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Group 6 Members Ha Phuoc Vu M997Z244 Patlada Sae-Ching (Nan) M997Z240 Nguyen Tran Thao Bien M997Z213 Nuntanut Sae-Ching (Vee) M997Z236 Bui Duy Duc M997Z202 Thai Luong Thu M997Z221 Introduction Founded in 1976, Acer ranks among the world's top five branded PC vendors. In 2000, Acer spun-off its manufacturing operation to focus its resources on developing technologically advanced, user-friendly solutions. Introduction The decision to support the sales of its product lines through specific marketing activities that best utilize distribution channels, has allowed Acer to achieve excellent results worldwide. Introduction I. Mission Acer’s long-term mission is to break the barriers between people and technology. Our commitment to developing easy-to-use, dependable products that meet our customers’ needs has led to the creation of our unique Empowering Technology, designed to ensure that our customers receive the full benefit of each and every technological breakthrough. Empowerment through hardware, software and services – that’s the Acer brand promise. Introduction II. History Phase: 1 - 1976-1986: a) Commercialize microprocessor technology b) In its first ten-year stage of development, Acer established a corporate culture based on the founders' firm belief in "the goodness of human nature." During this stage in Acer's history, the company significantly contributed to the popularization of computers in Taiwan. Introduction Phase: 2 - 1987-1995: Establish a leading brand and go global In 1987, Multitech formally became known as Acer, marking the start of Acer's efforts toward creating a strong brand name. During this second ten-year stage of development, Acer grew extensively and expanded both strategically as well as geographically. The company grew to be ranked 8th largest PC brand in the world. Introduction Phase: 3 - 1996-2000: Offer fresh technology for everyone, everywhere During the company's 20th anniversary celebration, the third stage of development was launched, including basic goals for technological innovation and simplification of operations. Top priority was placed on delivering the freshest, most affordable technology for the benefit of consumers worldwide. Introduction Phase: 4 - 2001-beyond: Transform from manufacturing to services Since the company's founding in 1976, Acer has evolved from a manufacturing powerhouse to a globally recognized computer brand, marketing world-class IT products and services. Introduction • • • • • • • III. Today Acer’s product range includes: PC notebooks Desktops Servers Storage systems Monitors Peripheral devices Introduction • LCD TVs • e-business solutions for business, Government, Education and home users. Acer employs 5,400 people throughout the world and has created a consolidated sales and service network in more than 100 countries. Revenues reached US $7 billion in 2004. Global marketing strategies Global marketing strategies • Reorganization to act quick enough to fast moving computer industry. Organize two type of business units (Strategic Business Units and Regional business unit) Strategic Business Units responsible for manufacturing products. Regional business units responsible for marketing for specific regional territories. Empower local management team or regional markets to make decisions related to marketing mix elements. Global marketing strategies • Fresh Technology Due to fast change of IT industry’s business environmet,the best value product need to have the freshest technology. Global marketing strategies • The fast food business model Similar to model used by fast-food restaurants. Component are pre-prepared in large, centralized mass-manufacturing facilities and shipped to assembly site close to local customers. Economies of scale while also tailoring each individual product to suit needs of each individual customer Global marketing strategies • Joint venture and acquire other companies in order to combine marketing and technical expertise Joint venture with Texas Instruments Acquire Counterpoint Computers in U.S. • Create a spirit of teamwork Encourage employees to speak up and share idea. Acer in the world market Top 5 Global PC original equipment manufacturing raking in 2Q’2010 Acer in the world market • No.3 rank in Global PC original equipment manufacturing. • Strong performance driven by expanding sales of notebooks (around 80% of the company’s total PC shipment). • “Global brand/local touch” business model is one factor lead to successful of Acer. Acer in the world market • Global brand Economies of scale from an international manufacturing effort lead to Acer’s competitiveness. • Local Touch The customized product for individual markets. • Strengths - Strength in brand; - Strength from human resource; - Strength from distribution channel - Allocating vast resource to R&D and product development. • Weaknesses - The Acer brand name was still not nearly as well known as Compaq, Dell, Gateway, IBM or Sony; - Do not have the breakthrough product. • Opportunities - The increase in demand for high-tech equipments. Most computer buyers want the absolute latest technology - Matured internet market • Threats - The economic crisis; - Cultural barriers; - Other strong competitor; The Acer brand name was still not nearly as well known as Compaq, Dell, Gateway, IBM or Sony. CHINA MARKET • China is one of the world's fastest-growing and most important PC markets. • In 1999, Acer’s manufacturing and marketing on a vast, fastgrowing market much closer to home: China market. • The potential of China is not just big markets and low cost labor The market in China is very critical for Taiwanese companies to become global companies. • China and Taiwan share not just the same language and culture Acer’s knowledge of China’s market will help the company achieve its growth and market share objectives. CHINA MARKET Acer’s top competitors • Legend: a local mainland brand, is one of two or three powerhouse in China. • This company dominates with 35 percent of China PC market. • Throughout China, Legend’s name is synonymous with high quality, good service and value – not just the low cost everyone expect from a Chinese manufacturer. CHINA MARKET Acer’s marketing strategy • Open a wholly owned manufacturing plant in Suzhou. Products in this plant include high-tech display, input, storage, imaging and communication products. • Increasing its promotional efforts. • Distinguish itself and its product from the rest of the PC vendors. • Make its first PC in China from start to finish. • Corporate with local companies: Legend, Golden Harvest Group CHINA MARKET Advantage • Computer technologies have been a Chinese government priority since 1955. • China have low-cost labor. • China have highly educated engineers or professionals. • China and Taiwan share the same common language of Chinese and much of the Chinese cultural heritage. • Lot of Taiwanese suppliers are already in China CHINA MARKET Disadvantage • China have a poor image that is often associated with cheap, lowtech products. • The government slowed foreign firms and increased their costs with certification processes regarding quality, local content, and export limits. • Strong local competitors. CONCLUSION Acer Group's certain decisions led to its greater success. The restructuring, combined with the 100 percent focused channel strategy, increased Acer's success in the European markets. Acer applied the same channel strategy in the United States, where sales figures eventually began to turn around--so much so that Acer America was on track to break even by the end of 2004. CONCLUSION With efficient marketing moves and consistent performance, Acer has already put behind Lenovo in worldwide PC sales. Now it aspires to attain No 1 position by 2012. It would not be an overstatement to say that Taiwan's Acer is making waves in the world's desktops and notebooks industry. CONCLUSION The competitive advantage that Acer has over the US firms is its being located in the middle of some of the world's savviest contract PC makers and having an access to the flow of business sensitive information. It is said that it's this advantage that allowed Acer to become world's first to ship out a notebook with wireless technology from Intel. THANK YOU FOR YOUR ATTENTION !