Internationalization Stratey of Lenovo

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Internationalization Strategy of Lenovo Unit code: MGZ5181 Group members: Bo Xue (25407392) Ma Ying (25452886) Zhang Zhuo (25452975) 1. Introduction An efficient and suitable internationalization strategy can contribute companies to keep an ideal share in global market and gain sustainable competitive advantages. In order to find out how suitable strategies for internationalization are formulated and selected, this report chooses Lenovo as the case to indicate the necessary strategy of internationalization. This report would answer three questions: what is the external and internal situation of Lenovo in its internationalization; what strategies have been taken in the international process; and what lessons can be learneded for China companies. To answer these questions, this report is divided into five sections: introduction; the international process; SWOT analysis of Lenovo; the globalization strategies; finally, discussions, enlightments and recommendations will be given. 2. Development Process 2.1 Pioneering Stage (1984-1993) The Lenovo Group Limited was founded as ICT Co., a spin-off firm from the Institute for Computer Technology (ICT) in 1984 with an initial capital investment of RMB 200,000 (Xie and White, 2004). Its initial business was selling and distributing personal computers produced by foreign manufacturers (Liu, 2005). In 1991, Lenovo began to sell its own brand PCs, and formed a famous PC brand in Chinese market in a short time (Liu, 2005). Then, in 1993, Lenovo became the largest local PC maker in China, behind only Compaq and AST (Liu, 2005). 2.2 PC Branding Stage (1994-2004) Since 1994, Lenovo became a public company, listed on the Hong Kong Stock Exchange. In 1997, moreover, it exceeded IBM, Compaq and HP becoming the leading PC seller in China and remained the first place until now (Xie and White, 2004). However, before 2004, the

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