Acer is the multi-tech company founded in 1976, whose headquarter is situated in New Taipei- Taiwan. Acer has successfully emerged as, one of the main and top communication and information technology- ICT companies with over 7033 employees across 160 countries across the globe. The main business objective of the company is the marketing and sales, product services, design and research, in the brand name which include projectors, PCs, servers, tablets, and several other smart devices along with the IT services. Because of the company’s presence in the global market, mainly in so many countries along with the regional offices in Europe, EMEA- Middle East and Africa, Asia Pacific, and America has been resulted into the Acer through using the mix of geographic, psychographic, and demographic segmentation strategies. Acer also has several offerings in software, hardware and other related services because of which, it needs to use targeting and differentiation strategy (Acer, 2018).
The BCG matrix can help the Acer in achieving the further success in the global market. The BCG matrix helps in determining the strategic position and the investing power of the company, in terms of products and services, by categorizing in four main quadrants’ star, dog, cash cow and question mark.
Cash Cows
Every product produced by the company has different cost and thus earn different revenue. However, some are successful enough to take over the prime position in terms of high investment returns. For such products, the market is well-established, and the investment level is less because of the developed market. The notebook of Acer is the cash cow item for the company, as it is able to earn the 60% of total revenue. The market demand for the product is very high (Bhasin, 2018).
Stars
Some products which have high market demand, are likely to grow more in the future. These products have strong financial performance, mainly due to the potential of growth. As the market is growing, companies need to continue for making the significant investment for ensuring the profitability level of a product. Furthermore, it also helps in securing the investment for future prospects and turn the category into cash cow. The hardware products of Acer are consider as the Star items, like desktop and displays. They are growing and relatively high demand in market (Acer, 2018).
Question Marks
Some businesses or products are managed by the companies and display the great degree of uncertainty, in comparison with the stable of cash cow products or stars. This category is also known as problem child for the company. As the market of such products have the potential to grow, companies should invest in this so that they could be profitable. The IT solutions and software of Acer are consider as the question mark for the company, because of the strong and innovative competition in the market. Acer is not quick in producing innovative software as compare to others (Bhasin, 2018).
Dogs
There are many products produced by the company which are failed to provide ROI, no matter how much investment is done on them. These products are known as dog items. They have low growth and share, which make it difficult to grow or establish the market in the competitive industry just like cash cow or stars. The smartphones of Acer are consider as the dog items for the company, because of the strong companies in the industry. Acer was not able to grab the attention of the consumer, and admit its failure mainly in India (Diaconescu, 2016).
References
Acer, 2018. About us. [Online], Available at: https://www.acer.com/ac/en/US/content/home, [Accessed on: 30th September, 2018].
Bhasin, H. 2018. Marketing strategies of Acer. [Online], Available at: https://www.marketing91.com/marketing-strategy-acer/, [Accessed on: 30th September, 2018].
Diaconescu, A. 2016. Acer admits smartphone failure in India. [Online], Available at: https://pocketnow.com/acer-smartphone-failure-india-market-exit, [Accessed on: 30th September, 2018].
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