Lenovo Marketing Case Study

Consumers are always wanting to have the latest in technological trends and the rapid rate of innovation has the market continuously offering new and improved products.

Computer technology is constantly advancing over software and hardware that is available at any one given time. These constant changes affect how long computer products can sell for a premium price but also can make it cheaper for those consumers that are not interested in the newest and latest components. Personal computers (PC), also known as desktop computers, are common place in jobs, schools and homes. The demand for personal computers is constant and revolving since components of computers gets better and more powerful with time. The target market then becomes anyone that uses a personal computer for home or work. HP uses the fact that computers are a common item in any office or home to their advantage and offers not only PC’s but other accessories pertaining to computers as well. While HP currently excels at providing a product for a decent price they are missing out on consumers that Equalus will focus

In the second phase Lenovo demonstrated its commitment to innovation by rolling out improved ThinkPad products and further strengthening ThinkPad’s brand essence. Initiatives like Using Titanium cover instead of the traditional black cover while launching Z60 helped in establishing the fact that Lenovo made ThinkPad products better than before. Enforcing ThinkPad’s brand position and its advertisement as Lenovo’s sub brand helped in strengthening the Lenovo master brand. The third step emphasized that Lenovo master brand stood for innovation with Lenovo introducing the 3000 PC series for small business consumers focusing on reliability ,quality and durability in addition to modern looks .The marketing campaign focused on providing “worry free computing” by providing features like virus recovery features. The choice of a number series instead of a name for the launch of the first non-ThinkPad product was done strategically to strengthen its association with the master brand Lenovo.

As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten

The large capital requirements to enter the computer industry combined with established brand identities of the current incumbents make barriers to entry high, not to mention the economies of scale and distribution channels that incumbents enjoy which make entry barriers even higher. The current PC incumbents enjoy demand-side benefit of scale in the business sector where PC buyers prefer to buy products from large trusted companies, raising the level of entry barriers.

The company has managed to earn a profit in these tough economic times because of its diverse customer base, broad portfolio, and numerous cost initiatives (Edwards, 2008). The company made a commitment three years ago to focus on design and innovation in the PC replacement market by offering devices such as touch screen PC’s and easy to use software (Edwards, 2008). This has enabled the company to gain market share from its competitors such as Dell and Toshiba (Edwards, 2008). The company has also focused on innovation in printers and services that has helped boost consumer and business interest (Edwards, 2008).

(1) What are the key elements of Toshiba’s business strategy in notebook computers? In what way do Ome’s operations support this strategy?

When Dell entered the market; it found an intensely competitive market. This causes players to be highly aggressive, which resulted in Dell forming its unique direct selling model. However Dell’s direct selling model in not as effective anymore because of new rivalries; low cost Asian competitors, such as Lenovo and Acer. These competitors have lower producing cost and are therefore very attractive for the price sensitive customers. Therefor Dell is already changing its model and is selling its products also at retail points. All to reach the customer in every way

As the United States unite in the global effort to monitor the use and waste of energy, fuel efficient or hybrid cars such as the Toyota Prius has dominated the market over the SUV’s who once adored every American driveway. With much doubt, in 2004, the Prius has become the leading selling vehicle in America. The sleek design has caught the eye and pockets of many Americans who prefer the “gas sipper” over the “gas guzzler.” (Kotler & Armstrong, Principles of Marketing, 2010)

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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

Dell's mission is to be the most succesful computer company in the world at delivering the best customer experience in markets they serve. In doing so, Dell will meet customer expectations.

Both Dell and HP are two strong players in PC industry which refers to an industry where companies produces PCs (desktops and notebooks), handheld devices (smart phones and tablets), and workstations. However, with growing global expansion, Dell and HP’s performance differs. Dell, once the world’s largest PC maker in 2001, has continually lost its market share to HP and Acer since 2007 (Guglielmo 2009). The cause is rooted in two differences of these companies: company diversifications and core competences. Therefore, how firms can continually survive in the PC business is more of an issue for Dell than for HP.

Intel the Microprocessor giant was started in the year 1968, their initial venture was to make a semiconductor computer memory by integrating large number of transistors into silicon chips. They created a revolution in the PC industry, by creating a bench mark and reengineered their processes to shift their focus from the saturated PC dominated industry to the Internet Communications World. From time to time many marketing tactics and strategies were implemented in order to create brand equity and to carve a niche image in the consumer’s mind. These campaigns were carried out successfully and the intended output was gained most of the time.

Lenovo Group Limited (SEHK: 0992) is a Chinese multinational computer hardware and electronics company with its operational headquarters in Morrisville, North Carolina, United States and its registered office in Hong Kong. Its products include personal computers, tablet computers, mobile phones, workstations, servers,