What National Sources Of Competitive Advantage Mig

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Q1- What national sources of competitive advantage might Lenovo draw from its Chinese base? What disadvantages derive from its Chinese base? Possible national sources of competitive advantage Lenovo might draw from its Chinese base: - People are a core driver of knowledge and innovation in technology-driven businesses like PCs and IT Services. Lenovo motivates people using a non-traditional Chinese reward system, including stock options to increase performance and reduce management turnover. This helps them attract highly talented professionals in the competitive technology environment all over the world. All white collar employees who have been in the company for more than two years receive stock options and, says The management, “when they reach upper management, they get a lot more.” In addition, every employee gets extensive training through Lenovo University. A combination of opportunities for continuous learning and growth along with motivational tools helps Lenovo utilize their key assets (human) effectively. As a people-oriented enterprise, it has created a unique competitive advantage. The management believes that providing staff with an excellent living and working environment helps their creativity. He believes that the perpetual motion that drives Lenovo’s success is its invaluable human resources. - The acquisition by Lenovo of IBM’s PC division for US$1.75 billion, announced in December 2004, allows it to use the IBM brand for five years and gives it control of the Think trademark of IBM’s popular ThinkPad laptops. The deal not only provides Lenovo with IBM’s brand, it also enables it to acquire IBM’s laptop production lines, product developers, and distribution networks. The President of Lenovo clearly stated that this move was intended to make it possible for his company to challenge Dell and HP in global markets. He is quoted as saying that

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