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Acer Aspire Case Study Solution

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Why is the Acer Aspire in such trouble just
two and a half years after its launch? What are
the sources of the problems in the U.S.?
Client Server organization structure
Ø RBU’s and SBU’s were
decentralized with lack of trust,
understanding and coordination
between them.
Ø RBU’s lacked product expertise,
resources and worked
independently without
capitalizing the strengths of
SBU’s leading to component
integration issues and diverse
Aspire’s Quality and Customer Service:
Ø Quality of the product did not live
to the marketing hype and
Ø Revenue lost because of 3 years
warranty and 15% and more
Ø Faulty products [CD-Rom issue]
lead to expensive long customer
service calls.
Inventory Issues:
Ø Excess Inventory [faulty products
with local adaptation > 100
Ø No Standard Acer parts added
10-15% to cost, excess tech
support for unique parts.
Market Competition
Ø Global Branding ads not effective
because of modified design and
product positioning by individual
RBU countries.
Ø Lack of standardization and each
RBU customized according to
their needs adding to redundant
functionality and more costs.
Ø Lost market share because of
strong brand competitors low
price offering.
How effective has management been in
responding to these problems? What is your
evaluation of the changes they have made to
the product, the marketing strategy, the
organizational structure and the management
roles and responsibilities?
Created Marketing coordination for a Global
Ø Culver took an informal role
which shows lack of global
business management team with
assigned responsibilities.
Ø Aspire had a different look and
feel from country to country and
each country positioned
differently and used different
pricing strategy.
Did not share insights and best practices
across countries.
Ø Hong Kong marketing program
was a great success by teaming
with chase bank which...

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