Internalization Strategy Of Lenovo

The internationalisation process of the firm has been a subject, which has been motive of study for a number of

Stages of company Internationalization (Uppsala Model) 1. International Marketing – Ethnocentric Orientation 2. Multinational Marketing – Poly centric Orientation 3. Global marketing – Geocentric Orientation 4. Transnational Marketing – Glocal

When looking at how and why firms internationalise we need to both look at what makes a firm want to internationalize and how they do this. We will look at what defines an international firm and we will look at obstacles, but also things that might help certain firms expand internationally. We are also going to look at different trade theories, traditional approaches and how the theories have developed over time.

Many of the competitiors of the company gave very strong competition to them. The Lenovo companys product are very lessly used.

The PC division of Lenovo was profitable but it had to compete with Dell and HP because they were the major players in the market. After observing Dell for quite some time (since it was the market leader during those days), Lenovo was inspired to focus on the comparative advantages of operational area and turned to internationalizations strategies.

Becoming a holistic technology provider - Lenovo doesn't just want to be a consumer smart-phone maker. Since it already has built strong relationships with ThinkPad and other products, now it believes that by delivering smart-phones it can deliver full technology offerings to its U.S. based

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

Ownership of action and commitment to promises form the essence of Lenovo’s culture. Open communication, engagement and empowerment of employees, teamwork, innovation, and customer-orientation are the vital components of the culture. The Lenovo’s Code of Conduct accords prominence to integrity and ethical behaviour. Employees can The code is available in various languages and employees are trained in various aspects of Lenovo’s organisational culture. Lenovo serves customers in 160 countries (Lenovo 2014) with its 60,000 employees. Revenues come from China (32%), Americas (26%), Asia Pacific (14%), and Europe-Middle East-Africa (28%) regions. Lenovo has pursued both organic and inorganic growth strategies over the years. All these factors have

In December 2004, Lenovo 's acquisition of China 's leading computer manufacturers IBM 's PC division of $ 1.75 billion dollars. The transaction generated $ 13 billion business, which accounts for 8% of the global PC market. The takeover meant the integration of IBM by Lenovo 's

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

History By the 1950’s, IBM became the dominant vendor in the computer industry with the release of the IBM 701 along with many other series of mainframes, which are large central processors. Then in the1960’s and 1970’s, the company had to diversify to get on the same level as smaller companies, such as Digital Equipment Corporation, who were introducing microprocessors. This threatened IBM’s position in the computer industry. Their response was coming put with a personal computer, software, and services. In 1981, IBM officially introduced the IBM PC with a compatible hardware platform. This was a large accomplishment for the company. A few years later, on May 1st, 2005, IBM sold its PC division to the Chinese company Lenovo for $655

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.

In 2003, Legend announced the birth of their new logo "Lenovo" to prepare its expansion into the international market. Lenovo initiates IGRS Working Group, in cooperation with some large companies and the Chinese Ministry of Information Industry, in order to promote the creation of industry standards. The company would continue to serve the IT market in China, while considering how to expand abroad. The company would seek to strengthen further Lenovo 's brand image with a series of new product introductions. Lenovo would invest in R&D. International expansion would entail developing international distribution channels and incurring substantial marketing and sales costs. Lenovo 's global expansion began with a move into Hong Kong, with plans to enter the U.S. and Europe after that. One approach would be to acquire foreign companies with distribution capabilities while another would be to rely on wholesalers and retailers for distribution, and the company would need to compare the costs and benefits of alternative distribution channels.

Moving to new country is never easy for any organization and lot of brainstorming and research needs to be done before offering the product in completely new arena. A fundamental shift has been occurring in the world economy. There has been a move away from a world in which national economies were relatively isolated from each other by barriers to

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