Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 6 pages
Data source: Published sources
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https://casecent.re/p/66472
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Abstract
In 2005 Acer had become the world''s fourth largest branded personal computer vendor, with a market share of 4.4% taking it to the same league as Dell, HP and Lenovo. In 1999, Acer had withdrawn from the US computer market in the wake of huge losses and in turn underwent restructuring, spinning off several different business divisions. Acer succeeded in all the major markets of the world by embracing traditional marketing channels ? in an age when its competitors were following direct selling methods. Restructuring had paid off and the PC (personal computer) division retained the brand name Acer and is currently challenging the bigwigs of the business. Acer''s achievement is rated to be a remarkable turnaround, considering its miserable performance at the turn of the 21st century. Acer has set a goal of becoming the third largest company, and aims to surpass Lenovo by 2008. If the company achieves its goal, it would be a fitting culmination to the turnaround efforts. This case study enables a discussion on the turnaround strategies at Acer and also triggers a discussion on whether it has the wherewithal to achieve its goal by 2008.
About
Abstract
In 2005 Acer had become the world''s fourth largest branded personal computer vendor, with a market share of 4.4% taking it to the same league as Dell, HP and Lenovo. In 1999, Acer had withdrawn from the US computer market in the wake of huge losses and in turn underwent restructuring, spinning off several different business divisions. Acer succeeded in all the major markets of the world by embracing traditional marketing channels ? in an age when its competitors were following direct selling methods. Restructuring had paid off and the PC (personal computer) division retained the brand name Acer and is currently challenging the bigwigs of the business. Acer''s achievement is rated to be a remarkable turnaround, considering its miserable performance at the turn of the 21st century. Acer has set a goal of becoming the third largest company, and aims to surpass Lenovo by 2008. If the company achieves its goal, it would be a fitting culmination to the turnaround efforts. This case study enables a discussion on the turnaround strategies at Acer and also triggers a discussion on whether it has the wherewithal to achieve its goal by 2008.