Lenovo's Globalization Strategies


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
 
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR156
Case Length : 15 Pages
Period : 1998 - 2005
Organization : Lenovo
Pub Date : 2005
Teaching Note :Not Available
Countries : China
Themes : Globalization | International Business | Marketing
Industry : Information Technology and Related Services

To download Lenovo's Globalization Strategies case study (Case Code: BSTR156) click on the button below, and select the case from the list of available cases:

Case Studies | Case Study in Business Strategy



Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Excerpts

The Reasons for Success

By 2000, Lenovo had emerged as the market leader in the personal computers (PCs) industry in the Asia Pacific Region except Japan (APEJ), with a market share of 11.3% (Refer Exhibit III for leading PC companies in terms of market share in APEJ)...

Losing Market Share

From the fiscal 2003 onwards, Lenovo started losing market share amidst fierce competition from both local and foreign players (Refer Exhibit VI for Lenovo's market share for the period 1996-2004). After China joined the World Trade Organization in 2001, custom tariffs on imports came down significantly, and this helped Lenovo's foreign rivals. The company faced aggressive pricing from foreign PC manufacturers like Dell and HP as well as other local players. Dell's market share in China doubled to 7.2 per cent between 2002 and 2004. Dell was particularly successful in selling PCs to corporate clients and government agencies. In November 2004, the Government of China awarded a US$ 20 million contract to Dell over Lenovo.

Going Global

Lenovo's first foray in international markets started in 1991, with the establishment of Lenovo Germany. However, the company's major efforts to globalize came in 2001, when it started selling consumer PCs in Hong Kong for the first time, and laptops under its QDI brand name in Spain, Germany, Italy and Greece...

The Road Ahead

Lenovo faces tough challenges ahead in its plans to globalize successfully. Many industry experts felt that changing its name from Legend to Lenovo would not benefit the company. Bryan Ma, senior manager with IDC stated, "It is a shame they can't use the Legend name overseas, as it carries a lot of weight and brand equity."...

Exhibits

Exhibit I: Top Ten PC Companies in the World (January 2004 -September 2004)

Exhibit II: Lenevo - Business Segments Information(2003-2004)

Exhibit III: Market Share of PC Makers in APEJ

Exhibit IV: Top Five PC Manufacturers in China(2003)

Exhibit V: Lenovo - Five Year Financial Summary

Exhibit VI: Lenovo - Market Share in Chinese PC Market

Case Studies | Case Study in Business Strategy

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.