foreign study report

8/10/2019 Foreign Study Report

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Country Introduction

The Republic of China (Taiwan) was founded in 1912, making it the first democratic

republic in Asia. In 1949, the government moved to Taiwan and maintained jurisdiction

over an area encompassing the islands of Taiwan, Penghu, Kinmen, Matsu, Dongsha,Zhongsha, and Nansha.

Flag:

Area:36,000 square kilometers

Population:23 million

Language:Mandarin / Taiwanese / Hakka / Indigenous Languages

Religion:Buddhism / Taoism / Christianity / Islam

President:Mr. Ma Ying-jeou

Location

Taiwan's total land area is about 36,000 square kilometers (14,400 square miles). It is

shaped like a leaf that is narrow at both ends. It lies off the southeastern coast of mainland

Asia, across the Taiwan Strait from China-- an island on the western edge of the Pacific

Ocean. To the north is Japan; to the south is the Philippines. Many airlines fly to Taiwan,

making it the perfect travel destination.

Taiwan lies on the western edge of the Pacific "rim of fire," and continuous tectonic

movements have created majestic peaks, rolling hills and plains, basins, coastlines, and

other natural landscapes. Taiwan's tropical, sub-tropical, and temperate climates provide

clear differentiation between the different seasons. There are about 18,400 species of

wildlife on the island, with more than 20% being rare or endangered species. Among these

are the land-locked salmon, Taiwan serow, Formosan rock monkey, Formosan black bear,

blue magpie, Mikado Pheasant, and Xueshan grass lizard.


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The Taiwan government has established 8 national parks and 13 national scenic areas to

preserve Taiwan's best natural ecological environment and cultural sites. There are various

ways to discover the beauty of Taiwan. For example, trekking in the magnificence of the

cliffs at Taroko Gorge; taking a ride on the Alishan Forest Railway and experiencing the

breathtaking sunrise and sea of clouds; hiking up to the summit of Northeast Asia's highest

peak, Yu Mountain (Yushan). You can also soak up the sun in Kending (Kenting), Asia's

version of Hawaii; stand at the edge of Sun Moon Lake; wander through the East Rift Valley;

or visit the offshore islands of Kinmen and Penghu. It's fun in capital letters as well as an

awesome journey of natural discovery!

Language:

Standard Mandarin is officially recognised by the Republic of China as the national

language, and it is spoken by the vast majority of residents. About 70% of the people in

Taiwan belong to the Hoklo ethnic group and speak both Taiwanese a variant of Min

Nan, their mother tongue and Standard Mandarin.

Government: Kuomintang

Currency: New Taiwan dollar


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Demographic Profile

Population 23,299,716 (July 2013 est.

Age structure 0-14 years: 14.3% (male 1,722,887/female

1,609,813)

15-24 years: 13.7% (male 1,638,424/female

1,549,415)


5,553,318)


1,509,359)

65 years and over: 11.6% (male

1,262,939/female 1,441,017) (2013 est.)

Population

growth rate

0.27% (2013 est.)

Birth rate 8.61 births/1,000 population (2013 est.)

Death rate 6.83 deaths/1,000 population (2013 est.)

Net migration

rate

0.91 migrant(s)/1,000 populations (2013 est.)

Sex Ratio Total population: 1 male(s)/female (2013 est.)

Infant

mortality rate

total: 4.55 deaths/1,000 live births

male: 4.96 deaths/1,000 live births

female: 4.12 deaths/1,000 live births (2013 est.)Life

expectancy at

birth

total population: 79.71 years

male: 76.58 years

female: 83.06 years (2013 est.)

Total fertility

rate

1.11 children born/woman (2013 est.)

Ethnic groups Taiwanese (including Hakka) 84%, mainland

Chinese 14%, indigenous 2%

Religions mixture of Buddhist and Taoist 93%, Christian

4.5%, other 2.5%Languages Standard Mandarin (official), Taiwanese (Min),

Hakka dialects

Literacy total population: 98.2%

Male: 99.6%

Female: 96.8%

The Population of Taiwan is dominated by people between the age group of 25 to 54 years

which makes 47.7% of total population of Taiwan. The Life Expectancy Rate is high of

female while literacy rate is high among male


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General Economic & Industries overviews

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance

of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals

have provided the primary impetus for economic development. This heavy dependence on

exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP

contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP

grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In

2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's

diplomatic isolation, low birth rate, and rapidly aging population are major long-term

challenges. Free trade agreements have proliferated in East Asia over the past several

years, but except for the landmark Economic Cooperation Framework Agreement (ECFA)signed with China in June 2010, so far Taiwan has been excluded from this greater

economic integration in part because of its diplomatic status. Negotiations continue on

such follow-on components of ECFA regarding trade in goods and services. The MA

administration has said that the ECFA will serve as a stepping stone toward trade pacts

with other key trade partners, which Taiwan subsequently launched with Singapore and

New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the

lowest in the world, raising the prospect of future labor shortages, falling domesticdemand, and declining tax revenues. Taiwan's population is aging quickly, with the number

of people over 65 accounting for 11.2% of the island's total population as of 2012. The

island runs a large trade surplus largely because of its surplus with China, and its foreign

reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia.

Three financial memorandums of understanding, covering banking, securities, and

insurance, took effect in mid-January 2010, opening the island to greater investments from

the mainland's financial firms and institutional investors, and providing new opportunities

for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed

a memorandum of understanding on cross-Strait currency settlement with its Chinese

counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan

dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer

economic links with the mainland bring greater opportunities for the Taiwan economy, but

also poses new challenges as the island becomes more economically dependent on China

while political differences remain unresolved.


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Composition of GDP:

Sector GDP

Agriculture 2%

Service 68.2

Industry 29.8


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Overview of Different economic sectors:

Taiwan has adeveloped capitalist economy that ranks as the 19th- largest in the world

bypurchasing power parity (PPP), ranks as 18th in the world by gross domestic product

(GDP) at purchasing power parity per capita (person) and24th innominal GDP ofinvestment and foreign trade by the Republic of China (ROC) government, which commonly

referred to as Taiwan.

In keeping with this trend, most large government-owned banks and industrial firms have

been privatized. With the Technocracy-centred economic planning underMartial Law until

1987, real growth in GDP has averaged about 8% during the past three decades. Exports

have grown even faster and since World War II, have provided the primary impetus for

industrialization. Inflation and unemployment are low; the trade surplus is substantial; and

foreign reserves are the world's fourth largest.

List of Industries:

Information Technology

Agriculture

Energy

Computer and Peripheral Equipment

Security Systems & Equipments

Electronics

Iron and Steel

Banking, financial and related services

Automobile

Shipping and Transportation

Textiles

Information technology

Taiwan's information technology industry has played an important role in the worldwide

IT market over the last 20 years. In 1960, the electronics industry in Taiwan was virtually

nonexistent. However, with the government's focus on development of expertise with high

technology, along with marketing and management knowledge to establish its own

industries, companies such as TSMC and UMC were established. The industry used its

industrial resources and product management experience to cooperate closely with major

international suppliers to become the research and development hub of the Asia-Pacific
http://en.wikipedia.org/wiki/Developed_countryhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Nominal_GDPhttp://en.wikipedia.org/wiki/Martial_law_in_Taiwanhttp://en.wikipedia.org/wiki/Martial_law_in_Taiwanhttp://en.wikipedia.org/wiki/Nominal_GDPhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Developed_country


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region. The structure of the industry in Taiwan includes a handful of companies at the top

along with many small and medium-sized enterprises (SME) which account for 85% of

industrial output. These SMEs usually produce products on an original equipment

manufacturer (OEM) or original design manufacturer (ODM) basis, resulting in less

resources spent on research and development. Due to the emphasis of the OEM/ODM

model, companies are usually unable to make in-depth assessments for investment,

production, and marketing of new products, instead relying upon importation of key

components and advanced technology from the United States and Japan. Twenty of the top

information and communication technology (ICT) companies have International

Procurement Offices set up in Taiwan. As a signer of the Information Technology

Agreement, Taiwan phased out tariffs on IT products since January 1, 2002.

Agriculture

Agriculture has served as a strong foundation for Taiwan's economic miracle. After

retrocession from Japan in 1945, the government announced a long-term development

strategy of "developing industry through agriculture, and developing agriculture through

industry". Thus, agriculture became the foundation for Taiwan's economic development,

while promoting growth in industry and commerce. In 1951, agricultural production

accounted for 35.8% of its GDP. Today, agriculture only comprises about 2.6% of Taiwan's

GDP or about US$1 billion. In 2002, farming accounted for 43.33% of the industry, with

livestock (30.02%) and fishing (26.41%) making up a significant portion of the rest. Since

its accession into the World Trade Organization and the subsequent trade liberalization,

the government has implemented new policies to develop the sector into a more

competitive and modernized green industry.

Energy

Wind turbines, such as these in Qingshui, Taichung, are part of the government's efforts to

increase sources of renewable energy.

Due to the lack of natural resources on the island, Taiwan is forced to import many of its

energy needs (currently at 98%).[54] Imported energy totalled US$11.52 billion in 2002,

accounting for 4.1% of its GDP.[55] Although the industrial sector has traditionally been

Taiwan's largest energy consumer, its share has dropped in recent years from 62% in 1986

to 58% in 2002.Taiwan's energy consumption is dominated by oil (51.8%), followed by

coal (30.4%), nuclear power (8.7%), natural gas (8.6%), and hydroelectric power


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(0.3%).The island is also heavily-dependent on imported oil, with 72% of its crude oil

coming from the Middle East in 2002. Although the Taiwan Power Company (Taipower),

state-owned enterprise, is in charge of providing electricity for the Taiwan area, a 1994

measure has allowed independent power producers (IPPs) to provide up to 20% of the

island's energy needs. Indonesia and Malaysia supply most of Taiwan's natural gas needs.It

currently has three operational nuclear power plants with a fourth expected to come into

operation by the end of 2012 at a cost of NT$280 billion (US$9.65 billion).

Textiles Industry

The textiles industry of Taiwan is highly export-oriented. The export value of textiles and

apparel accounts for more than 80% of total textiles and apparel production in the recent

six years. Textiles industry's production value, manufacturer number and the employees all

reveal a decline phenomenon in the past 10 years. The production value of textiles in

Taiwan was NTD482.3 billion in 2010, down 22% from NTD615.4

Billion in 1997, the manufacturers in 2010 were reduced 1,876 units from 1997, and there

was decline in employment from the number of 285,730 in 1997 to 153,163 in 2010, down

46%.

Telecom Industry

In 2009, the total sales revenue from mobile services reached NTD154.3 billion in Taiwan,

down 5.4% yr-on-yr, and the sales revenue from fixed-line telephone business was

NTD96.8 billion, up 31$ yr-on-yr. In Taiwan, mobile business income is far more than fixed-

line telephone business revenue, because the number of mobile phone subscribers is bigger

than that of fixed-line telephone subscribers and the charges of mobile services is higher

than that of fixed-line telephone business.

Chunghwa telecom is the largest telecom operator in Taiwan. In 2009, its consolidated

revenue reached NTD184 billion, representing a decline of 1.47% over the same period in

2008. In 2009, the mobile services accounted for 40.27% of the business of Chunghwa

telecom, fixed-line network business 47.2%, and internet and data services 12.42%. The

revenue decline of Chunghwa telecom was primarily incurred by decreasing fixed-line

telephone business income.


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Steel Industry

Taiwans steel industry turned out NT$403.58 billion worth of steel products in the second

quarter for a 4.6% growth from the first quarter or an 11% rise from last year. In May

2011, China Steel Corporation (CSC)s steel production volume dropped 1.1% month-on-

month (m-o-m) and 7.0% y-o-y to 770,653 tonnes. This came on the back of a sales drop of

4.0% m-o-m and 9.8% y-o-y to 783,000 tonnes. However, a rise in steel prices ensured that

the steelmakers sales revenue fell just 0.2% m-o-m and 2.6% y-o-y to TWD20.72bn.

Semiconductor Industry

Semiconductor market of Asia, the fastest-growing area, reached US$123.5 billion in 2007,

a 6% increase from 2006. Taiwan semiconductor industry grew 5.3% in 2007, outpaced

the worldwide average of 3.2% due to the dramatic growth of 23.6% in IC Design and 8.2%

in Packaging. decreased by 3.9%, with a 3.2% increase in foundry and a 13.4% decrease in

DRAM. Taiwan IC revenue (including design, manufacturing, packaging, and testing)

totalled NT$1,466.7 billion, a 5.3% growth from 2006, with NT$399.7 billion in design, a

23.6% increase, NT$736.7 billion in manufacturing, a 3.9% down, NT$228.0 billion in

packaging, an 8.2% up, and NT$102.3 billion in testing, a 10.7% rise.

In 2007, Taiwan IC product revenue reached NT$684.2 billion (Table 1), a 5% increase

from 2006. Memory products comprised 44.2%, down from the 52.7% of 2006 due to the

DRAM price erosion. Logic IC comprised 45.1% (38.7% in 2006), Micro component IC

5.8%, and Analog IC 4.8%. Information applications, comprising 54.5% (59.7% in 2006),

remained the largest application area. Consumer applications reached 30.6% (27.8% in

2006), and communication ICs accounted for 13.8% (11.4% in 2006). 18

The different businesses that fall under the service sector in Taiwan are: finance, insurance,

and real estate; commerce, including wholesale and retail business, food and beverages,

and international trade; social and individual services; transport, storage, and

telecommunications; commercial services, including legal, accounting, civil engineering,

information, advertising, designing, and leasing; governmental services, and miscellaneous

others.


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Overview of Trade and Commerce

The Taiwan Chamber of Commerce, also known as TCOC, is a independent, non-profit

organization of leading commercial firms, business associations, and businessmen in the

Republic of China (Taiwan).

It was founded on Sept.16, 1946 mainly to represent the interests of Chinese business

community, promote commercial development in line with government policies, and

establish international economic cooperation with other countries.

The former body of TCOC was Taiwan Commerce & Industry Economic Association in the

Japanese occupation period. After the restoration of Taiwan in 1945, the "Taiwan Commerce &

Industry Economic Association" was immediately disbanded and the association was reorganized

as the Taiwan Federation ofChamber of Commerce. On Sept.16, 1946, the first provincial

member representatives convention was convened in the Sun Yat-Sen Community Centre, Taipei,

and Mr. Lin Hsiung-Cheng was the first chairman. At that time, the Taiwan Chamber of Commerce

established.

Under the excellent leadership and joint hard work of the chairmen, and directors and supervisors

of previous terms, the chamber always maintain the objective of promoting domestic and foreign

trade, stimulating economic development, coordinating relationship between peer companies and

increasing mutual benefits. Therefore the chamber has become an important force in the societythat cannot be ignored.

Services

To fit the economic policy and to channel an outlet for business laws.

To strive for managing various business activities that government authorized and

give an impetus to modernizes the commerce.

To help businessmen to express their opinions and to protect the rights ofenterprise.

To issue Certificates of Origin and other commercial documents.

To offer all kinds of commercial consultants, mediate conflicting affairs.

To offer & study domestic & foreign trade information.

To unify all business circle to support the government's economic policy.

To sponsor the government's advertising of laws, for example: good store practice

& bar code application consulting.


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To manage overseas visiting; receive foreign business, overseas

Chinese business people and sisterhood chamber, etc..

To select model labours; mediate the relationship between labour & management.

To sponsor members' merchandise advertising & exhibitions.

To hold members' in-job training.

To build up the website of thewww.abacus.org.tw and develop the unique

Chinese Culture feature-abacus.

To publish the TCOC journal.
http://www.abacus.org.tw/http://www.abacus.org.tw/


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Present Trade Relations of Taiwan with India

The bilateral relations between the Republic of India and Taiwan have improved since the

1990s; India has expanded economic and strategic cooperation with Taiwan.

India has sought to cultivate extensive ties with Taiwan in trade as well as working

together over weapons of mass destruction issues, environment and fighting terrorism.

Both sides have aimed to develop ties to counteract Chinese rivalry with both nations.

The India-Taipei Association (ITA) Office has been established in Taipei since 1995 to

promote non-governmental interactions between India and Taiwan, and to facilitatebusiness, tourism, cultural and people-to-people exchanges.

The India-Taipei Association has also been authorized to provide all consular and

passport services. In 2002, India became the 28th nation to sign the Investment

Protection Agreement with Taiwan and in 2006; both nations established the Taiwan-

India Cooperation Council. Furthermore, Taiwan promotes trade with India as a means to

reduce the extent of their economic dependence with China.

Business Products:

The Taiwan government has been trying to strengthen economic ties with India and since

2003 has designated it as one of the target countries for investment.

India is a perfect choice since it's a fast-growth country in the region with surging demand

for electronics, including such items as computers, routers, monitors and industrial

materials such as machinery tools, moulds, or other heavy-duty machines, which all

happen to be Taiwan's forte.

Taiwan's strength lies in hardware manufacturing and design especially in the field o

ICT, green technology, machinery and auto parts. India, on the other hand, is known for its

world-famous software R&D expertise. There is certainly a reason for both sides to

combine force to boost their industries.


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Legal Aspects of Trade in Taiwan

Business Contract

General Observation

You must state precisely the obligations of the vendor and the methods of quality control.

Law Applicable to the Contract

Taiwan did not sign the Convention of Vienna because it's not recognized as an independent

country. A foreign law can be applied: to be negotiated when writing the contract. If not it is

the Code of Commerce will apply.

Advisable Incoterms

ChooseFOB orCIF, or more. For more information on Incoterms consult the website of the

International Chamber of Commerce.

Language of Domestic Contract

Chinese or English.

Other Laws Which Can Be Used in Domestic Contracts

A foreign law can be applied: to be negotiated when writing the contract. If not, the Code o

Commerce will apply.

Intellectual Property

National Organizations

In order to register a patent, a trademark or a technical design, it is necessary to present it

beforehand to The Intellectual Property Office and apply to an expert in Taiwanese patents

recognized by the authorities.

Regional Organizations

Chinese Intellectual Property Protection Association.
http://www.iccwbo.org/incoterms/preambles/pdf/FOB.pdfhttp://www.iccwbo.org/incoterms/preambles/pdf/CIF.pdfhttp://www.iccwbo.org/incoterms/id3040/index.htmlhttp://www.tipo.gov.tw/mp.asp?mp=2http://www.chinaipr.gov.cn/http://www.chinaipr.gov.cn/http://www.tipo.gov.tw/mp.asp?mp=2http://www.iccwbo.org/incoterms/id3040/index.htmlhttp://www.iccwbo.org/incoterms/preambles/pdf/CIF.pdfhttp://www.iccwbo.org/incoterms/preambles/pdf/FOB.pdf


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National Regulation and International Agreements

Type of property and

law

Validity

Patent

Patent Act

20; 12 or 10 years

Trademark

Trademark Act

10 years

Design

Patent Act

12 years.

Copyright

Copyright Act

The life of the author

and fifty years after the

author's death.

Legal Framework of Business

Equity of Judgments

Equal Treatment of Nationals and Foreigners

Foreigners can be guaranteed an impartial trial from the country's judicial system.

The Language of Justice

The judicial language used in the country is Mandarin Chinese, having an interpreter is

possible.

Recourse to an Interpreter

Having an interpreter is possible.

Legal Similarities

Taiwanese Law today is mainly based on the civil law system.
http://www.tipo.gov.tw/eng/laws/laws.asp#1http://www.tipo.gov.tw/eng/laws/laws.asp#2http://www.jcipgroup.com/E_Taiwan%20Patent%20Law.htmhttp://www.jcipgroup.com/E_Taiwan%20Patent%20Law.htmhttp://www.tipo.gov.tw/eng/laws/laws.asp#2http://www.tipo.gov.tw/eng/laws/laws.asp#1


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The Different Legal Codes

The Constitution of Taiwan It is the supreme law of the land and contains 175

articles in the original text.

The Civil Code The Civil Code regulates all aspects of trade, agency,

employment, contracts, leases, loans, mandates,

partnership, surety ship and tort.

The Code of Civil Procedures The Code of Civil Procedure governs procedurally

all civil matters including commercial.

The Criminal Code All criminal matters are governed substantively by

the Criminal Code

The Code of Criminal Procedure The Code of Criminal Procedure governs

procedurally all criminal matters.

International Dispute Resolution

Arbitration

Arbitration is a solution for settling disputes. An arbitrator is called in who has to make the

final decision.

Arbitration Law

Taiwan amended its Arbitration Law in 1998 to comply with the international standard as

defined by the UNCITRAL Model Law. Many of the important provisions of the Model Law

can be found in Taiwans Arbitration Law. Moreover Taiwan has implemented investment

guaranty agreements with 31 nations.

Appointment of Arbitrators

Parties may represent themselves or be represented by any advocate of their choice, whether or

not legally qualified.


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Arbitration Procedure

However, where the parties have not agreed on the arbitration procedure, the rules of the

Arbitration Law shall apply. Where the Arbitration Law does not provide such rules, Taiwans

Code of Civil Procedure, or other rules deemed appropriate by the arbitration

tribunal, shall apply. The rules on service of process prescribed by the Code of Civil Procedure

shall apply in arbitration. The Arbitration Law further provides that if expressly authorized by

the parties, the arbitration tribunal may apply rules of equity when rendering its decision.


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Import- export of Taiwan

In 2013, Taiwan's exports maintained moderate growth although they were affected by

the slower-than-expected recovery of the global economy and weak demand from the US

and the EU. Among the export products, the performance of information and

communications products, optical instruments and machinery was poorer while the

exports of goods such as electronic products, electrical and machinery products and

mineral products continued to grow. In the long run, demand from overseas markets for

Taiwan's export products, particularly consumer electronics and parts and components,

will remain stable. This will help maintain the stability of exports. On the other hand, last

year's slow export growth affected some of the investment and industrial production

activities. However, some semiconductor manufacturers saw promising market prospectsfrom the sustained global hot sales of consumer electronics and continued to increase

their capital investment, fuelling a sustained upbeat mood in the overall investment

climate. The fall in the prices of imported machinery and equipment as a result of a

weaker yen helped boost investment in machinery and equipment. Some Taiwan

companies have started repatriating some of their investment back to Taiwan due to

rising cost on the mainland in recent years. This also spurred local production activities in

some industries.

Import - Exports 2011 2012 2013

Exports (US$ billions) 308.3 (+12.3%) 301.2 (-2.3%) 305.5 (+1.4%)

Imports (US$ billions) 281.4 (+12.0%) 270.5 (-3.9%) 270.1 (-0.1%)


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PESTEL Analysis of Taiwan

PESTEL stands for Political, Economic, Social, Technical, Environment and Legislative. It is

a strategic planning technique that provides a useful framework for analysing the

environmental pressures on a team or an organisation.

A PESTEL Analysis can be particularly useful for groups who have become too inward-

looking. They may be in danger of forgetting the power and effect of external pressures

for change because they are focused on internal pressures.

Political view:

Taiwan is part of Republic of China (ROC) and hence it is having democratic parties to rule

the country. Taiwan is having Democratic Progressive Party or DPP [TSAI Ing-wen];

Kuomintang or KMT (Nationalist Party) [MA Ying-jeou]; Non-Partisan Solidarity Union or

NPSU [LIN Pin-kuan]; People First Party or PFP [James Soong].

Debate on Taiwan independence has become acceptable within the mainstream of

domestic politics on Taiwan; public opinion polls consistently show a substantial majority

of Taiwan people supports maintaining Taiwan's status for the foreseeable future;

advocates of Taiwan independence oppose the stand that the island will eventually unify

with mainland China; advocates of eventual unification predicate their goal on the

democratic transformation of the mainland.

Economic view:

Taiwans economic performance is greatly dependent on its ability to export goods and

services, which in recent years have amounted to over 70% of GDP. China, the U.S., and

Europe, in that order, are Taiwans three most important trading partners. Taiwans

economic outlook is rather bleak (not hopeful). China is now Taiwans only hope to end

2011 with a decent growth rate which for the last 20 years averaged 5.2% a year.

Social & cultural view:

In summary, for about 110 years starting with Koxinga's expedition to Taiwan in 1661,

Taiwan remained an agrarian, immigrant society where the indigenous culture slowly

became marginalized.


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Taiwans social environment laid the ground for the Nationalist government's

continuation of Chinese cultural development and modernization after retrocession. It

was on this foundation that Taiwan's cultural and educational development took off.

Technology view:

The development of science and technology requires a steady influx (an arrival o

something in great numbers) of resources. The majority of Taiwans industries are small -

and medium-sized enterprises, with limited resources for R&D.

Industrial research and development has progressed from improving animal, plant and

fish species, to upgrading industrial production technology, and advancing

mechanization. However, faced with limited land and other resources, these enterprises

have, with government guidance, swiftly developed from traditional industries into

capital intensive, high-tech industries.

Environmental view:

Taiwan is developing green cities for regulating pollution rate as per government

prescribed terms and conditions. Recent development states that Taiwan has successfully

managed downsizing level of pollution by opening up green gardens, cities and etc.

The companies that seek to operate in Taiwan are subjected to the major environmental

laws in the region. These include the Air Pollution Control Act, the Water, Pollution

Control Act, and the Waste Disposal Control Act. Infringement of such laws shall have

some punitive effects on the company. However, the government of Taiwan has also

instituted incentive programs for companies that shall be adhere to green productivity

initiatives of the region.

Legal View:

Basically, entering into business in Taiwan also entails a company to be subjected to

taxation requirements. For companies with a head office that are incorporated outside

Taiwan, their branch office shall be taxed based on the actual corporate income which

they have derived from the local resources. The taxable range in Taiwan for foreign

companies is from 20%-25% of the total local earnings.


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Consumer Electronics

Consumer electronics (abbreviated CE) areelectronic equipment intended for everyday

use, most often inentertainment,communications andoffice productivity.

Main products includeradio receivers,television sets,MP3 players,video recorders,DVD

players,digital cameras,camcorders,personal computers,video game consoles,

telephones andmobile phones.Increasingly these products have become based on digital

technologies, and have largely merged with the computer industry in what is increasingly

referred to as theconsumerization ofinformation technology such as those invented

byApple Inc. andMIT Media Lab.

Recent Trends

The analog -to- digital conversion has introduced many new standards in audio and video,

which greatly improves the quality and affordability of the multimedia digital experience.

Further, with the proliferation of broadband, accessing the media has become easy and

rewarding for consumers. With easy access and the rich quality enabled by the digital

revolution, the following consumer electronic trends are emerging:

In-Home EntertainmentWith prices of flat-panel TVs (LCD, Plasma, and DLP) falling

more than 30 percent a year, large screen HDTVs are showing up in more and more

homes. With homes equipped with HDTVs, and high-definition (HD) content available

through broadband, terrestrial, cable, and satellite, consumers now enjoy the complete

theatre experience in the convenience of their homes. HDTVs will become more

mainstream with the imminent availability of HD content and DVD players.

Staying Connectedwithin a home and while travelling, consumers want to stay

connected. Historically, they used their laptops for accessing email and the Internet.

However, with terrestrial and mobile broadcast services for handheld devices becoming

common and broadband wireless connectivity (WiFi and WiMAX) becoming ubiquitous,

mobile devices such as cell phones, PDAs, and portable media players are being used to

access audio, video, and data. Providers of these mobile devices are constantly updating

their technology features to keep up with consumer demand.

Media and Data Convergencetraditionally, there were data-centric devices such as PCs

and PDAs and media-centric devices such as TVs and portable media players. However,

the line between them is becoming blurry because consumers are demanding products

that can handle both. The new generation of consumer gadgets must handle both media
http://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Entertainmenthttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Officehttp://en.wikipedia.org/wiki/Radio_receiverhttp://en.wikipedia.org/wiki/Television_sethttp://en.wikipedia.org/wiki/MP3_playerhttp://en.wikipedia.org/wiki/Video_recorderhttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/Digital_camerahttp://en.wikipedia.org/wiki/Camcorderhttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Consumerizationhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/MIT_Media_Labhttp://en.wikipedia.org/wiki/MIT_Media_Labhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Consumerizationhttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Camcorderhttp://en.wikipedia.org/wiki/Digital_camerahttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/DVD_playerhttp://en.wikipedia.org/wiki/Video_recorderhttp://en.wikipedia.org/wiki/MP3_playerhttp://en.wikipedia.org/wiki/Television_sethttp://en.wikipedia.org/wiki/Radio_receiverhttp://en.wikipedia.org/wiki/Officehttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Entertainmenthttp://en.wikipedia.org/wiki/Electronics


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and data on the same platform. Such convergence is driving many traditional data-centric

companies such as Microsoft and Cisco to enter the consumer market, creating fierce

competition for traditional consumer brands.

These trends indicate that the consumer electronics market is in a rapid evolution phase

and the manufacturers are under tremendous competitive pressure to be first-to-market

with unique and differentiated products. However, a successful product in the consumer

market quickly attracts copycat products from the competition, leading to rapid price

erosion. To stay ahead of the competition, consumer manufacturers are forced to

constantly enhance their products or support emerging technologies. For these reasons,

we are seeing a dramatic reduction in the consumer product life cycle.

Traditional design methodologies of using ASSPs or ASICs alone come with significant

drawbacks. ASSPs come with a pre-defined feature set and rarely support the

latest technology features, making it impossible for manufacturers to offer differentiated

products. ASICs have long development cycles that run counter to the short product cycle

requirements of consumer markets. Hence, new design methodologies that promote

flexibility, rapid innovation, and low initial development costs are required. For system

designers, this means using programmable logic devices (PLDs) along with ASICs or

ASSPs to provide the agility and differentiation needed to be competitive in the consumer

electronics market.


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SWOT Analysis of Consumer Electronics Industry

Strength

High Research and development leads to low cost advantage.

Continues innovation in products and technology enables the companies to attractcustomer and to compete with competitors.

Good Brand Name and efficient Services leads to customer loyalty.

Effective Supply chain which makes new product available to the customer in uickest

time.

R&D enables the companies to develop unique products.

Weakness

Companies cannot produce in bulk which makes it difficult for them to achieve

economies of scale.

New products may enter in the market but the customers may not be aware about the

same.

Opportunities

Companies can increase their market by entering new markets in domestic as well asglobal level.

Providing Customized products to customer.

Threats

High Competition from domestic as well as foreign player.

Rapid Changes in technology leading to high investments.

Little product differentiation.Continues reduction in prices by companies which results in price wars and lower

margins.


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Porters five forces for Consumer Electronics Industry

1.Potential Entrants (Entry Threat):-

The potential new entrant in the electronics market is Low due to following reasons.

Huge capital requirement for a firm to enter in this segment.

Rapidly evolving technology is another entry barrier as for a new entrant; it is very

difficult to build technology advanced products right from the start as they will need

time to understand the actual evolutions in this field.

Major firms have efficiently built their supply chain and hence it will be very difficult

for a new entrant to compete with them on price.

Major players have already developed their huge brand equity which will be very

tough for a new entrant to establish in this market.

Brand loyalty to existing firms. Since brand loyalty is moderate in this sector, hence

this also imposes entry threat on new entrants.

2. The Bargaining Power of Suppliers:-

According to present market conditions, in electronics sector also the bargaining

power of supplier is on Low end because of following reasons. Product differentiation is very low. Since most of the companies are developing similar

kinds of products, therefore the power is very less.; hence they have less power to

bargain.

Since there is no or very negligible switching cost, hence this again makes the supplier

power to be on lower end.

Impacts on inputs on cost:- Since in this sector by changing the inputs i.e. input

technology or other raw material, the firms cannot drastically differentiate on prices in

order to be competitive, hence this also leads to reduced in supplier power.


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3. The Bargaining power of customers (buyers):-

The bargaining power of buyer is Highbecause of following reasons.

Use of internet to get all the information: - Buyer has a power to go online and compare

the prices and features of various products online. Hence buyers are more informative

and educated regarding products and this leads to increase in their power.

Mid to High price sensitivity of buyer. Since buyer are generally very price sensitive, so

this also leads to increase in buyer power.

Feedbacks and suggestions available over internet. With era of internet, there is also

increase in buyer power as buyers can now easily read the feedbacks and suggestions

regarding the products. So they are more informed and also influence buying decisions

of other powers.

Buyer switching cost is very less; hence this also leads to increase in buyer power.

4. Threat of substitute products or services

Threat of substitutes are again from Mid to High.

Due to changing technology, there is high threat of substitute products in this industry

Buyer have huge propensity to substitute if any firm provide more technologically

advanced product.

5. Intensity of competitive rivalry

The competitive rivalry is again very Highin this industry due to following reasons.

There is continuous innovation in this industry making an intense competitive rivalry.

Hence innovation leads to sustainable competitive advantage.

Powerful competitive strategy: - Every firm has a different strategy and core

competencies which make their rivalry even more intensive.


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Acer Inc

Company History:

Called "the region's most impressive technology company" in a 1996 article in TheEconomist, Acer Inc. is Taiwan's leading exporter and the world's seventh-largest

personal computer brand. The company also ranks among the world's ten biggest

manufacturers of individual components like keyboards, monitors, and CD-ROM drives,

and is America's ninth-largest personal computer producer. By 1995, the company was

producing four million PCs annually, 25 percent of them OEMs (products sold under other

companies' labels). Under the guidance of Chairman and CEO Stan Shih, Acer used

ground-breaking strategies to bounce back from a US $22.7 million loss in 1991, earningUS $205 million on sales of US $3.2 billion in 1994. Shih hoped to increase Acer's global

sales to US $15 billion by 1999, by which time the company would operate as a

"federation" of local manufacturing, assembly, and marketing units.

Business Origins

Acer's founder was born Shih Chen Jung in 1945. A shy youth, Shih blossomed at National

Chiao Tung University, where his natural math aptitude helped him graduate at the top ofhis class. Shih, who later westernized his given name to Stan, earned a master's degree in

1972 and went to work as a design engineer at Qualitron Industrial Corp.

It was not long, however, before the entrepreneurial bug bit Shih; in 1976, he and several

friends founded Multitech International with a $25,000 initial investment. The new

firm started by designing hand-held electronic games, then expanded into the distribution

of imported semiconductors. Shih renamed his company Acer Inc. in 1981. The name was

derived from the Latin word for acute or sharp.


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The company enjoyed its first international success that year with the launch of

Microprocessor, a teaching tool. The company began manufacturing PC clones--

computers and components that were sold to larger companies with strong brand names-

-in 1983. Acer diversified vertically in the late 1980s, soon becoming "one of the most

vertically integrated microcomputer manufacturers in the world," according to Los

Angeles Business Journal.

In 1995, Fortune's Louis Kraar called Stan Shih "a fascinating combination of engineering

nerd, traditional Chinese businessman, avant-garde manager, and international

entrepreneur, with an outsize ambition and vision to match." The young CEO applied all o

these talents to his young enterprise. In stark contrast to the micromanagement,

nepotism, and profit-taking typical of Taiwanese companies, Shih established a modern,

progressive corporate culture. Although Shih's wife, Carolyn Yeh, served as the company's

first bookkeeper, the founder vowed that his three children would have to look for

jobs elsewhere. Time clocks were anathema, even in production plants. In 1984 he

established Taiwan's first stock incentive program. Within four years, 3,000 of Acer's

employees were also stockholders.

In 1981, Acer hinted at a sweeping change in strategy with the establishment of Third

Wave Publishing Corp. The term "third wave" referred to the most recent phase of the

history of Taiwan's computer industry: the first was characterized by trademark and

patent piracy, the second by clonemaking, and the third by technological innovation.

Instead of simply churning out other companies' designs, Acer began to set itself apart

from most of its Taiwanese competitors by doing its own research and development. For

example, the company developed one of the world's first Chinese language computer

systems. In 1986, Acer was second only to Compaq to introduce a 32-bit PC with an Intel

386 microprocessor.

Acer went public in 1988, having chalked up average annual growth of 100 percent from

1976 to 1988. In 1988, net profits totalled more than US $25 million.

Early 1990s Setbacks

The late 1980s brought internal and external changes that had a devastating effect on

Acer. The internal problems were completely unexpected. In 1989, Shih hired Leonard Liu

away from a 20-year career with International Business Machines Corp. (IBM), making

him president of the Acer group and chairman and chief executive officer of Acer America


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Corp. Described in an October 1995Fortune article as "a cerebral Ph.D. in computer

science from Princeton," Liu had previously been the "highest-ranking Chinese American

executive" at

IBM. Liu's managerial style reflected his experience at "Big Blue": in contrast with Shih's

traditionally progressive corporate culture, Liu tried to centralize control of Acer. His off-

putting approach has been blamed for a management exodus in the early 1990s.

At the same time, the computer industry quickly matured, shifting from a high profit

margin business to a low margin commodity practically overnight. Price wars pushed

component prices down so rapidly, and a strong New Taiwan dollar made the country's

goods so expensive, that it became difficult to make a profit on the finished product.

Acer's sales rose from US $530.9 million in 1988 to US $977 million by 1990, but its

profits dropped from US $26.5 million to US $3.6 million during the same period. In 1991,

Acer posted its first ever annual loss, US $22.7 million. More than US $20 million of that

shortfall came from Acer America, which had struggled since its inception. Acer's stock

dropped to 50 percent of its initial public offering price. Shih had to sell Acer's

headquarters to make a profit in 1992.

These difficulties, however, did not deter Shih from making several expensive, and oft-

criticized, expenditures during the late 1980s and early 1990s. In 1989, Acer invested US

$240 million in a joint venture with Texas Instruments and China Development

Corporation, a Taiwanese development bank. The cooperative enterprise built Taiwan's

first DRAM (dynamic random access memory) factory. Half of its output was sold to Acer,

and the other half was sold on the world market. Some industry observers ballyhooed the

project, noting a glut in the global DRAM market. Acer also expanded production capacity

at its main plant, spent US $36 million on a global marketing campaign, and made

questionable acquisitions in the United States and Germany. Financial World's Jagannath

Dubashi was skeptical that the company's investments would pay off, noting in her July

1991 coverage of the company that "this new aggressiveness seems both poorly timed

and unrealistic." She even characterized the company's bold moves as "a desperate

gamble."

At the time, Shih would have been the first to agree with such an assessment. In January

1992, he offered to resign from the company he had founded. Acer's board of directors

turned down Shih's resignation, but accepted Leonard Liu's withdrawal three monthslater. By mid-year, Shih had resumed day-to-day administration of Acer and its American

subsidiary.


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Instead of being cowed by the setback, Shih was determined to cement Acer's future in

the PC industry by transforming it from just another OEM into one of the world's

leading computer brands. He would achieve this goal via several revolutionary strategies.

New Methods Pace Mid-1990s Turnaround

In a 1995 Financial World article, Shih compared Taiwanese computer manufacturing to

Chinese restaurants, saying that "Chinese food is good, and it is everywhere, but it has no

uniform global image or consistent quality." The same was true of personal computers;

although most were made in Taiwan, they were sold under several (primarily American

and Japanese) brands, with varying levels of quality. Shih wanted Acer to be more like

McDonald's, the quintessential fast food restaurant that boasted a strong brand image and

strict quality standards.

This unique paradigm shift required a complete overhaul of Acer's production and

distribution scheme. Instead of assembling computers in Taiwan, as it had done for more

than a decade, the company began to ship components to 32 locations around the world

for assembly. Shih compared computer components like casings, keyboards, and mice to

staples like ketchup and mustard that could be shipped slowly and stored indefinitely. He

likened the motherboard, which had to have the "freshest" technology possible, to the

meat in a sandwich. It was shipped by air from Taiwan to each assembly operation. And

finally, Shih compared the CPU and hard drive to "very expensive cheese: we try to source

them locally." Shih's adoption of this unique strategy earned him the nickname "the Ray

Kroc of the PC business."

This production scheme saved on shipping costs and enabled Acer to include the most up-

to-date (Shih liked to call it the "freshest") technology available. In Acer-speak, "fresh"

meant innovative. Not content to rely on low-end knockoffs of other companies'technology, Acer stayed abreast of the industry's latest developments. In 1992, it

launched a multi-user UNIX system as well as 386- and 4865x-based PCs. That year also

saw the introduction of an international service and support network, a vital element o

any successful PC business in the 1990s. In 1993, Acer unveiled a new PC that came

equipped with a RISC (reduced instruction-set computing) chip and Microsoft Corp.'s

most recent version of the Windows operating system.


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Shih hoped to bring the "fast food" concept all the way to the retail level, so that

customers could custom-order computers with peripherals and memory capacity

specifically suited to their needs. Acer tested this concept at a company-owned retail

store in Taipei. It seemed to be as close as Acer could come to McDonald's-style service:

only two hours passed from the time a system was ordered to the time it was booted.

Shih's "global brand, local touch" strategy was closely related to the "fast food"

distribution concept. Instead of creating a series of centrally controlled foreign

subsidiaries, Acer established a network of virtually autonomous affiliates, much like a

fast food franchise system. Each of these affiliates was managed by a group of locals who

determined product configurations, pricing strategies, and promotional programs based

on national or regional preferences. The affiliate would usually have just one Taiwanese

person on staff to facilitate inter organizational communications. Sales & Marketing

Management characterized the system as a "revolutionary departure from the traditional

hierarchical model of worldwide branches and subsidiaries reporting to a head office."

Instead, it was "a commonwealth of independent companies, united only in their

commitment to a common brand name and logo."

This strategy gave each Acer affiliate the semblance of a local company, an image that

carried with it several benefits. Perhaps most important, it helped to downplay Acer's

Taiwanese roots. Despite the country's large strides in the area of quality, "made in

Taiwan" continued to carry negative connotations in the minds of many consumers. While

Shih was proud of his company's heritage, individual affiliates often found it efficacious to

de-emphasize that aspect of the business.

Globalization at Acer employed a third strategy adapted from an Asian chess-like game

called "Go." Instead of jumping directly into the world's largest and most important

computer markets, Acer conquered the surrounding markets before entering the United

States. For example, Acer established itself as the leader in less hotly contested markets in

Latin America, Southeast Asia, and the Middle East. By 1995, it was the top-selling

computer brand in Mexico, Bolivia, Chile, Panama, Uruguay, Thailand, and the Philippines,

not to mention Taiwan.


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This combination of tactics worked quickly and well, vindicating many of Acer's

previously criticized moves. In 1993, Acer posted record profits of US $75 million; 43

percent of that year's net was generated by the DRAM joint venture, considered "the most

efficient in the DRAM industry" by some observers. From 1994 to 1995, Acer advanced

from fourteenth to ninth among the world's largest computer manufacturers, surpassing

Hewlett-Packard,Dell,and Toshiba. Total sales grew to US $3.2 billion in 1994, and net

income increased to US $205 million, as Acer America turned its first annual profit in the

1990s.

Strategies for the Mid-1990s and Beyond

In the mid-1990s, Acer began to globalize production as well as assembly, building a

keyboard and monitor plant in Malaysia in 1994. The company planned a motherboard

and CD-ROM factory for the Philippines and hoped to set up production in Argentina,

Chile, Thailand, Dubai, South Africa, Brazil, India, the People's Republic of China, and the

former Soviet Union.

In 1994, Shih unveiled a plan to "deconstruct" Acer into 21 publicly traded business units

by the end of the 20th century. Acer Inc. would continue to own anywhere from 19

percent to 40 percent of the firms' stock, but Shih hoped that their independent status

would enable the individual units to compete more effectively by facilitating

entrepreneurship, inspiring research and development, and allowing for corporate

fundraising through stock and bond offerings. Michael Zimmerman of PC

Week speculated on another possible motivation behind the plan, known internally as

"21-in-21." His June 1994 piece on Acer noted that "Separating the divisions will also

clear a path for Shih to retire and, as one observer said, 'to leave his legacy intact' by not

risking the future of his brainchild to a successor." In fact, Shih told PC Week that he

"expects to withdraw from Acer and the workforce" by 1999.

Acer Computer International, the company's Asia-Pacific distributor, had its initial public

offering in September 1994. The approximately US $55 million floatation was

oversubscribed by about 20 times. Spin-offs of Acer Peripherals, the corporation's

manufacturer of keyboards and monitors, and Acer Sertek, the Taiwanese distribution

operation, were planned for 1996. Stock in Acer America and certain Latin American

operations was slated to go on the auction block by 1997.
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The Economist reported that Acer's revenues had increased by 75 percent from US $3.2

billion in 1994 to US $5.7 billion and that Shih hoped to increase that figure to US $15

billion by 1999 via expansion into consumer electronics like televisions and fax machines.

The article also emphasized that "Given the computer industry's history of wild swings,

Mr. Shih's success may not last forever; but his company is one of the few large ones in

developing Asia that may be able to teach western businesses more than it can learn from

them."

Products of Acer Inc

Business desktops

Acer Veriton series

Business notebooks

Acer TravelMate series

Acer Extensa series

Chrome books

Acer AC700

Acer C710

Acer C720 (2GB)

Acer C720 (4GB)

Acer C720P

Computer displays

G Series

P Series

H Series X Series

B Series

V Series

S Series

T Series

D Series

MO Monitor TV series
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Consumer desktops

DesktopAcer Aspire Predator

Acer Aspire Desktop series

Acer Aspire Predator series

Consumer notebooks

Acer Aspire Notebook series

Acer Aspire Timeline series

Acer Ferrari products series

Acer IconiaHome network solutions

Acer Clear.fi

Mobile phones

Acer CloudMobile

Acer Allegro (WP8)

Acer Tempo series

Acer Liquid series

Acer beTouch

Acer neoTouch

Acer Stream

Acer E110

Acer DX

Acer F

Acer Iconia

Acer T Acer X960
http://en.wikipedia.org/wiki/Acer_Aspire_Predatorhttp://en.wikipedia.org/wiki/Acer_Aspire_Desktophttp://en.wikipedia.org/wiki/Acer_Aspire_Predatorhttp://en.wikipedia.org/wiki/Acer_Aspire_Notebookhttp://en.wikipedia.org/wiki/Acer_Aspire_Timelinehttp://en.wikipedia.org/wiki/Acer_Ferrari_productshttp://en.wikipedia.org/wiki/Acer_Iconiahttp://en.wikipedia.org/wiki/Acer_Clear.fihttp://en.wikipedia.org/wiki/Acer_CloudMobilehttp://en.wikipedia.org/wiki/Acer_Allegrohttp://en.wikipedia.org/wiki/Acer_Tempohttp://en.wikipedia.org/w/index.php?title=List_of_Acer_Liquid_Smartphones&action=edit&redlink=1http://en.wikipedia.org/wiki/Acer_beTouchhttp://en.wikipedia.org/wiki/Acer_neoTouchhttp://en.wikipedia.org/wiki/Acer_Streamhttp://en.wikipedia.org/wiki/Acer_E110http://en.wikipedia.org/w/index.php?title=Acer_DX&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Acer_F&action=edit&redlink=1http://en.wikipedia.org/wiki/Acer_Iconiahttp://en.wikipedia.org/w/index.php?title=Acer_T&action=edit&redlink=1http://en.wikipedia.org/wiki/Acer_X960http://en.wikipedia.org/wiki/File:2008Computex_Acer_Aspire_G_Predator.jpghttp://en.wikipedia.org/wiki/Acer_X960http://en.wikipedia.org/w/index.php?title=Acer_T&action=edit&redlink=1http://en.wikipedia.org/wiki/Acer_Iconiahttp://en.wikipedia.org/w/index.php?title=Acer_F&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Acer_DX&action=edit&redlink=1http://en.wikipedia.org/wiki/Acer_E110http://en.wikipedia.org/wiki/Acer_Streamhttp://en.wikipedia.org/wiki/Acer_neoTouchhttp://en.wikipedia.org/wiki/Acer_beTouchhttp://en.wikipedia.org/w/index.php?title=List_of_Acer_Liquid_Smartphones&action=edit&redlink=1http://en.wikipedia.org/wiki/Acer_Tempohttp://en.wikipedia.org/wiki/Acer_Allegrohttp://en.wikipedia.org/wiki/Acer_CloudMobilehttp://en.wikipedia.org/wiki/Acer_Clear.fihttp://en.wikipedia.org/wiki/Acer_Iconiahttp://en.wikipedia.org/wiki/Acer_Ferrari_productshttp://en.wikipedia.org/wiki/Acer_Aspire_Timelinehttp://en.wikipedia.org/wiki/Acer_Aspire_Notebookhttp://en.wikipedia.org/wiki/Acer_Aspire_Predatorhttp://en.wikipedia.org/wiki/Acer_Aspire_Desktophttp://en.wikipedia.org/wiki/Acer_Aspire_Predator


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Netbooks

NetbookAcer Aspire One Ultra-Thin 522

Acer Aspire One series Ferrari One

Nettops

Acer Aspire Revo

Projectors

Professional series

Home series

Travel series Value series

Servers and storage

Acer server F1 series

Tower series: T110 F1, T115 F1, T150 F1, T310 F1, T350 F1;

Rack series: R160 F1, R180 F1, R320 F1, R360 F1, R380 F1, R385 F1, R585 F1;

Blade series: B2x285 F1, B2x280 F1, B460 F1;

Gemini series: B1170 F1, B2170 F1, B2170t, B2175 F1

Home Server Series: H340, H341, H342, Altos Easystore M2

Acer storage series

N500 F1, N1600 F1, HNAS3080, GS2040, AMS2100, AMS2300
http://en.wikipedia.org/wiki/Acer_Aspire_Onehttp://en.wikipedia.org/wiki/Acer_Aspire_Onehttp://en.wikipedia.org/wiki/Acer_Ferrari_products#Acer_Ferrari_Onehttp://en.wikipedia.org/wiki/File:Acer.aspire-522.amd-fusion.ubuntu_1c555_7117.jpghttp://en.wikipedia.org/wiki/Acer_Ferrari_products#Acer_Ferrari_Onehttp://en.wikipedia.org/wiki/Acer_Aspire_Onehttp://en.wikipedia.org/wiki/Acer_Aspire_One


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Tablets

Acer Iconia Tab W5

Acer Iconia Tab series

Television]

AT Series

Other (discontinued devices)

Digital cameras

Personal digital assistants

Automotive navigation systems

Acer PICA
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SWOT Analysis of Acer Inc

Strength 1. Acer group employs 8000 employees across the globe

2. Operational Efficiency, tight control on Overhead Costs

3. It has huge network, in around 38 countries so it works

on Economies of Scale

4. Acers aggressive price strategy, particularly suitable to a

time of economic recession

Weakness 1. Less presence in B2B market when compared to Dell or

Lenovo

2. It has limited product portfolio for midsize business

3. Market share growth is slow due to competition

Opportunity 1. Economic downturn, which favours low-price products

2. Growth of Mobile PCs in Homes in emerging markets, where

brand preferences are weaker

3. Growth into the Chinese market

4. Growth into midsize-business markets

5. Reaching large numbers of customers by targeting various

segments through multiple brands and by joint ventures in

various countries

Threats 1. Continued Price Decline in Mobile PCs, due in part to mini-

notebooks, tablets, Smartphoneswhich erodes margins and

profitability

2. Dell's expansion into indirect sales

3. Samsungs entering into Computer mobile PCs

4. Increased competition due to the movement toward

disintegrated computer components


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Taiwan's Evolution in Electronics Manufacturing

Growth in Electronics Industry
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Taiwan's Leading PC Vendors


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Structure of Acer Inc

Organizational chart of Acer Inc

Client-server organizational structure

In order to carry out its vision of a decentralized confederation of business units, Acer

reorganized itself into a client-server organizational structure In the client server

structure, all of Acers business units and affiliated companies were expected to act as

clients or play dual client/server roles in support of other member companies. The clients

and servers were separated according to either product lines or regions. Strategic

Business Units (SBUs) were responsible for the design, development and production o

components and systems and were also responsible for OEM sales and marketing.

Regional Business Units (RBUs) were primarily Acer-brand marketing companies,

responsible for specific regional territories. They developed new distribution channels,

assembled finished products, provided support for dealer and distributor networks, and

created new joint ventures in key local markets.


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Acer established four special functional teams (IT, logistics, customer service, and brand

management) directly from headquarters to oversee these four key functions throughout

the various business groups. The IT Steering Committee, responsible for coordinating IT

across the entire Acer Group, consists of chief information officers (CIOs) from each o

Acers business units. In addition headquarters may also assign cross-group task teams to

implement short-term projects that cut across business units.

Functions & business units of Acer computers

Acer International Services Group (AISG):

Acer Computer International (Marketing, sales and assembly of Acer brand

products in Asia, Africa, the Middle East, Australia, New Zealand and CIS countries.

AASOFT(software content development)

SERVEX (software content development)

Acer Sales and Service Group (ASSG)

Acer Sertek(marketing, sales and assembly of Acer brand products in Taiwan and

mainland China,

Acer Marketing Services (marketing, sales and assembly of Acer brand products in

mainland China)

Weblink International Inc.(channel management for computer peripherals and

software)

Vision Tech Information Technology Inc (distributor for Computer Associates

software)

HI TRUST (e-commerce security)

Acer Semiconductor Group (ASG)

Acer Semiconductor Manufacturing Inc. (design and manufacture of IC logic

chips and DRAMs)

Acer Laboratories Inc. (design and manufacture of core logic chips, multimedia

chips and I/O controllers)

Acer Testing Inc.(IC testing services)


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Acer Technology Inc(design and manufacture of memory modules)

Taiwan Semiconductor Technology Corp (IC packaging services)

Acer Information Products Group (AIPG)

Acer Inc (design and manufacture of computer systems, components and consumer

electronics products, OEM sales)

Acer Netxus Inc. (high-speed network systems, Internet/Intranet onnection

systems)

Acer Neweb (wireless communications equipment)

Acer America Corp.(marketing, sales and assembly of Acer brand products in

North America)

Acer Europe B.V. (marketing, sales and assembly of Acer brand products in

Europe)

Acer Softech (software design)

Acer Peripheral Group (APG)

Acer Peripherals Inc. (API) (color monitors, multimedia TV, CD-ROM drives,

keyboards, scanners and mobile phones)

Acer Display Technology (ADT) (design and manufacture of plasma display panels

and LCD modules)

AMT (design and manufacture of rewriteable media for optical storage and

printers)


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Trade, commerce and investment relationships:

By the end of 2013, there are more than 70 Taiwanese enterprises have invested or set up

factories in India; the accumulated amount of investment was more than USD 1.4 billion.

The Bilateral Economic Consultation Meetings are held regularly and industrial and

commercial groups exchange visits frequently. In 2013, the bilateral trade amount was

USD 6.171 billion between India and Taiwan.

Science & technology cooperation:

The MoU on Scientific and Technological Cooperation was signed between TECC and ITA

in 2007. The continued MoU of cooperation was signed between Taiwans Academia

Sinica and Indian National Science Academy in 2012. Bilateral joint meetings and

academic seminars are held annually. 29 Indo-Taiwan joint proposals are to be carried

out in 2014.

Education communication:

The educational and academic communications between Taiwan and India had been

developed smoothly in the last several years. MoU on acknowledgement of each other's

university degrees was signed between Foundation for International Cooperation in

Higher Education of Taiwan (FICHET) and Association of Indian Universities (AIU) in

2010, which has resulted in close and frequent academic exchange and cooperation

between the two sides. As of now four Taiwan Education Centers had been set up in India

by National Tsing Hua University. They are becoming the platforms for academic

cooperation and Mandarian teaching.

Now Indian students have opportunities to study in Taiwan through Taiwan Scholarships

and Huayu Enrichment Scholarships provided by the Government of Taiwan. To

encourage enrolment of Indian students, Taiwanese universities and colleges also provide

scholarships to attract outstanding Indian students. In an average there are around 600

Indian students studying in Taiwan every year. Taiwan and Indias academic cooperation

is developing in fast paces.


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Taiwan Economic and Cultural Center in India

General Background:

The Taipei Economic and Cultural Center (TECC) in India is the Republic of China's

(Taiwan) government representative office in India. It is responsible for promoting

Taiwan and Indias bilateral relations in the areas of the economy, trade, investment, the

media, tourism, culture, education, and science and technology. TECC in India is currently

headed by Representative Chung- Kwang Tien and has four divisions. They are

the Consular, Economic, Education, and Science and Technology. Each division is

responsible for managing related aspects of the bilateral relationship and advancingmutual interests between Taiwan and India.

The Consular Division issues passports to ROC citizens and visas to foreigners who wish

to travel to Taiwan. The Economic Division promotes the economic and trade relations

between Taiwan and India through contacts with the government and the private sectors

in India. The Education Division promotes educational communication with India. Taiwan

has always patronized higher education and introduced The Taiwan Fellowship

program for Indian Scholars through which there is swift flow of knowledge between

both countries. The Science and Technology Division aims to boost the bilateral and

multilateral scientific exchanges and activities. This Division is also actively prompting

and bridging the cooperation amongst scientists, institutes and universities of Taiwan and

India.


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Policies and Norms of Taiwan for Trade

IMPORT POLICIES

Tariffs

When Taiwan became a WTO Member in January 2002, the authorities implementedtariff-rate quotas (TRQs) on small passenger cars, three categories of fish and fish

products, and a number of agricultural products. On January 1, 2007, in accordance with

its WTO commitments, Taiwan made additional tariff cuts and increased TRQ amounts on

these products. For example, the commodity tax on small passenger cars dropped from 35

percent to 30 percent (which is waived for electrical cars until 2014 in an effort to

promote energy conservation). Beginning January 2011, Taiwan fully eliminated TRQs on

small passenger cars. Taiwan maintains Special Safeguards (SSGs) for a number ofagricultural products covered by TRQs. SSGs, which are generally permitted under Article

5 of the WTO Agreement on Agriculture, allow Taiwan to impose additional duties when

import quantities exceed SSG trigger volumes or import prices fall below SSG trigger

prices. Because Taiwan previously did not import many of these products, SSG trigger

volumes are relatively low. Over the last few years, Taiwan has imposed SSG provisions

on poultry imports and other products, including types of offal.

U.S. industry continues to request that Taiwan lower tariffs on many goods, including

large motorcycles, wine, canned soups, cookies (sweet biscuits), snack foods, vegetable

juices, potato and potato products, and various fruits and vegetables.

Import Controls

Taiwan has eliminated more than 99 percent of its import controls, but 107 product

categories still face import restrictions, up from 71 product categories in 2008. Of these

107 categories, 21 require import permits from the Board of Foreign Trade, and 86

categories are prohibited. Most of the requirements reportedly are based on public health

and national defence concerns.

The Economic Cooperation Framework Agreement includes early harvest lists of 267

goods permitted to enter Taiwan from the PRC with tariff reductions and exemptions. The

early harvest lists will be phased in over three years starting on January 1, 2011, with the

goal of eliminating tariffs on all of the 267 items at the end of the three-year period.

Taiwan still retains import bans on more than 2,000 products from the PRC.


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Agriculture and Fish Products

Prior to joining the WTO, Taiwan banned or restricted imports of 42 agricultural and fish

items. In January 2002, Taiwan eliminated restrictions on the importation of 18 of these

categories and implemented tariff rate quotas (TRQs) on the remaining 24 items. In

October 2002, market access for rice was changed from a minimum market access regime

to a TRQ. On January 1, 2005, Taiwan eliminated TRQs on four products of interest to the

United States, including chicken meat, poultry offal, and pork bellies and offal. In February

2005, Taiwan unilaterally eliminated sugar from its TRQ. At the end of 2007, Taiwan

phased out TRQs for persimmon, mackerel, carangid, and sardines. Currently, 16

agricultural products are subject to TRQs.

Rice

Upon accession to the WTO in 2002, Taiwan committed to lift the ban on rice importation

and opened up an import quota of 144,720 metric tons on a brown rice basis under a

special treatment regime. Starting in 2003, Taiwan shifted its rice importation from a

special treatment regime to a complex TRQ system that includes a ceiling price

mechanism. After the United States and other WTO members raised objections to

Taiwans method of quota allocation, Taiwan subsequently agreed that its public sector

import quota would be allocated based on a country-specific quota (CSQ) regime, with the

U.S. quota accounting for the largest share at 64,634 metric tons -- valued at

approximately $50 million (based on trade flow estimates) at current world prices

Wood Products

The issue of counterfeit U.S. industry-associated wood certification stamps noted in the

2010 National Trade Estimate has largely been resolved through an education campaign

conducted by importers of U.S. wood products to familiarize local builders and architects

with legitimate certification stamps. The U.S. wood industry also plans to establish an

association office in Taiwan in 2011, which will allow for even closer monitoring of this

issue. Revisions to Taiwans building and fire codes in 2008 resolved outstanding issues

for general construction lumber, improving market access for U.S. exports. With regard to

heavy timber, however, the United States continues to engage with Taiwan authorities to

encourage adoption of fire codes consistent with those in the United States.


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Automobiles and Motorcycles

Although the Ministry of Transportation and Communications (MOTC) opened most

expressways to large motorcycles with engine displacement of 550cc or more in 2007, the

MOTC subsequently asked the Directorate General of Highways (DGH) in 2009 to study

further the feasibility of opening highways to those motorcycles. Following completion o

the study, the MOTC concluded that opening highways to large motorcycles would not be

appropriate. MOTC continues to restrict motorcycles with engine displacement of over

550 cc from Taiwan's highways.

EXPORT SUBSIDIES

Taiwan provides incentives to industrial firms in export processing zones and to firms in

designated Emerging industries. Taiwan has notified the WTO of these programs.

INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION

Taiwan generally provides strong IPR protection and enforcement. However, rights

holders continue to express concern regarding: infringement of copyrighted material on

the Internet; illegal textbook copying on and around university campuses; inadequate

protection for the packaging, configuration, and outward appearance of products (trade

dress); and the continued availability of counterfeit pharmaceuticals in Taiwan. The

importation and transhipment of counterfeit products from China is also a problem, as

well as the collusion of some Taiwan companies in supplying components to mainland

factories producing Shanzhai counterfeits (e.g. mobile phones, netbooks, and other

electronic devices). Taiwan also needs to provide an effective system to address patent

issues expeditiously in connection with applications to market pharmaceutical products.

Piracy on the Internet remains a serious IP enforcement concern in Taiwan. In April 2009,

the Legislative Yuan amended the Taiwan Copyright Law to require Internet service

providers (ISP) to undertake specific and effective notice-and-takedown actions against

online infringers to avoid liability for the infringing activities of users on their networks.

Rights holders expect to reach agreement on a "code of conduct" with ISP operators for

implementation of the new ISP law regulation.


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In January 2010, the Legislative Yuan passed an amendment to the Copyright Collective

Management Organization Act and an amendment to article 37 of the Copyright Law.

Copyright collection groups complained that both amendments, which require a single

portal and a joint tariff rate for fee collection, and exempt secondary public broadcasting.

Users from criminal liability, weaken copyright owners' ability to collect remuneration for

the use of their works.

Medical Devices

The medical device industry has expressed concern regarding pricing policies that

currently specify a Single purchase price for all medical devices that treat the same

indication. This policy does not take into account difference in quality and effectively

subsidizes lower-cost devices while underpaying for high-tech, higher quality devices,

discouraging the introduction of these devices into the Taiwan market.

SERVICES BARRIERS

Banking Services

Foreign banks may set up representative offices, branches, and subsidiaries in Taiwan.

Foreign-invested banks in Taiwan are accorded national treatment. Foreign entities may

acquire up to 100 percent equity in Taiwan banks, subject to certain requirements.

Securities Services

Foreign securities firms may set up representative offices, branches, and subsidiaries, and

Taiwan securities firms are not subject to any foreign ownership limit. In general, asset

management business requires a securities investment trust enterprise (SITE) license

and/or securities investment consultant enterprise (SICE) license. Both SITEs and SICEs

are allowed to raise and sell offshore funds, or a fund established outside of Taiwan.

Neither SITEs nor SICEs are subject to any foreign ownership limit.

Insurance Services

Taiwan allows foreign insurance firms to set up representative offices, branches, and

subsidiaries. Taiwan also allows foreign insurance firms to merge with or acquire local

companies. Foreign insurance firms in Taiwan may engage in life, non-life, and re-

insurance businesses.


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Telecommunications Services

The National Communications Commission (NCC) is an independent agency modeled

after the U.S. Federal Communications Commission which regulates Taiwan's

telecommunications and broadcasting sectors, and supports the development of these

industries. In 2008, the NCC began accepting and reviewing license applications when

submitted, rather than on a quarterly basis. In addition to completing NT$35 billion ($1.1

billion) of new broadband network construction ongoing since 2003, the NCC in July 2007

issued six regional licenses to Worldwide Interoperability for Microwave Access (WiMax)

operators. Three WiMax operators began services in 2009 . A total of six are in operation

as of 2010, a situation that will help break the dominance of the telecommunications

network by Chunghwa Telecom (CHT),the legacy carrier still partially owned by the

Ministry of Transportation and Communications and Taiwan's largest

telecommunications firm with approximately half of the market.

Despite these advances, the agency has been criticized for demanding that service

suppliers reduce fees, causing a decrease in infrastructure investment by firms. NCC has

been ineffective in integrating Telecommunications and broadcasting regulations, causing

Taiwan's telecommunications industry to fall behind in an era of digital convergence. For

example, current regulations prevent Taiwan's principal fixed-line phone company, CHT,

from running multimedia-on-demand (MOD) programs, and restrict another primary

mobile phone operator, Taiwan Mobile Co., from acquiring a cable television multisystem

operator. In addition, existing fixed-line operators report that they still face difficulties in

negotiating reasonable interconnection arrangements at technically feasible points in the

network of the dominant carrier, CHT.


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Import Export Policy of India

Import Restrictions

Control over the import of goods into India is exercised by the Import Trade Control

Organization, which functions under the ministry of Commerce. This organization is

supervised by the Director General of Foreign Trade stationed at New Delhi, who is

assisted by Additional and Joint Directors General and by other licensing authorities at

various centers. Current import policy, valid from April 1992 to March 1997, is embodied

in the Export and Import Policy book out by the Director General of Foreign Trade. Some

salient features of the import restrictions are as follows:

1. Goods may be imported freely without any restriction unless regulated on grounds o

public policy or listed in the negative list of imports. The negative lists comprise

prohibited, restrictive list of imports. The negative lists comprise prohibited, restricted

and canalized items:

a. The importing of prohibited items is banned;

b. The importing of restricted items is permitted under specific license, or in accordance

with a public notice conveying a general schedule;

c. Canalized items can be imported only through designated public sector agencies, such

as the Indian Oil Corporation and the State Trading Corporation. However, the central

government may grant licenses to others to import any canalized goods.

The negative list of import is under constant review; it is i

foreign study report

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