Acer Wang Zhentang: Market competition is far from over

2020-06-03 09:05 | Readtime: 10min

       On April 29, 2010, the United States "Time" magazine published the 2010 list of the world's most influential 100 people, Wang Zhentang, chairman of Acer, made the list, closely followed by Brazilian President Lula ranked second in the "Leader List". 

  Wang Zhentang did not go to New York to receive the award, which is consistent with his always low-key style, but he can not hide his simple and precise leadership. Over the past four years, under his leadership, Acer has risen from the fifth largest personal computer manufacturer in the world to the second largest, second only to HP. "Time" magazine's comment is: the rise of Asian companies in the next decade will become a trend, more and more sophisticated in the "soft elements" of marketing, design, brand and other companies, Wang Zhentang is the pioneer of this trend.

Six years ago, when "Taiwan IT godfather" Shi Zhenrong handed over the Acer company to Wang Zhentang, he had completed the accumulation of revenue from zero to 10 billion U.S. dollars, and proposed to occupy the top three in the global personal computer (PC). Expect. Over the past few years, Wang Zhentang has not humbly "sit five views three", "sit four views two", "seated two views one" and surpass one after another.

Today, on the world map on the second floor of Acer's headquarters, there are more and more countries with the first logo of Acer: European countries, Thailand, Indonesia, Malaysia, Russia...It is difficult to imagine that the Acer, which was struggling to die at the time, is now Ascended the throne of the world's first notebook computer and second PC. Last year, Acer's revenue surged by 31.7% to NT$462 billion. It also squeezed out of Taipower for the first time and jumped into Taiwan's service industry leader.

   "Growth is so good, there is no way." Wang Zhentang, chairman of Acer, said in an interview that when he talked about Acer's growth, he laughed.

   catch up with Lenovo

   Wang Zhentang, born in Changhua, Taiwan in 1954. In 1976, he graduated from the Department of Electrical Engineering of National Taiwan University. He worked in American Carlin Plastics and Taiwan General Equipment. In October 1981, he entered the service of Acer Affiliated Enterprises.

Wang Zhentang upholds the pragmatic and courageous work spirit. In the past 10 years, he began as a sales engineer of electronic components at the grass-roots level. "Technology" general manager. In 1997, he was promoted to chairman and general manager of Acer Technology. In 1998, he was appointed as the chairman of Acer Technology Group and served as chairman of five subsidiaries.

In December 2000, Mr. Shi Zhenrong, chairman of the Acer Group, launched the third transformation of the group enterprise, cutting off the OEM manufacturing business and the brand business, and using the experience of Wang Zhentang to successfully manage the Acer brand in mainland China and Taiwan, Wang Zhentang is responsible for the management.

  After taking over Shi Zhenrong, in 2000, the dotcom bubble burst, and Acer, which mainly focuses on the international market, has also continuously lost its overseas market share. At that time, Acer Group had matured in its own brand and foundry manufacturing sector, but due to uneven internal resource distribution and business management and other reasons, Shi Zhenrong resolutely decided to separate: its Acer, BenQ, Wistron, solo.

   This created Acer's future asset-light model. At the end of 2004, Shi Zhenrong handed Acer, who has been in business for half his life, to the general manager Wang Zhentang. His mission was: 2 to 3 years, surpassing Lenovo, ranking fifth in the world and being the top three in the world. Wang Zhentang, the new coach with a mission, started a new journey for the Acer brand.

  Lenovo grew rapidly, and Acer began to re-examine the opponent. At this time, Lenovo has occupied the number one position in the Chinese market for eight consecutive years.

  Finding opponents' weaknesses and leveraging their strengths are the common tricks of Acer. At that time, Lenovo's main computer business was violently attacked by Dell, and diversification was not successful. In 2004, after acquiring IBM's PC, Lenovo obtained the advantage of scale, but was once shackled by the problem of cultural integration after overseas mergers and acquisitions. Wang Zhentang saw this.

   2007 was the year of Acer and Lenovo's full confrontation. When Lenovo planned to buy PC manufacturer PackedBell, Acer won the love with a crosscut of $45.8 million; in the same year, Acer bought Gateway, the third largest PC brand in the United States, for $710 million.

   In fact, Acer began its international journey as early as the 1980s. In the North American market in the 1990s, it completed three mergers and acquisitions and accumulated a lot of experience and overseas talents. Wang Zhentang knows that the international merger and acquisition integration experience, well-trained overseas marketing operations, and asset-light model cannot be achieved by other competitors for the time being.

   By comparison, the Lenovo Group system is complete and large, with more than 23,000 employees. Acer operates in 70 countries around the world, with 90,000 retail stores and only 6,000 employees. Acer's advantage is-pure brand operation, no factory model, production and channels are all outsourced. The streamlined structure is more conducive to Acer's rapid response and low-cost operation.

  In 2007, Lenovo missed opportunities due to cultural integration and was surpassed by Acer. This year, Acer sold 4.13 million units worldwide, with a market share of 6.8%, rising from fifth to third place in the world.

  Completed the commitment, Wang Zhentang spent two years.

   Fight Dell again

   Wang Zhentang said that it is the market change that gives Acer an opportunity: under the financial crisis, they will become the biggest winners in the IT industry.

At one time, the recovery of the personal consumer market was not optimistic, and Acer's opponents-HP, Dell, Lenovo, etc., all turned their attention to the enterprise's commercial business or server market. The prevailing view here is that the personal consumer market for computers is considered a promising field.

At the crossroads, every company faces new choices. Wang Zhentang is still committed to the personal consumer market and smartphone platform. His judgment is that the enterprise-level market is too cold. In 3C [3C is the abbreviation of three types of electronic products: Computer, Communication, and Consumer Electronics. ] In the era of convergence, the personal computer market will still be the main sales increment in the future.

  In 2009, Acer laptops shipped up to 30 million units, the sum of the other three major rivals. "Competitors have not regarded netbooks as the dominant product, which will accelerate us to become the first." Wang Zhentang said.

   When Acer launched the netbook, HP, the global leader, was not interested in netbooks and light and thin books. Even outsiders once believed that netbooks were "a last resort for the poor." Even Lenovo, which is at the forefront of China's personal consumer market, missed the netbook business. Acer took the opportunity to ship quickly. On November 24, 2009, Wang Zhentang finally proved his judgment to his opponent with 20 billion US dollars in company revenue, 10% netbook gross profit and industry growth data.

   "Excuse me, which IT product growth rate in the world can reach this rate?" Wang Zhentang seems to be winning, he believes that this is one of the reasons why the company surpassed Dell and became the second largest PC manufacturer in the world.

   Dell also admitted that the reason why Acer won was because "the recovery has brought limited benefits to Dell." "IT demand recovery mainly occurs in the field of personal consumption, and only 20% of Dell's business is in this field."

According to Gian Frank Lanci, Acer’s global president, “Without a good market share, profit margins cannot be guaranteed.” According to him, Acer’s operating costs are 6.5% to 7%, while competitors’ operating costs are 12%. ~13%.

   Wang Zhentang predicts that 3C will have a market of 400 billion U.S. dollars, and communications and home appliances will gradually converge into the 3C field. In this context, his requirement for his future is that the company's annual revenue will reach 30 billion US dollars.

  In the third quarter of 2009, the IDC survey report showed that the top four PC manufacturers in the world were HP, Acer, Dell, and Lenovo, with market shares of 20.2%, 14%, 12.7%, and 8.9%, respectively. Acer, the runner, reached the last sprint.

   vs. HP

   The Chinese market is Acer's soft underbelly, and it is also the main battlefield where Acer sprints to the global leader.

  The huge contrast with the European, American and Southeast Asian markets is that Acer's market share in mainland China is only 8%, ranking fifth. Many Chinese consumers have only learned to spell Ac-er, the English name of Acer, in the past two years.

  Wang Zhentang said that in the past, no more research investment has been made in the Chinese market, and there is a gap between the brand positioning and design and local demand. The product does not meet the Chinese aesthetics; there is little market investment, and almost no advertisements are seen; poor channel construction makes it difficult for second- and third-tier cities to find it. So, he set a goal for Chinese executives-this year, won the third place in the notebook market.

"In the past, Acer's product design was mainly based on European and American aesthetics. Europeans and Americans like thick products. They believe that such products are relatively strong, while Asians prefer thin and beautiful shapes. Therefore, Acer products have never been favored by mainlanders. "" Wang Zhentang said.

  In 2009, Wang Zhentang meticulously created a senior executive structure in China. In April, after the former China CEO Lai Taiyue stepped down, Acer China's management team was taken over by the German Ai Rensi. Subsequently, Zhang Yonghong, former vice president of China's HP Printing and Imaging System Group, LG, SEG and other company management members joined Acer.

  Ai Rensi said that in the past, Acer had hoped for large distributors to expand markets below the third level, but with little success. Today, Zhang Yongheng has been dug from HP as an executive vice president to fully copy HP's highly successful "grid" channel model over the past few years. Next, Acer will set up R&D centers in Shanghai and Beijing. The company adjusted its distribution model in the 3rd to 6th level markets, from the national general system used in the past to the regional general system.

   In today's fierce PC competition, effective cost control, leveraging strength, and accurate prediction of the future are the secrets of Wang Zhentang's victory.

Wang Zhentang, the leader of "unmodest" leader, made his opponents not to be underestimated. When he was in the fourth place, he declared that he was thinking about how to be the second child. In the spring of 2008, when he was just the third place , And said to be the boss before 2011.

  At the Acer annual meeting early this year, more than 2,000 employees and guests enjoyed the food while enjoying the comedians on stage. An actor imitated Acer CEO Jiang Fanke Lanci: "Ranchi" wore a broken hat, murmured in Italian, and then suddenly yelled in English: "In my opinion, Acer is already a global No. 1 computer manufacturer."

   In the eyes of many people, whether it is Lan Qi or Acer chairman Wang Zhentang, they all hope that this line will become Acer's official statement and pass it to the outside world as soon as possible. Once the two's 2010 dreams are realized, Acer will lead an era.

  Recently, data from Gartner, a market research company, showed that Acer's global notebook market share was 19.4% in the first quarter of 2010, surpassing Hewlett-Packard for the first time and becoming the world's largest notebook manufacturer. Wang Zhentang was happy about this. He said, "but the market competition is far from over," Acer notebook sales in the first quarter are only about 20,000 higher than HP, HP will not be reconciled



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