Strategic analysis of Acer Essay Example | Topics and Well Written Essays - 2500 words

Strategic analysis of Acer - Essay Example Acer has since been the third largest computer manufacturing company in the world holding 9.5% of the market share, with its growth being experienced outside USA mature market, largely in emerging nations. The peripherals and PC industry is very competitive and Acer has maintained growth since 1999 with significant growth in revenues. The key competitors in the market include Dell, HP and Lenovo; however there is a fragmentation of the market with 46% of it owned by brands which have market share of less than 4% each. Acer seeks to increase its market share through release of premium PCs under Ferrari brand and expansion in LCD TVs with BenQ brand (Unruh & Ettenson, 2010). This paper seeks to give a detailed report of strategic analysis of Acer Inc. The paper will analyze the environment in which Acer functions and identify the opportunities and threats to which it might expect to have to respond. This will be done through environmental analysis (PESTLE, Porter’s Five Forces, and SWOT). The report will also make analyses of the resources and key capabilities of the company plus the factors that give the company its competitive advantage. This will be done through assessing the Industry Critical Success Factors, analyzing resources and capabilities and link the generic strategy. Finally the paper will assess the extent to which Acer’s existing strategies match its environment and suggest improvements where there is a justification. This will be done through looking at the company’s strategy within its environment and use of the J and S three tests (suitability, acceptability, feasibility and suggested improvements. There will be a final management summary, conclusion and recommendations to the company and sample diagrams of the models of market and environment analysis. Acer is the third largest manufacturer of electronics (PC) in the world using a transnational strategy for procuring its components in order to maintain cost leadership.