INTRODUCTION Lenovo bounded on the international scene May 2005 wit the acquisiton of IBM’s personal computer division for $1.75 billion. This was viewed as an experiment to see whether Chinese companies could successfully integrate foreign acquisitions as they continued to expend internationally. With this landmark acquisition, Lenovo’s new strategy was to become a leader in the global PC market. Lenovo Group Limited is one of the most prominent PC manufacturers in the world especially in Asia. It is headquartered in Morrisville, North Carolina with principal operations currently located in Beijing, China, and Singapore. Lenovo recorded revenues of $16.6 billion during the fiscal year ended March 2010, an increase of …show more content…
Lenovo’s Strong brand combination of Thinkpad and IdeaPad could propel the company to occupy a leading position in the global market. Generally speaking, the company’s strong engineering and manufacturing capabilities enhance its rapid growth in PC market. All three principal operation locations include research centers with additional research and development in Shanghai, Shenzhen, Xiamen, and Chengdu in China, and at Kanagawa Prefecture in Japan. Lenovo’s PC manufacturing and assembly facilities are in Beijing, Shanghai, Huiyang and Shenzhen China; Pondicherry India, and Monterrey Mexico. Lastly, Lenovo has a powerful service supply chain. It consists of over 3,200 sales representatives, 2,500 technical support agents operating in 18 service delivery centers worldwide, and a network of 25,000 certified field technicians. This distribution network gives Lenovo a strong service advantage over other PC makers. WEAKNESSES Although Lenovo has become an international company, its corporate brand awareness is still relatively weak compared to transnational corporations like Hewlett Packard, Dell, and Acer. When Lenovo purchased IBM’s Personal Computing Division for $1.75 billion, many Western people had never heard of the IT enterprise whose business was
In your judgment is Intel a “monopoly”? Did Intel use monopoly-like power, in other words, did Intel achieve its objectives by relying on power that it had due to its control of a large portion of the market? Explain your answers.
2. What do you think of the way the team set out to find a market for the Kittyhawk? What correct turns and what wrong turns did they make?
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.
• 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)
the turnaround of IBM, we see a great business story. A less-told but integral part of that
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
Legend becomes the top PC vendor in the Asia-Pacific region and heads the Chinese national Top 100 Electronic Enterprises ranking.
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
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,
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.
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.
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.
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.
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
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.