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
I. INTRODUCTION
II. CASE ANALYSES
1. Acer Inc.
2. Trend Micro Inc.
III. DISCUSSIONS
IV. CONCLUSIONS
 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
 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
 Adopting Brand marketing strategy can
enjoy value-added benefits.

 Releasing OEM activities and resources can

be transferred to other sectors.
 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
 This session compares the

 internationalization processes,
 organization changes,
 management styles, and
 international brand marketing strategy

 of Acer and Trend Micro.

ACER

 Empowering People
 Stages of Internationalization

1976 1985 1995 2001

Expending Merge as its

Market international Obtain patent
strategy and trademark
expand market
share
Duplicate the successful
experience in Europe
and applied to Mainland
Acer Inc. was established in 1976. China and US markets
 The Organization Improvements
during Acer’s
Internationalization
Canceling each sub-group
2000
Combineandthe
Combine the area
area business
business
integrating unit
unit with
repeated- with
SBU
SBU to
to form
form one
one global
investment units, business
global business
and unit
unit
further
(GBU),
(GBU), and
and forming
dividingforming five
five sub-groups.
its operationsub-groups.
into DMS
and ABO.
1998
The
The group
group was
was divided
divided into
into strategic
strategic business
business
unit
unit (SBU)
(SBU) and
and area
area business
business unit.
unit.
 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
 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 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 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
 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

 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-Cillin

McAfee Virus Scan

Symantec
 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

1988 1999 2000

Expand economics Internal sector start
of scale to step into
and pursuing the the stage of standardization.
business efficiency.
Re-construct the corporate
organization on a basis of
the organizational
concept of “
global web infrastructure.”
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

USA is the center ●

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

Client- and service-oriented model.

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.
Manufacturing-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.
 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
 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

Acer’s Model
USA Market

Sub-market European
Market China Market
Difference of Internationalized
Models

South Korea
USA
Japen Europe

China Trend’s
Model
Taiwan Mid East

Central
And
South America
 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

 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

 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

 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

 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

 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

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.