Internal and external analysis of Lenovo

Topics: Strategic management, Lenovo, Personal computer Pages: 16 (4693 words) Published: December 3, 2013

Internal and external analysis of Lenovo

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1. Introduction
This report will analyze the business strategic management of Lenovo Company. Firstly, it briefly presents the business model of Lenovo. Secondly, the report will focus on internal and external environment of Lenovo, expounds business and operations strategy of Lenovo. Thirdly, it analyzes the strategic choice and strategy implementation. Then, it focuses on key features that how to choice strategic and factors to achieve successful implementation. Finally, it gives a brief summary of this report.

1.1 Background of Lenovo
Lenovo Group was established in 1984, today it has grown to become a large enterprise groups which has diversified development in the information industry (Chuan, 2007). Now Lenovo is consist of the original Lenovo Group and the former IBM PC Division. Lenovo uses innovation, high-efficiency and customer satisfaction as its business model, devotes itself to create excellent PC, as well as invests in emerging markets (Liua & Trevor, 2009). As one of the leaders in the global PC market, Lenovo develops and produces computer, sell the most reliable, secure and easy-to-use technology products, provides professional services to help global customers and partners to succeed. Lenovo Group is headquartered in New York, USA, at the same time, it established two main operations center in Beijing, China and the North Carolina, Raleigh, United States, and it also established two major research centers in Japan and China (ibid). Currently Lenovo has more than 19,000 employees all over the world. Lenovo has worldwide selling network in PC market. In March 2004, it was ranking the second biggest PC companies in the world (ibid).

1.2 Products of Lenovo
Lenovo is becoming the second largest PC maker in the world after its acquisition of IBM's personal computer business in 2005 (Chuan, 2007). The main productions of Lenovo are the ThinkPad line and the IdeaPad line of notebook PCs and ThinkCentre line of desktops. Lenovo Group segments its market to retail consumers, medium size businesses and large enterprises. According to its distribution channels, it divided its market through online sales, company-owned stores, chain retailers, and major technology distributors and vendors (ibid).

1.2.1 ThinkPad
The ThinkPad line was originally sold by IBM in early years. Since early 2005, Lenovo merger and acquisition IBM's personal computer business, therefore the brand was owned by Lenovo (ibid). The consumer group of ThinkPads is mostly businesses men, schools, and individual users. It is the unique laptop in the world which has been used on the International Space Station.

1.2.2 Lenovo IdeaPad
The IdeaPad line was produced in January 2008. This product line is based on Lenovo’s own research and development. Unlike the ThinkPad line of notebooks, the IdeaPad has fashion appearance, its design is not for the commercial market, and it’s more suitable for the average consumers (Caulfield, 2012). The Ideapad has a glossy screen, smooth and responsive keyboard made the buttons have the sense of reality.

1.2.3 ThinkCentre
In 2003, IBM produced the ThinkCentre line; in 2005, merged IBM’s personal computer business, and acquired five years’ usufruct of the "IBM PC" brand; but since 2008, the products of ThinkCentre and ThinkPad stopped using this brand (ibid). Now ThinkCentre has three types, A types(A55,A60)、E types and M types(M52,M55).

1.3 Why do people buy Lenovo?
Consumer needs means that consumers’ desire of purchasing a good or service. With the development and progress of society, high tech products gradually stepped into the life of normal people (Wei, 2004). Consumer needs is a concept and it can lead to consumer behaviors which make consumers to seek inexpensive products and get more tangible benefits. There are six main factors influencing consumer behaviors: attitudes, motivation,...

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