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Lenovo Case Study

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Lenovo Case Study
INTRODUCTION Lenovo bounded on the international scene May 2005 wit the acquisiton of IBM’s personal computer division for $1.75 billion. This was viewed as an experiment to see whether Chinese companies could successfully integrate foreign acquisitions as they continued to expend internationally. With this landmark acquisition, Lenovo’s new strategy was to become a leader in the global PC market. Lenovo Group Limited is one of the most prominent PC manufacturers in the world especially in Asia. It is headquartered in Morrisville, North Carolina with principal operations currently located in Beijing, China, and Singapore. Lenovo recorded revenues of $16.6 billion during the fiscal year ended March 2010, an increase of 11.4% over 2008. The net profit of this company was $432 million in fiscal year 2009 compared with only $305 million in 2008, an increase of 143% (lenovo.com). In 2005, Lenovo purchased IBM’s Personal Computing Division which included it global desktop and notebook computer business. The acquisition made Lenovo one of the leading global PC makers. Founded by 11 members of the Chinese Academy of Sciences in 1984, Lenovo was originally named New Technology Developer, Inc. As of 2008, Lenovo’s ownership was 50.4% public shareholders, 42.3% by Legend Holdings Limited, 6.6% by Texas Pacific Group. The Chinese government owns 65% of Legend Holdings and is therefore the largest single shareholder controlling about 27% of Lenovo stock.
CORE COMPETENCIES Lenovo’s core competencies are developing, manufacturing and marketing desktop and notebook personal computers, workstations, servers, storage drives, IT management software, and related services. Lenovo’s business model is built on innovation, operational efficiency, and customer satisfaction as well as a focus on investment in emerging markets. The computer technology corporation has more than 22,200 employees operating across six continents.
MISSION STATEMENT Lenovo


References: Keegan, Warren J., and Mark C. Green. Global Marketing. Upper Saddle River, NJ: Pearson/Prentice Hall, 2008. Print. "Lenovo." Wikipedia, the Free Encyclopedia. Web. 06 Oct. 2010. . "Lenovo Changes Market Strategy." China Daily Website - Connecting China Connecting the World. Web. 07 Oct. 2010. . "Lenovo Refocuses on Smartphones to Bolster Sales: Tech News «." New Emerging Technology News and Trends: GigaOM Tech News. Web. 07 Oct. 2010. . "About Lenovo - United States." Lenovo - Laptops, Notebooks, Netbooks, Desktops, Computers & Accessories. Web. 06 Oct. 2010. . "Inside China: Tech Consumer Trends, Spending Patterns | VentureOutsource.com." Contract Electronics Manufacturing Strategy, EMS, Outsourcing, Offshoring | VentureOutsource.com. Web. 06 Oct. 2010. .
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