of the issues you have identified, supported with examples from the case. In your opinion, could they have done anything better? Key Branding issue and Lenovo’s efforts to address the same: After having established itself as an innovative PC brand in China, Lenovo wanted to position itself as a global corporate brand while leveraging the IBMs Brand equity. The key branding issue for Lenovo was creating a positive global image in consumer’s mind as being a Chinese computer brand it was considered
The SWOT Analysis of Lenovo-IBM Acquisition Case study: The acquisition case of American IBM Personal Computer by the Chinese computer company Lenovo. This article uses SWOT matrix to analysis the post-merger situation of Lenovo’s PC business and try to demonstrate a possible roadmap for future business. On December 8th of 2004, Lenovo announced its merging of IBM’s world personal computer (PC) business which included the ThinkPad line of PCs. This deal costing Lenovo $1.25 billion, including $650
in 2005, acquired the former Personal Computer Division of IBM, globalisation has been helped from the success of actively promoting Lenovo brand name at the 2008 Olympic Games. “The company that invented the PC industry in 1981” (Khaled Hasan Khan, 2014). 85 Lenovo has achieved the fastest growing market in the world and is now a $30 Billion personal technology company, the company is built on innovation. Acquisitions with IBM has made them achieve second place as the largest PC Vendor
Investment Alternatives and Analysis for Fair Value Case Analysis of Lenovo Merging and Acquiring IBM PC Department Contents Introduction ………………………………………………… 1~4 Body 1. The critical successful factors that are the focus of the successful M&A activities …………………………… 4~6 2. The summary of lessons learned which made the factors successful……………………………………………… 6~8 3. What is the company should do next to improve its post-M&A initiatives….........
Case study Lenovo’s Acquisition of IBM’s PC Division: A Short-cut to be a World Player or a Lemon that Leads Nowhere? 1. General presentation 2. Identification of problem, causes and negative effects Strategic problem definition: • Acquisition of IBM – PC division as part of the expansion strategy. Causes: • Lenovo was number 9 on PC market and had 2.2% market share worldwide and therefore it wanted to increase its market share position.
Case study Lenovo’s Acquisition of IBM’s PC Division: A Short-cut to be a World Player or a Lemon that Leads Nowhere? 1. General presentation 2. Identification of problem, causes and negative effects Strategic problem definition: • Acquisition of IBM – PC division as part of the expansion strategy. Causes: • Lenovo was number 9 on PC market and had 2.2% market share worldwide and therefore it wanted to increase
international scene May 2005 wit the acquisiton of IBM’s personal computer division for $1.75 billion. This was viewed as an experiment to see whether Chinese companies could successfully integrate foreign acquisitions as they continued to expend internationally. With this landmark acquisition, Lenovo’s new strategy was to become a leader in the global PC market. Lenovo Group Limited is one of the most prominent PC manufacturers in the world especially in Asia. It is headquartered in Morrisville
low-cost innovation. Innovation summary is provided: Table 5: Summary of Lenovo’s product features innovation (Xie & White, 2004, p. 412) b) Rarity Rarity can be in the form of a tangible or intangible resource. It is likely to be short-lived if attributes are not maintained (Johnson et al, 2008, p. 102). Lenovo achieved rarity through its brand name and intellectual property from IBM-PC division (Callahan, 2005). Such made Lenovo-IBM co-branding a powerful combination. c) Inimitable The inimitable strategic
Pros and cons of going international When thinking about internationalization, a lot of people instantly associate it with multinational companies. It cannot be said that they are wrong; however, internationalization is a far more complex phenomena as it does not only consist of companies setting their headquarters outside the borderlines of the countries of origin. If an entity simply decides to import or export commodities or services, their action can also be described as ‘going international’;
companies such as HP and Dell. In attempt to expand the market internationally, Lenovo made the acquisition of IBM’s PC division. Since two organizational cultures were different, the synergy of the merged Lenovo-IBM was required. Lenovo entitled to IBM landmark and “Think” products to move to international market and enabled to increase the market power by over night after the acquisition. Together with IBM sales forces and distribution expertise, Lenovo employed it cost-efficiency and technology expertise