...CODE : BUSI1317 MODULE TUTOR : HA NGUYEN MODULE NAME : STRATEGIC MANAGEMENT COURSE : BA ( HON) BUSINESS MANAGEMENT INTAKE : MARCH 2013 TITLE : LENOVO EAST MEETS WEST OUTLINE TABLE CONTENTS I. INTRODUCTION 4 II. LENOVO HISTORY AND VISION STATEMENT 4 III. LENOVO SWOT ANALYSIS 6 1. External factors (O- opportunity and T-threat) 6 2. Internal factors ( S- strength and W-weakness) 9 IV. LENOVO STRATEGIC CHOICES 13 V. CONCLUSION AND RECOMMENDATION 14 List of figure Figure | Name | page | 1 | The Lenovo history timeline | 4 | 2 | Lenovo vision statement | 5 | 3 | Porter’s Diamond model | 6 | 4 | Lenovo Porter’s Diamond model | 7 | 5 | Strength in Lenovo’s structure | 10 | 6 | Lenovo CAGE framework | 11 | 7 | Lenovo strategic implementation | 13 | 8 | strategic triangle | 14 | I. INTRODUCTION Thomas L.Friedman reminded to the term "Flat world" as the way to describe to an era of new World economy. Which including the globalization, intense competition, a big market without borders, the variety and combination of cultures in the World (Thomas L. Friedman, 2005; Victor K. Fung, el, at 2007; Ronald Aronica and Mtetwa Ramdoo, 2006). In fact, The change, updates, innovation and competition in technology industry are taking a level higher, because it happening every days, every hours (Jeffrey T. Macher, David C. Mowery; 2004). Factors impact to success of the company including external factors and internal factors. It closely...
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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 environment...
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...Lenovo is the number one PC maker in Chinese PC industry which gained 35.8 percent of market share in 2007. In recent year, it started to operate businesses out of greater China such as Asia Pacific, Americas, Europe, Middle East and Africa. Lenovo’s current pillar strategy is that strive to grow faster and more profitably than the industry by delivering best-engineered PCs and unequaled ownership experience in the global PC market. Since the Lenovo decided to go international, the Europe becomes as part of battle for Lenovo to explore. In this paper, the market of Lenovo in Europe will be focused on the UK. The growth of in UK was achieved through improve sales to large firms and growth in the mid-market segment through a strengthening of the Group’s sales resources. Europe is a key strategic market and battleground for Lenovo. 1. Introduction Lenovo was set up in 1984 as a reseller in China and Hong Kong for the members of the Chinese Academy of Sciences like IBM and Hewlett-Packard. By 1989, now known as Hong Kong Legend has branded out into motherboard manufacturer and it has changed its name to Lenovo and launched itself on the Hong Kong Stock Exchange in 1994 (Malone, [n.d]) . Since 1996, it beat the foreign giants to be the best-selling PC brand and outsell many foreign brands (not just PCs) in the Chinese market. Since Lenovo decided to go abroad and diversify its products and try to produce high tech products, the market share in China were approximately 30 percent...
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...| 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 way in 2005 through its obtainment of IBM's PC business, including...
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...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. Cretu et al (2007) found branding had a positive impact on the perceived quality of the product or service. It was also perceived as providing a product with an identity, a consistent image and as conferring uniqueness. A strong brand will be demanded and allow companies to demand a premium price. Due to the demand of the branded products competitive products will be rejected. However,...
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...Introduction Lenovo was founded in 1984 as one of the institute-sponsored companies in Beijing. It started as the New Technology Development Company (NTD Co.) of the Institute of Computing Technology (ICT) of the Chinese Academy of Sciences (CAS) and considered a pioneer of Chinese market reform in the science and technology sectors. The company’s first technological innovation, a Chinese-language add-on card, was stemmed from ICT researcher Ni Guangnan. The name of the add-on card- Lianxiang- remains the Chinese name of Lenovo to this day. The company expands in Hong Kong that allowed them to raise its capital and overcome Lenovo’s previous experience in the global IT industry with a more international partner. In 1988, the company was restructured into Legend Computer Group Co. In the early 1990’s, the company was the largest among several domestic PC makers. In 1992, as the tariffs on imported PCs in China were reduced and import quotas were eliminated, foreign PC makers had a distinct price advantage over Legend. Consequently, Legend became sales and distributive representatives of American and Japanese computer companies in China. However, this became very strategic for Legend as it developed both technical and management expertise from its Hong Kong operation and from its foreign partners such as HP. Legend gain an advantage in building extensive distribution channels when the Chinese government restricted establishing distribution and retail operations of foreign companies in...
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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...
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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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...describes in detail the various steps taken by Lenovo, the leading PC manufacturer in China, in its effort to go global. The steps include changing its corporate name from Legend to Lenovo, sponsoring the 2008 Olympic Games and most importantly, acquiring IBM's PC unit. The case examines the need for Lenovo to globalize and critically analyzes the efficacy of the above steps in the company's globalization plans. It also highlights the challenges faced by Lenovo in its path towards globalization. Issues: » How innovation, differentiation and customization can be used as strategic and competitive advantages by a company, to maintain its leadership in the domestic market, and emerge as a global player » The need for globalization and the factors that must be taken into account when a company wants to go global » The measures by which a company can create a global brand » The challenges facing Lenovo in its efforts to go global Introduction In December 2004, the China-based Lenovo Group (Lenovo) announced that it had acquired the personal computer (PC) division of the US-based IT major IBM. Industry analysts termed this as a major milestone for Lenovo in its efforts to globalize its operations. It was also perceived as an important step towards achieving the company's goal of becoming a Fortune 500 company by 2010. According to Liu Chuanzhi (Chuanzhi), the Chairman of the Group, "The purchase will make Lenovo Group the third largest PC maker worldwide with...
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...Rebuilding the Lenovo Brand By Wei Cai According to a research report conducted by International Data Corp (Beijing) in October, 14, 2011, Lenovo has overtaken its international rivals to rise to the No.2 slot globally for the first time, the US-based research company IDC said in its latest report. Obviously, after the acquisition, it isn’t the first good news about Lenovo. Let’s look back to May, 1, 2005, Lenovo bought IBM’s PC unit for $1.75 billion, and then, it suffered a dark period. At that time, its share price languished, it lost an numerous of previous customers of IBM and it had an extensive of managerial problems between the two different cultures. At 2008, the board took actions to rebuild the Lenovo brand, and the changes appeared to be working until today. According to the Knowledge@Wharton article and based on my personal research, the actions and strategies can be separated into two parts: the internal executive strategies and the marketing strategies. Moreover, Lenovo still have some actions not mentioned in the article, there are some potential problems as well, I will present them and give my opinions in the following statement. Internal Executive Strategies Ordinating New CEO and CMO Yang Yuanqing back to Lenovo be CEO again. Yang Yuanqing, who was chairman of Lenovo's board from 2004 to 2008 and had been at the helm of the Lenovo brand building and IBM PC acquisition, one of his major achievements has been making...
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... |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 of Lenovo. In the section after the SWOT we take a look at the Entry Strategy, which entails segmentation, positioning and targeting. Then we immediately switch over to the marketing...
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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 conducted...
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...Strategy for Lenovo Company Table 1. Introduction 2 2. Motives of international expansion strategy of Lenovo 2 3. Determination of target market 4 3.1 Macro environment factor 4 3.2 Characteristic of Lenovo Company 6 4. Market entry mode 7 4.1 Exporting mode 7 4.2 Licensing and franchising mode 8 4.3 Joint Venture 9 4.4 Wholly owned subsidiary 10 5. International competitive strategy 10 5.1 Strategy clock model 11 5.2 Center identification 13 6. Challenges and suggestions 15 6.1 Challenges 15 6.2 Suggestions 16 7. Conclusion 17 1. Introduction In the current commercial economy, the global economy has changed rapidly in the near decades. Barrier of trade between the different borders has been not a headache for many multinational companies any more. What is more, in accordance with the data from WTO, the increase of multinational trade is becoming more and more dramatically in comparison with the global output. (Liu, 2005) As a result, it is suggested that current economic system is transferred to be more globalised, integrated and interdependent. Thus for many enterprises or just like your company Lenovo, to have a plan on the international expansion strategies is of the essence. 2. Motives of international expansion strategy of Lenovo Lenovo, which was found in 1984 with 11 engineers gathered in a boardroom in China, has achieved unbelievable success since its foundation. However, in spite of Lenovo is regarded...
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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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...Prospects and challenges for Chinese companies on the world stage In association with IBM Institute for Business Value IBM Business Consulting Services, through the IBM Institute for Business Value, develops factbased strategic insights for senior business executives around critical industry-specific and crossindustry issues. This executive brief is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Business Consulting Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information. School of Management at Fudan University Fudan University was the first institution of higher learning in China to set up a department of business education, and was also the first in the country to resume its business education program after the reform and open-door was implemented in China. Over the past two decades, the School of Management at Fudan University has developed into an internationally well respected business school. This joint project with the IBM Institute for Business Value fulfills our mission to analyze business operations and national economic activities using advanced management theories, systematic methods, mathematics models and information technology. It is part of our commitment of timely research for enterprise practitioners with insights into important strategic, tactic and operational business issues...
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