Acer 2008 Annual Report Download - page 22

Acer Incorporated 2008 Annual Report40
Acer’s Winning Formula
Acer Incorporated 2008 Annual Report 41
Appendix
1. Key Buyers and Suppliers Accounting Over 10% of Total Net Sales and Purchase:
(1) Key Buyers for Acer Inc. (Parent Company)
Unit: NT$ Thousand
Item
Year 2007 Year 2008
From Amount
Percentage
of total net
sales (%)
Relationship
with Acer Inc. From Amount
Percentage of
total net sales
(%)
Relationship
with Acer Inc.
1 AEG 156,272,182 49 (Note 1) AEG 175,166,900 42 (Note 1)
2Acer
America 53,157,861 17 (Note 1) Acer America 77,740,860 19 (Note 1)
3 AAPH 0 0 (Note 1) AAPH 39,997,623 10 (Note 1)
Note 1: Subsidiary of the Company.
(2) Key Suppliers for Acer Inc. (Parent Company)
Unit: NT$ Thousand
Item
Year 2007 Year 2008
From Amount
Percentage
of total net
purchase (%)
Relationship
with Acer Inc. From Amount
Percentage
of total net
purchase (%)
Relationship
with Acer Inc.
1 Supplier A 108,314,055 23 none Supplier A 132,799,596 20 none
2 Supplier B 64,575,335 13 (Note 2) Supplier B 80,334,992 12 none
3 Supplier C 51,409,143 11 none
Note 2: Investee of the Company
2. Production Value in the Most Recent Two Years: Not applicable.
5.3 Employees
5.3.1 Global Human Asset Management
Employees are the Company’s key assets and the main driver of business growth. Acer has fostered a work
environment that empowers employees by entrusting them with the tasks matched to their skill or qualification.
There are clear objectives and reward for achievement, extensive communication and interaction among coworkers,
constant encouragement for innovations, and an effective decision making process. On-the-job training provides the
ideal platform for learning and development.
As a result of employees’ joint effort, Acer has received numerous industry and media recognition. For example,
Acer was voted by Reader’s Digest readers as a “Trusted Brand” in Asia for 10 consecutive years from 1999~2008;
in 2006, Acer was honored for excellent service standards by Taiwan’s renowned business magazine –
CommonWealth; in 2007 Forbes selected Acer as one of the “Fabulous 50” – a list of the best of Asia-Pacific’s
biggest listed companies; also in 2007, we achieved our goal of becoming the world’s No. 3 PC vendor.
5.1 Acer’s Winning Formula
Since the Company’s inception in 1976, Acer has grown to become the world’s No. 3 vendor for Total PCs and
No.2 for notebooks. Focusing on research and development, marketing, sales and after-services of IT and
communications devices, Acer’s range of product offering includes notebooks, desktop PCs, LCD monitors,
projectors, servers, and smartphones. Under the Acer Group umbrella consists of four brands – Acer, Gateway,
Packard Bell and eMachines. In 2008, the consolidated financial results showed revenues of NT$546.27B
(US$16.65B) and the operating income of NT$14.07B (US$428.8M).
In the past five years, Acer has demonstrated a strong growing momentum in global PC shipments; our annual
growth rate was more than twice the industry average and far surpassed the top PC players. According to the 2008
global PC shipment data by Gartner Dataquest, Acer’s growth of 55.2% year-on-year was the highest among the top
3 vendors.
The successful mergers of Gateway (2007) and Packard Bell (2008) together complete Acer’s global footprint by
strengthening our presence in the U.S. and allowing a deeper penetration into the European and Asian markets.
These acquisitions also marked the beginning of a new era for Acer with a multi-brand strategy to target different
geographic- and consumer segments. In 2008 Acer also acquired E-ten; a decision that reects our anticipation of
an accelerating convergence between PC and handheld communication devices over the next few years.
5.2 The Five Keys to a Sustainable Future
5.2.1 Multi-brand Strategy
The PC is becoming a commodity. Aware of the vast diversity among consumer tastes, a single brand cannot cover
the preferences of all market segments. Acer saw the opportunity to adopt a multi-brand strategy by acquiring
Gateway and Packard Bell. The results so far have assured us the multi-brand approach was and is the right
response to an ever-changing market. In just over a year, Acer has set up a global multi-brand management
framework, and launched differentiated product designs to precisely target all major market segments.
5.2.2 Sustainable and Protable Business Model
Acer adheres to a channel business model that involves collaboration with first-class suppliers and distributors,
leveraging their resources and ultimately, sharing the fruits of success among all partners. Besides, our low capital-
and operating expense policy has been benecial to the steady growth of our business operations.
5.2.3 Efcient Global Operations
Based upon the management philosophy of upholding a “simple” and “focused” approach, Acer spun off the
manufacturing operations in 2000 to concentrate all resources on building its brand name business. Our top
management from product development, marketing and the regions gather on a regular basis to discuss key issues.
This practice ensures clear understanding and smooth internal communication, which lead to efficient decision
making followed by accurate implementation. In addition, Acer has a exible and dynamic global logistics network to
ensure time-to-market delivery of our products.
5.2.4 End-to-End Marketing Strengths
To begin with, our products are designed around customer needs – that means understanding exactly what our
customers want, and using our knowledge and skills to exceed their expectations by making technology simple to
use, stylish to own and accessible to everyone. Combined with Acer’s fast decision making, call to action and timely
release of products to market, to form an end-to-end marketing prowess that ensures continuing business success
ahead.
5.2.5 Growth and Scale
The recent mergers and combined scales have already created new synergies as predicted. With remarkable
growths in revenue, operating income and market share worldwide, Acer is today more competitive than ever.