Lenovo Company SWOT Analysis
1. Introduction
Lenovo is one of the most prominent PC manufacturers in the world especially in Asia. It is headquartered in Morrisville, North Carolina and has more than 25000 employees in the world. In 2004, Lenovo purchased IBM’s Personal Computing Division, its global PC (desktop and notebook computer) business. The acquisition made Lenovo one of the leading global PC makers. In addition, Lenovo is a Worldwide Olympic Partner and the Official Computing Equipment provider for the Beijing 2008 Olympic Games.
Lenovo recorded revenues of $16.4 billion during the fiscal year ended March 2008, an increase of 17% over 2007. The net profit of this company was $484 million in fiscal year 2008 compared with only
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2.3 Probable opportunities
There are three opportunities for Lenovo. Firstly, The PC demand is forecast to increase over the next few years. In 2011, the global PCs market is expected to have a value of $220.1 billion, an increase of 34.4% since 2006. The global PC shipments are expected to grow from 184 million in 2006 to 260.8 million by 2011, an increase of 41.8% (Datamonitor, 2007). The reasons for this huge demand are expected to be consumers and small and medium enterprises. As a leading manufacturer of PCs, Lenovo is in a good position to benefit from the growing demand.
Secondly, being an official sponsor of the Olympics has been a great platform for Lenovo to promote its brand. The choice of the worldwide partner of Olympics is exclusive and consecutive, only one company of each designated industries can have a right to make use of the brand of Olympic Games. In other words, new enterprises have a chance to join only when a sponsor withdraws. Sponsoring the Olympics can make the trademark of Lenovo be immediately identified by the global consumers, what Lenovo need to do is to take advantage of this sponsorship opportunity, to expand the image of brand into consumers’ hearts and to make the Olympic investment value for money.
Lastly, Lenovo officially launched a new line of notebook and desktop PCs in January 2008. Lenovo's new consumer-oriented IdeaPad notebooks and IdeaCentre desktops complement Lenovo's
This review provides an in-depth strategic SWOT analysis of the company’s businesses and operations in the areas of internal strengths and weaknesses and external opportunities and threats. (Sector Publishing Intelligence)
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
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.
IBM PCD ships its 100-millionth PC (counting both desktop and notebook computers). Lenovo becomes an Olympic worldwide partner. It is the first Chinese company to become a computer technology equipment partner of the IOC. Lenovo decides to develop the rural market by launching the "Yuanmeng" PC series designed for township home users.
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).
The development of the consumer PC market, along with the rise of the notebook market as well as the popularity of the PC provides a good opportunity to Lenovo notebook in the consumer market. And there is a sales boom as Win7 listed the individual market. so Lenovo should seize the opportunity to capture the market. The Chinese government launch home appliance countryside sports, farmers for the PC has a strong demand. Lenovo can seize the chance to go to China's vast countryside market.The domestic market having the rapid development , more and more consumers to buy the computer.
The current Lenovo brands will work with the new tablet product by giving the same brand messaging. Current products will also be advertised to enrich the lives of the consumer by using Message Engineering. Lenovo will be presented to the consumer as a lifestyle brand. The genius of Apple as a brand is that it has come to embody a lifestyle that resonates with their customers, (Cuneo, 2003.) In order to compete with brands like Apple, Lenovo will need to incorporate previous products to work with the new tablet. The idea is not about technology, but how that technology can enrich the everyday life of the consumer.
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.
Among the top computer manufacturers, Lenovo, HP and Dell have a big name. They offer wide range of PCs, laptops and other accessories for home users and business purposes.
S: 1. Product diversity: HP not just do the software and hardware but the whole rang of service to design, implement and IT infrastructure. Right now HP is dominating the market of printer with 40% market share. The product diversity enables the company to hold its position even in the time of recession.
The purpose of Case study is to apply the concepts of strategic management to the facts related about a company's situation and performance and to make recommendations about its future course of action to enable it to compete with sustained advantage in its business environment. It is necessary therefore to develop an appropriate framework to do this. Depending upon the number of times a case is read and the care taken over it, the quality of analysis is likely to be detailed and focused. However it is possible to develop a reasonably good broad understanding that will permit an acceptable level of analysis and basic recommendations even after one reading provided the student knows what to look for
Lenovo Group Limited is today the largest information technology enterprise in China and the third largest computer company in the world which is has an 8.6 per cent share of the PC market, after Hewlett-Packard at 15 per cent and Dell of the US at 16.8 per cent. During its first 20 years, Lenovo evolved from a small distributor of imported computers into China’s leading computer firm and in 2005, it purchased IBM’s division. Lenovo has been the market leader for seven consecutive years, commanding a 27 per cent share of the domestic PC market. It is also the market leader in the Asia Pacific region (excluding Japan), with a market share of 12.6 per cent.
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
Lenovo Group Limited (SEHK: 0992) is a Chinese multinational computer hardware and electronics company with its operational headquarters in Morrisville, North Carolina, United States and its registered office in Hong Kong. Its products include personal computers, tablet computers, mobile phones, workstations, servers,