global marketing strategies
Denise Chisholm Unit 1 DB Global
Marketing
Acer, Inc., manufactures and
markets personal computers for the consumer and home office markets, as well as
chips, monitors, keyboards, CD-ROM drives, and other hardware. For more than 15
years, Acer manufactured computers in Taiwan and shipped them to dealers
throughout the world. By building and marketing computers under its own brand
name, as well as supplying Hitachi, Siemens, and other companies on an
“original equipment manufacturer” (OEM) basis, Acer became Taiwan’s
number-one exporter. Shih [the owner] realized that he should decentralize
computer assembly in nearly three dozen locations around the globe and use a
combination of locally purchased components plus components shipped in Taiwan,
because of the fast pace of technological development. He developed a policy of
“global brand, local touch” and organized strategic business units
for manufacturing, regional business units for marketing, and empowered local
management teams in individual countries to make decisions on a wide range of
marketing mix elements. Shih continues to set ambitious goals for his company.
To position Acer Shih envisions a corporate structure that he calls “21 in
21”. Shih intends to break up Acer into a borderless network of 21
independent companies that maintain a close tie with Taipei,
“Eventually,” Shih said in 1995, “Acer will have a majority of
local ownership in each country and no one will be able to say that we are a
Taiwanese company.”
One goal [of Shih’s] was to be the
fifth-largest computer company by the turn of the century; by mid-1998, Acer
already ranked number eight. To position Acer for the next century, Shih
envisions a corporate structure that he calls, “21 in 21.” Shih
intends to break up Acer into a borderless network of 21 independent companies
that maintain close ties with Taipei. Fortune magazine described Shih’s vision
as “a global federation of highly autonomous Acer companies.”
The problems in the U.S. market,
however, may make it more difficult [for Acer] to reach $15 billion in sales by
2010. Shih still aspires to challenge Japan’s dominance in the consumer
electronics industry. To achieve these goals, Shih hopes to move beyond PCs and
attain leadership in next-generation low-priced “information
appliances.” One new product is the AcerBasic, a computer that provides
Internet access when hooked up to a television set. By competing in this
segment, Acer will come face-to-face with a new set of competitors, such as
marketing heavyweight Sony. Some industry observers believe that Shih should
concentrate on supplying PCs to other companies. Shih maintains, “Brand is
critical to our long-term success.” Some industry observers disagree; as
one analyst noted, “Brand name doesn’t bring investors any benefit.”
He advises Stan Shih to give up his dream of becoming a global brand. To be
blunt, the analyst said, “I’d pull the plug.”
Answer:
1. The
Acer, Inc. case feedback was relatively ambiguous. Why would this be the case?
(1 Paragraph)
2. What
makes some global marketing strategies better than others and how do you know
the difference? (1 to 2 Paragraphs)
ScholarMatic: Explanation & Answer
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