Lenovo's Acquisition of Ibm's Pc Division

destinations they value most". This is the next step in strengthening our position in Asia,

Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely

The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.

operate and connect with Asian markets. We will work to make the region more open

as the biggest market globally and became the center of the art market with a share of fortyfive percent in market sales in value (McAndrew).

both the U.S. and international markets. China represents one of the fastest growing countries for

Vision: to increase the market share to 60% in less than 12 months by setting up new plants in foreign countries

However the focus had changed. It is worth to note that in 1992, of the USD64.2billion revenue, hardware consist the bulk of IBM revenue amounting to 52% compared to just 23% for services. Nearly two decades after, in 2009, IBM revenue had rose up to USD95.7billion with hardware consisting only 7%, while services and software had rose up to around 40% each. What is more important that with the rise of revenue, overall profitability also has improved resulting in a very strong year-on-year increase of positive cash flow. In turn company shareholders has benefited from the increased rate of EPS as shown in Figure 1 below [3].

has opened an Asian headquarters in Singapore. “Since it opened International sales, which accounted for 25% of the company's business four years ago, were 35% in 2010. The company has set a goal of at least 40% by 2014.” (JS ONLINE, Journal Sentinel)

2. Expanding the international market within a period of 4 years by heavily investing in power economies such as China, India, Japan and some parts of Africa.

IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42%

Thirty-three years ago, the founder of Lenovo founded the company with only 33,231 USD (converted from 20,000 CNY). 2 Nevertheless, Lenovo has become one of the Fortune 500 companies, and it is one of the largest PC manufacturers in the world, with a more than 20% market share, and around 43 billion revenues in 2016. 3 Over the past three decades, Lenovo has implemented numerous strategies to achieve such accomplishments. Since multinational enterprises often involve in

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.

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

Develop products that are available and influential in the whole Asia Pacific region and beyond.