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Presented by:- Atmadeep Das Joshna Chowdhury Amit Kumar Ahamed Shebeeb Nitika.

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Presentation on theme: "Presented by:- Atmadeep Das Joshna Chowdhury Amit Kumar Ahamed Shebeeb Nitika."— Presentation transcript:

1 Presented by:- Atmadeep Das Joshna Chowdhury Amit Kumar Ahamed Shebeeb Nitika

2 Acer Inc. is a Taiwanese multinational hardware and electronics corporation headquartered in Xizhi, New Tapai City, Taiwan. Acer's products include desktop and laptop PCs, tablet computers, servers, storage devices, displays, smartphones and peripherals. It also provides e-business services to businesses, governments and consumers. In 2013 Acer was the fourth largest personal computer vendors in the world. Name:- Acer Inc Type:- Public Industry:- Computer, hardware electronics Predecessors:- Multitech International Founded:- 1976 (Multitech) Founders:- Stan Shih et al Headquarters:- Xizhi, New Tapai, Taiwan Key people:- Stan Shih ( Chairman and president) Employees:- 7,757 (2011)

3 1983 potential market opened and Multitech decided to manufacture IBM compatible PC. Sales grew to 100% during 10 years of operating. Acer shipped one million PC in the world market. Acer has a 20% market share in the Taiwan market. Acer changed it’s name from Multitech to Acer in 1988. Acer became public company in 1988.

4 Acer established it’s first foreign manufacturing unit in Malaysia in 1990. It penetrated the USA market by acquiring Altos software company. It also penetrated the European market by acquiring a Dutch company in 1990. By 1991 Acer had 44 overseas facilities in 13 countries and over 5300 employees and 1500 of them were outside Taiwan. 1989, the dramatic geographic growth lead to establish Strategic Business Units.

5 Acer does not have any authoritarian work style. Acer promote free working style and have free work culture. Acer has a “Self driving” approach and Acer does not have a time bound working condition. Ever Acer employee has to go for a one month classroom training session. Acer does not have commission it has performance motivation awards.

6 ACER increased 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 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 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 Gatewayin 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. But such a reliance on the high-volume, low-value PC market made Acer exposed when buying habits changed.

8 In 1988, Acer acquired Counterpoint Computers In 1990, Acer acquired Altos Computer Corporation On 27 August 2007, Acer announced plans to acquire its US-based rival Gateway, Inc. for US$710 million. Acer's chairman, Jen-tang Wang, stated that the acquisition "completes Acer's global footprint, by strengthening our United States presence". Included in this acquisition was the emachine brand. In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell

9 In March 2008, Acer acquired: E-TEN. In 2009, Acer acquired 29.9% of Olidata In August 2010, Acer and founder technology signed a memorandum of mutual understanding to strengthen their long term PC business cooperation. In July 2011, Acer Inc. bought IGware Inc. for $320 million to try possible potentially lucrative cloud market. IGware creates cloud software and infrastructure tools for devicesI

10 Very few Taiwanese companies have their own brand names most are satisfied to be OEMs, They don't invest in R&D, marketing, distribution, and advertising Taiwanese companies need to become more marketing-oriented, not enough real innovation is going on in companies As a country, Taiwan only spends a little over 1% of its GNP on R&D—less than half what the United States, Japan, and West Germany spend. Possibly that is why Acer is such an admired company.

11  In 1981 he was chosen as one of Taiwan's Outstanding Young Entrepreneurs,  In 1983 the International Junior Chamber of Commerce selected him as one of the Ten Most Outstanding Young Men in the World

12  PC industry is intensely competitive. Competition takes place at three levels.  At the top level are IBM, Compaq, Apple, and the big Japanese companies,  At the second level are companies like AST, Everex, Epson, and Acer.  The third level is composed of companies that don't have recognized brand names.  Acer wants to become a "world player." we have to improve our brand image and develop new products faster.  Acer’s goal was to become an 'OBM’—meaning an Original Brand-Name Manufacturer.  Sales of its products exceeded US$750 million in 1990, Acer still had not achieved a "critical mass,“ and still have only about 3% of the world PC market, and are maybe only number 10 in the industry.

13  Despite a population of only 20 million people, Taiwan's PC industry was the largest in Asia, except for Japan's  Taiwan was also one of the world's largest producers of PCs. Hundreds of domestic manufacturers, most of them small, accounted for 25% of the all the IBM-compatible PCs sold.  In Taiwan, non-branded PCs accounted for about 52% of total sales, as compared with 21% in Korea and 28% in Hong Kong. In Thailand and Malaysia, two fast-growing markets, non-branded PCs accounted for over 65% of sales.

14  In 1990, Taiwan's economic growth slowed dramatically to about 5%.  Acer's sales and profits came under increasing pressure.  The analysts told that for several years the overhead costs are higher than those of competitors  People forgot what had made them prosperous and spent all their time watching stock prices and forgot about their jobs.  Due to political liberalism now people want more freedom

15 Some proposed laying off others hold on to normal attrition Strategies to lay off 1. Remove bottom 5% of people periodically 2. Shorter work week 3. Cutting salary

16  Providing challenging jobs  Stock options and bonuses Some believed lower worker commitment is correcting themselves as the economy is slowing down

17 Chinese employees are more reserved in expressing their feelings and confronting problems For eg: If a western company make a request to complete a task by certain date, Chinese are less likely to say “no” even if the work is impossible to finish by that time


19 Being huge and Employee centric have its own problems  A public company need to take care of its external stakeholders as well  Employee satisfaction should not be at the cost of company’s financial health  Cultural diversity is essential to make employees more open to express their feelings


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