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Lenovo: Challenge to Leader

Questions

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Critically
analyze the strategies to be adopted by Lenovo to maintain its market
leadership position in the lucrative Chinese PC market.

·        
One
of the strategies that Lenovo took up was that it believed that in order to
become a global brand, it was not enough to just be identified as a global
firm. Establishing a presence in more developed and highly globalized areas
such as the US and Europe was essential for Lenovo’s overall strategy.

·        
The
second strategy was that Lenovo was the first company to introduce the home
computer concept in China which helped it to grow into a national company
thereby cornering a market share of 27 percent in the domestic market.

·        
The
other strategy was that, Lenovo restructured itself into two business groups –
Lenovo Business Group and Think Business Group and this was done so in a bid to
target mainstream (PC, laptop, and tablet) and high-end segments respectively
and which the restructuring aimed at streamlining operations and management to
better fit the company’s expanding business worldwide.

Analyze
Lenovo’s Protect and Attack strategy.

·        
The
attack strategy that Lenovo had put in place helped them to rule the Chinese PC
market. Running the market was one thing, sustaining it was another and so the
current CEO William Amelio at that time dint seem to know strategies to be
adopted in order to sustain dominance in the Chinese PC market and that’s how
come when he (CEO) stepped down and Yuanqing took over as chairman, benefits
were reaped in 2010 and later on profits had risen to US$ 273 million from US$
129.4 million in 2010.

 

Examine
the strategies Lenovo should adopt to enter and make a mark in the US
smart-phone industry.

·        
One
of the ways Lenovo could adopt in making a mark in the US smart – phone
industry is for this industry to venture into notebooks and have its own sub
brand name (for example: ThinkPad Multimedia or ThinkPad M
Series). These machines should feature enhanced graphics cards and screen
resolution; features that have particular appeal to younger students who use
their notebooks to play video games and watch movies (Ahmed, 2015).

·        
Lenovo can also benefit from the competition
between the cell phone companies to enter into the cell phone design and
manufacturing business. Not necessarily by creating their own cell phone brand
name, but maybe by the acquisition of one of the world top cell phone names,
like Blackberry (Ahmed, 2015).

·        
Another strategy is that Lenovo can also
consider giving free or discounted software bundle of degree-specific software
to new customers. This will require fostering partnerships with software
manufacturers (Ahmed, 2015).

 

 

 

 

 

 

 

 

 

 

 

 

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