Lenovo Countering The Dell Challenge

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Introduction: Lenovo Group Limited (Lenovo) has made major strides towards becoming one of the major players in the PC, mobile computing and telecommunications market. In doing so, it has grown itself through acquisitions (like IBM’s PC business in 2005) and organic growth in all markets. To continue this prosperity, however, Lenovo has to address some issues that are outstanding and threaten continued growth. With a focus on all competition (especially close rival Dell) we address the key issues here. Although Lenovo now has the infrastructure and some brand recognition (its company name, the THINK line, etc.) it must seriously realign its strategy with respect to its internal competencies and the external environments of the desired markets. By employing a “shotgun” approach to the markets, it risks missing key segments altogether. For example, the recent introduction of the RedPad Number One , an Android-based device, targets the high-end government market in China. As well, Apple’s decision to target school textbooks, a $10B per year field , not only shrinks this opportunity for others, but may set up future generations to favour the iPad and other Apple products. This would certainly be at the expense of Microsoft (Windows) and Android driven devices, like those offered by Lenovo. To this end, Lenovo must address its weakness and strengths going forward (Appendix F). Issue 1: Weak brand awareness globally but strong brand presence in China Lenovo’s business model and core strengths have enabled it to build strong brand awareness in China. Lenovo is ranked #1 in the electronic industry and #13 overall in 2011’s Best China Brand Ranking, conducted by Interbrand1. However, to compete and succeed in the global business environment, Lenovo has to develop a strong brand presence to be seen as a truly international firm. They are currently not

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