Lenovo Case Study Essay

1996 Legend becomes the market share leader in China for the first time.Legend introduces the first Legend brand laptop.

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

Lenovo’s biggest business is PCs and it is the world’s number 1 PC maker. But the sales of PCs isn’t growing which makes it imperative for Lenovo to focus on its mobile phone segment in order to be a tech leader.

Thirty-three years ago, the founder of Lenovo founded the company with only 33,231 USD (converted from 20,000 CNY). 2 Nevertheless, Lenovo has become one of the Fortune 500 companies, and it is one of the largest PC manufacturers in the world, with a more than 20% market share, and around 43 billion revenues in 2016. 3 Over the past three decades, Lenovo has implemented numerous strategies to achieve such accomplishments. Since multinational enterprises often involve in

Analysis: Legend focused on designing desktops for the average Chinese people while the competitors were focusing on providing new technologies for the market. Legend always aimed to became a global fortune 500 company. Overtime, Pc became the important aspect of the daily life. Competitors like Apple and Sony focused on the innovation, to differentiate Lenovo from the competitors’ efficiency was the best option. Since we have a very efficient base in China, unlike the competitors

Xiaomi Ltd. founded in April, 2010, by Lei Jun (CEO of Xiaomi Ltd.). “I admire giant companies like Huawei, Tencent, Sina and Alibaba, but I don’t want to create another Huawei, Tencent, Sina or Alibaba. My dream is to maintain my current company as a small one. (like a) small restaurant that people line up outside of to buy my products, and my friend will call me to reserve seats for them.” – Lei, a keynote address to the 2013 Global Mobile Internet Conference, Beijing.

Outsourcing to low-cost, high-quality Taiwanese manufacturers has helped make Dell and H-P the world 's top two PC companies in terms of sales. International Business Machines Corp., which outsourced less than half of its laptop production, according to Merrill Lynch, and operated its own factory in China, consistently lost money on its PCs. It sold the business this year to China 's Lenovo Group Ltd., which has used Taiwanese companies to make most of its notebooks in China.

These entail the benefits perceived by customer and Lenovo provide through low cost, innovation and comparable quality with competitors. Lenovo competes based on low price, as it can produce with a lower cost structure by leveraging on the components suppliers in China giving quality that is comparable to multinational competitors (Xie & White, 2004, p. 412).

But this company hasn't adopted the measure of cutting down the price to keep the regular customer and attract more new customers. It accomplished establishing more than 100 customer service centers all over the world. (quote lenovo.com,2004) As well as being responsible for repair, their centers try to get an appointment and contracting for service. In the communication with customers, they collect the data about their products from users and

Lenovo has a large market share in China and India which are the huge consumer markets in the world. The large demand of the consumers leads to the mass production which leads to the economies of scale and minimize the costs. Besides, Lenovo continuously improve the customer service which contributes a lot to their reputations and they pay more attention to meet the consumer preference in terms of service personalization

Similarly, majority of respondent also have a positive view on the use of Lenovo is cooperative for office work, internet access, file management, student work and entertainment as rest people have neutral opinion. Thus this indicates that Lenovo have a good brand performance and brand imagery which satisfies customers need in the area that is most important to them which implies that Lenovo convey a stronger brand meaning.

• It provides quick and extensive access to a large distribution network of retail and corporate customers, lowering distribution costs (the same goes for option 3.3., which also brings Lenovo contact with IBM’s network)

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.

Lenovo ensures that it operates with a degree of transparency. Its board of directors, with international representatives from different countries who all have extensive international experience with the company’s products,

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.