The background of Lenovo
Lenovo is a Chinese company which is the fourth largest PC vendor in the world. The production innovation, highly-efficient global supply chain are advantages of Lenovo’s business. Furthermore, the international joined ventures strategy bring more benefits to grow Leonovo’s commercial and develop PC marketing.
The international joint venture with NEC Corporation
NEC Corporation is one of the partners of Lenovo and they created an international joint venture between two companies and aimed to form the largest PC group in Japan. Due to the joint venture strategy, Lenovo sells products to mainstream market and NEC Corporation focuses on premium market. In addition, NEC Corporation’s competitors are local brands. However, Lenovo’s competitors are multinational brands. They have different target market but they combine human resources, research, development and manufacturing. After the cooperation, Leonovo will expand a new region market and make their efforts with NEC Corporation to develop quality, function and service of PC.
The reasons that Lenovo choose the strategy of international joined ventures
Lenovo adopted the international joined ventures strategy because Lenovo wants to explore overseas market without burdening all risks and the international joined venture aims to establish strategic alliances which give them competitive advantage to access to partner’s resources including markets, technology, labors and so on. On the other hand, Lenovo has the opportunity to increase profit margin, expand domestic markets and obtain financial supports from international joined ventures. The case of NEC Corporation and Lenovo helped us to understand the advantages of international joined venture Lenovo need to choose. Firstly, Dominance within the Japanese market, which is now led by Japanese brands, through combined market share. Secondly, Greater access to the Japanese market through NEC’s nationwide sales support basis....
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