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Lenovo Strategic Plan
Transcript of Lenovo Strategic Plan
Strategic goals and actions
Lenovo strives to be a new world company that makes the world's best-engineered PCs for customers.
To innovate for customers
Innovative and Entrepreneurial Spirit
Accuracy and Truth-seeking
Trustworthiness and Integrity
Goals#1 Expand market share, integrate into the international market
To build the best, most innovative products in the world. To use world-class economics to put new and better technology in the hands of more people, by innovating on cost the same way they innovate on technology. To focus energy and commitment on the success and trust of their customer.
1.1 Sub-goal: Establish their own retailer store “Think Store”
A. Short-term: Establish their retailer store in China in order to stabilize market share, and increase the influence in China market.
B. Mid-term: Actively developing more international markets, and cooperate with local partners in order to avoid some serious market friction and increase market revenue when entering a new market.
C. Long-term: Lenovo should understand brand management that retail is about selling aspirations and dreams and not just lumping products on a shelf. They should beat retailer store of Apple.
2.3 Sub-goal: Improve customer servic
A. Short-term: Develop good relationship with customers, meet and require them special demands, dealt with customer complaints and merchandise returns in time.
B. Mid-term: Establish a complete after-sales system to provide our customers with fast, professional, accurate and technical supports and serves.
C. Long-term: train the ability of forging closer tie would increase customers’ awareness and consideration of company’s products and improve customer satisfaction.
1.3 Sub-goal: Build their online-store
A.Short-term: Decrease sales cost and inventory pressure which can increase net profit.
B.Mid-term: Provide more product information and shopping is not subject to time and regions constraints in order to increase sales revenue.
C.Long-term: focus on the online store sales performance, reach the object that revenue from the online shopping would contributes more 15 percent to its total sales.
Goals:#2 Technology innovation and improve brand awareness
2.1 Sub-goal: Establish research and development centers around the world
A.Short-term: Providing and training software engineers and scientists for the company
B.Mid-term: Company should understand the needs of the local people, and develop product performance to meet the needs of the local market.
C.Long-term: Create more technology patents in order to support enterprise innovation and new products development, and increase intangibles assets to protect enterprise's core interests.
2.2 Sub-goal: Increase product Variety and specific services
A. Short-term: Explore personalized service to appeal customer that meet the different levels of customer services.
B. Mid-term: Acquisition other PC companies that obtaining patents, and get essential technical support from these PC companies.
C. Long-term: As a general trend, table computer and smartphone will replace the personal computer.
1.2 Sub-goal: being a leading brand in the China personal computer market and one of the most famous Chinese companies in international market
A.Short-term: Become a long-standing sponsor of the Olympic Games, and use the logo and influence of Olympics to promote its business in the world.
B.Mid-term: Cooperate with Chinese government that expand market share in China market in order to get qualify for loans and earn tax breaks.
C.Long-term: Build a good relationship with U.S government that would have a chance to gain access to American market. Focus on American market, American market would become Lenovo's core market, and plan to generate more than 30% of the company's overall revenue.
Building a global brand, Lenovo has 4 key facts that we would learn:
•Clear and effective strategy and strong execution
•Efficient business model
•Diverse team and culture
1.Have you been a customer of Lenovo and how you feel about its products?
2.What do you think the difference between Apple Inc. and Lenovo?
3.As both of the above companies are PC magnates, how does innovation make a change?
4.Do you think the same type of acquisition (such as Lenovo and IBM) would happen to any other PC company? Why?
good luck with final exam!
Successful Acquisition and Joint Ventures
What we learn from Lenovo
Fast and Effective
First hand feedback and ideas
For further Improvements and Innovation
Phone calls paid by Lenovo
Core Competence - “to innovate for customers”
3. Strategic Goals: Improve project management and organizational efficiency to promote better flow into the international market and ensure employee satisfaction.
Short term: Establish an office (project management) so that resources can be properly budgeted; establish programs for employees so that they are certified in a way that can be recognized.
Middle term: Improve the company’s business model and employee teamwork to promote corporate culture and instill an innovative spirit within employees.
Long term: Create better international integration and improve company’s core competitiveness by creating superior customer satisfaction and delivery times. Increase market share in the global market for PCs.
4. Strategic Goals: Become the largest PC vendor in the world.
Short term: Look to other countries such as India and other newly emerging markets to expand to. Markets that are already developed do not offer as much growth as these developing countries.
Middle term: Sign deals with electronics retailers across the country and become predominately known throughout by setting up stores in main cities.
Long term: Once penetrating these markets, Lenovo should look to start promoting sale of tablets, smart phones and other technologies they produce throughout these same markets since they will have already established a name for themselves through sales of their PCs.
5. Strategic Goals: The ultimate goal of Lenovo's R&D team is to improve the overall experience of PC ownership.
Short-term: Create strong brand awareness, while choosing a specific target market and products that will cater to them.
Mid-term: Customers who have a higher education may want higher end products and Lenovo must recognize this to increase sales on these items.
Long-term: Lenovo must target customers in rural areas so that they are able to enter the market quickly where they have both home and office products.
Knowledge of China’s market, strong sales position (90% of sales)
Low cost of production
Good marketing and distribution strategies
Strategic alliance with suppliers
Ability to Mass Product
Poor brand presence globally
Low inventory turnover rate
After sales services
Limited knowledge of the global market
PC sales expected to increase in near future
Fast growing international market & increasing global demand
Signing memorandum of understanding with the US
Competition locally and internationally
International competitors forming alliance with local competitors
Software piracy and clone markets
Threat of price competition with clone PC makers