Swot Analysis Of Acer

Inbound Logistics • Acer purchased raw material and unassembled goods from
• manufacturing companies overseas

• Most manufacturing companies are located in countries with low labour costs (e.g. China, Indonesian)

High Value: This reduces the transportation and warehouse costs, as well as the distance, duration, cost for shipping

Low Rarity: Competitors may also look into countries with low labour costs for supplies

Low Imitability: Acer has a strong relationship with their suppliers and this cannot be easily created by its competitors

High Substitutability: Perfect competition makes it difficult to retain this advantage over its compeitors

The strong relationships between the various suppliers are not easy to substitute as

This allows Acer to translate into lower costs and better profitability.
Marketing and Sales • Acer products are sold throughout the world

• Acquired Gateway and Packard Bell to create a multi-brand strategy in the industry

• Partnered with retailers to introduce Acer products in the global market

• Acer has brand ambassadors to promote Acer products and attract consumer attention

• Acer markets its product through social media to increase their brand awareness. (e.g. Facebook, email campaigns)

• Acer has a reputation for low-priced but durable PC High Value: Acer’s marketing efforts are able to attract consumers which helps to increase sales

High Rarity: Has built a strong relationship by having its presence in 40 customer verticals in the sector. (e.g. banking, education, telecommunications)

Low Imitability: Competitors will not be able to build the same kind of relationship with other companies and convince them to market/use their products easily

Low Substitutability: Through successful marketing, Acer will not be easily substituted as consumers would prefer to use products bearing Acer’s brand

In addition, outstanding employees may receive profit-sharing bonuses

• Acer has recreation and entertainment programs for employees. For instance, Acer organised tours, family days and appreciation activities for employees and their families to enjoy and relax High Value: Employees are more motivated which helps to improve performance in the organisation.

Providing benefits to employees helps to create a positive employer image, which helps to attract more people to work for Acer

Low Rarity: Easy for competitors to adopt similar HRM system

Low Imitability: HRM system may be imitated by competitors but staff values will be different

Low Substitutability: Low risk as there is strong relationship and trust being built between Acer and its employees

Although competitors may adopt the human resource management system and intimate but the staff value won’t be generating the same level of commitment and