Lenovo Group Analysis

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Table of Contents
1.0 Introduction…………………………………………………………………..…..3 2.0 Background of the Lenovo Group Limited………………………………………4 3.1 General……………………………………………………………………...4 3.2 History………………………………………………………………………4 3.3 Products…………………………………………………………………….6 3.0 Background of the computer industry……………………………………..……..6 4.4 History……………………………………………………………………….6 4.5 Products…………………………………………………………………….7 4.6 Structure……………………………………………………………..……..8 4.7 The competitiveness………………………………………………………...10 4.8.1 The threat of entry…………………………………………………..11 4.8.2 The power of buyers……………………………………………..….11 4.8.3 The threat of substitutes……………………………………………..11 4.8.4 The threat of substitutes……………………………………………..11 4.8.5 The competitive rivalry…………………………………………..…12 4.0 The analysis of Lenovo…………………………………………………………..12 5.8 Strategies of Lenovo…………………………………………………………12 5.9 Performance of Lenovo……………………………………………………..14 5.10 Compare with similar companies……………………………………………15 5.0 CVP analysis…………………………………………………………………….16 6.11 Cost-Volume-Profit analysis…………………………………………………17 6.12 Break even analysis………………………………………………………….19 6.0 Conclusion……………………………………………………………………..…20 List of Reference……………………………………………………………………..22

Lenovo Group Analysis

1.0 Introduction
After 90 years of the 20th century, China's computer market in the country in the context of rapid economic development, with information technology start-up and development, access to an unprecedented rapid development stage, in 1991 and 1997, the average growth speed of up to 56.9%. In 1998, due to the Asian financial crisis and the deflation of the economy and other domestic and international macroeconomic environment, the growth rate declined. In 2001, as the global Internet economy bubble burst, the U.S. myth of the altar of the new economy, slowing U.S. economic growth and recession, slow economic growth in Europe, the Japanese economic downturn, and the global economy cast a heavy shadow. Deterioration of the global economic environment lead to IT industry and market was suffered cold snap. Global PC sales appear negative growth in the first time; stock fell, belt-tightening and layoffs sweeping through the world's major IT companies. Although the global economic downturn, but the country "Using information technology to stimulate industrialization" strategy has begun to enter the implementation phase, the financial, telecommunications, education, government, social security and other information technology industry continues to depth. In 2001, the Chinese computer market achieved sales was 250.2 billion yuan, an increase by 16.4% compare with last year. In the good economic environment, Lenovo Group was developing rapidly. The acquisition by IBM, became an international company. This paper will analyze the Lenovo and entire computer industry, and the CVP and Break-even Analysis.

2.0 Background of the Lenovo Group Limited
2.1 General
Lenovo Group Limited is a Chinese-based multinational computer technology corporation that develops, manufactures and markets desktops and notebook personal computers, workstations, servers, storage drives, IT management software, and related services. Lenovo's principal operations are currently located in Beijing, China, Morrisville, North Carolina in the United States, and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in Kanagawa Prefecture, Japan. Lenovo acquired the former IBM PC Company Division, which marketed the ThinkPad line of notebook PCs, in December 8, 2004 for approximately $ 650,000,000 in cash and $ 600,000,000 of the company's shares. Lenovo Group Limited becomes the world's third-largest personal computer manufacturer immediately, with at least 130 billion dollars in annual sales and 7.6% of the global personal...
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