Lenovo Case Analysis

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LENOVO Case Analysis
Situation Analysis
Chinese super brand Lenovo, formerly formed as Legend, has seen itself rise from being a mere imported parts distributor into its country’s largest computer manufacturer as well as being the world’s fourth. The company now has branches world-wide and has experienced successful growths since its establishment in 1984. Lenovo SWOT breakdown:

Strengths: Lenovo has a mass and strong relationship with their domestic customer base. Being a homegrown company certainly helped Lenovo in understanding and molding its computer lines into products that Chinese consumers loyally appealed to. The company also long established very efficient distribution and marketing functions. Weaknesses: In the end of 2003, they experienced a falling stock price, declines in PC shipments and managerial confusion. Albeit a strong customer relationship and distribution system, they still lag behind what Dell has specialized. Opportunities: Domestically, PC shipments in all regions of China is projected to increase so Lenovo can obtain those demands. Additionally, the medium to higher market segments such as medium businesses and the government continue to have a foreseeable increase in PC usage. Globally, there are substantial increases in demand and shipments of computers especially in Asia. Threats: The biggest threat the company has is facing increased competition from brands from both overseas and in China, especially from Dell where it held the second market share in the Chinese market. The market has become much saturated and the consumer perspective move from PCs being ‘luxurious’ to ‘commodities’ type products could turn risky to Lenovo. Problem/Key Issue

The changing dynamics of the computer industry would be the basis of the problems experienced by Lenovo (and other firms in the market). Market saturation, entering and upgrading competencies of new and existing firms, the perspective of ‘commodity’ computers by consumers and the...
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