In recent years, market competition in the market economy is fierce, the different economic performances and behaviours 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.
This report consists of the product mix of Lenovo and analysis of the STP( segmentation, targeting, positioning).
INDEX
Topic Particulars Page. No Acknowledgement 2 Executive Summary 3
1 Introduction 5 2 Product mix 7
Introduction:-
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. On September 24, in 2004, Lenovo purchased the personal computer business and the brand “ThinkPad” famous computer IBM in the IT industry all over the
I personally agree with Lenovo’s strategy to keep the ThinkPad brand separately from the other product lines. This will not damage the ThinkPad brand quality. Moreover, building the ThinkPad + Lenovo connection through advertising and marketing campaigns such as ThinkPad Unleashed, the ThinkPad reputation can eventually be seen in the rest of Lenovo products. In my opinion, launching its first Lenovo brand PC worldwide by using a product number (3000 series) was not the best idea. The fact that numbers are pretty generic and the same number may be used on many products across many industries could be confusing. I would recommend Lenovo to create a new name as what Sony and Compaq did with the Vaio and Presario. The name of the new product that could imply an image of a good choice, easy on the budget, and a good home companion. At the present, Lenovo named their other product lines differently. The “ThinkPad” are seen as business laptops with premium quality while the “IdeaPad” and the “Essential” are built for home and small business users. Lastly, Lenovo should differentiate itself as being the “new world type” of company. The combination of East and West, innovation and efficiency can become the company’s competitive advantage.
A chance of brand image getting damaged is possible by the launch of product not matching to the “Computron” standard. Only through effective market segmentation it is possible to curtail the damage.
IBM’s lack of an acceptable solution to this garnered them over a fifty percent market share loss within a decade. Given these changes, IBM faced a vastly more complex marketplace both in terms of niches and in the number of its competitors globally.
Lenovo’s biggest business is PCs and it is the world’s number 1 PC maker. But the sales of PCs isn’t growing which makes it imperative for Lenovo to focus on its mobile phone segment in order to be a tech leader.
In 2005, Lenovo acquired IBM's PC division, aiming to transform itself into a sizable multinational PC manufacturer. Lenovo paid US$1.3 billion to IBM with a combination of considerations of cash and stock. As a result of the acquisition, Lenovo gained the rights to the product lines as well as a range of intangible assets, including licensed trademarks, such as ThinkVision, ThinkPad and NetVista. Moreover, the acquisition included IBM's desktop and notebook computer businesses as well as its PC‐related R&D centers, manufacturing plants, global marketing networks and service centers. Both intangible and tangible assets were considered to be strategic for Lenovo's plan to become a global technology company. (Ng, A.W., Chatzkel, J., Lau, K.F. and Macbeth, D. 2012)
Lenovo Group Ltd. (Lenovo) is a Chinese multinational technology corporation that founded in Beijing in 1984. Specifically, Lenovo is one of the top enterprises that produces and sells consumer electronics and computer hardware, with a focus on producing personal computer (PC). Currently, the headquarter of Lenovo is in Beijing, China, with a second headquarter that located in Morrisville, North Carolina, United States. As a multinational enterprise, Lenovo currently have operations in more than sixty countries and has its products sold almost all over the world.1 Becoming a multinational enterprise especially making it to the top of the industry is not an easy thing for any company due to numerous predictable and unforeseen challenges. However, Lenovo has successfully expanded its business and reached to the top. Therefore, the present paper aims to analyze Lenovo’s operational/managerial strategies and provide a better sense of what has Lenovo done for reaching to the current position in the global market.
Strong position as a technology leader – Even if Lenovo is ranked as the world’s No. 1 PC maker it would not be able to achieve success without being a mobile tech leader. The smart-phone business will prove to be a key for success for Lenovo
In December 2004, Lenovo 's acquisition of China 's leading computer manufacturers IBM 's PC division of $ 1.75 billion dollars. The transaction generated $ 13 billion business, which accounts for 8% of the global PC market. The takeover meant the integration of IBM by Lenovo 's
In recent years, the personal computer (PC) industry has been developing by leaps and bounds. Global sales of PCs totaled 230 million units in 2006, representing a 9 percent increase over the previous year. Lenovo has a product line that includes everything from servers and storage devices to printers, printer supplies, projectors, digital products, computing accessories, computing services and mobile handsets, all in addition to its primary PC business, which made up 96 percent of the company’s turnover as of the second quarter of 2007.
Legend announces the birth of its new "Lenovo" logo to prepare for its expansion into the overseas market. Based on the collaborative application technology, Lenovo initiates IGRS Working Group, in cooperation with a few large companies and the Chinese Ministry of the Information Industry, to promote the formation of the industrial standard.
This case analysis sheds some light on the fluctuations of the Dell brand in the PC market. The key competitors are HP and Lenovo.
It is well known that Lenovo is the world’s second-largest PC vendor ,as well as the China’s second-largest smartphone company, manufacturing desktops, smartphones, tablets and smart TVs and own accessories (Lenovo website, n.d.). Having changed its name to “Lenovo” since 2003, the company has decided to expand its market outside China by carrying out a series of effective management strategies, particularly in PC+ strategy, multi-brand strategy, “protect and attack” strategy and global-local strategy. Depending on the seasonable adjustment for the rapidly changing markets, Lenovo currently already has obtained trust and loyalty from millions of consumers
Lenovo is a Chinese multinational technology company with headquarters in Beijing, China. It is the world’s largest PC vendor and one of the world’s leading smart phone companies listing on the Fortune 500 list that having major research and manufacturing centers over the world.
have more technology. . . . We have more global exposure. . . . We
Lenovo Group Limited is today the largest information technology enterprise in China and the third largest computer company in the world which is has an 8.6 per cent share of the PC market, after Hewlett-Packard at 15 per cent and Dell of the US at 16.8 per cent. During its first 20 years, Lenovo evolved from a small distributor of imported computers into China’s leading computer firm and in 2005, it purchased IBM’s division. Lenovo has been the market leader for seven consecutive years, commanding a 27 per cent share of the domestic PC market. It is also the market leader in the Asia Pacific region (excluding Japan), with a market share of 12.6 per cent.