multimedia PC brought Acer closer to the consumer electronics markets

Phase 3: Building world – renowned brand awareness (1996 - 2000)
1998 Official IT Sponsor of the 13th Asian Games. Introduction of the world´s first PC based management system for a major event 1999 Set up ofAspire Academy to help Asian firm managers to improve their organizational and leadership effectiveness 2000 Top priorities: delivering the freshest and most affordable technology for the benefit of consumers

Phase 4: Building world – renowned brand awareness (2001 - 2003)
2001 Acer´s commitment was to enhance people´s lives through technology Launching of the world´s first Chinese Palm handheld2002 Acer focused on ebusiness Launching of the new Acer Aspire, which brought fresh home PC standards to the global arena 2003 Acer is named Reader´s Digest gold-medal Computer SuperBrand in Asia for the fifth consecutive year

Acer Group client-service organization

Acer Group organizational structure

Acer Group Internet Organization

Opportunities & Threats
REMOTE ENVIRONMENTINDUSTRY ENVIRONMENT
• Inadequate access to distribution and market intelligence Lack of presence in foreign markets and little understanding of legal systems in other countries..

SWOOT ANALYSIS

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Network of joint ventures. – Raise awareness of the Acer name. – Reduce cost and answer quality to the demand. Quality products. Vast resources in R&D: Using innovation to create value inthe design and production of cutting-edge products-and leading the industry.

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OPERATING
Founder/CEO's vision Shih’s reputation as one of Taiwan’s entrepreneurial visionaries. The force of character as leader and motivator. Management philosophy. Stressing that fast decision making, direct communication and a reliable organization were the keys to success

ENVIRONMENT
• • Slim resources.Scarcity of international management experience and cultural differences Communication problems. Hierarchy is still fairly rigid.

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Strengths & Weaknesses
REMOTE ENVIRONMENT
• Taiwan retained an image problem: Perception of low quality, low price that he “Made in Taiwan” label carried. The small differences between current and obsolete technology.

SWOOT ANALYSIS

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INDUSTRY...