Lenovo : A Global Leader

As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten

IBM was founded in 1911. IBM (International Business Machines) is by far the world's largest information technology company in terms of revenue ($88 billion in 2000) and by most other measures, a position it has held for about the past 50 years. IBM products include hardware and software for a line of business servers, storage products, custom-designed microchips, and application software. ("What is IBM (International Business Machines)? - Definition from WhatIs.com," n.d.)

The bureaucratic culture is another weakness in the corporation. The General Motors Corporation employs more than 260 millions staff, which composes a huge and complex organization. The General Motors Corporation had taken the lead in organization. For example, the corporation had injected into matrix organization that combined the functional and project patterns of department in the same corporation in early years. The General Motors Corporation also organized with strategic business unit that classified products and product lines in the same independent business department in ahead of other corporations. The decentralization makes each department a profit centre. However, after ages of development the departments and business units concerns more on their own benefits

“Distribution is the name of the game,” Lenox CEO and president James Bennett told the insurance company’s newly hired chief information officer, Diana Sullivan, three years ago. Sullivan recalled the details of that first extended conversation with Bennett as though it were yesterday. “We depend

The older structure of IBM, recognizable in the so called by Miller “machine bureaucracy”, could work well in stable, predicable environments. But IBM did not work in a stable and predicable environment and the company was mainly looking for the invention of innovative products. Therefore IBM wanted to reach an high level of entrepreneurial intensity, whereas with the machine bureaucracy structure had the lowest level of entrepreneurial intensity.

The organizational structure of this business is considered an Adhocracy (Laudon & Laudon). This organization responds to rapidly changing environments and consists of groups of technical specialists organized into multidisciplinary teams. The business is characterized by a senior management staff consisting of a CEO/President, VP/Sales & Marketing. Their role in the company is to make long-range strategic decisions about products and services as well as ensure the financial performance of the company. Middle management will consist of a Director of Sales and a Director of Operations. Their job is to carry out the programs and plans of senior management and to monitor the daily activities of the business. Knowledge workers will consist of a small team of sales people with regional territories. Their job role is to identify and interact with potential customers, make customers aware of the products and services offered and procure work for the firm. The production and service workers

Target Market: Unlike Dell, Lenovo should target the lower-end of the market i.e., home, small business, small office, and medium business sector as its primary market as the needs of these sectors in terms of user sophistication, price sensitivity, order size, geographical spread, level of support, etc. directly matches with the existing business model of Lenovo. Lenovo can use a combination of scaling and granulation to increase its existing sales and distribution network in the PRC and at the same time cater to the increasing demand for consumer customization through a granulation strategy.

Xiaomi is an electronic company based in Beijing China it got started on April 2010 by CEO Lei Jun and seven cofounders. They started as a smartphone producer with the initial goal of being one of the top company’s in the smartphone industry globally. They have their motto down as “having high end quality with low end prices” By the year 2014 it emerge as one of the world’s most valuable unlisted business with a market value of $45 billion. During the time China’s smartphone phone market is becoming more saturated, looking for growth Xiaomi decided to expand internationally. They hired

The company has a world-class manufacturing facility in Bhiwadi, Rajasthan, located ~70 km from New Delhi, with an installed capacity of 1.2mn units

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 profit and minimizing their risk in direct exporting

Innovation, localization and customization, and an efficient and environment-friendly global supply chain are the pillars of growth for Lenovo. Cost-innovation, efficient execution of strategy and a strong presence in China support its global endeavours. In-house manufacturing reduces costs and strategically located manufacturing facilities in China, Mexico and India enhance the efficiency global supply chain. It spends adequately on R&D to move ahead with the times. The R&D centres are located in North America, Japan, and China. Joint ventures and local-level innovation supports its customer oriented focus. Over the years, it has leveraged its strong presence in China, pursued incremental innovation and used inorganic growth strategies to its advantage (Ahrens & Zhou 2013). Further, geographical diversity helps it avoid overdependence on a particular market or product. Cultural diversity, supported by an inclusive organisational culture, facilitates Lenovo’s efforts to build a sustainable competitive advantage (Lenovo

IBM, established on June 16, 1911, is an IT based company and also a multinational technology and consulting corporation based in America, have its headquarters in Armonk, New York. IBM specialises in the manufacturing and marketing of computer hardware and software, and provides infrastructure and consulting services in areas like mainframe computers to nanotechnology. Ginni Rometty is the current CEO of IBM. (IBM, 2013)

Founded in June 1911, IBM has always been a leading company in the technology industry and at the forefront of innovation. It is a manufacturer of computer hardware and software, and also provides infrastructure, hosting and consulting services. Before the 2000s, IBM was the largest PC vendor in the world. However, the hardware sales have continually declined since 2000, and IBM sold its PC group to Lenovo in 2004, as well as its x86 Server Business in 2014. In the new era of the technology industry, IBM has faced the challenge to transit from a hardware manufacturer to a service company.

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

Lenopan LTD is an external purchasing office who was created by Maxime Blanc in Zhuhai. This is one of the strategic spot in China due to his proximity with Hong Kong, Macao and Shenzhen where we can find a lot of manufacture industries.