Swot Analysis of Lenovo

Only available on StudyMode
  • Download(s) : 409
  • Published : October 17, 2012
Open Document
Text Preview
* Its brand name is renowned in China and become more familiar worldwide. E.g. it is the top vendor in Asia-Pacific region, and it’s the top ten best managed PC vendors in 2000. * There are regional bases and support centres to provide sale support all over the world e.g. New York, Paris, Beijing. * It enjoys the leading position in China, which being oligopoly in the market (with a share of 34%). * It has higher growth rate than other companies (36%, compared to market rate 16%). * It holds the no.1 market position in other Asian countries, proving it is a reliable brand to them. * Root of its manufacture and research is in China to save cost and operations; therefore its price is competitive to foreign competitors like Dell and HP. * It has good research facilities in Japan and US.

* Its image has changed to a value-conscious PC brand from a stereotype one, i.e. it is seen as equal with leading PC brands like HP and Dell. * It has created many collectors’ items (e.g. laptop cover), making more people know its name. * It acquired IBM’s PC division, making it owns 8%market share of the world’s PCs. * It will be selling IBM’s ThinkPad brand and its PC services, which enable it to push its brand name to a premier position in the global market. * It is the partner of many famous brands and ventures, e.g. American Airlines, NBA, Coca-Cola. i.e. its brand appears frequently in foreign regions and global events, to expand brand recognition. Weakness:

* It had a low profit margin from 2002 to 2006 (2.3% only, whilst the industry average is 2.9%). * There might be a complex and inefficient cost composition as there was a 84.5% drop in net profit. * It has to implement the brand transition from IBM to Lenovo, so it needs to maintain strong and consistent marketing messages for its PCs. Opportunities:

* Many small and medium enterprises would like to choose Lenovo due to its penetration into offices of...
tracking img