1.Environmental forces
1.1Major forces in the macro environment
·Demographics forces
Lenovo is the native enterprise of China and Chinese population is so large that the purchasing power in China is still very strong. In recent years, Lenovo mainly developed business in Russia, India and Brazil and we can find that these three countries are also the ones among the top 10 populous countries in the world.
Considering the age trends, Generation X & Y are the main group of consumers. Especially after entering the 21th century, the number of customers who are over 50 years old is continuously growing.
·Cultural forces
The young people are paying more attention to the leisure and spending more on such electronic products. This trend
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The new brand name ‘Lenovo’ is made up of ‘Le’ which is the prefixes of ‘Legend’ and ‘novo’ which has the meaning of ‘innovation’ in Latin. Hence, the new brand name represents the positioning of Lenovo’s target of being the legend in the IT market depending on innovation of products.
·Competitive advantages
Lenovo’s typical brand proposition is ‘more for the same’. Therefore, it has to have some competitive advantages that can leave customers greater value than the other companies. And the following factors are Lenovo’s main competitive advantages.
(1) Lenovo divides their consumers into groups in detail and they have various products designing for different types of customers.
(2) Lenovo has a big and high-quality technical team which has a number of researchers and engineers who are knowledgeable in designing new products. So they can ensure that the product is fashionable and fully functional.
(3)They test the products according to the standard parameters strictly and then they can ensure the high quality of every product.
·Service
By virtue of the high-tech means which is at the leading place in its field, Lenovo promise to provide pre-sale, sale and after-sale services to customers.
Strategy analysis
Customer Segmentation & product choice
Lenovo divides their customers into five groups according to the scale of customers, such as, home & home office, small business, medium business, large enterprises and business
Lenovo has a Transition service that saves its customers valuable time and resources, its hardware refreshes, and purchase through deployment to aged asset recovery. According to research, Lenovo’s PC management tools help users reduce costs that capture 80% of a PCs full lifecycle beyond the hardware price. Its ThinkVantage technologies reduce machine downtime and provide data security and their PC lifecycle analysis helps reduce the running and ownership costs. Lenovo helps customers manage the complete PC lifecycle and maximize the productivity and usefulness of devices;
Lenovo’s biggest business is PCs and it is the world’s number 1 PC maker. But the sales of PCs isn’t growing which makes it imperative for Lenovo to focus on its mobile phone segment in order to be a tech leader.
Our main objective is to increase market potential by designing brands attractive to Workhorse, Traveler and Innovator segments. The executive team analyzed the customer needs and use pattern to determine the design. Based on the research, our firm decided to add a new segment that targets a different clientele. The strategy to design a desktop computer for our Workhorse customers was based on their top three preferences of having a computer easy to use, but still does a wide variety of tasks at a special price deal.
composed of Millennials and it will also represent a majority of consumers. Therefore, it is an important challenge
enhancing laptop and this is one of our competitive strengths. After, reviewing the customer segment
Innovation, localization and customization, and an efficient and environment-friendly global supply chain are the pillars of growth for Lenovo. Cost-innovation, efficient execution of strategy and a strong presence in China support its global endeavours. In-house manufacturing reduces costs and strategically located manufacturing facilities in China, Mexico and India enhance the efficiency global supply chain. It spends adequately on R&D to move ahead with the times. The R&D centres are located in North America, Japan, and China. Joint ventures and local-level innovation supports its customer oriented focus. Over the years, it has leveraged its strong presence in China, pursued incremental innovation and used inorganic growth strategies to its advantage (Ahrens & Zhou 2013). Further, geographical diversity helps it avoid overdependence on a particular market or product. Cultural diversity, supported by an inclusive organisational culture, facilitates Lenovo’s efforts to build a sustainable competitive advantage (Lenovo
The criticism of this strategy is that the company which is Lenovo will be too dependent on their distributors as the distributors is the sole importer of the manufacturer’s product. However, since Lenovo is already a well establish brand in the world, the dependence on distributors will not be a problem for Lenovo and they can eventually overcome it.
Legend announces the birth of its new "Lenovo" logo to prepare for its expansion into the overseas market. Based on the collaborative application technology, Lenovo initiates IGRS Working Group, in cooperation with a few large companies and the Chinese Ministry of the Information Industry, to promote the formation of the industrial standard.
Laptops, also known as notebook computers, are personal computers which are deisnged to be portable, while keeping similar functions as desktops. The first laptop, Osborne 1, was an 11 kg laptop with 5 inch screen, released in 1981 by the Osborne Computer Corporation (History). Since 1981, the laptop industry have experienced a rapid growth, now becoming one of the ‘key industries’ of the modern society (Chen). This paper investigates the current laptop market by analyzing different companies, including Apple, Dell, HP, Lenovo, and Asus, which are the top 5 vendors of the market, along with one extra company, Microsoft, to find out the current status of the laptop industry, and its future. To make the comparing process more simple, this paper will focus on one laptop from each companies, with similar specifications.
Biediger, J., Decicco, T. , Green, T. , Hoffman, G. , Karthik, D. L. , Ojeda, M. J. , Slocum, J. and Ward, K. (2005) Strategic Action at Lenovo, Organizational Dynamics, 34(1), pp.89-102
4.1 Market segment: despite Lenovo is an old computer, it seems that there is no market selection problem, but when profits to maximize the enterprise management of long-term highest goal appeared. Lenovo will also can not bear the temptation of diversification, attack from
Young consumers, particularly educated, middle-class men, are leading growth in the market and trends are
Strengths of Accenture include diversifying its end markets and its geographic reach for all its clients across all industries. Accenture has a broad portfolio of offerings enabling the company to serve diverse customer needs in all of its locations. Finally, Accenture has one of the strongest brand labels in the world. Most recently Accenture’s brand has been recognized as one of the most desirable brands among researchers. For example, Accenture’s brand was ranked forty-five in Intrabrands best global brands study of 2011 (Kaikati, 2003).
Lenovo is a Chinese multinational technology company with headquarters in Beijing, China. It is the world’s largest PC vendor and one of the world’s leading smart phone companies listing on the Fortune 500 list that having major research and manufacturing centers over the world.
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.