Lenovo Market Segmentation

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

Since the beginning of the Industrial Revolution in the 1860’s, people have rapidly improved people’s lives with technology. The first generations of computers started the base of computers and their system. These generations were influenced by inventers like Bill Gates, Steve Jobs, and Steve Wozniok facilitated the computers, tablets, and smart phone we use today. With tablets and smart phone being so accessible it is no surprise that computers are not as popular as they used to. Many people would prefer to have an item that can fit in their back pocket or bag, instead of having to carry a big, space consuming item. They would rather have a hand held tablet and can fit almost any where somebody needs it to. Everywhere there is technology;

The modern tablet PC can best be described as offering users the best features of notebook PCs, PDAs, and paper records. These devices provide the user with complete access to top of the line mobile computing, without the aggravations and trade-offs these devices required. Today's tablets and all-in-one PCs are designed to use the latest operating systems and medical software. Users can input information via a stylus or digital pen as well as the built-in virtual keyboard.

The company has managed to earn a profit in these tough economic times because of its diverse customer base, broad portfolio, and numerous cost initiatives (Edwards, 2008). The company made a commitment three years ago to focus on design and innovation in the PC replacement market by offering devices such as touch screen PC’s and easy to use software (Edwards, 2008). This has enabled the company to gain market share from its competitors such as Dell and Toshiba (Edwards, 2008). The company has also focused on innovation in printers and services that has helped boost consumer and business interest (Edwards, 2008).

This report is considering that tablet computers can be an alternative way for computers and laptops but not a replaceable due to the functions of the device and processor.

Dell Computer Corp. is aware that in today’s markets, the speed of product introduction can be the key factor between success and failure. It is important to obtainmarket share and create industry leadership, and through Dell’s direct sell model, that is exactly what they did. The company with the first product to the market can usually capture premium segments, build strong name recognition, and control a large market share (www.dell.com). Giving the consumer’s exactly what they wanted reduces the time required for Dell sales executives to build a relationship with their consumers (Frick, 2013). Quick innovation and product introduction also expand a

The technology industry is one predicated on constant innovation. Products within the field must provide a compelling value proposition for consumers in order to properly maintain both margins and revenue. Technology companies, particularly those who manufacture products are realizing decreasing margins as the competitive environment matures (Bodie, 2004). Competition for foreign competitors has reduced margins and subsequently profit margins. Cost conscious consumers are now purchasing product based primarily on price rather than specifications. Combine this fact with the macroeconomic factors prevailing in the market and the industry has significant headwinds going forward one year from now. This is particularly true of Dell who has seen an erosion of market share due to the influx and demand of tablet computers. Less demand for traditional laptops has also decreased the profit and operating margins of the firm. Even within its own market, Dell has encountered significant competition for rivals such as HP, IBM, and Microsoft who recently announced its own tablet (Scheck, 2008). Below is a chart indicating markets share within the PC market over the last decade. Notice that market share gains after the housing market collapse have deteriorated. This reflects changing consumer sentiments regarding the overall purchase of PCs and heightened demand for alternative products such as tablets and notebooks.

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.

Ownership of action and commitment to promises form the essence of Lenovo’s culture. Open communication, engagement and empowerment of employees, teamwork, innovation, and customer-orientation are the vital components of the culture. The Lenovo’s Code of Conduct accords prominence to integrity and ethical behaviour. Employees can The code is available in various languages and employees are trained in various aspects of Lenovo’s organisational culture. Lenovo serves customers in 160 countries (Lenovo 2014) with its 60,000 employees. Revenues come from China (32%), Americas (26%), Asia Pacific (14%), and Europe-Middle East-Africa (28%) regions. Lenovo has pursued both organic and inorganic growth strategies over the years. All these factors have

Tablet computers are compact wireless mobile computing device which is in the size of a book which replaces the use of computing devices. Tablet computers can let us replace many things which computers can do. Other than surfing net, playing games for entertainment tablet computers has developed to a higher level where it is used in corporate world too for business purposes. However, definitely tablet computers also have both good and bad sides. Among the advantages of tablet computers for travelling salespeople is rather carrying the heavy packed laptop everywhere they go for business purpose , they can actually carry this hand-held form of device for their business productivity on the move from all the

The laptop industry could be categorized in to two segments. Consumer segment & Commercial Segment. Compaq in 2000’s focused on both the segments. But rise of Dell, Lenovo forced Compaq to shift its focus on consumer segment. HP was also targeting the same segment. So Compaq was concentrated on the lower income group of the consumer segment.

Cellphones are the most dominant of all mobile devices and not only has it maintained popularity in the society, but it has become a major necessity. Its importance is to place and receive calls, take pictures and store data which all can provide a sense of security for the owner. The following are also considered to be mobile; laptops, netbooks and cameras. A large volume of the population owns at least one of these devices and because of all the advanced technology it displays, spending substantial time using these devices can lead to tremendous physical damage, such as vision problems, chronic neck and back pain and a lack of sleep disorder.

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.

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

Tablet PC has been advertised as the wave of the future for reading, gaming, and media consumption for quite some time now. However, the idea of Tablet PC has not been as popular or widely accepted in our country because of the sky-scraping price. Our company, Zeus Technologynology is preparing to commence a new, innovative and cost-effective line of tablet computers. Our product will propose a competitively exclusive amalgamation of next generation features with reasonable price bar. We are targeting specific yet mass segments in the consumer market. In addition, we are planning to take advantage of the ever increasing demand for low-priced Tablet PC. A wide range of tablet computers are available from major CE