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Lenovo strategy

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Sally Qiu

on 23 December 2013

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Transcript of Lenovo strategy

Lenovo
Global Strategy
Introduction
Summary
Entry Mode
SWOT
Lenovo R&D Campus, Beijing
CEO:Yuanqing Yang
History
- 1984 :
Established as Legend Group in Beijing

- 2005 :
Acquired IBM's PC division --> World's third biggest PC-maker

- 2008 :
Enters the worldwide consumer PC market with the new "Idea" Brand

- 2010 :
Introduction of over 20 new devices at the consumer Electronic show

- 2012 :
Second place in global PC market share

Thank you for your attention.
Introduction —— Shi dongdong

Gobal business Strategy analysis —— Wang xiaochan & Zhou zhongming

Entry mode analysis —— Li wenhao & Luo xulin

SWOT —— Zeng keliang

PPT&Summary —— Qiu Shali
Our group
Lenovo Group:
founded in 1984, by Chuanzhi LIu, invested by the CAS Institute.

Headquarters:
First one is located in Beijing
Second one is in New York

R & D centers
Beijing, Shenzhen, Xiamen, Chengdu and Shanghai, Tokyo, Japan and the United States in Raleigh, North Carolina

Lenovo PC sales
Since 1996, ranked first in the Chinese domestic market.
In 2013, ranked first in the world, the world's largest personal PC manufacturers.
Products:
mainly produces desktop computers, servers, laptops, printers, handheld computers, motherboards, mobile phones and other goods.
Global Standardization Strategy
high pressure for cost reductions
low pressure for local responsiveness

Reason x 4
Background
Increase market share
Economics of scale or learning
Location advantage

Specific strategies

Investment Strategy


Marketing Strategy
Investment strtegy
2 ways to Internationalization
Self-development or acquisitions

Purchasing IBM’s Personal Computing Division(2005)
Purchasing Medion(2011)
becoming the company the world's third largest computer manufacturer 



Marketing Strategy

Sports Marketing
Winter Olympic Games

Golf

Tennis

NBA

Lenovo's global (except China market) marketing make brand awareness increased 40% to 50%

The purchase consideration increased 37% to 49%


On the other hand...

Lenovo open up the world market through international sports celebrity endorsements and cooperation with well-known events.




Lenovo association with the NBA and the association will be entitled to use the NBA's Logo on their products.



Advantage:
a.Expanding the size of the market
b.Promoting economies of scale and learning effects
c.Improving brand value

Disadvantage:
a.Sports marketing is not very mature
b.Brand risk
c.The problems posed by the acquisition of other companies

Japan
Brazil
Germany
US
China
Wholly owned subsidiary
Lenovo chairman Liu having a formally signed with John Joyce, the IBM’s vice CEO

Acquisition of Positivo

The timing of the acquisition price, objects are very appropriate

Economic turmoil and uncertainties

Abandon

Will continue to explore ways of cooperation in strategic alliances

Joint venture with NEC

Joint venture with NEC to enter the Japanese market

Lower component costs

Get laptop manufacturers offer more favorable

Lenovo cooperate with NEC,it could change the industry structure of laptops

acquisition of Medion

Lenovo purchase 36.66% the shares of German electronics manufacturers"Medion"

Become the third largest manufacturer in Germany

The acquisition will boost Lenovo's business in the consumer PC business and mobile Internet field .

Weaknesses:
1. Lack of core technology
2. Too Much Staff
3. Inexperience in the international market


Opportunities:
1. Domestic market
2. New electronics ( New type of electronic products)
3. The development of the IT technology

The company has operations in Americas, Europe, the Middle East, Africa, the Asia Pacific, and China to name a few
Global Standardization Strategy
protect its core business-- China
enter emerging markets (Brazil,India)and mature markets (U.S.,Japan,Europe)

Focuses on mergers and acquisition

Under the threat of competitors including Dell, Acer and HP


In the future

plan to advance in not only the PC industry, but also the smartphone, tablet, and smart TV as well.

build an “ecosystem” for the LePhone and LePad in China

Strengths:
1. Market shares
2. Quality
3. Scale of production
4. R&D
5. Service
Threats:
1. Price-War
2. Only PC
3. Fierce international competition

Full transcript