Decent Essays
Lenovo: The Leading Chinese Computer Company Enters Global Competition


1- How did Lenovo make such a great change so quickly?
Lenovo is a manufacturer of computers, tablets and smart phones. Its headquarters is located in Raleigh, North Carolina, United States, home of IBM ThinkPad group and in Beijing, China. It is also incorporated in Hong Kong. The company was founded in 1984 by a group of 11 engineers.
In terms of weakness findings, Lenovo has shortcomings of late entry in related market, weak global brand image and low brand awareness, and ongoing cultural integration. Analyzing leading strategic opportunities, fast growth of netbook market, sustainable growth of emerging market and economy recovery are
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So Lenovo decides to expand internationally his brand.

In 2003, Legend announced the birth of their new logo "Lenovo" to prepare its expansion into the international market. Lenovo initiates IGRS Working Group, in cooperation with some large companies and the Chinese Ministry of Information Industry, in order to promote the creation of industry standards. The company would continue to serve the IT market in China, while considering how to expand abroad. The company would seek to strengthen further Lenovo 's brand image with a series of new product introductions. Lenovo would invest in R&D. International expansion would entail developing international distribution channels and incurring substantial marketing and sales costs. Lenovo 's global expansion began with a move into Hong Kong, with plans to enter the U.S. and Europe after that. One approach would be to acquire foreign companies with distribution capabilities while another would be to rely on wholesalers and retailers for distribution, and the company would need to compare the costs and benefits of alternative distribution channels.

Meanwhile IBM was having losses for 3 years and a half. So Lenovo stood to gain scale from the acquisition because it might benefit from economies of scale in manufacturing. In
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