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Transcript of Lenovo strategy
Lenovo R&D Campus, Beijing
- 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
founded in 1984, by Chuanzhi LIu, invested by the CAS Institute.
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.
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
Increase market share
Economics of scale or learning
2 ways to Internationalization
Self-development or acquisitions
Purchasing IBM’s Personal Computing Division(2005)
becoming the company the world's third largest computer manufacturer
Winter Olympic Games
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.
a.Expanding the size of the market
b.Promoting economies of scale and learning effects
c.Improving brand value
a.Sports marketing is not very mature
c.The problems posed by the acquisition of other companies
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
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 .
1. Lack of core technology
2. Too Much Staff
3. Inexperience in the international market
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
1. Market shares
3. Scale of production
2. Only PC
3. Fierce international competition