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Case Study

The document summarizes two case studies: 1) Acer Inc., a Taiwanese PC maker that focused on the growing Chinese market after having limited success breaking into the important US market due to cultural and language differences. 2) Dell Computer Corporation, the world's largest direct selling computer company, which pioneered a direct business model in the PC manufacturing industry, achieving success through optimized direct marketing and e-commerce strategies that provided quality customer service.

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Tekta Mideksa
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67 views4 pages

Case Study

The document summarizes two case studies: 1) Acer Inc., a Taiwanese PC maker that focused on the growing Chinese market after having limited success breaking into the important US market due to cultural and language differences. 2) Dell Computer Corporation, the world's largest direct selling computer company, which pioneered a direct business model in the PC manufacturing industry, achieving success through optimized direct marketing and e-commerce strategies that provided quality customer service.

Uploaded by

Tekta Mideksa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AMERICAN COLLEGE OF TECHNOLOGY

MARKETING MANAGEMENET ASSIGNMENT (CASE STUDY)

ACER AND DELL CASE STUDY

NAME: EDEN EWNETU

ID: 017/MBA-B3/20

SUBMISSION DATE: June 30, 2032

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B) Group Case

CASE 1: Acer Inc.

Overview. Taiwan’sAcer is a leading marketer of notebook and desktop PCs. However, they
have had very limited success in breaking into the all-important American market. Partly as a
result, Acer refocused and concentrated its efforts on the growing Chinese market. They believe
they have a much greater probability of success in China given the shared language and culture.
They are attempting to “remake” themselves as a “local” company based in China.

1. Acer’s strategy has been described as “divide and conquer.” Explain.

As articulated on the above, Acer is investing in both countries America and China; but they
have limited success rate in braking through the U.S market. As well because of the shared
language and cultural similarity Acer believe they have much more success rate than the other
market. Acer divide its market by looking in to the following factors: -

 Geographical
 Language and
 Culture

2. How did the “global markets-local markets” paradox figure into Stan Shih’s strategy for
China?

China is included under both the global market strategy as well local, by working on both the
global market strategy as well the local market strategy side by side with the shared culture and
language it be in favor of the company. Even though Acer take advantage of the shared language
and cultural similarity to wards their goal; the strategy towards their global market still exists. So
the two paradoxes are manageable in a way that gives to the company the upper hand towards
their strategy to be successful.

3. Can Acer become the world’s third largest PC Company, behind Dell and Hewlett-
Packard?

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Taking under consideration of the global as well local marketing strategies and other improved
marketing strategies under consideration I think Acer will have the advantage and probability to
be third largest company.

4. Even before the current economic crisis deepened, growth in the U.S. PC market had
begun to slow down. Despite strong competition from Dell and Hewlett-Packard, Acer’s
U.S. market share increased from 1 percent in 2004 to 3.3 percent by the end of 2006. What
are Acer’s prospects for gaining further share in the United States?

It continues to grow market share, closing the gap between itself and the world's top and second
computer sellers. Dell has reclaimed second place in the US from Acer, according to IDC, by
focusing on business customers. In the second quarter, global PC shipments climbed by 21% to
8.3 million units. Acer had a 1 percent increase in market share, while Dell dropped 0.2 percent
to 12.4 percent.

CASE2: DIRECT MARKETING (DELL)

The case let discusses the direct business model of Dell Computer Corporation (Dell). It shows
how the company attained a competitive advantage by pioneering the direct business model in
the computer manufacturing industry. The case let discusses the various strategies that Dell
adopted to ensure the smooth functioning of its business operations. It also focuses on how the
company utilized the Internet to optimize its business model.

Issues:

» The concept of 'direct business model' in the computer manufacturing industry


» How Dell achieved success through the 'direct business model'

E-commerce - How it can help optimize sales

Introduction

Dell Computer Corporation (Dell), the world’s largest direct selling computer company, was
founded by Michael Dell in 1984. By 2002, it had become a premier computer manufacturing
company with its customer base spread across 170 countries worldwide.

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Headquartered in Austin, Texas, the company primarily offered notebook computers, desktop
computers, networking products, servers, hardware and software data storage products, printing
and imaging systems, workstations, etc.
It also provided services such as designing, developing, and implementing end-to-end
technology solutions, assisting customers in planning, deploying, and maintaining of the product,
etc...

Questions for Discussion:


1. How far did direct marketing help Dell in achieving success?

Unlike traditional public relations campaigns pushed out through a third party such as media
publications or mass media, direct marketing campaigns operate independently to directly
communicate with target audiences.  By applying direct marketing strategy focusing on
creating values and delivering solutions for its customers dell have come this far to be the top
PC and tech companies of this day with a net worth of $3.5 billion and around 165,000+
manpower.

2. Do you think Dell was successful in providing quality customer service? Justify your
stand.

Yes, because dell directly deals with its customers without third party being involved, this leads
to reduced and reasonable price package. Companies communicate their messaging and sales
pitches via social media, email, postal mail, and phone/SMS campaigns.

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