In order to develop a strategic plan to help the faltering company we need to perform a strategic audit to determine what the organization has to work with. Thompson and Strickland, 1987, argued that the question, "What is our business?" is best addressed through a SWOT analysis (Thompson, and Strickland, 1987). Acer's mission statement is to "Have a very long-term plan: affordable fresh technology to be enjoyed by everyone, everywhere" (Mintzberg, Lampel, Quinn, & Ghosal, 2003, p. 228).
SWOT Analysis: The Acer Group
Strengths (S) -
First and foremost Acer shows patience. In 2000 Acer began the transformation to marketing and service of IT products. Since that time Acer has strengthened their corporate competitiveness by adopting a unique Channel Business Model, which allows firm control of brand name, marketing, technology and products, global logistics, and service capacity. The model also permits better understanding of consumer demand and profit sharing among partners.
As a result, Acer ranks the world's fourth largest PC brand in 2005, and is working aggressively to secure third place by 2007. (Global.acer.com, 2006) Competitive advantages lie in its brand management strength, extensive global sales, marketing network, system implementation, and IC design (Global.acer.com, 1999)
Acer's global expansion and diversity has spread its subsidiaries throughout the world. "The group was operating 80 offices in 38 countries around the world, employing more than 16,700 staff from 50 different nations" (Global.acer.com, 2004). Furthermore, it has "joint ventures with local partners...to develop into a publicly traded local company in various different countries while maintaining a global brand" (Mintzberg, Lampel, Quinn, & Ghosal, 2003, p. 223)
Flexibility allows market penetration faster than the competition. Acer is flexible because it acts in many different countries depending on specific characteristics, and it is able of satisfying demand by using national suppliers. "The flexible client...