Summary
Acer has grown into a one billion dollar company in 1991, but faces a worldwide crisis in the PC industry. European operations have been profitable, but repositioning and price cutting of competitors expose Acer's weaknesses in distribution, in its organisation across Europe and its links with the parent company in Taiwan.
Teaching objectives
To discuss the success factors and problems of a company based in a newly industrialised country, which enters the European market. To discuss possible strategic options to ensure future growth. To understand that decisions have to be made under stress since the industry is undergoing a severe crisis at the beginning of the 1990s.
