Small Case 1 Lenovo
Small Case #1 (Lenovo: Striving to be the best)
1. SWOT analysis
Location of Factor
Type of Factor
Favorable
Unfavorable
Internal
Strengths
Well-established brand equity
Highly respected international business partners
Leading position in China
Capacity to keep up with market trends and demands
High performance in China’s domestic market
Weaknesses
Low profit margins compared to the industry average
Complex and inefficient cost composition
Low performance in tablet and smart phone lines abroad
External
Opportunities
Emerging markets like India and Asian countries
Growing SME segment in emerging markets
Advantage over foreign rivals supported by the China government
Astonishing increase in mature markets across Western Europ, North America and Japan by cooperating with NEC and Medion
Threats
Global competition with strong brand rivals (HP, Dell, Apple)
Small scale competitors
Intense competition could depress price and hence its profit margins
Increasing mobile phone and table PC market
Economy uncertainty
2. Target market
Based on the SWOT analysis, I would choose the mid-low price PC consumers in China, India and Southeast Asian countries as the main target markets.
Build on a strength. Lenovo can make the best use of its brand awareness in the target markets. China market still gives high performance and has a great potential to grow in the subsequent years. Other emerging markets, such as India and southeast Asian countries, are in the same situation.
Correct a weakness. Lenovo has its main facilities in Asian countries. So it is advantageous for them to research consumer demands of the target markets. The distribution cost can be lower than other regions like North America and Europe.
Exploit an opportunity. Lenovo has the number one market position for notebooks in Asian countries. The growth of small and medium enterprises customer segment can be a good chance for sales. With the help of China government, Lenovo can have price-competitiveness against its
1. SWOT analysis
Location of Factor
Type of Factor
Favorable
Unfavorable
Internal
Strengths
Well-established brand equity
Highly respected international business partners
Leading position in China
Capacity to keep up with market trends and demands
High performance in China’s domestic market
Weaknesses
Low profit margins compared to the industry average
Complex and inefficient cost composition
Low performance in tablet and smart phone lines abroad
External
Opportunities
Emerging markets like India and Asian countries
Growing SME segment in emerging markets
Advantage over foreign rivals supported by the China government
Astonishing increase in mature markets across Western Europ, North America and Japan by cooperating with NEC and Medion
Threats
Global competition with strong brand rivals (HP, Dell, Apple)
Small scale competitors
Intense competition could depress price and hence its profit margins
Increasing mobile phone and table PC market
Economy uncertainty
2. Target market
Based on the SWOT analysis, I would choose the mid-low price PC consumers in China, India and Southeast Asian countries as the main target markets.
Build on a strength. Lenovo can make the best use of its brand awareness in the target markets. China market still gives high performance and has a great potential to grow in the subsequent years. Other emerging markets, such as India and southeast Asian countries, are in the same situation.
Correct a weakness. Lenovo has its main facilities in Asian countries. So it is advantageous for them to research consumer demands of the target markets. The distribution cost can be lower than other regions like North America and Europe.
Exploit an opportunity. Lenovo has the number one market position for notebooks in Asian countries. The growth of small and medium enterprises customer segment can be a good chance for sales. With the help of China government, Lenovo can have price-competitiveness against its