Market Report - Acer

Market Report: Acer laptops

EXECUTIVE SUMMARY

·       This market report will detail the profits, features and market history of Acer laptops. Acer laptops are created by Acer Inc’s subsidiary, Acer Aspire. They’ve been made since 1999. They are popular laptops in the UK and US as they are embedded with the latest Windows software and technology.

Typical Product Offering:

·         ACER laptops contain the latest Windows software; 8.1

·         Memory ranges from 2 GB - 16 GB with an average memory of 8 GB

·         Can be touch-screen

·         Range of colours include:

·         Iron | Silver | Grey | Dark blue | Pink | Black | White | Purple

·         Screen size ranges from 11.6" - 17.3" with an average screen size of 15.6”

·         Prices range from £199.99 - £899.99

·         Can be purchased online or in store brand new from:

·         PC World | Currys | Argos | SaveOnLaptops | Woolworths | Ballicom International | BT shop

Key Suppliers:

·         Acer laptops belong to the electronics/computer hardware company, Acer Inc.

·         It was founded in 1976 by Stan Shih

·         Headquarters located in Xizhi, New Taipei, Taiwan.

·         Revenue is $16.18 billion. Net income is $-225.3 million.

·         Acer ranks No. 1 worldwide in notebook shipments (all info as of 29/04/10)

·         Subsidiaries include:

·          Acer America Corporation | Acer Computer Australia | Acer India | Escom

·         Acer products include:

·         Laptops | chromebooks | software | notebooks | mobile phones | projectors | tablets | TV’s

·         Brands include:

·         Acer | eMachines | Packard Bell | Gateway

Target Market:

·         Acer laptops appeal to mostly people in education and business due to their affordable prices, software, memory and personalization of the product:

·         Certain products at affordable prices, such as the new Acer chromebook which has been made to be sold at $250 to appeal to students.

·         A range of colours also make these products appeal  and personal to young adults/students.

·         Average battery life of 8.5 hours whcih enables students | business entrapeneurs to work portable and away frome home.

·         Windows 8.1 is the latest software and is suitable for education and business. Additionally, Windows is compatable with Microsoft which is useful for education and business work (i.e: Word and Excel).

·         Average of 8 GB memory which is suitable for storing an adequate amount of educational work and business data.

PEST analysis:

Political:

·         World governments - Aware that fossil fuel is not unlimited – Worldwide company

·         Laws on various electronics only allowed to consume a certain amount of electricity.

·         Laptops have energy saving modes and ways to make battery last longer

·         Energy saving laptops sell better - Mainly because patrons wish for portable computing hardware to have longer functioning life spans.

·         Laptops cannot be just thrown in bins - Parts that will damage environment - Places where electronics are disposed of is a must

Economical:

·         Currency fluxuations / Inflations constantly affect economy

·         People with lack of finance = Less customers

·         Customers prefer cheaper laptops than expensive ones as long as they get job done

·         With employment rate declining, cheaper laptops will be more popular even if they don’t quite get the job done with a ribbon tied

Social:

·         Superstitious parenting - Laptops with wi-fi signals cause cancer etc. - Decline in purchases of laptops

·         Old people mostly don’t follow with the technology trend - stick with what they have - target audience is automatically the teenage and adults

·         Technology is slowly but surely taking over the population’s interests, iPhones then Tablets and then Laptops.

Technological:

·         Technology improves and grows - Less employees required to do jobs which used to require many employees- Less employment = Less wealth population = Less customers

·         More people depend on internet - Online shopping / web surfing - More cost effective for companies like Acer to advertise using online platforms - Lower cost than hiring people to hand out flyers etc.

·         Blue tooth was a big hit in 2008 - Became a passed topic, not so different to infrared connections - Popularity rised a little to a standard level after a bit more time

·         LED is a desirable function for laptops but it doesn’t happen for all of them - Possibly to knock down the price for less wealthy customers

·         Fingerprint reader was good to the ear and induced image of the future but the concept turned sour when people could not scan their fingerprints with eas due to smudges or cuts on the fingers. 

SWOT analysis:

·         Strengths:

o    High memory,

o    latest windows software

·         Weaknesses:

o    

·         Opportunities:

o    Combine separate products into one like Lenovo/HP

o    2-1 convenience products

·         Threats:

o    Laptops with 2-1 convenience features such as convertible/adjustable touch screens.

Turnover (5 years):

Acer laptop’s 5 year turnover:

HP Laptop’s 5 year turn over:

 

Product Comparison:

·         HP

o    The cheapest HP laptop is cheaper than that of Acer’s cheapest laptop (£179.99) but the most expensive HP laptop costs more than Acer’s most expensive product (£999.99). However, this is not a staggering figure considering HP have a bigger range of products. Additionally, they also have a wide range of colours. However, unlike Acer, they have adjustable touch-screens that become tablets which gives it a 2-1 convenience.

·         Toshiba

o    Acer and Toshiba laptops have a similar memory average of 8GB and a similar screen size average of 15.6” (the largest model being the same at 17.3”). They also come in a range of different colours. Toshiba are also only Windows 8.1 and can be touch screen. Toshiba laptops are more expensive (the most expensive product being £1299.95), but not due to any outstanding features, which could be a weakness for Toshiba and a strength for Acer if their target market is aimed at people in education and business. Toshiba also have no gaming laptops.

·         LENOVO

o   LENOVO and Acer laptops share the same average GB memory of 8 GB and an average screen size of 15.6” (the largest model being the same at 17.3”). Another similarity is they come in a varied range of colours. Differences include a convertible touch-screen on the LENOVO’s part; the screen can flip away from the keyboard to become a tablet. As tablets are on trend, this makes a useful feature for LENOVO laptops and a threat to Acer laptops, as a 2-1 convenience product would be cheaper to purchase. LENOVO are also more expensive; the top price being £1,299.99. Their laptops are also more varied; they have 3 gaming laptops whereas Acer have none. Lastly, LENOVO laptops contain Windows 8 and Windows 8.1 software, whereas Acer are Windows 8.1 only, making them more modern.

Product positioning:

Summary:

·         Future issues may include updating on technology such as 2-1 convenience features and existing basic features such a LED and bluetooth available on all products, as other brands have done. Revenue and profit was at its peak during 2009 - 2010, dropped at 2011 and increased throughout to 2013 but not as much as previously when under-used technology was new. Will advanced laptop brands such as LENOVO and HP over take Acer and lead to unpopularity?

References & Appendices:

·         PC World

o   http://www.pcworld.co.uk/gbuk/laptops-netbooks/laptops/laptops/703_7006_70006_xx_xx/xx-criteria.html

·         Mintel

o   http://academic.mintel.com/display/711909/

·         Google shopping

o   https://www.google.co.uk/webhp?sourceid=chrome-instant&rlz=1C1CHJX_enGB532GB548&ion=1&espv=2&ie=UTF-8#q=acer+laptops&tbm=shop