Internalization Strategy Of Lenovo

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1.0 Introduction The main objectives of this report is to identify and critically evaluate the strategies used by a chosen Multinational Company (MNC) to internationalize. Firstly, this report will clearly analyzed the current internalization strategies that being used by the chosen Multinational Company (MNC) which is Lenovo Group Limited and its relationship with the theory of internalization. Secondly, a relevant of internalization strategies will be proposed in this report which is suitable for the internalization of Lenovo Group Limited. 1.1 Background of the case The chosen company is Lenovo Group Limited which is a multinational technology company that is headquartered in Beijing, China. Established in 1988, Lenovo is the largest information technology enterprise in China, engaged primarily in the sale and manufacturing of personal computers, mobile telephone handsets,…show more content…
In 2005, Lenovo acquired IBM's PC division, aiming to transform itself into a sizable multinational PC manufacturer. Lenovo paid US$1.3 billion to IBM with a combination of considerations of cash and stock. As a result of the acquisition, Lenovo gained the rights to the product lines as well as a range of intangible assets, including licensed trademarks, such as ThinkVision, ThinkPad and NetVista. Moreover, the acquisition included IBM's desktop and notebook computer businesses as well as its PC‐related R&D centers, manufacturing plants, global marketing networks and service centers. Both intangible and tangible assets were considered to be strategic for Lenovo's plan to become a global technology company. (Ng, A.W., Chatzkel, J., Lau, K.F. and Macbeth, D. 2012) 2.1.2 Joint
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