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Lenovo Case Study

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LENOVO – The Global Challenger from an Emerging Market.
Background information:
Lenovo

-Chinese multinational technology firm
-Headquarters in Beijing, China
-North Carolina, United States
-Year 2011, world’s second largest personal computer vendor by unit sales after HP
-operate > 160 Countries
-Founded in Beijing in 1984

Lenovo is one of the largest famous personal computer makers in the world. Today, Lenovo strives to be the global market share leader in each of the market we serve. In 2005, Lenovo purchased the personal computer business and the brand “ThinkPad” famous computer IBM in the IT industry all over the world. This landmark transaction is taken as its most important stage of the international strategy in the computer industry. Also in 2011, Lenovo merged with NEC. This marks the trinity Lenovo's internationalization strategy has risen to a new stage, which indicates that Lenovo already in the United States established a brand-name image localization.

Case Study: Q&A 1) What is the nature of Lenovo’s international strategy? Is the firm’s strategy primarily multidomestic or global?

Lenovo uses mergers and acquisitions to gain access to required knowledge and other assets from partner firms, and to expand into markets worldwide. The merger increased Lenovo’s scale economies in manufacturing and marketing. The firm’s strategy is primarily in multidomestic. Because Lenovo’s products are standardized worldwide, but elements such as keyboard and software are customized to respond to local language needs. Marketing also responds to local conditions. Lenovo’s acquisition of IBM’s managed the firm generates more than $21 Billion USD. Lenovo has access to IBM’s global distribution and sales in 160 countries and regions. The merger increased Lenovo’s scale economies in manufacturing and marketing. The diversity of partners and international

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