Lenovo Case Study
1. Do you think Lenovo should continue to use the IBM and ThinkPad brands or focus more on establishing its own brand identity? The Lenovo name came about in 2005 when two popular PC companies, Legend Holdings and IBM, merged. Legend Holdings was the largest PC company in China, while IBM was well known in the United States). Once reason that IMB was popular was for their popular professional computer named the ThinkPad. The ThinkPad was known for many reasons, but one of the reasons was its use aboard the U.S. Space Shuttle (IBM Archives: IBM ThinkPads in space, 2013). Because the ThinkPad computer is still one of the most popular PC computers out there, we know that Lenovo chose to keep the brand. I think this was a good idea because of the popularity of the brand. It was important for them to harmonize the brands of the two companies in order to save on marketing dollars. Because of the popularity of the brand at the time of purchase for, they did not have to invest as much into marketing and research.
2. How would you assess this strategy of global expansion in light of the increased competitive pressures in its own home market, China? I agree with Lenovo’s beliefs that “a strong global brand is a result of a customer-focused product mix and good customer service” (Marshall & Johnston, 2010). Lenovo still practices this same principle today with their Values of serving customers, trust and integrity, teamwork across cultures, and innovation and entrepreneurial spirit (Our Company - United States, 2013). I think Lenovo has done a great job with global expansion in spite of the increased competitive pressures in its home market. Lenovo has treated the global market as a unified market with many different segments. They did not just focus on expanding in their own market, but expanded throughout the world.
3. What challenges does a Chinese company like Lenovo face as it moves into the global market? There were
2. How would you assess this strategy of global expansion in light of the increased competitive pressures in its own home market, China? I agree with Lenovo’s beliefs that “a strong global brand is a result of a customer-focused product mix and good customer service” (Marshall & Johnston, 2010). Lenovo still practices this same principle today with their Values of serving customers, trust and integrity, teamwork across cultures, and innovation and entrepreneurial spirit (Our Company - United States, 2013). I think Lenovo has done a great job with global expansion in spite of the increased competitive pressures in its home market. Lenovo has treated the global market as a unified market with many different segments. They did not just focus on expanding in their own market, but expanded throughout the world.
3. What challenges does a Chinese company like Lenovo face as it moves into the global market? There were
References: IBM Archives: IBM ThinkPads in space. (n.d.). Internet Archive: Wayback Machine. Retrieved July 30, 2013, from http://web.archive.org/web/20110605104215/http://www-03.ibm.com/ibm/history/exhibits/space/space_thinkpad.html Marshall, G. W., & Johnston, M. W. (2010). Understanding the global marketplace: Marketing without boarders. Marketing management (pp. 62-94). Boston: McGraw-Hill Irwin. Our Company - United States. (n.d.). Laptops, Notebooks & Netbooks - Laptops For Those Who Do | Lenovo | US. Retrieved July 30, 2013, from http://www.lenovo.com/lenovo/us/en/our_company.html