Acer not melt into the Founder: cooperation not only the acquisition target to grab market share, HP, Lenovo
Mainland’s second-largest computer company Founder Technology (600601.SH), Acer Aspire 4710 Battery and the world’s second largest computer company Acer decided Baotuan children, in order to break the Lenovo Group (00992.HK) due to the dominance of the situation in the Mainland market. May 27, Acer announced in Beijing University Founder Group, with the intention to achieve strategic cooperation, saying bilateral cooperation would involve the PC, PCB (Printed Circuit Board, which printed panels, is an important electronic components), and e-books such as “IT the whole area. “
The “Founder’s desktops, Acer’s notebook computers advantages, the two sides together, put it firmly in China PC market, third, and ranked second with a small gap between Hewlett-Packard. The next step is the second fight.” Acer CEO Global CEO Chiang Where can @ Lanci said Acer is the Founder Chinese and the desktop and channel after-sales service network advantages, cooperation means that Acer rapid access to the covered market of China 4-6 after-sales service network throughout the country Founder of more than 10,000 stores will push forward the Acer’s sales, help Acer in China “bigger.” Founder hopes that the cooperation with Acer to enter the international market more quickly.
Gartner Group’s Asia Pacific chief economist hardware system that leaves Lei, Acer in the past opened up the situation in China has remained the main channel is the lack of strong support, cooperation and Founder will no doubt make up a relatively high speed a short piece of board. As for the cooperation of the domestic PC industry’s future impact will depend on the degree of close cooperation between the two sides – after all sides have repeatedly stressed that the cooperation will be limited to businesses, public companies and property rights will remain relatively independent, “not would involve cross-holding, it does not produce mergers. “
Cooperation does not involve mergers and acquisitions
Cooperation is a realistic option, but it is a long and difficult negotiation process. Dell Inspiron 9400 Battery As for the cooperation of the opportunity, Founder Group, the directors, chief executive officer Lee had in the “China Business,” an interview, said that the two sides over the past few years by the PC field of business cooperation facilitated.
Back in 2007, Acer CEO JT Wang says that is not out of the country for a suitable acquisition to strengthen Acer’s market share in China. That time, widely predicted, Acer acquired or TCL Founder most likely. Today, TCL Computer has been sold, Founder second in the domestic market share has remained one after another by HP, Dell and catch up, and the Founder’s advantage in the desktop market has been unable to graft to the rapidly growing notebook market, into the international is a more distant goal. But is it a business cooperation with foreign or Taiwan, the Founder is an internal debate over the issue, after all, Founder Group, a state owned enterprise background.
Gartner, the data show that the first quarter of 2010, Lenovo PC (including desktop and notebook computer) with 23.3% market share ranking mainland first, second Hewlett-Packard’s market share was 10.3%, on the third bit is Dell, the market share of 8.1%, Founder, Acer were 6.2% and 3.2%.
The one hand, foreign PC giants aggressive assault on the one hand, the brand extended the olive branch in Taiwan, Founder Group, began within the loose, but the talks start, a high voltage wire hanging over the head on – to keep both brands and their respective listed companies independence, no cross-holding, do not involve mergers and acquisitions. “Acer and Founder Prior to signing a strategic cooperation agreement, the two sides reached a consistent opinion, this is the basis for bilateral cooperation.” Lee has repeatedly stressed.
For the past two years through the acquisition of Gateway, PB, Emachine quickly into Europe and the United States market, and then upgraded to the global market share of the top three of the Acer, this is clearly not the best result, but at least it was a good try.
Acer and Founder Group signed a memorandum of cooperation shows that Acer will participate in the provision Founder brand planning, research and development and design, including notebook computers, netbooks and mobile interconnection equipment, such as e-Reader. At the same time, Acer will take the majority of sales channels and Founder PC market influence, especially from 4 to 6 cities, Dell 1691P Battery rural areas and commercial customers and government customers the advantage of expanding market segments such as the mainland market. In addition, the two sides will also consider other related products with the PC business cooperation, such as intellectual property, supply chain and after-sales service and other fields.
Lanci said, from June onwards, the two sides will begin detailed negotiations with the team to discuss the Founder and industry in the desktop market, sales channels and after-sales service and other advantages, and Acer in notebook and consumer markets and design combined the advantages of production.
Grab market share
China’s current strategic position in the mainland market is increasingly highlighted, “the next one to two years, China will become the world’s largest and fastest-growing PC market,” said Acer chairman Wang Zhentang. The mainland market is the largest market share in the macro depression.
IDC latest data show that Acer has been occupied in the global mobile PC market share of 19.4%, surpassing HP as the world’s first, and in the overall global PC market, Acer ranked second. In Europe and the United States and other developed markets as well as India, Brazil and Russia, Acer market position are the first three, but in the mainland market, Acer ranked at least fifth place. Some analysts believe that cooperation with Acer and Founder, is the Acer made an important step in emerging market forces.
“For us, the most important market in China is to increase market share.” Lanci said.
Wang CEO Lanci admitted that the macro did not succeed in the mainland market because it is over-estimated Acer sales channels and on the mainland market to understand consumer habits, the sales channels in China is not the dominant supermarkets, distributors also important, while the mainland is also a great desktop market, “so the cooperation with the Founder, will address these two issues.”
4 moonrise Ren Hongji 2009 in China’s Yi Rensi, president in a media interview, Dell Inspiron 8600 Battery he mentioned at the beginning Acer assumed hopes some large distributors (national package) to the following three levels of expansion in China market, but found very effective Micro. Later, Acer hired Yong-Heng Zhang from HP as executive vice president, full copy of HP very successful over the past few years, “Grid” channel model.
However, the prospects for bilateral cooperation, the industry is not very optimistic. “Who eventually co-operation between the final say, is a very important issue, because there is no option of support, cooperation between the two is difficult to integrate in the business.” Ye Lei think.
Reporter observed VIEW
Battle of the Chinese PC Hutch
The top four in the global PC market, Chinese companies Acer, Lenovo occupy two seats, this is quite proud of pieces of things, but, precisely because both companies share the same cultural gene, it will inevitably be used as often comparison. Results of this comparison, the natural antagonism between the two will eventually form a situation such as fire and water situation.
Market share ambitions aside two do not talk, the two Chinese companies to grasp market trends, international operations and other aspects of their own characteristics, it is deduced.
Like many mainland enterprises, the majority of Taiwanese companies is not so central to the technical capacity to master, but they are OEM and ODM through the years, the technical characteristics of the product with a very deep understanding of the product’s manufacturing and Supply HP Pavilion DV2000 Battery chain management also know these are done and know why. Therefore, when the industry will dramatically change, they can “Happy Plumbing ducks”, the first to introduce more in line with future trends in integrated product. Such as Asus and Acer in the netbook market, success is a good example. Acer shares the past two years the improvement in the global market depends largely on its rapid transformation of the notebook market, seize business opportunities in the consumer market. Lenovo in consumer markets, while relying on the Idea just started.
In the international context, the two companies have also chosen a different path. President to China from the global president of Acer elections are European – Italian Range, Germany Yi Rensi, more than half of executives are not Chinese; the past year, the association through bitter experience, power reverted back to business to Chinese hands, and greatly modified in the last year, Lenovo’s corporate culture – that we will have a distinct Chinese characteristics. It’s no wonder that China is always the strongest association headquarters, but also determine the future direction of the global PC market. Acer chairman JT Wang has even admitted that: “the next one to two years, China will become the world’s largest and fastest-growing personal computer market.”
As a result, Acer and Lenovo PC Hutch This, inevitably clashed in the China market. Currently, Acer is the most lacking in the Chinese market channel management capacity, with Acer’s strength in China has been investing too little also have a direct relationship. For China’s 46 markets, which open a business does not depend on the situation of human wave tactics? For Acer and Founder of cooperation, because they do not involve equity, should be only a temporary solution. A more realistic option for the Acer, Hewlett-Packard may be done to find a more realistic approach to their own.
Related reports REPORT
Lenovo Liu: will not give opponents any chance to stay
Acer announced in a high-profile strategic cooperation with the Founder of the afternoon, Lenovo announced at March 31, 2010 in the 2009/2010 fiscal year fourth quarter and full year results. Filing shows two consecutive quarters of Lenovo as the world’s top five computer companies in the fastest growing companies, the growth rate of 59% to 27% of the market average growth rate twice more during the year the Group received the highest ever market share 8.8%. In addition to market share, Lenovo has achieved fiscal 2009 revenue of 166 billion dollars, and reversing the fiscal 2008 SONY VGP-BPS8 battery loss of 188 million U.S. dollars, to achieve pre-tax profit of 176 million U.S. dollars.
The reasons for achieving such a performance, Lenovo chairman Liu think the most important one is, “Lenovo CEO Yang set up a Chinese and Western solidarity, the full expression of core leadership team – This team is not only able to develop a set correct offensive and defensive strategies, and can be firm and excellent implementation of strategy, in the past year, Lenovo’s business culture of the great efforts of reform, ‘said do best to’ has become the association’s creed. “
Acer and Founder for the product plus the front and rear side channel cooperation model, Lenovo CEO Yang in the “China Business,” an interview, said: “Lenovo in China, all the value chain are more perfect, so this mode is not worth learning. “For competitors in the market, ready to go, Yang is optimistic that, through 10 years of cultivation, Lenovo has been established in the Chinese market is very solid business foundation and a very efficient cost structure and confidence to defend the association in China market share and interests.
Filing shows Lenovo’s annual four-quarter average growth rate in excess of the market, the market share of 30% over the previous year increased by 1.2 percentage points, earnings and profit before tax improved over the previous year 66 million U.S. dollars, is a major contributor to group profits improve.
As a global business headquarters, Lenovo of China business focus has always been to defend the core business. It is understood that Lenovo has the Chinese market within the PC business in a creative way into mature markets (such as Beijing, Shanghai and other first-tier cities) and the emerging markets (Chinese Government is vigorously developing the medium and small cities), and for different characteristics to different strategy for more market occupation.
Currently being vigorously develop new business – mobile Internet field, Lenovo will be the first stop on the Chinese. May 17, Lenovo and cooperation to the Chinese market, China Unicom launched the first smart phone music Phone, Lenovo now has over 5,000 channels of music store is selling Phone. “Music Phone listed in the first year, even if we do not profit, market share is important.” Liu said.
“Mobile Internet, cloud computing development and application matures, and the advance SONY VGP-BPS9 battery of China’s triple play will guide the IT industry, manufacturing, and services to generate new trend,” Liu so determine, “We will focus the digital home, the server , storage, and so the development trend, to actively prepare for, do not leave any chance to opponents. “
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