A Case Study of Lenovo Strategies

As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten

In his article, Don Clark expresses concerns about the future of International Business Machines cop in the long term by showing how the company net income and revenue are decreasing because of the shift toward computing service and software. Further, Chinese buyers are suspicious with American products due to the fact that the recent strains over intelligence-gathering actions operated by the US government. Therefore, it will be tough for IBM to sale it product in China to expand its shares (Don, 2015).

When Best Buy entered the Asian market by acquiring Jiangsu Five Star Appliance Company, they helped bridge the learning curve of international policies and procedures by

In 2005, Apple Computers experienced significant sales increases attributable to the earlier rollout of the iPod (Robbins & Judge, 2009). The positive publicity and brand perception associated with that project also spilled over to its entire line of Macintosh computers, further bolstering sales revenue and corporate profits that year. The sales volume of virtually all Apple products increased after the introduction of the iPod, hitting $320 million in June of 2005 (Robbins & Judge, 2009). In general, every successful Apple product has benefited brand recognition and perception and invigorated the sales of other product lines, even those not directly related to it. By the end of 2005, Apple had sold approximately 22 million iPod units and more than half a billion individual song downloads through its music store, iTunes (George & Jones, 2008).

IBM has cut off its personal computer lines, and has begun to target business people more and more. IBM has changed their message as businesses

In order for western firms to enter China market, they have to confront with complex and constantly changing

IBM, the biggest IT company in the world, from more than 80 years is the lider in supporting the innovation in business. The company offers complex solutions, adjusted to customers requirements.

In this report, the secondary data is used to assess and apply the use of economic theories and other relevant issues. The key findings of this report were that Lenovo is a US$39 billion fast growing business with its success completely depending on its innovation, high efficiency in global supply chain and for maintaining a strong business strategy that differentiates it from its competitors like Dell and Hewlett-Packard (hp).

Product Offering: Over the years, the features that are demanded by consumers has drastically changed and assuming that change would be constant, Lenovo can invest heavily in research and development of new products and technology offering features such as mobile form factor and high-speed internet access. Lenovo also needs to form strong partnerships with other manufacturers and retailers so that it can bundle products together to increase the total value for the user in a single

As direct exporting is the new proposed strategy in 3.1.1, Lenovo will be focusing on the pressures for global integration which is to seek cost reduction through economies of scale and arbitrage benefits. As Lenovo wanted to attain competitive advantage through cost leadership strategy, they first have to cut down their cost in order to be able to sell product with lower price. Hence, the pressure of global integration in cost reduction is identified there.

According to Turban, McLean and Wetherbe (2001:92-104), Competitive strategy may be defined as “a broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be required to carry out those goals”. Organisations including that of Apple Inc. seek to gain competitive advantage in the industry using competitive strategy which is a key factor to the organisations success or failure (Turban et al. 2001:92-104). The use of a Strategic Information system can help an organisation gain competitive advantage by its ability to increase performance and productivity (Turban et al. 2001:92-104).

This is because Lenovo is offering an affordable price through direct exporting which related to the cost leadership strategy. The Cost leadership is an effective business-level strategy to the extent that a firm offers low prices, provides satisfactory quality, and attracts enough customers to be profitable. (citation)

China is also scaling the technological arc in refined sectors such as mobile processor chips. It was absent in this sector where its competitors such as Qualcomm Inc. and Nvidia Corp. are a bit far. China 's Allwinner Technology Co. and Fuzhou Rockchip Electronics Co. are boosting their existence in the fast-developing market for chips that are utilized in low-end tablets and smartphones. The government of China has plans to expend about $5 billion to develop a fund for innovations in the microchip industry (Osawa, 2014). In terms of consumer products, very few Chinese varieties have become successful globally. Personal-computer Company Lenovo Group Ltd last year overhauled Hewlett-Packard Co. to be the

Founded in June 1911, IBM has always been a leading company in the technology industry and at the forefront of innovation. It is a manufacturer of computer hardware and software, and also provides infrastructure, hosting and consulting services. Before the 2000s, IBM was the largest PC vendor in the world. However, the hardware sales have continually declined since 2000, and IBM sold its PC group to Lenovo in 2004, as well as its x86 Server Business in 2014. In the new era of the technology industry, IBM has faced the challenge to transit from a hardware manufacturer to a service company.

Summary: Developing an Internet business in China is not easy, even though the country has the largest Internet user population among all countries in the Asia-Pacific region. Chinese laws make foreign investment difficult, and the country -- quite unlike the United States -- has strict legal controls on information and distribution and poor enforcement of intellectual property laws. This article explains the barriers facing high-tech companies in China.