Lenovo Group Ltd. (Lenovo) is a Chinese multinational technology corporation that founded in Beijing in 1984. Specifically, Lenovo is one of the top enterprises that produces and sells consumer electronics and computer hardware, with a focus on producing personal computer (PC). Currently, the headquarter of Lenovo is in Beijing, China, with a second headquarter that located in Morrisville, North Carolina, United States. As a multinational enterprise, Lenovo currently have operations in more than sixty countries and has its products sold almost all over the world.1 Becoming a multinational enterprise especially making it to the top of the industry is not an easy thing for any company due to numerous predictable and unforeseen challenges. However, Lenovo has successfully expanded its business and reached to the top. Therefore, the present paper aims to analyze Lenovo’s operational/managerial strategies and provide a better sense of what has Lenovo done for reaching to the current position in the global market. 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
After having established itself as an innovative PC brand in China, Lenovo wanted to position itself as a global corporate brand while leveraging the IBMs Brand equity. The key branding issue for Lenovo was creating a positive global image in consumer’s mind as being a Chinese computer brand it was considered an inexpensive brand offering inferior quality
Dorchester, Inc is a U.S based conglomerate and has the intentions of expanding its operation to international levels. Recently there has been a trend by its competitors to expand their operations internationally as well. This is the prompter to the decision by the management of Dorchester, Inc to follow their competitors' trend and venture into the new and emerging markets globally as a long term business strategy. Through this international expansion Dorchester, Inc. hopes to gain a competitive advantage over its competitors. The particular area of expansion targeted by Dorchester, Inc is consumer electronics. The conglomerate has indicated their interest in purchasing companies that specialize in consumer electronics in three countries that identified herein (Prodi, 2010).
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
In this report, the secondary data is used to assess and apply the use of economic theories and other relevant issues. The key findings of this report were that Lenovo is a US$39 billion fast growing business with its success completely depending on its innovation, high efficiency in global supply chain and for maintaining a strong business strategy that differentiates it from its competitors like Dell and Hewlett-Packard (hp).
Both Dell and HP are two strong players in PC industry which refers to an industry where companies produces PCs (desktops and notebooks), handheld devices (smart phones and tablets), and workstations. However, with growing global expansion, Dell and HP’s performance differs. Dell, once the world’s largest PC maker in 2001, has continually lost its market share to HP and Acer since 2007 (Guglielmo 2009). The cause is rooted in two differences of these companies: company diversifications and core competences. Therefore, how firms can continually survive in the PC business is more of an issue for Dell than for HP.
Cisco Systems is a global market leader and innovator of computer communications and networking solutions. Established in the 1980’s, the company rapidly developed into the world’s greatest manufacturer of internet routers and was/is a foremost provider of commercial communication network devices. The aim of this case study report is to create an understanding of Cisco’s historical international business activities as well as explore their recent and current developments in international business management. The ‘Recent Development’ section details both Cisco’s main strategy of Acquisitions and how the company has operated under and coped with new management.
This report analyses Acer Inc’s strategies on doing business in the Asia Pacific region particularly in China. Firstly, we discuss a brief history and background of the company. Secondly, the report discusses the company’s mission followed by objectives mainly focusing on entering China. Additionally, we analyse internal and external factors impacting the company using a SWOT analysis, followed by an assessment of the company’s business level strategy. Lastly, we recommend and implement strategies and how Acer can go about competing in the Chinese market discussing its competitive advantage.
Lenovo is a Chinese multinational technology company with headquarters in Beijing, China. It is the world’s largest PC vendor and one of the world’s leading smart phone companies listing on the Fortune 500 list that having major research and manufacturing centers over the world.
Acer's dominance as a global manufacturer of IT hardware products can be attributed to the company's extensive electronics component expertise, depth of experience managing global electronics component supply chains, and well-planned acquisitions. Through a series of successful acquisitions, the company has four successful brands including Acer, eMachines, Gateway and Packard-Bell (DiDominico, Kartika, Sibeck, 1996). Of these three strategic areas that Acer excels in, their logistics and supply chain expertise across each of the geographies they compete in continue to deliver the greatest time-to-market and cost gains (Honi, Taring, Po-Young, 2000). Acer is organized into two segments, the device business group and consolidated products and services or other business group. This second group continues to be instrumental in the success of the "divide and conquer" strategies that Acer is successfully using relative to Lenovo. It is also a critical success factors in their success with global markets and local market competitive strategy. The combination of their depth of expertise with electronic components and supply chain prowess in the high technology industry also give the company a formidable competitive advantage against Dell and the troubled PC marker Hewlett-Packard (Honi, Taring, Po-Young, 2000). Despite all these strengths however, Acer continues to struggle with the areas of consumer branding and consumer awareness
a) Analyses the influence of culture, politics and power on the behaviour of others in an organizational context.
China is a prospective market for PC products with increasing population income and growing number of net users. The PC market growth is also facilitated by the Chinese government’s initiatives and economic support. Lenovo, being the market leader in China as well as an important global player, is facing intense competition with other renowned brands such as HP, Acer and Dell in China. In the past fiscal year, its profit growth in China was comparatively lower than its competitors. In order to maintain and strengthen its leading position, it is essential for Lenovo to take advantages of its core competence and continue to improve. Therefore in this essay, external and internal environment analyses are first carried out to
For international business strategy, Hill and Jones (2004) suggested that there is four basic components of strategy development need to be addressed by a firm in order to succeed in foreign markets. These components are: ¡¥distinctive competence¡¦, ¡¥scope of operations¡¦, ¡¥resource deployment¡¦, and ¡¥synergy¡¦. By applying the theory, it is revealed that Whirlpool¡¦s distinctive competence is its brand name ¡V Whirlpool, the world¡¦s largest white-goods manufacturer. For the scope of operations, Whirlpool is specialised in broad middle market niche of white-goods products. In terms of resource deployment, Whirlpool allocates the resources equally to its three product lines. As far as synergy concern, due to the poor business performance of Bauknecht and Ignis, Whirlpool is not benefited in whole.
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time.
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
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