Post-deal, big tasks lie ahead...
Nothing of this magnitude ever occurred on Tai
wan’s playgrounds… and to imagine a Taiwanese gulping down an American giant! Even when it comes to Acer, nothing as big occurred in its three-decade-long history, nothing! And for the first time ever can Acer, with its $710 million offer on September 1, 2007, for the 4th largest PC vendor in US, Gateway Inc. proclaim loud its ‘big’ opportunity – both in terms of deal-size & future prospects with a healthy $15.2 billion in combined sales. Yes, this deal is bound to provide a boost to Acer which has been displaying feeble ‘organic’ growth over the years. With this deal, Acer has also moved up to the No.3 spot in US PC market with a 10.8% market share – trailing behind HP (23.6%) & Dell (28.4%) – just as J. T. Wang, Chairman, Acer justifies, “With this deal, we would make the biggest acquisition in Acer’s 30-year-old history. The acquisition of Gateway and its strong brand immediately completes Acer’s global footprint, by strengthening our US presence.” A vital assault delivered through this move was that Acer (through its right of first refusal in Packard Bell’s parent) has now thwarted Lenovo’s plans to acquire Packard Bell, which it had long been eyeing to get a grip over Europe. Indeed a strategic move by Acer, but challenges too stare it in the face.
For Complete IIPM Article, Click on IIPM Article
Nothing of this magnitude ever occurred on Tai
wan’s playgrounds… and to imagine a Taiwanese gulping down an American giant! Even when it comes to Acer, nothing as big occurred in its three-decade-long history, nothing! And for the first time ever can Acer, with its $710 million offer on September 1, 2007, for the 4th largest PC vendor in US, Gateway Inc. proclaim loud its ‘big’ opportunity – both in terms of deal-size & future prospects with a healthy $15.2 billion in combined sales. Yes, this deal is bound to provide a boost to Acer which has been displaying feeble ‘organic’ growth over the years. With this deal, Acer has also moved up to the No.3 spot in US PC market with a 10.8% market share – trailing behind HP (23.6%) & Dell (28.4%) – just as J. T. Wang, Chairman, Acer justifies, “With this deal, we would make the biggest acquisition in Acer’s 30-year-old history. The acquisition of Gateway and its strong brand immediately completes Acer’s global footprint, by strengthening our US presence.” A vital assault delivered through this move was that Acer (through its right of first refusal in Packard Bell’s parent) has now thwarted Lenovo’s plans to acquire Packard Bell, which it had long been eyeing to get a grip over Europe. Indeed a strategic move by Acer, but challenges too stare it in the face.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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