The Acer Group’s China Manufacturing Decision Harvard Case Solution & Analysis

The Acer Group's China Manufacturing Decision Case Solution 

INTRODUCTION AND BACKGROUND INFORMATION

In this case study we will examine the situation of Acers Corporation in 1998, when the organization decided to position their market in China. Atthat time, M.Y. Lin was the vice president of Acer’s global operations who were responsible for managing the manufacturing operations of Acers groups. However, when he decided to introduce the products in China, he held the meeting with the senior management officers in which they discussed about the brief information of the decisions and to discuss that whether it was the right time for the company to start its manufacturing operations in Chinese, and if so, then where they could they start their operations.

Acer is a Taiwan based international electronic producer, which makes a variety of products such as laptops, personal computers, mobile computers, PDAs, electronic business and servers for government authorities, home and education users. After HP and Dell computers, Acer Corporation isthe second largest computer parts and personal computer manufacturer in the world and its other associated companies are also considered as the top 3 manufacturers which provide the best quality product to their customers. Acer’s group’s products such as network servers, mobile computers and PC are the most popular brands in their particular product categories. Moreover, its motto is to empower people.

The mission of Acer was to provide fresh technology services to everybody globally. This was the viewpoint in which the organization had grown and also considered as the international pioneer in distributing the best quality PC to the customers at low price. Moreover, the vision of the chairman of Acer was to change the firm into international company and to expand its business into other countries. However, Stan Shih made the global manufacturing strategies for Acer, which included the transfer of computer from Taiwan to other countries and he named this distribution concept as “fast food” which would make sure that the reduction of stocks as well as to get an immediate response from the domestic market.

In 1990, the chairman decided to re engineer the firm’s strategies and objective. The strategies are the local touch, fast food, decentralization, global strategies, global stock management and go game.
Moreover, the target audience of Acers was the third class countries and the chairman believed that if they will cater the niche market segment, then this would not give them a good output as they want to establish a long lasting work process system in china. In addition to this, the organization decided to implement their strategies in those areas where other organizations did not exist. This strategy was called the go strategy and the idea of this strategy came from the most popular game of Chinese known as “GO”..................

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