Internal and external analysis of Lenovo

4678 Words Nov 19th, 2013 19 Pages
Internal and external analysis of Lenovo

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1. Introduction
This report will analyze the business strategic management of Lenovo Company. Firstly, it briefly presents the business model of Lenovo. Secondly, the report will focus on internal and external environment of Lenovo, expounds business and operations strategy of Lenovo. Thirdly, it analyzes the strategic choice and strategy implementation. Then, it focuses on key features that how to choice strategic and factors to achieve successful implementation. Finally, it gives a brief summary of this report.

1.1 Background of Lenovo
Lenovo Group was established in 1984, today it has grown to become a large enterprise groups which has diversified
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It is a domestic brand of China, so Chinese people can easily accept this brand.

2) Price:
Compared with other brands, the price of Lenovo’s products is lower with the same configuration, because the cost of products of Lenovo is lower, including labour cost, raw materials and so on.

3) After-sale service:
In China, customer can immediately get feedback from customer service. There are about 1250 after-sale stores around China, 87 after-sale stores abroad.

1.4 Lenovo’s Dual-mode business model
Lenovo builds dual-model to sell its products. The dual-mode includes transaction client mode (referred to as the T-mode) and relationship-based customer model (referred to as R mode) (ibid). T-mode, also known as the" product model ", is the retail form of Lenovo products, consists of three processes, the products goes through the manufacturers, distributors, dealers, and then reach to consumers. Lenovo's sale is not directly facing the market, but to face the channel system which has strong market coverage (Chuan, 2007). The core ideas of the T mode are Sell In, Sell Through In (STI) and Sell Out. Sell in Refers to sell Lenovo products to distributors, which means distributors purchase directly from Lenovo (ibid). STI Refers to Lenovo products sales to dealers from distribution store. This does not mean that Lenovo only need to transfer its products from Lenovo store to the distribution store, and it also needs to help distributors