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  1.    #1  
    THE OTHER SIDE OF THE COIN

    Is good to read the other side that this guy who wrote about to take us to the reality in this competittive world.

    Why HP Shouldn't Worry About Acer's Trash Talking

    I have to give Acer credit: the Taiwanese computer maker has truly thrived over the last five years. Ever since J.T. Wang assumed the role of chairman and CEO in 2005 and radically changed the company's approach to the U.S. market, Acer has quickly grown from an also-ran to a strong number two in the worldwide PC market. Now Wang has publicly declared that his company will displace HP as the world's largest computer maker by the end of the year.



    But here's why HP shouldn't worry -- even if Wang makes good on his pledge.



    Let's say Acer topples HP and begins shipping more PCs by the end of year. I'm guessing Acer will have to sell a lot of low-priced netbooks and notebooks in the coming months, which may hurt the company's profit margins. So what ultimately will be the cost of achieving that goal? Acer will continue to push its ultra-cheap PC model to gain market share, but it may have to sacrifice profits to get there.



    And if Acer is generating tons of revenue but little profit, well, then there's less money to go to R&D. I believe one of the things that hurt Dell's standing in recent years was the fact that the company's systems lacked innovation. Dell built its empire with slick marketing, excellent customer service and, perhaps most of all, a highly optimized supply chain that allowed it to sell PCs for extremely attractive prices.



    When I look at Acer, I see shades of Dell. I see a company committed to winning on a single front -- price. I see a company that like Dell before it discovered a way to churn out a lot of inexpensive hardware by finding cheap components and slapping Windows and Intel together like a lunch lady making peanut butter & jelly sandwiches in the school cafeteria.



    What I don't see is a company that has a particularly strong channel presence. What I don't see is a company that has a lot of innovation or style. What I don't see is a company that, despite its success, has the kind of brand popularity that Apple or even HP and Dell currently have in North America. And I don't believe Acer can beat the likes of HP long term without those things. Even if the company wins the shipment battle by year's end, HP will still be making more money per unit and have enough channel business, branding and cutting edge technology to compete with Acer for years -- if not decades -- to come.



    Again, I give Acer a lot of credit. The computer maker has made some bold moves since Wang's appointment, such as its acquisition of Gateway and its entry into the smartphone market. The bottom line is this: few CEOs could claim as much success with their initial five-year plans as Wang. Acer has become a dominant IT power under his leadership.



    But if Acer wants to not only beat HP this year but stay at the top, it's going to have to change.

    http://community.crn.com/blogs/fudwa...ing?cid=nl_crn
  2. #2  
    Quote Originally Posted by akitayo View Post

    ... I believe one of the things that hurt Dell's standing in recent years was the fact that the company's systems lacked innovation. Dell built its empire with slick marketing, excellent customer service and, perhaps most of all, a highly optimized supply chain that allowed it to sell PCs for extremely attractive prices.



    When I look at Acer, I see shades of Dell. I see a company committed to winning on a single front -- price. I see a company that like Dell before it discovered a way to churn out a lot of inexpensive hardware by finding cheap components and slapping Windows and Intel together like a lunch lady making peanut butter & jelly sandwiches in the school cafeteria.

    What I don't see is a company that has a particularly strong channel presence. What I don't see is a company that has a lot of innovation or style. What I don't see is a company that, despite its success, has the kind of brand popularity that Apple or even HP and Dell currently have in North America. And I don't believe Acer can beat the likes of HP long term without those things. Even if the company wins the shipment battle by year's end, HP will still be making more money per unit and have enough channel business, branding and cutting edge technology to compete with Acer for years -- if not decades -- to come.
    perhaps you know the Dell story better than me -- but its my understanding that Dell achieved the success it had during its most profitable years not from price, not from innovation -- but from reliable commoditization.

    IT departments could order 500 identical desktops -- and have them identically configured and delivered.

    These were not cutting edge machines, not fashionable -- they were just decently priced and reliable. No IT staffer got fired for getting Dell.

    The cratering economy, the recession, dried up and drove down the big commodity orders that were Dell's bread and butter.

    And the increased importance of laptops also hurt Dell because its products lagged in innovation and fashionability -- and because laptops are a product that most people want to try before they buy -- and so their mail order "ship direct" business model became an obstacle.

    Furthermore Dell long resisted closing its american factories and outsourcing from China -- which put it at a cost disadvantage vis a vis competitors like HP and Lenovo.

    Until the economy recovers to the point that business are putting on more staff to work in new offices, Dell will likely continue to struggle.
    755P Sprint SERO (upgraded from unlocked GSM 650 on T-Mobile)
  3.    #3  
    "but from reliable commoditization."

    That is true. And is one of the competitive advantage Dell have: focused in wide differentiation.

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