Case Study Of Lenovo

I personally agree with Lenovo’s strategy to keep the ThinkPad brand separately from the other product lines. This will not damage the ThinkPad brand quality. Moreover, building the ThinkPad + Lenovo connection through advertising and marketing campaigns such as ThinkPad Unleashed, the ThinkPad reputation can eventually be seen in the rest of Lenovo products. In my opinion, launching its first Lenovo brand PC worldwide by using a product number (3000 series) was not the best idea. The fact that numbers are pretty generic and the same number may be used on many products across many industries could be confusing. I would recommend Lenovo to create a new name as what Sony and Compaq did with the Vaio and Presario. The name of the new product that could imply an image of a good choice, easy on the budget, and a good home companion. At the present, Lenovo named their other product lines differently. The “ThinkPad” are seen as business laptops with premium quality while the “IdeaPad” and the “Essential” are built for home and small business users. Lastly, Lenovo should differentiate itself as being the “new world type” of company. The combination of East and West, innovation and efficiency can become the company’s competitive advantage.

The second quarter we decided to make a second brand, which was the laptop “MTC”. We felt maybe our target wanted something new and stylish. We manufactured the brand including everything the “Workhorse “ wanted on the computer. We installed the computer with a stylish look, ultra speed computing power, and different softwares. We felt this would help our profitability.

A chance of brand image getting damaged is possible by the launch of product not matching to the “Computron” standard. Only through effective market segmentation it is possible to curtail the damage.

Corporate marketing objectives are to build a strong Intel corporate brand that connects with consumers, and have a limited set of product brands for advanced microprocessors and related technologies. Intel promote brand awareness and generate demand

This had become a steady trend since the inception of the PC industry in the mid 1970s. IBM are recognised as being the company who brought the PC to the mainstream and made it more affordable to the everyday user. For this reason the IBM brand became closely associated with quality products and retained a sizeable proportion of the market in the early 1980s. People were so drawn to IBM that they were reluctant to purchase product clones for fear of inferiority. These trends grew until an estimated 900 million PCs were in use worldwide in 2005. IBM began to lose its dominant grip on the market in the late 1980 's and its "IBM-compatible" standard, which was seen as being the best there was, was replaced by "Wintel" (Windows operating system with Intel processors). Markets for PCs such as the Asian market began to flourish and the average price of a PC actually fell from $1,699 in 1999 to $1,034 in 2005.

I presently work for IBM. The case discusses how IBM’s famous hardware division of personal computing/Thinkpad was sold-off to a Chinese firm Lenovo who had no presence in the market and who was hardly known for laptops. Its only presence was in the Chinese market and no-where else in the world. The case further discusses the Merger and Acquisition of the hardware division of IBM and what challenges were faced by Lenovo and what should be done to overcome those problems.

Lenovo has created its own brand architecture in order to promote these sub-brands. For example, Lenovo’s desktop sub-brand called “Yangtian” is targeted to a small and medium sized enterprises (SMEs) and it is functioned as one touched restoration and flash scans viruses. To promote these technological highlights, Lenovo begin a campaign called “ Lenovo Yangtian Science and Technology Olympics Express” and launched other different campaigns for the game players and family users. By implementing these promotional strategies Lenovo has build a very strong brand image for its company offering the best

Previous history of Lenovo as a successful brand - Lenovo bought the ThinkPad business from IBM and led it to success, and it now has a manufacturing plant in Whitsett, N.C. making Think-branded products so it has an experience of dealing with U.S. based companies

International Business Machines (IBM) is having a hard time evolving from being a multinational company to a Globally Integrated Enterprise (GIE) (Kanter, 2009). In order to generate the returns IBM’s investors are demanding, they have become a company that is ran separately within each country they are stationed. For example, an Indian company in India and so on. Since there is anti-American sentiment in the global community, IBM is unable to have the ability to grow in order to maintain their competitive advantage it is to be known as an Armonk. In foreign countries like China, these companies are less popular than the national ones that are less accessible to local innovation systems (Kanter, 2009).

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.

Legend announces the birth of its new "Lenovo" logo to prepare for its expansion into the overseas market. Based on the collaborative application technology, Lenovo initiates IGRS Working Group, in cooperation with a few large companies and the Chinese Ministry of the Information Industry, to promote the formation of the industrial standard.

have more technology. . . . We have more global exposure. . . . We

IBM’s marketing efforts missed the mark. No one ever looked at the IBM ‘s PC as being inferior, but IBM did nothing to sell it.

Although Lenovo brand only came into existence in 2004, it has a much longer history. Legends Holdings, as Lenovo was formerly named, was formed in China in 1984 and later incorporated in Hong Kong in 1988. In 1990, Lenovo entered the personal computer market by its own branded computer. It would grow to be the largest PC Company in China after Lenovo Group’s acquisition of the IBM Personal Computing Division in 2005. Its product lines include Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smartphones. A global Fortune 500 company, Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; Sao Paulo, Brazil, and Raleigh, North Carolina.

Strategic retail management plays a vital role in developing the success of a company’s brand on the market. It supports the company in its bid to enter into different markets and successfully meet the market demand creating an opportunity for the company to boost its performance and increase its sales position. It also supports the company in creating a competitive edge developing it above the ranks in the competition. Lenovo for the past years since its coming into the market has grown to become China’s biggest PC maker. It has also gained recognition in the international market to become the third largest PC maker worldwide coming third to Dell and Hewett Parkard standing at a $12 billion in annual revenues (Quelch & Knoop, 2006, p.1). The company focused on its local China market for a long time developing strength for its brand locally before embarking on a bid to have it gain global recognition. The desire to go global was backed by many needs including the need to have brand development strategies that would have the brand succeed on the international market. The entry of Dell into China and Asia created pressure on the company on its local market leading to an effect on the sales the company registered. It is