In November 5th, Acer Incorporated declare that its management team has set up a complete reorganization plan to reduce it cost for nearly 150 million dollars. Before this declaration, its financial report shows that Acer lost 13.1 billion NTD in the third quarter. This is Acer’s fifth quarterly loss since 2011.
Acer depended on its innovation capability and cost advantages in the early stage, became the world’s second largest computer maker in 2010. IT companies in Taiwan are good at control and reduce their cost .However, when electronics turned into ordinary cheap goods, those low-cost followers lost their advantage. Contractors in Taiwan moved their factories across the Formosa Strait in terms of the mainland have lower costs in labor and capital. Taiwan’s technology industries have separated by contract and brand.
However, the tradition to be contractors confined their creativity on products design, made those IT companies corned. Taiwan’s companies have weakness in Strategic accumulation and market scale compared with IT companies in the mainland and have lower innovation capability than those producers in North America.
It is high time Acer and other IT companies in Taiwan found some solutions to offset the stagnant growth.
Reference:
http://money.163.com/13/1114/00/9DJQF7OV00253B0H.html