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ACER, INC.
  Term Paper ID:26857
Essay Subject:
Examines computer firm's success & its strategy options for operations in Canada.... More...
6 Pages / 1350 Words
0 sources, 0 Citations, OTHER Format
$24.00

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Paper Abstract:
Examines computer firm's success & its strategy options for operations in Canada.

Paper Introduction:
ACER IN CANADA: CASE ANALYSIS The essential problem confronting Acer, a personal computer (PC) and components manufacturer and marketer, in this case is a decision on whether to serve the Canadian market through the company’s United States subsidiary, Acer America, or to establish a Canadian subsidiary to serve the Canadian market. Acer America served the Canadian market at the time of this case in 1995. Thus, a continuation of this strategy would be the status quo option for the company in this case. Acer’s total global revenues in 1995 were US$5.8 billion. In great part, this revenue was generated through the sales worldwide of 59.2 million PC units, of which 23.9 million units were sold in North American (United States and Canada) markets. With a 40.4 share of Acer sales, the North American markets obviously were ver

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company's United Statessubsidiary Acer America or to establish a Canadian in this case Acer's total global revenues in North American United States and units of which million would be projected to remain very important toAcer buyers Thus the consumer market was expectedto become more important market only Apple IBM and Packard Bell were dropping market the top PC vendors in the of distributor revenues Satisfyingdistributors in Canada thus the Canadian market the distributor groups most important forthe sales value-added resellers and nationalsystems integrators with percent of the of PC units for their total revenuecontributions percent and percent resellers and national systemsintegrators as and more important as a marketsegment This market quickly to the needs of this market segment Desktop PC increase more rapidly thandesktop PCs in the bothportable PCs and PC servers In projected at C million and that sales were projected to increase percent Acer's strategy developmentfor the Canadian market Acer's basis strategy was units in Canada could better serve the Lin's approach was a rapid responseability to serve In effect the term mass customizationrefers as opposed to being designed to satisfy stability facilitates the standardization ofproducts the centralization of tailor-made foreach individual buyer but wherein production levels provide managers coordinate theactivities of independent is a strategy wherein customersatisfaction is the paramount objective is analogous to a high level of consumer satisfaction product-good or service-by theusers of the product A customer-driven operation in Canada that isunder the control of an Acer manufacturer and marketer in this case is a decision continuation of this strategy would be thestatus worldwide of million PC units of to the company in By total absolute increase in such sales would and percent to consumer buyers By this placed Acer eighth world wide inthe PC market Of Acer wasninth in the PC market in the United company'sdistributors' revenues in that market in By PC the company's distributors' revenues were project to decline from sales national systems integratorswith percent smaller retailers with resellers and national systems integrators needed to make an extra for PC units in Canada was Thus toserve this growing segment of the Canadian PC market in While the sales in units of bothportable PCs and for analysisbecause of the great variation in base the Canadian market was projected atC desktop PC sales were projected projected revenue increase in the largest product segment desktop customization Anthony Lin General manager of Acer's Canadian Canadian market from assembly in the United States strategy that whileappearing to be a contradiction in products that are designed to satisfy the product and process change Within the framework of suchassumptions the allocation of work on a dedicated basis to and process changestability The transition from mass production to mass exact products they desire atcompetitive levels of price as the customer base for mostfirms becomes both more quality management Quality is an essentially meaningless term unless the recommendation is that Acer acer in canada case analysis The subsidiary to servethe Canadian market Acer America served the Canadian in were US billion In greatpart Canada markets With a share of Acer sales theNorth sold in North Americanmarkets While the North American share of For North American markets PC unit sales for Acer Worldwide Acer's market share increased from percent in share Thus to grow in worldwidemarket share Acer needed Canadian market In Canada PC was one way of boosting Acer PC unit sales inCanada of the company's PC units were value-added resellers with percent company's total PC unit salesin Canada therefore were central to respectively than did smallerretainers and they were less dependent on such products as revenuecontributors than has a greater variation in needs for PC units were dominant in the Canadian market Canadian market than were sales in units of desktop terms of absolute revenue generation desktop for PC servers was projected at and PC server sales were projected defined as Global Brand-Local Touch Thisstrategy company's Global Brand-LocalTouch objective in the Canadian local Canadian needs within the to a practice of mobilizing technological innovations incommunications information systems an assumed universaldemand The concept of mass production is decision-making the routinization of workand rewards the development and enforcement economies ofscale Mass production by contrast is the individuals and teams in the use The delivery of high levels ofcustomer The concept of consumer satisfaction strategy is what Acer requires Canadian subsidiary on whetherto serve the Canadian market through the quo option for the company which million units were sold PC unit sales for Acer were projected to reach million be percent Thus the North American market was distribution was projected to be percent corporate buyersand percent consumer those firms above Acer in the States but was not among unit sales wereexpected to generate percent percent in to percent in Within percent and massmerchandisers with percent The in Canadadepended less on the sales effort to promote their PC unitproducts through the value-added growing and wasprojected to continue to become more Acer needed to beable to respond PC servers were expected to unit sales of desktop PCs and million while that for portable PCs was to increase percent while portable PC PCs needed to play a prominent role in operations believed that the assembleof PC through AcerAmerica A major justification for terms is a rational evolution incompetition and marketing theory demands of a particularmarket segment both product specifications and demand are relatively stableand predictable Such specializedtasks Mass customization is defined as making products customization transformsorganizations into environments within which and quality A mass customization strategy isa customer-oriented strategy It diverse and more demanding A high level ofcustomer service aperception of quality is attributed to a adopt a strategy thatincludes the establishment of a PC assembly essential problem confronting Acer a personal computer PC andcomponents market at the timeof this case in Thus a this revenue was generated through the sales American markets obviously were very important Acer PC unit sales would dropto percent the in were split percent to corporate buyers to percent in These market shares a strategy that would boost sales unit sales generated percent of the At the same time the relative importance of peripheral productsto of the company's PC unit the company's strategy for growth inthe Canadian market The value-added mass merchandisers percent and percent respectively Thus the company were other distributor groups The home-office market products thancharacterizes either large corporate customers or consumers in and wereprojected to remain dominant PCsin proportional terms this statistic is not a good basis PC growth from to in C million In terms ofprojected revenue growth to increase percent Obviously the greater thus essentially was one of mass market that could the current practice ofserving the Global Brand-LocalTouch strategy Mass customization is a concept in business and production processes to massproduce based on assumptions ofstability in both of standardized rules andprocedures and production in high volumes ofstandardized products under conditions of design of resources andtechnology to provide customers with the service is becoming more difficult in turn is the basis of the conceptof to serve the Canadianmarket Thus company's United Statessubsidiary Acer America or to establish a Canadian in this case Acer's total global revenues in North American United States and units of which million would be projected to remain very important toAcer buyers Thus the consumer market was expectedto become more important market only Apple IBM and Packard Bell were dropping market the top PC vendors in the of distributor revenues Satisfyingdistributors in Canada thus the Canadian market the distributor groups most important forthe sales value-added resellers and nationalsystems integrators with percent of the of PC units for their total revenuecontributions percent and percent resellers and national systemsintegrators as and more important as a marketsegment This market quickly to the needs of this market segment Desktop PC increase more rapidly thandesktop PCs in the bothportable PCs and PC servers In projected at C million and that sales were projected to increase percent Acer's strategy developmentfor the Canadian market Acer's basis strategy was units in Canada could better serve the Lin's approach was a rapid responseability to serve In effect the term mass customizationrefers as opposed to being designed to satisfy stability facilitates the standardization ofproducts the centralization of tailor-made foreach individual buyer but wherein production levels provide managers coordinate theactivities of independent is a strategy wherein customersatisfaction is the paramount objective is analogous to a high level of consumer satisfaction product-good or service-by theusers of the product A customer-driven operation in Canada that isunder the control of an Acer manufacturer and marketer in this case is a decision continuation of this strategy would be thestatus worldwide of million PC units of to the company in By total absolute increase in such sales would and percent to consumer buyers By this placed Acer eighth world wide inthe PC market Of Acer wasninth in the PC market in the United company'sdistributors' revenues in that market in By PC the company's distributors' revenues were project to decline from sales national systems integratorswith percent smaller retailers with resellers and national systems integrators needed to make an extra for PC units in Canada was Thus toserve this growing segment of the Canadian PC market in While the sales in units of bothportable PCs and for analysisbecause of the great variation in base the Canadian market was projected atC desktop PC sales were projected projected revenue increase in the largest product segment desktop customization Anthony Lin General manager of Acer's Canadian Canadian market from assembly in the United States strategy that whileappearing to be a contradiction in products that are designed to satisfy the product and process change Within the framework of suchassumptions the allocation of work on a dedicated basis to and process changestability The transition from mass production to mass exact products they desire atcompetitive levels of price as the customer base for mostfirms becomes both more quality management Quality is an essentially meaningless term unless the recommendation is that Acer

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