Lenovo Group : Global Competitive Strategy

In his article, Don Clark expresses concerns about the future of International Business Machines cop in the long term by showing how the company net income and revenue are decreasing because of the shift toward computing service and software. Further, Chinese buyers are suspicious with American products due to the fact that the recent strains over intelligence-gathering actions operated by the US government. Therefore, it will be tough for IBM to sale it product in China to expand its shares (Don, 2015).

1. Brief description of the context and of the decision which has to be made.

Lenovo is a Chinese multinational computer technology company operating in more than 60 countries and selling its products in around 160 countries. Motorola, an American company, focus on making cell phones and other electronics. In recent years, Motorola has experienced a bad financial situation and in 2011 Motorola split into two separate companies, Motorola Mobility and Motorola Solutions. In August 2011, Google acquired Motorola Mobility using about US$12.5 billion. In 2014, October 30, Lenovo announced that they have already finished the acquisition of Motorola Mobility from Google and they will operate the Motorola as a wholly-owned subsidiary. Lenovo paid Google about US$2.9 billion to complete this transaction which included approximately US$660 million in cash and US$750 million ordinary stock issued by Lenovo. The remaining US$1.5 billion will be paid to Google by using three-year promissory note. In this paper, we just consider the transaction between Lenovo and Motorola Mobility.

The essay is a strategic analysis for LEGO Group. LEGO Group is a famous toy company in the world, which established in Denmark. LEGO Brand is not only the familiar logo, but also the expectation. LEGO acts as a guarantee of quality and originality. LEGO’s core values are imagination, creativity, fun, learning, caring and quality. The essay will show strategic analysis by identifying the industry, analyzing general and industry environment, listing resources and capabilities, analyzing the company’s core competency, SWOT, current strategies. Then, giving the key issues. Finally, the essay will recommend the business-level strategy.

(1) What are the key elements of Toshiba’s business strategy in notebook computers? In what way do Ome’s operations support this strategy?

Lenovo is the native enterprise of China and Chinese population is so large that the purchasing power in China is still very strong. In recent years, Lenovo mainly developed business in Russia, India and Brazil and we can find that these three countries are also the ones among the top 10 populous countries in the world.

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.

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

The BMW brand and its subsidiaries attempt to create value for the costumer by differentiating themselves from the rest of their competitors. All of them: BMW, Mini and Rolls Royce want to project an image of luxury and exclusiveness, thus creating enough customer value that they are capable of increasing the prices over the real market price; in other words their selling point is high quality in exchange of high prices. The only one that differs from the rest is the BMW Motorrad, their motorcycle company, as while it also counts itself in the “high quality – high price” market, the other vehicles BMW produces are targeted towards a successful and middle age people market, while their motorcycle campaign targets a younger customer segment by projecting an adventurous, energetic and free image. It is also arguable that the Mini segment tries to identify itself more as just being different or eccentric rather than to project a high social image in order to differentiate itself, but, then again, it is a “high quality – high price” product.

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,

The purpose of this report is to give description and research on a company challenges when it is on its way of becoming globally integrated enterprise. This report will briefly explain how a company approaches its strategy, management and all of its operations in order to achieve its aim. It covers how new strategies were introduced within IBM, and what were their effects.

Xiaomi was established in 2010 by serial business visionary Lei Jun, who trusts that astounding innovation doesn 't have to cost a fortune (Xiaomi, 2015). At Xiaomi, we 've united shrewd individuals from Google, Kingsoft, Microsoft, Motorola, Yahoo, and other Internet and tech organizations from around the globe to breath life into that vision. Xiaomi make wonderful equipment, programming, and Internet administrations for – and with the assistance of – our Mi fans. Xiaomi consolidate their input into our item run, which at present incorporates Mi 4, Mi 3, Mi Pad, Mi Box, Mi TV, Redmi 1S and Redmi Note, Mi Power Bank and different embellishments. Xiaomi offer direct to clients to keep our costs focused. Also, with more than 18 million handsets sold in China in 2013 and items dispatched in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India and Indonesia, we are prepared to go worldwide.

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).

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

Target Market: Unlike Dell, Lenovo should target the lower-end of the market i.e., home, small business, small office, and medium business sector as its primary market as the needs of these sectors in terms of user sophistication, price sensitivity, order size, geographical spread, level of support, etc. directly matches with the existing business model of Lenovo. Lenovo can use a combination of scaling and granulation to increase its existing sales and distribution network in the PRC and at the same time cater to the increasing demand for consumer customization through a granulation strategy.