In this assignment, we are chosen to be the Product Manager of Lenovo Group Ltd to develop a brand new product in the notebook category. We are going to develop a New ThinkPad that have waterproof IPX7 standard .
2. Category Attractiveness
Category factors provide information about underlying structural factors affecting the category
1.The threat of new entrants(low)
The reducing profit margins and aggressive pricing, there is a high barrier to entry for new player. Also, these high barriers are because of manufacturers of notebooks require strong supply chain and distribution channels. Larger manufactures have the advantages. Moreover, After–sales service and the development of innovation product (R&D and top product manager) …show more content…
Category Growth
IDC's preliminary results show that the Asia/Pacific (excluding Japan) PC market increased 2% from last quarter and declined 10% year-on-year in Q2 2014 to reach 24.3 million units. The ongoing economic slowness in the emerging markets sets the tone of the overall PC demand and inhibited the region’s year-on-year growth.
3. Product Life Cycle
Notebook markets are at maturity level. Rapid technology change influent the IT industrial. Varieties of product entering the electronic goods market force notebook into the decline stage. http://cdn3.businesssetfree.com/wp-content/uploads/2013/04/Product-Lifecycle-e1364967651462.png
4. Sales Cyclist
Notebooks are consumer electronic goods that are not affected by the GDP variances. Normally, Notebook industrial are affected by the entry of new product and the demand of this goods.
5. Seasonality
The colleges in Hong Kong have their mega sales from July to September which suggesting student to have a new notebook for coming academic year.
6. Profits
Profits depend on factors of production, manufacturing technology and competitive rivalry. The profitability of notebook industrial is relative.
Environment factors
Technology factors
1. Rapid change in new …show more content…
Lifestyle
Mobility is one of the most important trends. Notebook provides a balance between performance and mobility .This explain the shift of demand of desktop to notebook and smart device. Moreover, more and more work is needed to be done on the road.
Competitor analysis
Dell currents strategy is Growth strategy. Dell’s Jeff Clarke (vice chairman of Dell) accounted that Dell planned success in every country, every channel and at every price point in one talk at 2013.this decision has been made since dell experienced market share losses. Dell plans again to be a volume, “in it to win it” PC player. Dell take a growth strategy to against Lenovo and HP.
Dell’s “end user computing” has four important elements:
• Simplify the product and services
• Obtain new customers
• Win with industry-leading end-user computing solutions
• Scale alternative computing solution
One of the important changes is the manufacturing method. The manufacturing method of dell change from CTO (configure to order) to BTO (build to order). The total supply cost and manufacturing cost is much lower. Delivery time and price can be reduced. Also, Dell is trying to corporate with “the best buy” and “Walmark” to increase promotional