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Acer Group’s R&D Strategy: The China Decision


Acer group R&D is a Chinese technological company that mainly deals in the manufacture and supply of electronic devices used in communication. The information and technology industry has been the world’s most growing industry considering the various developments that are being done in the field. Acer group was established in the early seventies and since then more similar industries have come up. There has been a need for the company to expand its technological coverage by the establishment of more laborites. The company realized that unless it extends its products, it will not be able to maintain its market share in the market (Ireland, 2008).

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The company has faced a lot of competition from similar companies basically because it has not been able to advance to the world as other similar companies are. The company is mainly Chinese and there are efforts to ensure that Chinese technology is maximized in the field. Most of its employees are basically Chinese graduates from Chinese universities. It is because of this reason that most of the products have gained their popularity in China and some few countries of Asia. The company is however employing measures that will ensure that their products are of international model for the reason of expanding their production.

The Issue

The main reason why the company is considering extending its technological coverage is because of the need for more inventions. The field of information technology is growing at a faster rate which is making the company have a challenge of fighting for its share in the market. They are unable to grow as their counterparts are because of a lack of facilities to implement the new technologies or the facilities that are available can not enable them to effectively fight in the market. It is for this reason the company decided to establish more laboratories in 1998 as well as training their employees on the new technological advancement.

Most of its workers may be relying on similar technology and lack exposure to what is being implemented around the world. As much as the company desires that its employees remain of Chinese origin, it wants to ensure that they tour other countries that are doing well technologically for the purpose of learning something from them. This will be done by giving them scholarships to advance their studies in such countries where they will have exposure to what the nations are doing which they are not doing. It will hence enable them to apply such knowledge to their products to make them more competitive.


Acer Group Company has been in the technological field for quite some time and it is expected that it has made many advances in its products. This is however not the case considering that its products haven’t gained international coverage as expected. The quality of their products cannot be compared to the international ones that people are going for. The company has not been willing to invest in high productivity and relied on outdated technology. The company seems to be satisfied with the fact that its product is selling in china. The situation is however becoming worse as other technological companies are also giving them competition in their own country. The Chinese people are also going for the international products that they feel are of a higher quality than Acer’s.

This has served as an awakening call for the company that has purposed not to let the chance pass them. The company however still has room to gain its popularity especially in china and other Asian countries by improving on their technology. It may take time before this is realized but the company is sure to catch up if it implements the strategies that it has set. Its products are mostly preferred because they go at a slightly cheaper rate than their international counterparts. With the large population in the country and the growing need for technology, the company has high hopes of penetrating the market.

The company needs to upgrade to international standards if it has to perform better in the market. Gone are the days when products were mainly produced for the nation. Companies including those that deal in food substances are extending their products internationally due to the rising need for a global market. As a technological industry, it is vital for the company to operate in such standards if it has to achieve long-term goals (Rugman, 2006).

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The company should allow foreign technology to be used in their expansion process considering the fact that it is the most acceptable internationally. As much as the company desires to use its resources to elevate the living standards of its people, it has to appreciate the diversity that is in other people and make adjustments. They should employ graduates who have studied in countries that have advanced in the field of technology. Even though they have given some of their employees a technological tour to such countries, it may not be enough to pump inadequate technology. It requires people that are more acquainted with the world’s technological developments so that they are integrated into their products. This will enable the company to understand the international technological needs and therefore making its products more acceptable.

Impact on the Company and Society

If the company considers implementing more foreign technology, it may impact the number of Chinese employees in the company. It will basically mean that the company will go for experienced personnel that is acquainted with the world’s technological development. It will also mean that machinery will do more of the work than the physical labor. This can however be regulated as time goes by because the Chinese will be able to learn more about foreign technology and thus not having to rely on foreigners. The company will also expand its production on the international market (Amsden, 2003).

Their products will be tested and found to have attained those required standards and thus giving them general acceptability. The company will need to spend more as there will be a need to purchase some of the international raw materials and also increase the remuneration of their foreign employees.

If the company decides to take its employees for further studies in other countries, it will also have to sponsor the concerned students. Before the company thinks of implementing these strategies there is a need for them to calculate the general costs that will be expected for such investments. It will be good for the company to ascertain if the changes will be profitable to the company by granting them foreign income.

The company will have to make some adjustments that may have an impact on society. The Chinese people are conservative and fear the interaction of foreigners as they may have a negative impact on their moral standing. Bringing in foreign employees in the company may not be perceived well by society which may cause some resistance. The company, therefore, needs to bring in only a small percentage of foreign labor that will be maximized by training the natives (Tsai, 2006).

The company may also need to employ Chinese personnel that has studied from a foreign institution to supplement the majority that has learned in the country. Increased technology has also been associated with unemployment as companies do the work with machines. Technology will therefore make the company do the work more effectively as there will be few human errors. It will therefore mean that most of the money that is being used for labor will be pumped into investment activities.

As technology increases in the country, it will also mean that the living standards of the people will be raised as people realize the importance of advancing their studies to be eligible for employment.

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There is always hope for any company that is investing in technology to perform better in the market. The world is becoming digital and thus raising the need for more technological developments to be made. Acer group R&D is therefore endowed with a lot of opportunities to expand on its technology. Its popularity may be boosted by a simple invention that will increase their coverage. The company therefore needs to be on the lookout to study the market to ascertain the needs of the people. The company should also ensure that all their inventions have been patented internationally so that others don’t benefit from them without their permission. There are also a lot of adjustments that will have to be made by the company. The changes may not be welcomed by the society but its benefits will be realized in the future.


Amsden, A. (2003). Beyond late development: Taiwan’s upgrading policies. California: MIT Press.

Ireland, R. (2008). Understanding business strategy: concepts and cases. London: Cengage.

Rugman, A. (2006). International business. New York: Prentice Hall.

Tsai, T. (2006). The silicon dragon: high-tech industry in Taiwan. Taiwan: Edward Edgar Publishing.

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