Question
a manufacturing operation could be a platform on which to expand Acer's presence in the huge China market for either existing or new product lines.
a manufacturing operation could be a platform on which to expand Acer's presence in the huge China market for either existing or new product lines. On the other hand, there were serious issues that could adversely affect Acer's economic return on any investment on the mainland. For example, uncertainty regarding crossstrait political relations created a risky business environment for Taiwanese companies investing heavily in China. Was the infrastructure sufficient to ensure effective logistics? And what about the opportunity costs associated with such a large investment was Acer missing out on more lucrative opportunities or were there alternative locations that would better suit its manufacturing needs? Other critical factors on which the decision would be based involved the safety and difficulties involved in the transfer of the expatriate workforce, the disparity between the two cultures, as well as environmental certification concerns. For Lin, this dilemma could be distilled into one principal question had Acer secured enough 'villages' to enter China, or was it too soon? Would Acer risk being surrounded by opponents and falling to its competitors in battle?
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