Description
Established in 1984, by 11 employees, with total capital of 25,000 U.S. dollars
Changed name from Legend to Lenovo for globalization purposes
---"For overseas markets, Lenovo will be used alone," said the firm
Owner of IBM PC brand
The third-largest computer maker on the world scale
The dominant Chinese computer marketer for over 10 years.


Lenovo Group
Lenovo Group
Ltd.
Ltd.
Prepared by:
Prepared by:
Pu Zhao
Pu Zhao
Mei Wu
Mei Wu


Taryn Hauso
Taryn Hauso
Marty
Marty
Bearce
Bearce

Lenovo Group Ltd.
Lenovo Group Ltd.

Introduction
Introduction

History
History

Globalization Analysis
Globalization Analysis

Competitor Analysis
Competitor Analysis

SWOT Analysis
SWOT Analysis

Future Outloo
Future Outloo

!ecommendations
!ecommendations

Introduction to Lenovo
Introduction to Lenovo
Group Ltd.
Group Ltd.
?
"stablis#ed in $%&'( by $$ employees( )it#
"stablis#ed in $%&'( by $$ employees( )it#
total capital o* +,(--- ./S/ dollars
total capital o* +,(--- ./S/ dollars
?
C#an0ed name *rom 1e0end to 1eno2o *or
C#an0ed name *rom 1e0end to 1eno2o *or
0lobalization purposes
0lobalization purposes
333 333"For overseas markets, Lenovo will be used alone," "For overseas markets, Lenovo will be used alone,"
said the frm said the frm
?
O)ner o* I45 PC brand
O)ner o* I45 PC brand
?
T#e t#ird3lar0est computer maer on t#e )orld
T#e t#ird3lar0est computer maer on t#e )orld
scale
scale
?
T#e dominant C#inese computer mareter *or
T#e dominant C#inese computer mareter *or
o2er $- years/
o2er $- years/

Important Records of
Important Records of
Lenovo
Lenovo
?
1984— 1984—Wit# an initial capital outlay o* only !54+--(---( 6.S7+,(---8 Wit# an initial capital outlay o* only !54+--(---( 6.S7+,(---8
1eno2o9s *oundin0 c#airman 1iu C#uanz#i( to0et#er )it# $- lie3minded 1eno2o9s *oundin0 c#airman 1iu C#uanz#i( to0et#er )it# $- lie3minded
collea0ues( launc#es t#e :e) Tec#nolo0y ;e2eloper Inc/ 6t#e collea0ues( launc#es t#e :e) Tec#nolo0y ;e2eloper Inc/ 6t#e
predecessor o* t#e 1e0end Group8 *unded by t#e C#inese Academy o* predecessor o* t#e 1e0end Group8 *unded by t#e C#inese Academy o*
Sciences/ Sciences/
?
1988— 1988—1e0end9s C#inese3c#aracter card recei2es t#e #i0#est :ational 1e0end9s C#inese3c#aracter card recei2es t#e #i0#est :ational
Science3Tec#nolo0y Pro0ress A)ard in C#ina/ 1e0end Hon0 <on0 is Science3Tec#nolo0y Pro0ress A)ard in C#ina/ 1e0end Hon0 <on0 is
establis#ed/ establis#ed/
?
1996— 1996—1e0end becomes t#e maret s#are leader in C#ina *or t#e =rst 1e0end becomes t#e maret s#are leader in C#ina *or t#e =rst
time/ time/
?
1999— 1999—1e0end becomes t#e top PC 2endor in t#e Asia3Paci=c re0ion 1e0end becomes t#e top PC 2endor in t#e Asia3Paci=c re0ion
and #eads t#e C#inese :ational Top $-- "lectronic "nterprises ranin0/ and #eads t#e C#inese :ational Top $-- "lectronic "nterprises ranin0/
?
2004— 2004—1eno2o becomes an Olympic )orld)ide partner/ It is t#e =rst 1eno2o becomes an Olympic )orld)ide partner/ It is t#e =rst
C#inese company to become a computer tec#nolo0y e>uipment partner C#inese company to become a computer tec#nolo0y e>uipment partner
o* t#e TOP/ o* t#e TOP/
?
200— 200—1eno2o completes t#e ac>uisition o* I45?s Personal Computin0 1eno2o completes t#e ac>uisition o* I45?s Personal Computin0
;i2ision( main0 it a ne) international IT competitor and t#e t#ird3 ;i2ision( main0 it a ne) international IT competitor and t#e t#ird3
lar0est personal computer company in t#e )orld/ lar0est personal computer company in t#e )orld/
?
2006— 2006—1eno2o introduces t#e =rst dual3core T#inPad noteboo PCs( 1eno2o introduces t#e =rst dual3core T#inPad noteboo PCs(
impro2in0 producti2ity and e@tendin0 battery li*e *or up to $$ #ours/ impro2in0 producti2ity and e@tendin0 battery li*e *or up to $$ #ours/

Gloali!ation "trate#ies
Gloali!ation "trate#ies
?
Cooperation
Cooperation
?
5er0er and Ac>uirement
5er0er and Ac>uirement
?
Promote 4rand A)areness t#rou0#
Promote 4rand A)areness t#rou0#
in2ol2in0 important sports e2ents
in2ol2in0 important sports e2ents

$ooperation
$ooperation
?
5ain !eason:
5ain !eason:


!horta"e o# $versea !ale
!horta"e o# $versea !ale
%hannels and &ubli% 'elations(
%hannels and &ubli% 'elations(


?
Standards *or c#oosin0 partners:
Standards *or c#oosin0 partners:


1( )ith *om+lementar,
1( )ith *om+lementar,
stren"ths
stren"ths


2( &ro+er si-e
2( &ro+er si-e


Mer#er and %c&uirement
Mer#er and %c&uirement
?
T#e most important measure *or
T#e most important measure *or
most ambitious companies is to
most ambitious companies is to
e@pand its maret s#ares/
e@pand its maret s#ares/
?
To *orm its ne) stren0t#s as soon as
To *orm its ne) stren0t#s as soon as
possible/
possible/
?
A 0ood sample in 0lobalization is
A 0ood sample in 0lobalization is
obtainin0 I45 PC ;i2ision t#rou0#
obtainin0 I45 PC ;i2ision t#rou0#
5AA/
5AA/

The "trate#ies to Promote
The "trate#ies to Promote
Brand %'areness
Brand %'areness
?
TOP 6T#e Olympic Partner 8partners
TOP 6T#e Olympic Partner 8partners

photo Source: http://www.lenovo.com/torino/us/partnership.shtml photo Source: http://www.lenovo.com/torino/us/partnership.shtml
?
:4A partners
:4A partners
?
ATAT partners
ATAT partners

$hallen#es in
$hallen#es in
Gloali!ation
Gloali!ation
?
Ability o* Culture adaptation
Ability o* Culture adaptation


In April +--,( a mana0er 6Sales8 o* ;ell
In April +--,( a mana0er 6Sales8 o* ;ell
Int/ tried to use unusual tactics to
Int/ tried to use unusual tactics to
persuade I459s customers to purc#ase
persuade I459s customers to purc#ase
;ell products in #is mail( Be2ery dollar
;ell products in #is mail( Be2ery dollar
t#ey spent on t#ese I45 systems is
t#ey spent on t#ese I45 systems is
directly *undin0 t#e C#inese 0o2ernment/C
directly *undin0 t#e C#inese 0o2ernment/C

?
4rand A)areness
4rand A)areness

$ompetitors
$ompetitors
6main8
6main8
?
Acer Inc/ 6Tai)an( C#ina 8
Acer Inc/ 6Tai)an( C#ina 8
?
;ell Inc/ 6.nited States8
;ell Inc/ 6.nited States8
?
He)lett3Pacard 6.nited States8
He)lett3Pacard 6.nited States8

%cer
%cer
?
1eadin0 manu*acturer o* noteboo(
1eadin0 manu*acturer o* noteboo(
tablet( #and#eld( destop computers
tablet( #and#eld( destop computers
?
T#e 0ap is narro)in0/ Acer?s 0lobal
T#e 0ap is narro)in0/ Acer?s 0lobal
maret up to D/& percent in t#e *ourt#
maret up to D/& percent in t#e *ourt#
>uarter
>uarter
?
W#ile 1eno2o s#run to E/$ percent(
W#ile 1eno2o s#run to E/$ percent(
accordin0 to t#e maret researc#
accordin0 to t#e maret researc#
company Gartner/
company Gartner/
?
In t#ird >uarter o* +--,( Acer #ad '/E
In t#ird >uarter o* +--,( Acer #ad '/E
percent and 1eno2o #ad E/F percent
percent and 1eno2o #ad E/F percent

?
Acer?s success deri2es *rom its
Acer?s success deri2es *rom its
eGecti2e use o* t#e Hc#annelH
eGecti2e use o* t#e Hc#annelH
maretin0 model( )#ic# pairs it )it#
maretin0 model( )#ic# pairs it )it#
local distributors to #elp its products
local distributors to #elp its products
0ain traction
0ain traction

(ey )inancials
(ey )inancials
?
$ompany Type
$ompany Type
Public 6Tai)an: 
Public 6Tai)an: 
AC"!
AC"!
8
8
?
)iscal *ear+,nd
)iscal *ear+,nd
;ecember
;ecember
?
-../ "ales 0mil.1
-../ "ales 0mil.1
7%(D,'/-
7%(D,'/-
?
2+*ear "ales Gro'th
2+*ear "ales Gro'th
FE/+J
FE/+J
?
-../ 3et Income 0mil.1
-../ 3et Income 0mil.1
7+,E/F
7+,E/F
?
2+*ear 3et Income Gro'th
2+*ear 3et Income Gro'th
$E/FJ
$E/FJ
?
-../ ,mployees
-../ ,mployees
D(,,'
D(,,'
?
2+*ear ,mployee Gro'th
2+*ear ,mployee Gro'th
6-/$J8
6-/$J8

4ell Inc.
4ell Inc.
?
World?s K$ direct3sale computer
World?s K$ direct3sale computer
2endor
2endor
?
Pro2ides a broad ran0e o* computer
Pro2ides a broad ran0e o* computer
and entertainment products *or t#e
and entertainment products *or t#e
consumer and enterprise marets
consumer and enterprise marets
?
5arets t#ird3party so*t)are and
5arets t#ird3party so*t)are and
perip#erals
perip#erals

(ey )inancials
(ey )inancials
?
$ompany Type
$ompany Type
Public 6:AS;AL 6GS8: 
Public 6:AS;AL 6GS8: 
;"11
;"11
8
8
?
)iscal *ear+,nd
)iscal *ear+,nd
Manuary
Manuary
?
-..5 "ales 0mil.1
-..5 "ales 0mil.1
7,,(%-&/-
7,,(%-&/-
?
2+*ear "ales Gro'th
2+*ear "ales Gro'th
$F/DJ
$F/DJ
?
-..5 3et Income 0mil.1
-..5 3et Income 0mil.1
7F(,E+/-
7F(,E+/-
?
2+*ear 3et Income Gro'th
2+*ear 3et Income Gro'th
$E/'J
$E/'J
?
-..5 ,mployees
-..5 ,mployees
DD($--
DD($--
?
2+*ear ,mployee Gro'th
2+*ear ,mployee Gro'th
$&/-J
$&/-J

He'lett+Pac6ard
He'lett+Pac6ard
?
Pro2ides enterprise and consumer
Pro2ides enterprise and consumer
customers a *ull ran0e o* #i0#3tec#
customers a *ull ran0e o* #i0#3tec#
e>uipment
e>uipment
?
<no)n *or product inno2ation( t#e
<no)n *or product inno2ation( t#e
company?s corporate de2elopment is
company?s corporate de2elopment is
a tale o* rein2ention
a tale o* rein2ention
?
4oasts an IT ser2ice or0anization
4oasts an IT ser2ice or0anization
t#at is amon0 t#e )orld?s lar0est
t#at is amon0 t#e )orld?s lar0est

(ey )inancials
(ey )inancials
?
$ompany Type
$ompany Type
Public 6:NS": 
Public 6:NS": 
HPL
HPL
8
8
?
)iscal *ear+,nd
)iscal *ear+,nd
October
October
?
-..5 "ales 0mil.1
-..5 "ales 0mil.1
7%$(D,&/-
7%$(D,&/-
?
2+*ear "ales Gro'th
2+*ear "ales Gro'th
,/EJ
,/EJ
?
-..5 3et Income 0mil.1
-..5 3et Income 0mil.1
7D($%&/-
7D($%&/-
?
2+*ear 3et Income Gro'th
2+*ear 3et Income Gro'th
$,&/,J
$,&/,J
?
-../ ,mployees
-../ ,mployees
$,-(---
$,-(---
?
2+*ear ,mployee Gro'th
2+*ear ,mployee Gro'th
6-/EJ8
6-/EJ8

(ey )inancials
(ey )inancials
?
!e2enues 7&D(D%D/-
!e2enues 7&D(D%D/-
&/,J
&/,J
?
Pro=ts +(F%&/-
Pro=ts +(F%&/-
3F$/'
3F$/'
?
Assets EE(F$E/-
Assets EE(F$E/-
33
33
?
Stoc#olders? ">uity FE($ED/-
Stoc#olders? ">uity FE($ED/-
33
33

"W7T %nalysis
"W7T %nalysis
?
Stren0t#s
Stren0t#s
$/ $/
T#e brand c#rematistic
T#e brand c#rematistic


a/ #onest
a/ #onest


b/ inno2ati2e
b/ inno2ati2e


c/ 0ood ser2ice
c/ 0ood ser2ice


d/ easy to use
d/ easy to use
+/ +/
Price ad2ance
Price ad2ance
F/ F/
"n2ironmental *actors
"n2ironmental *actors

"W7T %nalysis
"W7T %nalysis
?
Weaness
Weaness
$/ $/
1ac o* international mana0in0
1ac o* international mana0in0
e@perience
e@perience
+/ +/
4rand inOuence
4rand inOuence
F/ F/
Ability o* 0ettin0 pro=t
Ability o* 0ettin0 pro=t

"W7T %nalysis
"W7T %nalysis
?
Opportunities
Opportunities
$/ $/
In c#ar0e o* I45 PC ;i2ision
In c#ar0e o* I45 PC ;i2ision
+/ +/
Important sportin0 e2ents
Important sportin0 e2ents


a/
a/ TOP 6T#e Olympic Partner8 TOP 6T#e Olympic Partner8
b/ :4A partner b/ :4A partner
c/ ATAT Williams partner c/ ATAT Williams partner


"W7T analysis
"W7T analysis
?
T#reats
T#reats
$/ $/
So*t)are pirate
So*t)are pirate
+/ +/
Po)er*ul competitors
Po)er*ul competitors


)uture 7utloo6
)uture 7utloo6
?
From "ast to West
From "ast to West
?
Hi0# brand a)areness
Hi0# brand a)areness
?
One o* most competiti2e companies
One o* most competiti2e companies
in t#e )orld/
in t#e )orld/

Recommendations
Recommendations
"hort+term 'ays8
"hort+term 'ays8
?
;istribution 5odel s#ould be inno2ated to be eGicient/ ;istribution 5odel s#ould be inno2ated to be eGicient/
"@istence 5odel: 1eno2oPW#olesalerP!etailerP "@istence 5odel: 1eno2oPW#olesalerP!etailerP
Consumer Consumer
Alternati2es: Alternati2es:
$/ 1eno2oP;iscount !etailer 6Wal35art8P $/ 1eno2oP;iscount !etailer 6Wal35art8P
Consumer/ Consumer/
+/ 1eno2oPConsumer 6t#rou0# "commerce +/ 1eno2oPConsumer 6t#rou0# "commerce
and and A0ent8 / A0ent8 /
?
Continue to rely on its =nancial ad2anta0es *or !A;( Continue to rely on its =nancial ad2anta0es *or !A;(
stru00le *or talented employees / stru00le *or talented employees /

?
T#rou0# establis#in0 and implementin0 o* more T#rou0# establis#in0 and implementin0 o* more
rational strate0ies o* localization and spreadin0 rational strate0ies o* localization and spreadin0
its corporation culture to a2oid cultural its corporation culture to a2oid cultural
diGerence and reduce t#e possibility o* conOicts/ diGerence and reduce t#e possibility o* conOicts/
?
!educe t#e possibility o* duplication o* !educe t#e possibility o* duplication o*
in2estment( and stri2e *or cooperation( instead in2estment( and stri2e *or cooperation( instead
o* competition( and to trans*er ri2als bet)een o* competition( and to trans*er ri2als bet)een
t#e cooperators/ t#e cooperators/
?
Good use mer0er and ac>uirement strate0y( Good use mer0er and ac>uirement strate0y(
principle o* )#ic# is t#at use abundant capital principle o* )#ic# is t#at use abundant capital
to trans*er its disad2anta0e to become to trans*er its disad2anta0e to become
ad2anta0es in a s#ort period/ ad2anta0es in a s#ort period/
?
Promotion 4rand A)areness t#rou0# increasin0 Promotion 4rand A)areness t#rou0# increasin0
ad2ertisin0 in2estment/ ad2ertisin0 in2estment/

Recommendations
Recommendations
Lon#+ term 'ays
Lon#+ term 'ays

$/ ;e2ote itsel* to its leadin0 area( distin0uis# $/ ;e2ote itsel* to its leadin0 area( distin0uis#
)#at are t#e disad2anta0e parts and cut t#em/ )#at are t#e disad2anta0e parts and cut t#em/
+/ Promote its ability to predict maretin0 +/ Promote its ability to predict maretin0
needs( *or e@ample( cooperate )it# 0o2ernment needs( *or e@ample( cooperate )it# 0o2ernment
a0encies to analyze marets/ a0encies to analyze marets/

The ,nd
The ,nd




Questions?
Questions?
Answers?
Answers?

doc_432209941.ppt
 

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