Proposal for Lenovo in China

* Sales reps secure the best product placement in stores, conducting taste tests in stores and convincing “individual store managers to pull the product from the central buyer.” (Singer, 2008)

The role of this job is to provide motivation for the sales team to do well and increase the amount of sales that they make. They have to make sure that the sales team is loyal and polite to customers so that customers come more to shop at their store. Also they have to make sure that the experience for customers is good and pleasurable so that they come in to the store more.

Outside sales rep: The company provides online tools as well as access! to any department when needed.

The company employs and trains skilled sales personnel to promote its items. Besides, direct sales branches are strategically located in high traffic zones to attract more potential buyers and strengthen revenues. The company manages its supply chain effectively. It produces annual publications of supplier codes of conduct, a move that increases brand recognition. The company enjoys implausible trade name trustworthiness, implying that many people will

They are sent by the owners of the business for the sale and promotion of its products. They have a first-hand relationship with the consumers and they understand tastes, desires and buying habits of the consumers.

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

Personal Selling: Student employees work closely with each customer to ensure that their order is correct and they understand their options. Additional products are suggested and questions are answered.

New entrant in the electronics and IT industries are confronted with relatively more difficult entry to the international market due primarily to highly aggressive competition between and among large corporations. It is common knowledge that business operations and facilities that characterize both the international IT and Electronics industries are very expensive and sophisticated. Such factors serve as strong barriers of entry to the industries where HP-Compaq belongs.

As we all known, Sony and Matsushita are two of the largest consumer electronic makers in Japan or even in the world. And in this reading, it points out the different strategies Sony and Matsushita use when they were facing the fierce competition in China ----- Matushita was accelerating its pace on stretching the supply chain in China while Sony unexpectedly decided to shift some of its manufacturing business in China back to Japan. In this article, I will discuss the reasons that lead them to make different decision as well as analysize the advantages and the disadvantages of their decision.

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.

And these analyses will be done with the help of Porter’s 5 forces (see appendix 1, 2, 3). This analysing toll deals with issues which are from outside the industry that impacts the nature of competition within the certain industry. Thurlby, (1998) stated “Understanding the nature of each of these forces gives organisations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market”1. The analysis of the three industry are given belowPC industry (See appendix 1) This competition within the PC industry is extraordinarily high consisting with top companies like Dell, HP, Apple, Gateway and Sony. In order to gain competitive advantage, the key factors are advancement in technology, custom built PCs, reliability and standard customer service. The life cycle of PC industry can be seen as mature (See appendix 6); however the growth of PC’s has not decline. The reason is due to the globalisation trends taking place within the major firms. The barriers very high where there are already five main firms that dominate the market. Therefore, the chances of new PC companies entering the market and get significant hold of market share is very slender. The main two factors that are making the entry level high are mainly cost and distribution and the top five firms also control 70 per cent of the global personal computer market. Another factor may be is that

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.

They are distribution channel firms that make sales to final customers and Whittaker’s has to improve and sustain a close relationship with these resellers as they have the biggest customer base amongst all with 45.3% patron’s, holding a substantial amount of power. As such, Whittaker’s can obtain better advantages such as getting prime product area shelf-displays. (KPMG, 2012)

Sales team – they understand the industry and customer needs. They know the company target segments and whether this product aligns with company value propositions. •

Abans and Softlogic are the other two players operating a chain of outlets in this industry. All players put together, over 3000 outlets of consumer electronic product stores at operation. By looking at the rural retail market there are several other competitors such as Crown, Dilshan traders and Seetha traders. Most of these major players such as Singer and Softlogic have already implemented e learning systems and this have helped them reach greater heights in both industry wide as well as in building good customer relationships.