Case Study: Acer

Read Complete Research Material



Case Study: Acer

[Name of the institute]Case Study: Acer

Compare and Contrast of Acer's “Divide and Conquer” Strategy with Lenovo's Strategy

The aim and objective of every business is to run the business in a lucrative way. In the pursuit of this focal ambition, organizations form strategies. Similarly, Acer and Lenovo also have their strategies. There are scores of aspects of these strategies on the basis of which these organizations can be compared and contrasted. The principle strategy of Acer is defined as “Divide and Conquer.” The dogma behind “divide and conquer” strategy is that when a problem is easy and understandable then directly takes actions to solve the problems otherwise break the problem into small parts and then pursue it to solve the problem (Richard, 2009). In front of the management of Acer a gigantic problem of exploring international market was lying and they were unable to exploit this opportunity. So, the management decided to opt for the “divide and conquer” strategy. According to this strategy the management of Acer to conquer international market divided the entire market. The first part of this division that they aimed at was China. According to the CEO Shih “it is imperative for an organization to be stable and get a secure position in the local market before they opt for the regional and international market (Davis, 2007).” This implies that strategy of “divide and conquer” reflects this thought of CEO. Acer is a Taiwanese brand and locally it is quite stable. After attaining the local success Acer is opting for the regional expansion by expanding the operation to China and from China they want to exploit the global opportunities in the PC market.

On the other hand, there is Lenovo a Chinese brand. In today's era the strategy of Lenovo is defined as “Protect and attack (Chuck, 2011).” This posits that Lenovo wants to make efforts through marketing and promotion to keep the current market share as well as forming strategies to deal with the cut throat competition (Chuck, 2011).

The above part describes the strategies of the two brands. On the basis of these strategies the first thing on the basis of which the two brands can be compared is that both the organizations are clear related to what they want to do. Aspect that is contrasting between the two brands is that Acer is committed to go global whereas Lenovo only wants to be stable in the local market and chase competitors. Strategies are defined in the light of mission and vision of the organization (Chris, 2008). From this perspective it can be said that another point on the ground of which the two organizations can be contrasted is that Acer's strategy seems to be derived from the mission and vision of the organization as this strategy point out how and where they want to be. In contrast, Lenovo's strategy seems to be directionless.

Global Markets-Local Markets Paradox Figures into Stan Shih's Strategy for China

The main objective that derived Shih to opt for China and ...
Related Ads