Lenovo

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Analysis of Lenovo 's competitive strategies and how can it adapt its core competencies to external changes? Executive Summary Lenovo, a personal computer manufacturing company, has been one of the leading corporations in the PC industry for over 20 years since the company foundation. The brand has been popular among the PC consumers over a long period of time and its reputation reached a peak level especially after acquiring the Personal Computing Division of IBM. The new business acquisition enhances the brand awareness by using the IBM branding and improves technology of Lenovo that enables Lenovo to compete with the current giant corporations such as Hewlett-Packard and Dell in the industry and to possess a market share of 19% in…show more content…
In addition, as one of the largest domestic personal computer manufacturers in China, it has the support of government which forms parts of the unique resources of Lenovo. In terms of the capabilities, firstly, Lenovo provides the engineers with lots of trainings. Secondly, Lenovo is good at encouraging the employees and the different kinds of incentive schemes are adopted in the company. Moreover, Lenovo does well in market segmentation and its market positioning is accurate and suitable. It mainly positions in low-end market in which the cost effectiveness is consumers ' greatest concern. With its Value Line G Series product which particularly focuses on the high cost effectiveness, this operation strategy attracts a large amount of consumers who would like to pursue practicability and entertainment with low price. Furthermore, after obtaining the new technology by the acquisition of the Personal Computing Division of IBM, Lenovo launched a new product named Ideapad which mainly aims for the high-end market. Lenovo has a large market share in China and India which are the huge consumer markets in the world. The large demand of the consumers leads to the mass production which leads to the economies of scale and minimize the costs. Besides, Lenovo continuously improve the customer service which contributes a lot to their reputations and they pay more attention to meet the consumer preference in terms of service personalization

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