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Case of Study - Lenovo

MGM 2015
by

Mariana Hargreaves

on 25 October 2015

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Transcript of Case of Study - Lenovo

Case of Study - Lenovo

History
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.
External Analysis
Industry Analysis
Internal Analysis
Evaluation
Solutions / Implementation
Brand Consolidation: Market Integration
Marketing: Sales
Globalization

Internal Analysis
Conclusion
Introduction
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

Video
Market Share
Turnover
Brand Consolidation
Differentiation on categories, from cheap to more expensive products.
Corporate training  
Technological innovations - involving customers on the development
Sales - Customer Services
Brand Experience: Market Research,  Branding Experience
Locking customers: Brand Value

Marketing
Online customization
After sales support
Expanding sales in different market places: online, retail stores, main stores (Lenovo store)
Consolidation of B2C

Globalization
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
Offshoring production

pros and cons
Pros:

Increase profit margin
Visibility
Attach Value
Reach different customers classes
Educating the cusumer
Understandint the customer needs
Create membership
Building trust
Internationalize the Brand
References
Reference:

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].
THANK YOU
Based on Jim Harvey's speech structures
Strengths

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
Opportunity

Market Share via acquisition (IBM)
Investment in innovative technologies (Mobile)
Internationalisation emerging countries


Weakness

Language barriers
Lack of innovation
Brand position
Misaligned management
Low profit margins
Online market sales competition
Threat

Strong Brands in market competition
Different technologies developed constantly
Marketing - Brand consolidation
Chandan Shetty
Kamran Rashidov
Khaled Diab
Mariana Hargreaves

Cons:

Lack of experience
Culture adaptation
Tariff barries
Lack of product development and innovation
Full transcript