Technology has a rapid development in recent years, especially in the electronic areas. From one perspective, with more advanced technology, laptop manufacturers including lenovo are able to provide higher-quality products for consumers. From another, if new technology leads to high efficiency of production process, the products’ prices can be reduced. Thus with better performances and lower prices, more consumers are likely to purchase it, the manufacturers could expand their scales and accounts for more market shares. This is definitely a good news for Lenovo also.
On the other hand, advanced technology means higher pricing normally especially when it’s a renovation. For instance, a new generation of notebooks called ultrabooks came out this summer, which is a renovation in the laptop industry. It’s much thinner and lighter, and able to run for more hours on each battery charge. Meanwhile, the prices are a little bit higher than those of the normal laptops. So maybe some consumers will choose to buy other brands with lower prices considering their financial situation. Also, there comes a risk if they invest money to apply new technology. A loss is possible to happen if consumers don’t accept the new products.
Specific environment industry competitors
For Lenovo, there are many competitors in the laptop industry, which can be a good situation to motivate it to improve its products and consider more for its consumers. Thus, better products and services come out to server for consumers, more market share can be gained also. Thus, Lenovo expands its market and gets more profits. What’s more, competition leads to lowering prices to attract consumers, which is beneficial for consumers.
Fierce competition in laptop industry means high risks also. If Lenovo aren’t able to keep pace with the latest technology and industry trend, consumers will choose the...