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Case of Study - Lenovo
Transcript of Case of Study - Lenovo
Legend Holding formed in 1984 in China.
Incorporated in 1988 in Hong Kong.
In 2000: 8th rank in Business Week and Awarded as Asia’s Best Managed Company by Finance Asia.
Legend Holdings changed its name to Lenovo in 2004
In 2005 acquired IBM Personal Computing Division
Became the third largest computing company in the world.
Solutions / Implementation
Brand Consolidation: Market Integration
LGH Legend group holding – majority managed by the Chinese government
Products: Low-priced computers, servers, handheld computers, imaging equipments, mobile phone handset
Services: Manufacturing, IT integration and support services
Differentiation on categories, from cheap to more expensive products.
Technological innovations - involving customers on the development
Sales - Customer Services
Brand Experience: Market Research, Branding Experience
Locking customers: Brand Value
After sales support
Expanding sales in different market places: online, retail stores, main stores (Lenovo store)
Consolidation of B2C
Acquisition of companies with different segments: for example phones
Emerging Markets - the company has more chances to be market leader with the government support
why? Low costs/ the market is not yet saturated to invest in a emerging country: social impact
pros and cons
Increase profit margin
Reach different customers classes
Educating the cusumer
Understandint the customer needs
Internationalize the Brand
Khan, A. (2005) Lenovo in 2005. Hydrabad, India: ICFAI Knowledge Center, ICFAI University.
Lenovo Group Limited (2005) Annual Report 2004/05. . [Online] Lenovo Group Limited (2005). Available from: https://www.lenovo.com/ww/lenovo/pdf/annual-interim/2004-2005-annual-report.pdf [21/10/2015].
Lenovo Group Limited (2006) Annual Report 2005/06. [Online] Lenovo Group Limited (2006). Available from: https://www.lenovo.com/ww/lenovo/pdf/annual-interim/2005-2006-annual-report.pdf [21/10/2015].
LIBRASYSTEMAS (2012) Lenovo - FOR THOSE WHO DO. [Online film] Available from: [Accessed 21/10/2015].
LENOVO (2014) Ashton Kutcher, Lenovo YOGA Tablet 2 Pro Product Engineer. [Online film] Available from: [Accessed 21/10/2015].
Based on Jim Harvey's speech structures
Knowledge of Culture and Market - Lenovo was managed by the Chinese Government
Cost effective (Production)
Worldwide ranked as top company by acquisition (IBM)
Strong distribution networking
Market Share via acquisition (IBM)
Investment in innovative technologies (Mobile)
Internationalisation emerging countries
Lack of innovation
Low profit margins
Online market sales competition
Strong Brands in market competition
Different technologies developed constantly
Marketing - Brand consolidation
Lack of experience
Lack of product development and innovation