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

Both Dell and HP are two strong players in PC industry which refers to an industry where companies produces PCs (desktops and notebooks), handheld devices (smart phones and tablets), and workstations. However, with growing global expansion, Dell and HP’s performance differs. Dell, once the world’s largest PC maker in 2001, has continually lost its market share to HP and Acer since 2007 (Guglielmo 2009). The cause is rooted in two differences of these companies: company diversifications and core competences. Therefore, how firms can continually survive in the PC business is more of an issue for Dell than for HP.

The advantages that global integration can give to Lenovo through cost leadership are that they can help Lenovo to save costs and achieve global efficiencies. They can also improve the quality of product and processes. High quality product promotes global brand recognition and gives rise to customer preference and efficient international marketing programs. They create economies of scale, which can result in lower operational costs, higher quality standardized product and homogenization consumer

has lost from globalization”. There are companies that are changing their strategies and begin to see the value in operating closer to their customers, for example a, Chinese company Lenovo. Michael Porter, Harvard Business School’s guru, says that “choosing the right location for producing a good or a service is an inexact science, and many companies got it wrong”. Lenovo is one of the first companies that takes globalization on new the level and opens a new production line in North Carolina. However, according to Economist newspaper, some American companies also start to rethink their strategies including Google, General Electrics, and Ford Motors and now they “are bringing some of their production back to

Oracle started then to, over the years, acquire smaller companies, either to continue the development of their core business (database

Mr. Lopez has a lot of information to sort through and give a great recommendation to Sony to what segment to target. I believe Mr. Lopez should interpret the findings of both studies from a qualitative and quantitative point of view. That understanding what the customers wants and needs are, and buy targeting the customer needs it will yield higher sales for Sony. Mr. Lopez should use the re-contacted consumers that allowed him to categorize the Chinese consumers segmented in CLUES of the consumer segmentation of Compass.

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

The strength of the company is the loyalty of its brand and its talented management team and workforce. Another strength is the organizational vision which gives employees a view of the future and something to believe in and something that can be realistically achieved. The weakness of the company is that of the expansion into new markets. They need to make sure they stay focused on the creativity and innovation of products and not over focus on expansion. If they over

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.

This industry is dominated by five main competitors: Dell, HP, Compaq, IBM, and Apple. Their products have been using for several decades. They have already strong brand, and they have created their distribution channels. The presence of these great players discourages the entry of new players to enter the market and establish their brand. However, there is always potential for new competitors to emerge. Some of the mobile companies are also considered as threat to the industry; considering their technical expertise and channels, they can easily shift to the PC manufacturing. With the presence of copyrights and patents in the microprocessor industry can prevent the new entrants; they may need to invest hugely in R&D. The number of new entrants has been slowed down in PC industry; rather it has been changing to concentrated industry. So the threat from new entrants to the PC industry is “Weak to Moderate”.

IBM, established on June 16, 1911, is an IT based company and also a multinational technology and consulting corporation based in America, have its headquarters in Armonk, New York. IBM specialises in the manufacturing and marketing of computer hardware and software, and provides infrastructure and consulting services in areas like mainframe computers to nanotechnology. Ginni Rometty is the current CEO of IBM. (IBM, 2013)

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

• Lenovo became a market leader in China with 27% market share and wanted to expand.

Lenopan LTD is an external purchasing office who was created by Maxime Blanc in Zhuhai. This is one of the strategic spot in China due to his proximity with Hong Kong, Macao and Shenzhen where we can find a lot of manufacture industries.