Lenovo Case Study Essay

2006 Words9 Pages
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

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