LENOVO GOES GLOBAL
1. What are the three major challenges that Lenovo faces in the next 5 years? How should we address them?
a. The first major challenge that Lenovo will face is turning their recent purchase of Motorola from red to black regarding profits. According to CRN.com, in 2013, Motorola was operating with a $928 million loss. The prior year, 2012, was not much better with a loss of $616 million. Lenovo has proven that they are capable of turning unprofitable markets around when they purchased IBM PC. If Lenovo is able to move forward full force like they did in the PC market, then they should be able to turn a profit with Motorola (Caruana & Spring, 2014). b. The next major challenge Lenovo will face is competition. Many try and few succeed when competing with Apple and Samsung in the mobile handset industry. Apple and Samsung are and have been the 2 most popular smartphone providers for years. Both companies consistently offer new products and upgrades, and have the majority “fan” base already compared to other companies. Not only will Lenovo be competing with the 2 main smartphone companies worldwide, but also with Chinese competitors such as Huawei and ZTE (Barfield, 2014).
c. The final major challenge Lenovo will face is brand equity. This challenge goes hand in hand with the second challenge listed above, competition. In order to build a brand, Lenovo is going to have to be innovative in order to draw in consumers. Conducting consumer research to determine the top offerings consumers want in each market would be beneficial. With Apple and Samsung always offering new products and services, Lenovo has its work set out for them. Lenovo will need to go above and beyond its competitors with offering new and enticing products and services. Advertising and promoting these products to make consumers aware will help Lenovo take over the smartphone industry. 2. In the attached Product Market Grid, which ones should Lenovo focus on? Please rank the markets in the grid based on attractiveness and explain the basis of your recommendations. Lenovo should first focus on launching all three products in China because it’s their homeland. Lenovo knows the culture and consumers in China which will make it easier to launch all the products successfully. Lenovo is already a well-known brand in China, so it would not be as hard to enter that market. Next, Lenovo should enter Latin America especially Brazil. Lenovo already has a headquarters located in Brazil which could reduce costs such as shipping and tariffs. In addition, Brazil is growing fast economically and has proven to be an emerging market especially with technology. Lenovo has already introduced the PC in parts of Asia, and has done quite well. Therefore, Lenovo should enter the smartphone and tablet market in the rest of Asia since they area already a household name in the country (Chao, L, 2010). Then, Lenovo should enter Europe due to the popularity of Lenovo smartphones in Romania (Fiscutean, A, 2014). Last, Lenovo should enter the US Markets. The US will prove to be a difficult market due to Apple and Samsung. US consumers are stuck in their ways with Apple iPhones and Samsung. It will be hard to persuade the US consumers to go with a brand that is very uncommon. Advertising and promotional budgets will have to increase for the US market to persuade the US buyers to try out Lenovo smartphones and tablets.
3. How can Lenovo overcome the cultural differences that still exist in the company?
Lenovo can overcome the cultural differences by researching and studying what is accepted in the different cultures. The more global Lenovo comes, the more adaptable they will also have to become to other cultures. Security could be an issue between the different cultures. Laws and regulations will differ between countries, and Lenovo will have to stay on top of each market they enter regarding security. Obviously, a language barrier will exist between the different countries as well. I suggest for each market they enter, the have a product manager familiar with the designated international market. Like Lenovo did with the purchase of IBM, they should set up a cultural integration department in order to bridge the gap in cultural differences. Having a cultural integration department will help Lenovo know the beliefs and norms of other countries. It is very important to become familiar with other countries’ beliefs and norms in order to not offend anyone. What is accepted in one country may be offensive in another (Moran, Anderson, & Moran, 2014).

REFERENCES
Caruana, A., & Spring, T. (2014, March 31). Lenovo: Year of the dark horse. Retrieved October
2, 2015 from http://www.crn.com.au/Feature/374855,lenovo-year-of-the-dark-horse.aspx.
Barfield, C. (2014, February 10). Lenovo’s major US acquisitions: Secruty test not the only challenge. Retrieved October 2, 2015 from https://www.aei.org/publication/lenovos-major-us-acquisitions-security-test-not-the-only-challenge/.
Moran, R., Abramson, N. & Moran, S. (2014). Managing Cultural Differences. Retrieved
October 2, 2015 from http://samples.sainsburysebooks.co.uk/9781317975656_sample_861840.pdf.
Choa, L. (2010, December 28). Lenovo hones sales pitch for Russia and India. Retrieved
October 3, 2015 From http://www.wsj.com/articles/SB10001424052748703548604576037243239686206.
Fiscutean, A. (2014, August 27). Lenovo steps up its European smartphone ambitions with the launch of Five Android devices. Retrieved October 3, 2015 from
http://www.zdnet.com/article/lenovo-steps-up-its-european-smartphone-ambitions-with-thelaunch-of-five-android-devices/.