The purpose of this paper is to analyze the development of the Acer Group from its small beginnings into one of the leading global computer suppliers. The following three issues will be explored:
First, how did Acer built a multinational organization from its Asian base in Taiwan and the major hurdles that management successfully overcame to become a leading, global computer company?
Secondly, what did Acer do to “break the orthodoxies” in an industry and create new and distinctive sources of competitive advantage? How has it gone about this transition, and where has it rewritten the traditional rules of the game?
Thirdly, what role did the leadership of this multinational organization (especially with Asian roots) play in developing a strong vision and culture? How did they develop a unique organization structure to become drivers of success? How do we assess Acer as a competitor in the Asian markets? What are its strengths and weaknesses?
The focus of the paper will be on the innovative strategies and their elements and models that Acer used to create its competitive advantage and make it to one of the leading global computer companies.
Factors Triggering Strategy Changes
From its beginnings and until 1988, the company was very successful and growing. Its co-operation with Intel and its pattern of being proactive through R&D, developing continuously new and better products for the market, was a strategy that made Acer very profitable and successful. After 1988, and through 1991, Acer experienced strong set-backs and had to overcome major problems to continue its growth. The following three factors led to a change of strategy.
Factor No. 1: A lack of commitment of Acer’s employees. In order to increase capital and finance growth, in 1988 Acer turned from a privately held company into a public-listed company and started offering its stocks not only to institutional investors and employees but also to individuals outside of the organization. This strategic...