A Report On Lenovo 's ' The High Tech Company '

1997 IBM PCD introduces the industry’s first notebook equipped with a DVD-ROM, the ThinkPad 770.Legend signs an Intellectual Property agreement with Microsoft, the most valuable deal ever made in China at the time.

In the second phase Lenovo demonstrated its commitment to innovation by rolling out improved ThinkPad products and further strengthening ThinkPad’s brand essence. Initiatives like Using Titanium cover instead of the traditional black cover while launching Z60 helped in establishing the fact that Lenovo made ThinkPad products better than before. Enforcing ThinkPad’s brand position and its advertisement as Lenovo’s sub brand helped in strengthening the Lenovo master brand. The third step emphasized that Lenovo master brand stood for innovation with Lenovo introducing the 3000 PC series for small business consumers focusing on reliability ,quality and durability in addition to modern looks .The marketing campaign focused on providing “worry free computing” by providing features like virus recovery features. The choice of a number series instead of a name for the launch of the first non-ThinkPad product was done strategically to strengthen its association with the master brand Lenovo.

Lenovo has a Transition service that saves its customers valuable time and resources, its hardware refreshes, and purchase through deployment to aged asset recovery. According to research, Lenovo’s PC management tools help users reduce costs that capture 80% of a PCs full lifecycle beyond the hardware price. Its ThinkVantage technologies reduce machine downtime and provide data security and their PC lifecycle analysis helps reduce the running and ownership costs. Lenovo helps customers manage the complete PC lifecycle and maximize the productivity and usefulness of devices;

Not only is the global business environment competitive, it requires developing appropriate strategies to guarantee profitability and breaking-even. Lenovo has adopted strategic alignment of its environment and in improving its competitiveness in the technology sector. Headquartered in Beijing, China, it has with offices in Morrisville, North Carolina in the US and other regions globally. Founded in 1984, Lenovo is one of the largest and fastest growing vendors of personal computers (PCs) globally and ranked third in providing “Smart Connected Devices.” This report examines strategic realignment and associated changes in Lenovo aimed to enhance its competitiveness globally.

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.

As Lenovo has been successfully internationalizing into other country by using joint venture as their strategy, the new relevant proposed strategy that the company can use is direct exporting. Direct exporting is considered relevant to be used as the new strategy for Lenovo because it is the least risky strategy of all. In fact, Lenovo can maximizes their

Yang Yuanqing also holds a Master's degree from the Department of Computer Science at the University of Science and Technology of China. He is aldo a guest professor at the University of Science and Technology of China and a member of the New York Stock Exchange's International Advisory Committee as well. Under his leadership, Lenovo has been China's best-selling PC brand since 1997. (Lenovo Group Ltd.: Management, n.d.)

Lenovo is one of the largest famous personal computer makers in the world. Today, Lenovo strives to be the global market share leader in each of the market we serve. On September 24, in 2004, Lenovo purchased the personal computer business and the brand “ThinkPad” famous computer IBM in the IT industry all over the

Lenovo and IBM announce an agreement by which Lenovo will acquire IBM’s Personal Computing Division, its global PC (desktop and notebook computer) business. The acquisition forms a top-tier (third-largest) global PC leader.

These entail the benefits perceived by customer and Lenovo provide through low cost, innovation and comparable quality with competitors. Lenovo competes based on low price, as it can produce with a lower cost structure by leveraging on the components suppliers in China giving quality that is comparable to multinational competitors (Xie & White, 2004, p. 412).

The current Lenovo brands will work with the new tablet product by giving the same brand messaging. Current products will also be advertised to enrich the lives of the consumer by using Message Engineering. Lenovo will be presented to the consumer as a lifestyle brand. The genius of Apple as a brand is that it has come to embody a lifestyle that resonates with their customers, (Cuneo, 2003.) In order to compete with brands like Apple, Lenovo will need to incorporate previous products to work with the new tablet. The idea is not about technology, but how that technology can enrich the everyday life of the consumer.

This became part of their strategy of a ‘one-two punch’: building up the Lenovo master brand and continue to strengthen the ThinkPad product brand.

Lenovo Group Limited is today the largest information technology enterprise in China and the third largest computer company in the world which is has an 8.6 per cent share of the PC market, after Hewlett-Packard at 15 per cent and Dell of the US at 16.8 per cent. During its first 20 years, Lenovo evolved from a small distributor of imported computers into China’s leading computer firm and in 2005, it purchased IBM’s division. Lenovo has been the market leader for seven consecutive years, commanding a 27 per cent share of the domestic PC market. It is also the market leader in the Asia Pacific region (excluding Japan), with a market share of 12.6 per cent.

As the rural customers have low product knowledge, they not only demand information provided by sales before purchase but also demand a lot of support after they purchase. For example, they may encounter difficulties in setting up software. Therefore, Lenovo should establish not only a network of outlets but also a network of after-sales service centers in rural area. It may start offering some counties a 24-hour hotline as what it is providing to the urban customers. After all, service could be the critical buying factor when the rural market is already flooded with low cost products. It also helps build positive word-of-mouth which is important in rural area as people like to use what their neighbors are using satisfactorily.

The notoriety of portable workstation has expanded now a days. There are various purposes behind the expansion in the interest of tablet in the IT showcase today. Some for amusement, an exploration researcher requirements for performing different examination work, a specialist requirement for making presentations So, there are diverse thought processes behind purchasing a portable PC. As assortment of brands for portable PC is accessible in the business sector each shopper will pick that tablet which fulfills his/her need in the best way.