Lenovo Financial Paper

In United States history, there have been few inventions that have completely astonished the whole nation; the personal computer was one of them. The introduction of the IBM Personal Computer in the United States created a novel, profound interest in technology in the 1980s. PC Magazine from February 1982 indicated that technology was slowly improving around that time, but the personal computer took a giant leap into the future and lead to various new inventions and ideas. IBM’s Personal Computer not only opened new doors for IBM, but for many other companies and industries as well, which only added to the excitement. Even

In the second phase Lenovo demonstrated its commitment to innovation by rolling out improved ThinkPad products and further strengthening ThinkPad’s brand essence. Initiatives like Using Titanium cover instead of the traditional black cover while launching Z60 helped in establishing the fact that Lenovo made ThinkPad products better than before. Enforcing ThinkPad’s brand position and its advertisement as Lenovo’s sub brand helped in strengthening the Lenovo master brand. The third step emphasized that Lenovo master brand stood for innovation with Lenovo introducing the 3000 PC series for small business consumers focusing on reliability ,quality and durability in addition to modern looks .The marketing campaign focused on providing “worry free computing” by providing features like virus recovery features. The choice of a number series instead of a name for the launch of the first non-ThinkPad product was done strategically to strengthen its association with the master brand Lenovo.

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

Some would prefer to build their laptop necessities and incur offering provided by Altadena Computers. The logic here is not to dismiss the competition; for the possibility of that occurring is relatively short lived. Altadena Computers is a new and emerging business in the industry. Many lessons can be learned that can be applied that were previously encountered by the competition.

IBM had designed and made nearly everything it sold till the moment when BILL LOWE got the permission to develop the new small computer model within a year. To meet the due deadline along with the priority of keeping the price low, the development team turned towards a number of outside contributors for the necessary technology, hardware and software for the model 5150.

One trademark used by Lenovo is the LenovoTM. This is used as the official name for the corporation and acts as a way to join together all of the company’s projects. The origin of the name is a portmanteau between the corporation’s holding company, Legend and “novo”, which means “new” in Latin. This works in the firm’s favour, as “new” is something that is coveted by consumers. The logo is without a capitalised “L”. This could be problematic for the firm, as first time experiencers of the brand may be led

I presently work for IBM. The case discusses how IBM’s famous hardware division of personal computing/Thinkpad was sold-off to a Chinese firm Lenovo who had no presence in the market and who was hardly known for laptops. Its only presence was in the Chinese market and no-where else in the world. The case further discusses the Merger and Acquisition of the hardware division of IBM and what challenges were faced by Lenovo and what should be done to overcome those problems.

Many of the competitiors of the company gave very strong competition to them. The Lenovo companys product are very lessly used.

As direct exporting is the new proposed strategy in 3.1.1, Lenovo will be focusing on the pressures for global integration which is to seek cost reduction through economies of scale and arbitrage benefits. As Lenovo wanted to attain competitive advantage through cost leadership strategy, they first have to cut down their cost in order to be able to sell product with lower price. Hence, the pressure of global integration in cost reduction is identified there.

As Lenovo has been successfully internationalizing into other country by using joint venture as their strategy, the new relevant proposed strategy that the company can use is direct exporting. Direct exporting is considered relevant to be used as the new strategy for Lenovo because it is the least risky strategy of all. In fact, Lenovo can maximizes their

In December 2004, Lenovo 's acquisition of China 's leading computer manufacturers IBM 's PC division of $ 1.75 billion dollars. The transaction generated $ 13 billion business, which accounts for 8% of the global PC market. The takeover meant the integration of IBM by Lenovo 's

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.

Lenovo’s Strong brand combination of Thinkpad and IdeaPad could propel the company to occupy a leading position in the global market.

The new brand name ‘Lenovo’ is made up of ‘Le’ which is the prefixes of ‘Legend’ and ‘novo’ which has the meaning of ‘innovation’ in Latin. Hence, the new brand name represents the positioning of Lenovo’s target of being the legend in the IT market depending on innovation of products.

Compaq and Dell stole IBM’s PC market with the right price and the right message.