Lenovo-Case Study
Executive summary
Lenovo, the largest PC business in China faced the intensified competition of its own market by global level companies such as HP and Dell. In attempt to expand the market internationally, Lenovo made the acquisition of IBM’s PC division. Since two organizational cultures were different, the synergy of the merged Lenovo-IBM was required. Lenovo entitled to IBM landmark and “Think” products to move to international market and enabled to increase the market power by over night after the acquisition. Together with IBM sales forces and distribution expertise, Lenovo employed it cost-efficiency and technology expertise in respond to the global demand. During the financial crisis, even though, global PC market faced the cost-cutting and decline in profit margin, the capability and integration of assets and competencies of both companies lead Lenovo remaining in the top 5 of global PC market.
Introduction
In this report will address and analyze case study of Lenovo acquired for IBM’s PC division by answering the following questions which are: Why did Lenovo pursue the acquisition of IBM’s PC division? What problems did Lenovo Face regarding post-acquisition integration? What international strategy did Lenovo adopt, and what challenges remain in the global market for Lenovo products? What does the current situation, involving both economic conditions and management restructuring, say about Lenovo’s prospects going forward? Do you think Lenovo’s history, management philosophy, and current expansion plans will create global demand for Lenovo’s products? To better understanding relevant theories of strategic management will be applied.
Lenovo’s environmental analysis
Despite the fact that economics, policy from other countries and societies have impacts on the business strategy in respond to consumers demand for products and services to be improved. Undoubtedly, technology is claimed to be largely affected on that driven behind consumer’s preferences more.
Lenovo, the largest PC business in China faced the intensified competition of its own market by global level companies such as HP and Dell. In attempt to expand the market internationally, Lenovo made the acquisition of IBM’s PC division. Since two organizational cultures were different, the synergy of the merged Lenovo-IBM was required. Lenovo entitled to IBM landmark and “Think” products to move to international market and enabled to increase the market power by over night after the acquisition. Together with IBM sales forces and distribution expertise, Lenovo employed it cost-efficiency and technology expertise in respond to the global demand. During the financial crisis, even though, global PC market faced the cost-cutting and decline in profit margin, the capability and integration of assets and competencies of both companies lead Lenovo remaining in the top 5 of global PC market.
Introduction
In this report will address and analyze case study of Lenovo acquired for IBM’s PC division by answering the following questions which are: Why did Lenovo pursue the acquisition of IBM’s PC division? What problems did Lenovo Face regarding post-acquisition integration? What international strategy did Lenovo adopt, and what challenges remain in the global market for Lenovo products? What does the current situation, involving both economic conditions and management restructuring, say about Lenovo’s prospects going forward? Do you think Lenovo’s history, management philosophy, and current expansion plans will create global demand for Lenovo’s products? To better understanding relevant theories of strategic management will be applied.
Lenovo’s environmental analysis
Despite the fact that economics, policy from other countries and societies have impacts on the business strategy in respond to consumers demand for products and services to be improved. Undoubtedly, technology is claimed to be largely affected on that driven behind consumer’s preferences more.
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