Pdf of Lenovo Article

Topics: Brand, Marketing, Lenovo Pages: 9 (2615 words) Published: May 19, 2013
1.Environmental forces
1.1Major forces in the macro environment
·Demographics forces
Lenovo is the native enterprise of China and Chinese population is so large that the purchasing power in China is still very strong. In recent years, Lenovo mainly developed business in Russia, India and Brazil and we can find that these three countries are also the ones among the top 10 populous countries in the world. Considering the age trends, Generation X & Y are the main group of consumers. Especially after entering the 21th century, the number of customers who are over 50 years old is continuously growing. ·Cultural forces

The young people are paying more attention to the leisure and spending more on such electronic products. This trend motivates Lenovo to innovate new products. ·Political forces
The scientific development concept, stated by General Secretary of the Communist Party of China, has a focus of ‘making the information industry bigger and stronger’. According to this, the Chinese political environment is favorable to the internationalization target of Lenovo. ·Technological forces

To be honest, Lenovo does not have a core technology. However with internationalization acquisitions of IBM, Medion and CCE, Lenovo has obtained some advanced techniques and gotten a better technological environment. ·Natural forces

The production bases of Lenovo are established respectively in Beijing, Shanghai and Huizhou which are cities with convenient transportation. Besides China has abundant natural resources which are beneficial to the manufacturing enterprises. ·Economic forces

The previous years’ international financial crisis lead to a worldwide market fluctuates strongly. Consumers spend less on IT and commercial PC in period of economic recession.

1.2Major forces in the micro environment
Lenovo introduced the management mode of Dell, making the suppliers build factories near the product department of Lenovo. They take a measure of ‘get the products when you need’ to let the suppliers share the risk and expenditure of storing components. ·Competitors

There are many famous IT companies in the world, such as, HP, Apple, Dell, Toshiba, Sony and Samsung. They are strong competitors to Lenovo. Some of the companies like Dell and Acer are trying their best to develop commercial and consumer market to attract customers. However, Lenovo took a study of new technology as the main work and ignored the market expansion for a long time since it improved its global recognition after purchasing IBM. ·Customers

The GDP per capita in China keeps growing these years with an accumulative fortune of customers. As we all know, buying power matters income, the more purchasing power, the more profit to native market. And there is another point that consumers are gradually changes from the enterprises into individual. Hence, a large amount of personal consumption is a new point of sales growth of Lenovo.


2.1. Targeting
·Considering the size and growth of customer segment, it is easy to find that city customers who are between the age of 18----50 with high level of education is the main group of consumers of such high-end products. These kinds of people have strong purchasing power. ·Considering to have a high brand recognition, Lenovo choose micromarketing. By researching the characteristics of different customers and designing the approximate products which can meet their needs, Lenovo can establish a good long-time brand image in the mind of consumers. ·Considering the rural customers nowadays, Lenovo has found that rural market will be a part of purchasing power in the future because these customers have strong brand awareness. And after the Consumer Electronics Subsidy Program, Lenovo have got brand impacts in the rural areas. 2.2Positioning

Lenovo’s positioning mainly considers the...
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