Advantages Of Lenovo

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

5. In trying to become a global brand, does Lenovo have a problem coming from China?

In addition, the internationalisation is the strategy to occupy the foreign market step by step. Also, the porter’s competitive advantages theory is to analysis the strategies of global business. They could divide to three strategies: over cost leading, diversity, and market focus strategy (Passemard& Calantone, 2000). The cost leading strategy focus on establish efficient scale production facility and minimize the research and advertising cost. The diversity strategy focus on introduce some unique product in whole industry. But, this strategy will with a high cost price. The focus strategy is attack of a particular customer group or specialist regional market, its purpose to design the service for a particular target. Consequently, the companies need to consider the internal and external factor condition, such as: factor condition, demand condition, related and supporting industries condition, and firm strategy and rivalry. They are called diamond system. This dynamic system gives the company a standard to measure theirs advantage and disadvantage before they enter foreign market. Moreover, the specific advantage in Internationalisation of Production is give companies a new choose for exhausted market (Strange,S. 1992). In an international environment, the companies will face more uncertain and unequal condition than home market, therefore the companies need keep the attention of more factors:

Exporting has become a very important business strategy nowadays. In order for firms to expand to the international market, and also to maintain and grow their share of market in whatever industry they are in, depending on their goals and objectives, any company must at least explore this possibility. A few and important advantages might come into place, in that they can extend their sales potential of their existing products, increasing margins through a larger customer base. Also, these small to large businesses can consolidate by gaining global share of market, they can reduce their dependence on their existing markets,

Direct exporting is more expensive than indirect exporting. The entry cost & ongoing cost are high for direct exporting. In direct exporting a company have greater chances to build up good relationship. Direct exporting is used by many famous companies in toady’s competitive world as a source of entering new international market. SAMSUNG is also one of the companies who uses direct exporting as a source of Marketing Strategy. Direct exporting is cheaper as compared to other ways of market entering strategy and biggest benefit of direct exporting is it helps in acquiring the information of local market. Potential conflicts with distributors is one of the biggest disadvantage which a company can face in Direct

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).

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).

But this company hasn't adopted the measure of cutting down the price to keep the regular customer and attract more new customers. It accomplished establishing more than 100 customer service centers all over the world. (quote lenovo.com,2004) As well as being responsible for repair, their centers try to get an appointment and contracting for service. In the communication with customers, they collect the data about their products from users and

With the fast politic and economic development, and the rapid development in the high-technology and information industry, economic globalization has made the global competition more intense. Many companies expand internationally when domestic market begin to mature or become saturated. For those expanding into oversea markets, choosing appropriate strategy is crucial to its survival in the international business.

The study of strategic management, through the use of various frameworks, gives organizations the possibility to identify their position in the industry in respect to its competitors. Moreover this allows them to set realistic goals to pursue

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

It is well known that Lenovo is the world’s second-largest PC vendor ,as well as the China’s second-largest smartphone company, manufacturing desktops, smartphones, tablets and smart TVs and own accessories (Lenovo website, n.d.). Having changed its name to “Lenovo” since 2003, the company has decided to expand its market outside China by carrying out a series of effective management strategies, particularly in PC+ strategy, multi-brand strategy, “protect and attack” strategy and global-local strategy. Depending on the seasonable adjustment for the rapidly changing markets, Lenovo currently already has obtained trust and loyalty from millions of consumers

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.

China is a prospective market for PC products with increasing population income and growing number of net users. The PC market growth is also facilitated by the Chinese government’s initiatives and economic support. Lenovo, being the market leader in China as well as an important global player, is facing intense competition with other renowned brands such as HP, Acer and Dell in China. In the past fiscal year, its profit growth in China was comparatively lower than its competitors. In order to maintain and strengthen its leading position, it is essential for Lenovo to take advantages of its core competence and continue to improve. Therefore in this essay, external and internal environment analyses are first carried out to

Many potential organizations tend to bring their operation on global level rather than national level. When the companies move to internationalization the complexity and sophistication of operations change enormously. The basic guidelines for the companies orienting in international market are described by EPRG framework (Wind, Douglas, & Perlmutter, 1973). This framework deals with four types of orientation of company going to international market which are: