Lenovo’s Acquisition of Ibm’s Pc Division

1995 IBM PCD introduces the “butterfly” keyboard.IBM PCD moves from Boca Raton, Florida, to Raleigh, North Carolina. Legend introduces the first Legend-brand server.

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

Three new computers offering to customers including wholesale and retail prices. These three brands were selected according to their design, connectivity, performance, price and help and support. The ratings were compared and the top 3 leading brands were chosen.

The company needed a new product that was different, modern and offered a better cost/benefit relationship than other products on the market.

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

Smartphone unit sales will grow at nearly a 30% compound annual growth rate over the next five years

Copycat firms within emerging markets (such as Lenovo, Acer and Tata) can be considered learning firms. Copycats essentially learned how to conduct business from an already successful business model. Their ability to transform learning into a viable business has jettisoned them into positions of power within the world’s economies. Lenovo is currently the leader in PC sales worldwide. Although PC sales in the US continue to decline Lenovo’s ability to capture emerging markets such as China, allows them to continue their profitable growth (Gupta, 2012).

This option is costly, However it comes with many benefits and it will save the company in the long run because this equipment is on the cutting edge. It exceeds the current network workload, and will also be able to handle an increase in network traffic and growth over the next few years, without having to buy more equipment. These figures also include spare laptops in case there is any equipment failure in the future, it also allows room for growth.

Owing to the Exxon Valdez disaster, oil companies have been withdrawing their ownership of tankers but employing 3PLs to minimize their exposure to lawsuits.

In December 2004, Lenovo 's acquisition of China 's leading computer manufacturers IBM 's PC division of $ 1.75 billion dollars. The transaction generated $ 13 billion business, which accounts for 8% of the global PC market. The takeover meant the integration of IBM by Lenovo 's

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.

Compaq suffered much from Dell’s new business model, leading to its acquisition by HP. Compaq relied much on reseller channels, so their criticism caused Compaq to retreat from its proposed direct sales plan, although Capellas maintained that he would use the middlemen to offer value-added services. [3]

This became part of their strategy of a ‘one-two punch’: building up the Lenovo master brand and continue to strengthen the ThinkPad product brand.

IBM’s marketing efforts missed the mark. No one ever looked at the IBM ‘s PC as being inferior, but IBM did nothing to sell it.

In the deal, Lenovo, which is partly owned by the government’s Chinese Academy of Sciences, would help IBM gain entry into the promising China market. In return, IBM would sell Lenovo PCs through its sales force and distribution network. In addition, IBM would provide services and financing for Lenovo PCs and allow Lenovo to use the IBM brand name for five years.