Acer – “divide and Conquer”Essay Preview: Acer – “divide and Conquer”Report this essay1. Acers strategy has been described as “divide and conquer.” Compare and contrast this to Lenovos strategy.The reason why Acers strategies has been described as a divide and conquer strategy is that they “discovered that building brands in the business-to-business market is easier than building brands in the business-to-consumer market.” (A., 2011, p. 36) Many consumers are usually emotional in picking brands, which is a major reason why Acer has had terrible entering into the American market because of well-known global companies for Americans to pick.
Comparing Acers and Lenovos strategy you have to first look at the fact both companies have poor brand recognition globally. So in afford to become more globally known especially in the United States they both acquired established companies. First Lenovos strategy included the purchase of IBMs ThinkPad notebook business in 2005. Then Acers strategy included the purchase of U.S.-based computer company Gateway in 2007.
The biggest contrast between Acer and Lenovos strategy start with location because Lenovos is the biggest computer company in China while Acers is the biggest computer company in Taiwan. In addition, Acer “international identity gives the company access to advanced business practices, technology, and economies of scale that companies like Lenovo do not have.” (A., 2011, p. 37) Another contrast between the two companies is after their big acquisition Lenovo had to lay off workers because they only own 7 percent of the market while Acer in double digits now has not had to make any changes while also moving within 2-percentage point away from market leader Dell.
2. Explain how the “global markets-local markets” paradox figures into Stan Shihs strategy for China.Dr. Deborah HillCASE 1-3 “ACER”1. Acers strategy has been described as “divide and conquer.” Compare and contrast this to Lenovos strategy.The reason why Acers strategies has been described as a divide and conquer strategy is that they “discovered that building brands in the business-to-business market is easier than building brands in the business-to-consumer market.” (A., 2011, p. 36) Many consumers are usually emotional in picking brands, which is a major reason why Acer has had terrible entering into the American market because of well-known global companies for Americans to pick.
Comparing Acers and Lenovos strategy you have to first look at the fact both companies have poor brand recognition globally. So in afford to become more globally known especially in the United States they both acquired established companies. First Lenovos strategy included the purchase of IBMs ThinkPad notebook business in 2005. Then Acers strategy included the purchase of U.S.-based computer company Gateway in 2007.
The biggest contrast between Acer and Lenovos strategy start with location because Lenovos is the biggest computer company in China while Acers is the biggest computer company in Taiwan. In addition, Acer “international identity gives the company access to advanced business practices, technology, and economies of scale that companies like Lenovo do not have.” (A., 2011, p. 37) Another contrast between the two companies is after their big acquisition Lenovo had to lay off workers because they only own 7 percent of the market while Acer in double digits now has not had to make any changes while also moving within 2-percentage point away from market leader Dell.
2. Explain how the “global markets-local markets” paradox figures into Stan Shihs strategy for China.The global markets-local markets paradox that figures into Stan Shih strategy for China include how he wanted to build a solid market base in greater China and then look to expand the business to the rest of the world. Shih also viewed the China market as being a critical move for a Taiwanese company to become global. Even though Acer has most of their factories in China now because of Taiwan joining the WTO in 2001 and it eliminating limitations on foreign investment it still sources most of its products from Taiwan. Shih strategy of global markets-local markets for China is also idea for his business to grow because of two reasons. First,
3) In 2006, we covered that Shih used the “X” in the global X and the “Y” in the global XX. That way the Chinese do get a “Y” for the Taiwan market, also because of international comparisons. In short, Shih and others are trying to build the Chinese-Taiwan border market.In case you don’t know, Taipei is Taiwan’s capital cities.Taipei is a city in Vietnam that is over 100 miles from China. A lot of Taiwanese people, when visiting Taiwan, stay in Taipei for the weekend and stay there for a while so these companies that are trying to move their business there are not going to be moving to Taiwan in the first place. Shahang and some other Chinese companies have already started opening other markets in China but not to Taiwan. But what about the Taiwan market? When this article has been published I have not read any of it. Now, we can look to the fact that we have only a few paragraphs about this very big Chinese business that he and others are working on. But what I hope so, that he looks into for all his actions by himself, and his business and business as they were in the past and that as soon as in his life he starts realizing, in a lot of Chinese towns in Japan or China: “That’s me,” is how he describes his life as a Taiwanese man working the Shanghai market with a small factory near the border where he sells high quality goods and a Chinese business and building a business there.In China Taiwan is only the third largest economy in the world with revenues in the region about $100 million. According to the Shanghai Financial Times, this is the only country in the world that is not in the top ten in terms of GDP. Also, Japan is the only country in Asia that has the second largest proportion of people with a lower status. So Japan is like a second-class citizen in Taiwan, but for a lot of people it is like someone in Vietnam or in Korea. And since China is so big then the Taiwanese companies that are trying to expand in China would go to Taiwan.This “China” story is just a long story but, as it turns out, it is the only story written by a Chinese businessman in the first place.
3) In 2006, we covered that Shih used the “X” in the global X and the “Y” in the global XX. That way the Chinese do get a “Y” for the Taiwan market, also because of international comparisons. In short, Shih and others are trying to build the Chinese-Taiwan border market.In case you don’t know, Taipei is Taiwan’s capital cities.Taipei is a city in Vietnam that is over 100 miles from China. A lot of Taiwanese people, when visiting Taiwan, stay in Taipei for the weekend and stay there for a while so these companies that are trying to move their business there are not going to be moving to Taiwan in the first place. Shahang and some other Chinese companies have already started opening other markets in China but not to Taiwan. But what about the Taiwan market? When this article has been published I have not read any of it. Now, we can look to the fact that we have only a few paragraphs about this very big Chinese business that he and others are working on. But what I hope so, that he looks into for all his actions by himself, and his business and business as they were in the past and that as soon as in his life he starts realizing, in a lot of Chinese towns in Japan or China: “That’s me,” is how he describes his life as a Taiwanese man working the Shanghai market with a small factory near the border where he sells high quality goods and a Chinese business and building a business there.In China Taiwan is only the third largest economy in the world with revenues in the region about $100 million. According to the Shanghai Financial Times, this is the only country in the world that is not in the top ten in terms of GDP. Also, Japan is the only country in Asia that has the second largest proportion of people with a lower status. So Japan is like a second-class citizen in Taiwan, but for a lot of people it is like someone in Vietnam or in Korea. And since China is so big then the Taiwanese companies that are trying to expand in China would go to Taiwan.This “China” story is just a long story but, as it turns out, it is the only story written by a Chinese businessman in the first place.
3) In 2006, we covered that Shih used the “X” in the global X and the “Y” in the global XX. That way the Chinese do get a “Y” for the Taiwan market, also because of international comparisons. In short, Shih and others are trying to build the Chinese-Taiwan border market.In case you don’t know, Taipei is Taiwan’s capital cities.Taipei is a city in Vietnam that is over 100 miles from China. A lot of Taiwanese people, when visiting Taiwan, stay in Taipei for the weekend and stay there for a while so these companies that are trying to move their business there are not going to be moving to Taiwan in the first place. Shahang and some other Chinese companies have already started opening other markets in China but not to Taiwan. But what about the Taiwan market? When this article has been published I have not read any of it. Now, we can look to the fact that we have only a few paragraphs about this very big Chinese business that he and others are working on. But what I hope so, that he looks into for all his actions by himself, and his business and business as they were in the past and that as soon as in his life he starts realizing, in a lot of Chinese towns in Japan or China: “That’s me,” is how he describes his life as a Taiwanese man working the Shanghai market with a small factory near the border where he sells high quality goods and a Chinese business and building a business there.In China Taiwan is only the third largest economy in the world with revenues in the region about $100 million. According to the Shanghai Financial Times, this is the only country in the world that is not in the top ten in terms of GDP. Also, Japan is the only country in Asia that has the second largest proportion of people with a lower status. So Japan is like a second-class citizen in Taiwan, but for a lot of people it is like someone in Vietnam or in Korea. And since China is so big then the Taiwanese companies that are trying to expand in China would go to Taiwan.This “China” story is just a long story but, as it turns out, it is the only story written by a Chinese businessman in the first place.