The Marketing Strategy Of Lenovo Brand

1996 Legend becomes the market share leader in China for the first time.Legend introduces the first Legend brand laptop.

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

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

The chosen company is Lenovo Group Limited which is a multinational technology company that is headquartered in Beijing, China. Established in 1988, Lenovo is the largest information technology enterprise in China, engaged primarily in the sale and manufacturing of personal computers, mobile telephone handsets,

Lenovo is a Chinese multinational computer technology company operating in more than 60 countries and selling its products in around 160 countries. Motorola, an American company, focus on making cell phones and other electronics. In recent years, Motorola has experienced a bad financial situation and in 2011 Motorola split into two separate companies, Motorola Mobility and Motorola Solutions. In August 2011, Google acquired Motorola Mobility using about US$12.5 billion. In 2014, October 30, Lenovo announced that they have already finished the acquisition of Motorola Mobility from Google and they will operate the Motorola as a wholly-owned subsidiary. Lenovo paid Google about US$2.9 billion to complete this transaction which included approximately US$660 million in cash and US$750 million ordinary stock issued by Lenovo. The remaining US$1.5 billion will be paid to Google by using three-year promissory note. In this paper, we just consider the transaction between Lenovo and Motorola Mobility.

As Lenovo has been successfully internationalizing into other country by using joint venture as their strategy, the new relevant proposed strategy that the company can use is direct exporting. Direct exporting is considered relevant to be used as the new strategy for Lenovo because it is the least risky strategy of all. In fact, Lenovo can maximizes their profit and minimizing their risk in direct exporting

In this report, the secondary data is used to assess and apply the use of economic theories and other relevant issues. The key findings of this report were that Lenovo is a US$39 billion fast growing business with its success completely depending on its innovation, high efficiency in global supply chain and for maintaining a strong business strategy that differentiates it from its competitors like Dell and Hewlett-Packard (hp).

One trademark used by Lenovo is the LenovoTM. This is used as the official name for the corporation and acts as a way to join together all of the company’s projects. The origin of the name is a portmanteau between the corporation’s holding company, Legend and “novo”, which means “new” in Latin. This works in the firm’s favour, as “new” is something that is coveted by consumers. The logo is without a capitalised “L”. This could be problematic for the firm, as first time experiencers of the brand may be led

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

Product Offering: Over the years, the features that are demanded by consumers has drastically changed and assuming that change would be constant, Lenovo can invest heavily in research and development of new products and technology offering features such as mobile form factor and high-speed internet access. Lenovo also needs to form strong partnerships with other manufacturers and retailers so that it can bundle products together to increase the total value for the user in a single

This is because Lenovo is offering an affordable price through direct exporting which related to the cost leadership strategy. The Cost leadership is an effective business-level strategy to the extent that a firm offers low prices, provides satisfactory quality, and attracts enough customers to be profitable. (citation)

Yang Yuanqing also holds a Master's degree from the Department of Computer Science at the University of Science and Technology of China. He is aldo a guest professor at the University of Science and Technology of China and a member of the New York Stock Exchange's International Advisory Committee as well. Under his leadership, Lenovo has been China's best-selling PC brand since 1997. (Lenovo Group Ltd.: Management, n.d.)

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.

In recent years, the personal computer (PC) industry has been developing by leaps and bounds. Global sales of PCs totaled 230 million units in 2006, representing a 9 percent increase over the previous year. Lenovo has a product line that includes everything from servers and storage devices to printers, printer supplies, projectors, digital products, computing accessories, computing services and mobile handsets, all in addition to its primary PC business, which made up 96 percent of the company’s turnover as of the second quarter of 2007.