Acer Group Essay Example | Topics and Well Written Essays - 1000 words

Acer Group - Essay Example When Stan Shih founded the Acer group of companies in 1976 it was more than obvious that the firm was bound to take some huge strides with this celebrated founder who made news worldwide by commercialising Taiwan's initial desktop calculatorToday Acer boasts of commendable rankings in the industry by being No. 4 in the Personal Computer market, No. 3 in the market for notebooks and No. 3 as a computer manufacturer in the face of huge competitors like Sony and others. Stan is about to retire in three years and Acer has suffered a loss of $29 million in the PC industry so Stan has diverted his expertise and attention towards making the company even more competitive in order to give it a strong foundation of support after he retires. Aspire is a large brand for Acer under which they have produced a number of technological products in the world. Aspire has had problems during the development stage whereas if these problems were dealt with proficiently then this brand would have had a tru ly aspiring brand image. Acer and Stan need to focus on the leverage points namely; efficiency (economies of scale and comparative advantage globally), knowledge leverage (strategic use of human resources and ideas on a global platform) and responsiveness (to embrace local consumer demands) (Bartlett & Ghoshal; 1989).Stan must disapprove Aspire's continued development because it is important to a put a halt to further developments in order to study the current problems it's facing. The existing discrepancies must be removed in order to develop further otherwise the problems might become deep rooted and also fatal. It is important to climb the first few steps of a ladder efficiently without being in danger of falling down and getting hurt before reaching the top. Acer faced problems during the development of Aspire and these problems still exist. Acer is a large multinational operating in Asia, Europe, and America etc. Obviously, the company has regional departments in these countrie s and in order to maintain a strong brand image in the market a common goal, strategy and communication strategy are required. Acer lacks these and due this they faced problems in positioning themselves as a strong brand when it comes to Aspire. It is important for all regional offices around the world to share a similar spirit of growth, values, standards, communication strategies etc in order to take mutual decisions as a company on the whole and not just as a regional office. Aspire has a number of brand extensions and product types being sold under one brand name and the company has not been able to position each extension with a common goal or insight in mind. Aspire is known to be a very adaptable brand since it has been changed to suit the consumer demands for every different region in a different way. This has caused major brand identity problems for Acer and Aspire. The same brand under Aspire has been positioned to be a luxurious and elite brand in Singapore and the opposi te in Europe. But it also shows that Aspire is doing a good job when it comes to responsiveness in the leverage points. This has weakened the brand equity for Aspire and has resulted in brand dilution. This shows that a strong corporate culture is absent in Acer and this results in a weak brand image and positioning for any company or brand because then customers do not know how to relate with the brand. All the regional departments and offices are working on their own values and standards to fit the culture, demand or society of the region. Due to the lack of a strong organisational culture it is evident that synergism is absent and the company is leaving loopholes for failures. All these problems must be looked into and it is important for Stan and Acer to come up with a solution before approving any further developments for Aspire.