INTERNATIONAL BRAND MARKETING STRATEGY OF TAIWANESE HI-TECH ENTERPRISES: :INTERNATIONAL BRAND MARKETING STRATEGY OF TAIWANESE HI-TECH ENTERPRISES: -- A COMPARISON OF ACER AND TREND MICRO Jason Tsai, Ph.D. Professor and Dean Office of Student Affairs National Taipei University


Slide 2:I. INTRODUCTION II. CASE ANALYSES 1. Acer Inc. 2. Trend Micro Inc. III. DISCUSSIONS IV. CONCLUSIONS


I. Introduction :I. Introduction There is manufacturing competitiveness of Taiwanese hi-tech industry during its developing stages of OEM, ODM, and OBM. However, the leading advantages are challenged by mainland China companies. Taiwanese hi-tech enterprises have to consider whether to stay in OEM stage or to develop their own brand marketing strategies.


I. Introduction :I. Introduction Hong Hai Precision Industry Co. Ltd. (Foxconn) and Taiwan Semiconductor Manufacturing Company Limited (TSMC) choose to specialized in OEM field. Acer and Trend Micro decide to develop their own brand strategies.


I. Introduction :I. Introduction Adopting Brand marketing strategy can enjoy value-added benefits. Releasing OEM activities and resources can be transferred to other sectors.


I. Introduction :I. Introduction This paper compares two Taiwanese hi-tech enterprises, Acer and Trend Micro, which chooses different international brand marketing strategies due to diverse managing types and product characteristics. The research findings can be provided for different enterprises for decision-making when they consider their international brand marketing strategy.


II. CASE ANALYSES :II. CASE ANALYSES This session compares the internationalization processes, organization changes, management styles, and international brand marketing strategy of Acer and Trend Micro.


ACER :ACER Empowering People


Stages of Internationalization :Stages of Internationalization 1976 1985 Expending Market 1995 Merge as its international strategy 2001 Obtain patent and trademark expand market share Duplicate the successful experience in Europe and applied to Mainland China and US markets Acer Inc. was established in 1976.


The Organization Improvements during Acer’s Internationalization :The Organization Improvements during Acer’s Internationalization The group was divided into strategic business unit (SBU) and area business unit. Combine the area business unit with SBU to form one global business unit (GBU), and forming five sub-groups. Canceling each sub-group and integrating repeated-investment units, and further dividing its operation into DMS and ABO. 1998 2000


The Management Changes in the Course of Internationalization :The Management Changes in the Course of Internationalization Acer’s management regeneration in 2001 features the change of supply chain and channel strategy. The change of supply chain is characterized with the transformation of a change of “fast-food mode” to “direct distributor mode” The direct distributor mode features a combination of Order Management System with the supply chain of OEM factory and each distributor.


The Management Changes in the Course of Internationalization :The Management Changes in the Course of Internationalization What is Order Management System? Acer places the orders with the OEM factories upon receiving the order from the down-stream distributors, thus producing the computers in a short period of time by the OEM factories’ professional manufacturing capacity And delivering products to Acer’s overseas branches directly by making use of OEM factories’ global logistic capacity prior to being sent to the distributors.


The Management Changes in the Course of Internationalization :The Management Changes in the Course of Internationalization The current “New Channel Business Model” features the partnership with major distributors or channels instead of the partnership through agents To reduce channel and lower cost as well as enable Acer to adopt multiple outsourcing strategy by working with Taiwan’s top OEM factories to draw more distributors and increase the speed and elasticity of delivery.


The Management Changes in the Course of Internationalization :The Management Changes in the Course of Internationalization The key for such model is “Drop Shipment” model which features delivery of the products to channels or distributors from the OEM partners in Taiwan or China or from factories in Europe instead of through Acer. Thus helping the company gain effects of direct sale. In a word, the effective management by virtue of e-platform can help lower the cost and appropriate better profits to channels indirectly.


The Brand Marketing Strategy of Acer :The Brand Marketing Strategy of Acer Spirits for Acer’s brand are innovation and concerns. Attentive efforts lead to innovation A dominance of technology leads you to an easy access Global Brand, Local Touch.


The Brand Marketing Strategy of Acer :The Brand Marketing Strategy of Acer Brand symbolizes the integration of good product, service, operation model or supply chain. Acer’s marketing experiences of introducing its brand in international markets in terms of product and channel, followed by an in-depth probe into other important marketing strategies including sport marketing e.g. Ferrari and service marketing.


PC-CillinMcAfee Virus ScanSymantec :PC-CillinMcAfee Virus ScanSymantec


Trend Micro Inc. :Trend Micro Inc. Trend Micro Enterprise was founded in California of US in 1988. focusing on computer security and prevention and control of virus. Trend Micro introduced virus prevention software - PC-cillin in 1990 and have successful sale in 40-more countries. In more recent years, Trend Micro has been leading the industry in the virus prevention software with its relative server-end technologies.


Trend Micro’s Internationalization Stage :Trend Micro’s Internationalization Stage 1988 1999 Expand economics of scale and pursuing the business efficiency. Re-construct the corporate organization on a basis of the organizational concept of “ global web infrastructure.” Internal sector start to step into the stage of standardization. 2000


Trend Micro’s Organizational Structure :Trend Micro’s Organizational Structure Trend Micro’s core offices are established according to the advantages in each area. The concept of headquarter is eliminated to lead the entire organization to become one trans-national integrated network form. Based on advantages of resources in each area, Trend Micro has different sector in each area.


Trend Micro’s Organizational Structure :Trend Micro’s Organizational Structure R&D teamwork is spread in US, Japan, Taiwan, Philippines, and China. Tokyo is the headquarter of financial center and the center to gather the legal documents Trend Micro’s virus lab established in Manila of Philippines offers telephone and online services USA is the center in charge of Corporate marketing, man power, resource sector, branch of Germany is in charge of product testing ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?


Change of Operation Model :Change of Operation Model Manufacturing-oriented model Client- and service-oriented model. 1989 2002 Ship quality useful product in time Centers on R&D of new products and new functions. Consider sale growth rate and profit rate as the index of performance. 2003 “A world safe for exchanging and digital information when there’s a virus outbreak, business must continue” “Service” instead of manufacturing into the major axle of business, while the center of emphasis for the company’s has turned out to satisfy the focus market with price and service.


Trend Micro’s Corporate Brand Positioning :Trend Micro’s Corporate Brand Positioning In 1992, Trend Micro announced “Focus”, “Alliance”, “Major” and “Expert” as the corporate operation strategies Trend Micro has numerous successful marketing experiences in its international markets, including the partnership with Intel and Cisco, thus expanding the company’s brand popularity and market share by virtue of international leading companies’ marketing and products.


Trend Micro’s Corporate Brand Position :Trend Micro’s Corporate Brand Position The partnership in MSN with Microsoft in the end of 2004 further sees Trend Micro’s rising global business visibility. Taking the advantage of a favorable situation, Trend Micro launches advertising activities on some international media, such as “If 0.187 billion of Hotmail users opt for Trend Micro, why don’t you have such choice?”


DISCUSSIONS: Difference of Internationalized Models :DISCUSSIONS: Difference of Internationalized Models Sub-market European Market USA Market China Market Acer’s Model


Difference of Internationalized Models :Difference of Internationalized Models China USA


Different Operation Models :Different Operation Models Acer is concentrating its business on marketing and service instead of product manufacture its sale method adopts the pattern of partnership with distributors to carry out the OEM, assemblage and distribution, and integrated management of distribution through the order information system.


Different Operation Models :Different Operation Models Trend Micro’s production and marketing are carried out in parallel. The most important part in the production process for Trend Micro’s products is the innovation, R&D, and correcting of anti-virus. Product manufacture and marketing are equally important for the company’s values.


Difference of Brand Positioning :Difference of Brand Positioning Acer is committed to fulfilling its mission of “Breaking the barrier between people and technology” and the core value of its products is easy operation, reliability, and concerns Trend Micro has defined itself as the leading company in professional anti-virus software business.


Difference of Marketing Strategy :Difference of Marketing Strategy Acer’s marketing strategy lays stress on channel and service, while its multi-distribution model and customer services have help the company achieve No. 1 notebook sale in Europe. Acer’s to-door repair service in Taiwan market has already built its public praise.


Difference of Marketing Strategy :Difference of Marketing Strategy Trend Micro’s marketing strategy, “product” was the center of emphasis for its business, but the emphasis has turned into “service” since 2003. Trend Micro’s 24-hour and all-year round services practiced in the virus lab established in Manila of Philippines serves as the greatest source for its service value.


CONCLUSIONS -- ACER :CONCLUSIONS -- ACER Strengthen the marketing and services toward individual consumers in Europe and US. Draw Attention from Personal Users in China with Low-Price Policy


Conclusion -- Trend Micro :Conclusion -- Trend Micro Starting in 2003, Trend Micro concentrates its business on client services and satisfaction to clients’ needs. Upon a major regulation of organizational structure, Trend Micro has turned out to be one trans-national network-based organization.