...The Strategic Marketing Management Analysis of Lenovo Group Wang, Wen Cheng, Dept. of Business Management, Hwa Hsia Institute of Technology, Taiwan Chu, Ying Chien, Department of Tourism and Leisure, National Penghu University,Taiwan Chen, Ying Chang, Department of Hotel and Restaurant Management, Ching Kuo Institute of Management and Health ABSTRACT In recent years, market competition in the market economy is fierce, the different economic performances and behaviors based on the enterprises’ own interests, to enhance their own economic strength and to achieve the exclusion of similar economic agents. Competition in the IT market is to drive their own material interests, because of the inherent dynamic of all economic actors, as well as the loss of their material interests are similar in the market by crowding out of economic actors. But How a newly established global brand build its brand awareness and be a successful global brand become a critical issue. 2005, Lenovo PC merge IBM computer and become the No.3 computer company in the world. As for Lenovo Group, in order to achieve success in the fierce competition of the products market it needs effective marketing strategy to attain profit and improve its development in Chinese IT market. The Lenovo Group operating activities are often completed through marketing products, producing, research, marketing portfolio. The Lenovo Group product and the quality of products constrain the results of pricing, promotion...
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...The Strategic Marketing Management Analysis of Lenovo Group Wang, Wen Cheng, Dept. of Business Management, Hwa Hsia Institute of Technology, Taiwan Chu, Ying Chien, Department of Tourism and Leisure, National Penghu University,Taiwan Chen, Ying Chang, Department of Hotel and Restaurant Management, Ching Kuo Institute of Management and Health ABSTRACT In recent years, market competition in the market economy is fierce, the different economic performances and behaviors based on the enterprises’ own interests, to enhance their own economic strength and to achieve the exclusion of similar economic agents. Competition in the IT market is to drive their own material interests, because of the inherent dynamic of all economic actors, as well as the loss of their material interests are similar in the market by crowding out of economic actors. But How a newly established global brand build its brand awareness and be a successful global brand become a critical issue. 2005, Lenovo PC merge IBM computer and become the No.3 computer company in the world. As for Lenovo Group, in order to achieve success in the fierce competition of the products market it needs effective marketing strategy to attain profit and improve its development in Chinese IT market. The Lenovo Group operating activities are often completed through marketing products, producing, research, marketing portfolio. The Lenovo Group product and the quality of products constrain the results of pricing, promotion, and marketing...
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...C A S E S T U D Y 9 LENOVO’S BRAND BUILDING STRATEGIE: TAKING THE COMPETITION TO COMPETITORS WITH “TRANSACTIONAL MODEL” Agenda • Brief Summary about the case • Global PC Industry • Lenovo: From Emerging to Surging • Key Challenges of Lenovo from the case • RecommendaKons Agenda • Brief Summary about the case • Global PC Industry • Lenovo: From Emerging to Surging • Key Challenges of Lenovo from the case • RecommendaKons Overview of Global PC Industry Global PC Industry • Since early 1980s, PC industry has been the most dynamic electronic industry sector • The global PC industry reached mature level by mid-‐1990s • Dell and Gateway starts their build-‐to-‐order strategies, resulted to the total supply chain respond swiTly to change • Emerge of e-‐commerce (online sales) hastened PC industry’s clock speed Overview of Global PC Industry • PC-‐makers enjoys high profits ...
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...S E S T U DY 9 LENOVO’S BRAND BUILDING STRATEGIE: TAKING THE COMPETITION TO COMPETITORS WITH “TRANSACTIONAL MODEL” Agenda • Brief Summary about the case • Global PC Industry • Lenovo: From Emerging to Surging • Key Challenges of Lenovo from the case • Recommendations Agenda • Brief Summary about the case • Global PC Industry • Lenovo: From Emerging to Surging • Key Challenges of Lenovo from the case • Recommendations Overview of Global PC Industry Overview of Global PC Industry • Since early 1980s, PC industry has been the most dynamic electronic industry sector • The global PC industry reached mature level by mid-1990s • Dell and Gateway starts their build-to-order strategies, resulted to the total supply chain respond swiftly to change • Emerge of e-commerce (online sales) hastened PC industry’s clock speed Overview of Global PC Industry • PC-makers enjoys high profits 1990, however, they experiences an extreme downfall in early of 2000 • In 2004, in order to maintain PC vendor’s market position, vendor consolidation can develop economies of scale in order to go into a global presence • Global PC industry currently affected by two major trends; commoditization which is about mass-produced and the absence of mid-market, which separate to the customers that demand cheapest products and that of exclusive products Agenda • Brief Summary about the case • Global PC Industry • Lenovo: From Emerging to Surging ...
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...Competitors？ 1. Introduction Lenovo is the largest personal computer company in the world and serves customers covering over 160 countries (Lenovo, 2014). In the global computer industries, three products of Lenovo have occupied the first three positions of market share (Chu, n. d.). From 2010 to 2014, the revenue of Lenovo is keeping increasing in a steady trend and the EBITDA revenue in 2014 has reached more than US$ 1365 billion (see figure below). + financial situation +competitor (benchmark) The current success will contribute to its strategic management and strong strategic execution as well. This report will give a full and deep analysis about its strategic management. Firstly, a current situation about the strategic analysis, strategic directions and objectives will be introduced in the beginning part of the report. The key broad business-level and international strategies of the company will be presented in the following. The detail strategic implementation of chosen strategy will be explained as a further analysis with McKinsey 7s model and BCG matrix. Based on the strategic analysis, the key issues during the process of strategic implementation and the specific evaluation will be assessed from the angle of the consultant through some related theories of the balanced score. Some conclusion and recommendations will be provided according to the analysis of the current strategic situation of Lenovo. [pic] [pic]2. Strategic analysis 2.1 External...
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...Background | 2 | 2. Product | 2 | 3. Price | 3 | 4. Place | 3 | 5. Promotion | 3 | 6. Conclusion | 4 | Background of Lenovo Lenovo is a Chinese multinational computer technology company that was founded at 1 November of 1984 and was also approved by the Chinese government on that day. The headquarters of Lenovo Group Ltd was located in Beijing, China, and Morrisville, North Carolina, United States. Lenovo’s first major success was developing a circuit board that would allow IBM-compatible personal computers to process Chinese characters after several of failed plans. Reason of the failure was because they were compounded by the fact that its staff had little business experience. After keep on improving , Lenovo company eventually managed to manufacture and market computers using its own brand name on 1990.Since then , Lenovo had develop magnificently and also was listed in Hong Kong was incensement of nearly US$30 million on year 1994. Because of its good management, strong brand recognition, and growth potential , Lenovo’s stock market had been keep on raising until many analysts were optimistic about Lenovo. Lenovo issued a secondary offering of 50 million shares on the Hong Kong market in March 2000 to fund its continued growth and it was raised up to US$212 million. In year 2015, Lenovo Group Ltd had now become one of the most improved and famous computer technologies in this world. Product of Lenovo Lenovo expanded in a far-reaching...
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...LITERATURE REVIEW WHAT IS A BRAND? Branding is a discipline that has emerged from the consumer goods domain particularly fast moving consumer goods. Historically, brand has been inextricably linked to the product and branding is seen as the process of adding value to the product. A brand is a cluster of functional and emotional benefits that extend a unique and welcomed promise. This conceptualisation of a brand is universal and applies to various domains including FMCG, internet services and B2B. What changes in every context is the enactment of the brand. It is argued that the concept of a brand is universal, however some adjustments are required in line with the specific context applied; in this case the B2B context. Branding has myopically been viewed by business marketers as largely irrelevant to business markets. Associated mostly with emotional value, branding was believed to offer very little to what is traditionally considered a very rational process i.e. the organisational decision making process. More recent research acknowledges that despite the differences between B2C and B2B contexts both B2C and B2B brands need to engender trust and develop both cognitive and affective ties with stakeholders. THE BENEFITS OF BRANDING IN INDUSTRIAL MARKETS Branding in an industrial market must be perceived to convey benefits to various stakeholders for companies to financially invest in it. With regard to the company investing in branding a number of benefits have been identified...
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...19, 2006 JOHN QUELCH CARIN-ISABEL KNOOP Lenovo: Building a Global Brand The brand essence of Lenovo is innovation that makes a difference to customers. Branding is not a marketing issue for us, it is a business issue. We have to deliver on products and services.1 — Deepak Advani, Chief Marketing Officer Announced in December 2004, the $1.75 billion acquisition of IBM’s personal computer (PC) division by 20-year-old Lenovo, China’s largest PC maker, made headlines around the world. A relative upstart in the business, founded with $25,000 of seed capital from the Chinese Academy of Sciences, Lenovo was acquiring the IBM division that invented the PC in 1981. While Lenovo was arguably the best known brand in China and had some brand presence in Asia, it was virtually unknown to the rest of the world. In 2004, over 90% of Lenovo’s revenues came from China (see Exhibit 1 for financials).2 But with this major deal, Lenovo aimed to become a global technology giant. Annual revenues would triple to $12 billion, making Lenovo the third-largest PC maker in the world after Dell and Hewlett-Packard. As a new multinational with 20,000 employees operating in 138 countries, Lenovo needed a global marketing and branding strategy to match its new reach. This meant determining what Lenovo stood for and designing products that supported that claim. In January 2006, 13 months after the deal was announced and eight months after it closed, Lenovo was preparing for the intense limelight that would...
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...Case: “Lenovo: Building a Global Brand” Analysis Problem Statement By facing more and more intensive domestic and international competition in the PC market, Lenovo’s global market share shrank by 6.8% in the average of first and second quarter of 2005. It can be said that this result came from the fact that they don’t have a specific, unique, and competitive marketing strategy in the world other than China. If this market share drop continued, it could be obvious that Lenovo would become a loser in global PC market, which result could have been consequently estimated $205 million decrease in revenues in the end of 2005 compared to the result of 2004 (see Exhibit 1). At that time, the Lenovo’s managements decided that they acquired IBM’s personal systems division in December 2004 in order to conquer this situation and become a global leading technology company. The primary challenge for the problem in this case was how to build a global marketing and branding strategy other than China by utilizing IBM’s brand and its well-established products such as ThinkPad laptop and ThinkCentre desktop. Situation Analysis (See Exhibit 2) Costumers needs and characteristics Although there are a wide variety of customers in the world, it can be basically said that individual customers are extremely price sensitive after PC became a commodity product like cell phones. In general, young generation in developing and developed countries pursues cheaper products regardless of PCs’ specification...
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...Essay on Lenovo Contents Introduction 2 Competitiveness 2 Competitive advantage 2 International market challenges 3 SWOT 3 PESTEL 3 Competitive profile matrix 4 Porter’s Five Forces Model 4 Four risks of international business 5 References 6 Introduction The brand Lenovo has made its reputation as one of the famous and preferred personal computers in the world. Lenovo is striving to be the leader of the market and the market share of Lenovo is also very high. It was in 2004 when Lenovo purchased the global brand “Think Pad”. This is when the presence of Lenovo has been marked in the global competitive world. Lenovo has a packaging plant in 7 countries and distribution contact in many countries sin the world. The statics of ZhongYikag company states that Lenovo’s share in domestic market has somewhere around 21% market share. The company is enjoying monopoly in Chinese market. It is far ahead than that of its competitors in China. Competitiveness Lenovo is a very competitive brand that always tries to be the best in the market in which it is serving. This is due to the strategies that are framed by top level management of the company. A company needs to make strategic policies to remain competitive in a market Boughton (1964). Lenovo is following the same trend. It is far beyond its competitors in its domestic market that is china. If talked about this brand in a global context it is also mentioned that the market share of this brand is increasing gradually...
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...Export Management Final Report | | |Date |11/22/2010 | Table of Contents Part I 2 Executive Summary 2 Introduction 3 Background Information about the Netherlands 4 PESTEL Analysis 7 Market Research & SWOT Analysis 14 I. Market Research 14 II. SWOT Analysis 22 Part II 23 Entry Strategy: 23 Segmentation, Targeting & Positioning 23 ϖ Segmentation 23 ϖ Targeting 26 ϖ Positioning 28 Part III 30 Marketing Communication Plan 30 Conclusion & Recommendations 31 ϖ Conclusion 31 ϖ Recommendations 31 References 33 Part I Executive Summary This report has been carried out by the board of directors of Lenovo. The purpose of this report is to illustrate the export management plan of Lenovo. Lenovo Group Limited is a Chinese-based multinational computer technology corporation that develops, manufactures and markets desktops and notebook personal computers, workstations, servers, storage drives, IT management software, and related services. The report analyzes the environment and market which Lenovo will have to operate in. We start out giving some background information about the Netherlands. Then we move on to doing a PESTEL analysis. After that we explore the market research we have done and take a look at the SWOT analysis...
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...Executing a global growth strategy at Lenovo For the analysis of the process of globalization has been chosen Lenovo, currently classified at 370 in the ranking of Fortune Global 500. It came into existence in 2005 when Legend Holdings acquired the former Personal Computer Division of IBM, the company that invented the PC industry in 1981. Today, Lenovo is a $21 billion personal technology company and the world's second-largest PC vendor, with more than 26,000 employees serving customers in more than 160 countries The choice of this company prompted me my recent visit to one of the factories Lenovo, in Shenzhen, and a huge impression on me that this visit was exerted. This well-organized corporation attaches great importance to the planning of its development and is very determined in its objectives. Position that the company has achieved on very difficult market of personal computers proves accurate transformation strategy from local leader into a powerful global player. Lenovo's position in any part of it is not the work of chance. The following sections concentrate on the discussion of Lenovo’s core competence and its globalisation strategy. Lenovo was originally called Legend Beijing, and was founded in 1984 by Liu Chuanzhi along with ten colleagues at the Computer Technology Institute of the Chinese Academy of Sciences (CAS). With an initial investment of 200,000 Yuan, the company was established with the aim of commercializing the research and development activities...
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...Annual Report Project | Lenovo, Fiscal Year 2012/13 | Accounting I Professor Jerome Newman By: Min Ki Kim August 24th 2013 | Lenovo is a Chinese computer company that primarily specializes in laptop computers, workstations and various other consumer electronics with an emphasis on catering to businesses, and government agencies with their Think line of durable laptops. Their 2012/2013 annual statement includes a quick business review from their management team that is composed of an: audit committee that independently review financial statements, internal controls, and risk management systems; compensation committee which decides compensation policy for the CEO and other senior management, nomination and governance committee whom help the board of directors organize and review the corporate governance principles and policies and finally the CEO who is responsible for the management and implementation of Lenovo’s strategy and policy (P.36). For the fiscal year of 2012/13 Lenovo boasted a 15.5% share in the PC market due to their PC+ strategy and achieved an overall number 3 ranking for total global market share in the smart connected device category (P.16). Lenovo has also begun penetrating into the smartphone market and is rapidly making headway into China, India, Indonesia, the Philippines, Russia and Vietnam. How successful this venture will be remains to be seen but initial impressions are showing promise. Tablet sales have been showing steady...
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...The Globalization and IHRM of Lenovo ⅠIntroduction Lenovo Group Limited is a Chinese multinational personal technology company that develops, manufactures and markets desktop and notebook computers, workstations, servers, storage drives, IT management software, and other related products and services. Lenovo was incorporated in Hong Kong in 1988 under its previous name, Legend.[1] Lenovo's principal operations are located in Morrisville, North Carolina, Beijing, China and Singapore. (Global Headquarters : The United States Raleigh ( North Carolina Research Triangle Park ) (The main R & D centers: Beijing, China, Japan and Japan, Shanghai, Shenzhen and the United States, North Carolina, Raleigh (Production base and assembly facilities: Beijing, Shanghai, Huiyang and Shenzhen; India's Pontiac Lee (Pondicherry,); Monterrey, Mexico (Monterrey,); the United States Greensboro (in Greensboro); and in the global contract manufacturing and OEM Lenovo is the world's second largest PC maker and markets the ThinkPad line of notebook PCs and ThinkCentre line of desktops. These brands became part of Lenovo's offerings after its 2005 acquisition of IBM's personal computer business. Lenovo also sells the IdeaPad line of notebook computers. Lenovo markets its products directly to consumers, small to medium size businesses, and large enterprises, as well as through online sales, company-owned stores, chain retailers, and major technology distributors and vendors. 1.Joint ventures,...
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...International Journal of Business and Management Vol. 4, No. 11 In-Depth Analysis of PC Industry in China Xiaojun Cui Department of Business Administration, Guangdong Radio and TV University Guangzhou 510091, China E-mail: xjcui@gdrtvu.edu.cn Abstract Personal Computer (PC) industry in China has experienced a rapid growth in China in recent years, and has played a more and more important role in the national economy. This motivates us to analyze the business environment and strategic situation of the PC industry in depth. A PEST analysis is carried on to analyze the business environment of the PC industry, and Porter's five forces analysis is used to analyze the competitive nature of PC industry in China. Keywords: China’s PC industry, PEST Analysis, Porter’s Five Forces Analysis 1. Introduction The aim of this paper is to analyze the business environment and strategic situation of personal computer (PC) industry in China. The motivation of an in-depth analysis of PC industry in China stems from the fact that PC industry has played a more and more important role in national economy of China, and has an important effect on the society. Since the emergence, PC has become a necessary tool in daily life in the society. Moreover, with the advances of technology, PC carries more and more functions and attracts more and more users. Now the PC market is mature and close to saturation in the developed countries, while the development of PC industry is still experiencing...
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