Lenovo Challenge

Topics: Netbook, Chinese people, Han Chinese Pages: 3 (819 words) Published: February 18, 2013
3. What challenges did Lenovo face after the acquisition?

The rise of Lenovo is based on two factors-internal and external. Internally, China opens her market and allows personal business growing. Externally, U.S. and Japan leads the global marketing and manufacturing strategy. China has luck to plays an important role in this industrial windstorm. Nowadays, Chinese company could raise tremendous capital from its domestic market and invest in oversea business, such as Geely Automobile acquired Volvo. Lenovo is the pioneer of such investment. And Lenovo demonstrate a good example that Chinese company and enterprisers could play globally, and play fairly.

It is only 30 years that China opens her market. Although Chinese people and business man have experience of global trading historically, the world seems strange after the country suffering 20 years war time and 20 years political movement. The enterprisers need to learn the rules of modern business. And they need to learn how to run business globally and survive from the harsh competition. In sum, the capability of the Management of Legend decides if Lenovo could survive after the acquisition. It seems they did a good job during the last 9 years since 2004, at least, better than Dell. But to me, it is not good enough.

Challenge 1: Whether Lenovo could survive from the cultural and operational merge?

Answer: Yes. Due to the less channel difference (Lenovo focuses on desktop, IBM focuses on Laptop), there is so less conflict in operation. Like the article cites: It is a match made in heaven. And luckily and respectfully, Lenovo adopt IBM management without give major replacement for global business. In other worlds, Lenovo embrace American culture and rules for the company. It is wise but riskily. There are failure examples, such as TCL (a Chinese multinational electronics company. In 2010 it was the world's sixth-largest television producer) went on adventures in Europe, but not quite success. The...
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