Restructuring / Turnaround Strategies Case Study

Acer Co. Ltd : The Corporate Turnaround

Abstract:
n 2005, Acer had become the world's fourth largest branded personal computer vendor, with a market share of 4.4% taking it to the same league as Dell, HP and Lenovo. In 1999, Acer had withdrawn from the US computer market in the wake of huge losses and in turn underwent restructuring, spinning off several different business divisions. Acer succeeded in all the major markets of the world by embracing traditional marketing channels – in an age when its competitors were following direct selling methods. Restructuring had paid off and the PC(Personal Computer) division retained the brand name Acer and is currently challenging the bigwigs of the business. Acer's achievement is rated to be a remarkable turnaround, considering its miserable performance at the turn of the 21st century. Acer has set a goal of becoming the third largest company, and aims to surpass Lenovo by 2007. If the company achieves its goal, it would be a fitting culmination to the turnaround efforts.

Pedagogical Objectives:

• To discuss whether the turnaround strategies of Acer would enable the company to surpass Lenovo to become the third largest PC vendor by 2007.

Keywords : Global PC (personal computer) manufacturers; PC manufacturers from Taiwan; Cost control at Acer; Acer?s acquisitions; Acer?s international operations; Restructuring / Turnaround Strategies Case Study; Original equipment manufacturers; Asian financial crisis; Turnaround strategies of Acer