A global company

Abstract

Acer America's joint venture with Computec de Mexico will cut Acer's Latin America division free from the central control of Acer Computer International in Singapore and create an independent business, Acer-Computec Latino America.

As the company planned for the New Year's Eve opening of a 50/50 joint-venture business in Mexico City with PC distributor Computec de Mexico, Acer was already the No. 1 PC brand in that country and a top brand in many neighboring countries.

The joint venture will cut Acer's Latin American division free from the central control of Acer Computer International in Singapore and create an independent business, Acer-Computec Latino America (ACLA).

ACLA will provide PCs throughout Latin America and the Caribbean, where Acer projects 1994 sales of $200 million.

In much of this region, Acer is recognized as a brand name, holding the post of best-selling PC in Chile, Bolivia, Uruguay and Panama. It is one of the top three PC brands in Colombia, Paraguay and Peru.

In its home base of Taiwan, Acer is the No. 1 PC manufacturer, a position it enjoys in much of Southeast Asia, including Malaysia, Thailand and Indonesia. It is ranked among the top five in more than 20 other countries.

Why, then, is Acer the 13th biggest brand internationally and 10th in the United States?

First, said Shih, competitors are more numerous and stronger in the U.S. Second, 35 percent of Acer's product carries the labels of its competitors.

"If you take our OEM business into account, we are probably the fifth or sixth largest PC manufacturer in the world," said Shih.

The company's concerted advertising efforts over the last two years have increased brand name recognition internationally, Shih said, adding that Acer expects a 63 percent boost in sales for 1994 ($3.1 billion) over 1993 ($1.3 billion). "Gradually, I think we will be one of the top five brand names as well," he said. "We are patient, but we have a very clear goal--to be a top international company."

The best way to achieve this goal, Shih said, is to give employees ownership in the company. Acer encourages employees to buy stock, which Shih feels creates a sense of common purpose.

"This motivates people and they become more effective in their jobs," said Shih.

Shih is most pleased that his company, founded with $250,000 in 1976, has been able to survive the twists and turns of the PC market. "I'm just so happy to have been around for 18 years," he said.