An Analysis of the Notebook Segment of the Personal Computer Industry: A Case of Acer Inc.
Date Issued
2010
Date
2010
Author(s)
Calixte, Leander
Abstract
According to the International Data Corporation (IDC) the yearly growth rate for the Personal Computer (PC) industry in 2009 was 2.9%. The main driver responsible for this growth was portable PCs, with shipments increasing 18.4% in 2009 compared to 2008. Acer in the third quarter of 2009 surpassed Dell to become the second largest PC maker in the world after HP and in the first quarter of 2010 they became the largest supplier of notebook PCs.
The aim of this research paper therefore is to determine whether the notebook segment of the PC industry is attractive and what are the macro-environmental factors shaping the industry structure. It also explores Acer’s resources, core competencies, and strategies that have led Acer to become the largest supplier of notebook PCs.
In this research the framework used to analyze Acer Inc are the industry environment, the macro environment and the national environment. The theories utilized include Porter’s Five Force Analysis, Industry Life Cycle, Porter’s Diamond Model, PEST Analysis, the Resource Based View Theory and Porter’s generic strategies. The analysis relies on secondary data which were compiled from various management textbooks and journals, internet websites, business magazines, newspapers, professional research reports and company annual reports.
The research suggests that the PC industry is very attractive and the main macro-environmental factors currently affecting the industry are increasing labor costs in China, devaluing Euro currency and customer demand for low cost PCs. It also shows that Acer pursues both a low cost and differentiation business level strategy. In addition, their success is as a direct result of their mergers, acquisitions and strategic outsourcing with key industry players. Future research directions are also suggested in this research paper.
Subjects
Acer Inc
resources
strategy
competitive advantage
personal computer industry
notebook PC
Industry Life cycle
PEST Analysis
Type
thesis
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