lenovo in china
USM INDIVIDUAL REPORT
NAME: Aditi Srivastava
UOB NO: 12031297
DATE: 12TH NOVEMBER 2013
LECTURER: Mr. GV Nathan
A CRITICAL ANALYSIS ON LENOVO GROUP TLD’s PERSONAL COMPUTERS
CONTENT
INTRODUCTION………………………………………………… 2
INDUSTRIAL ANALYSIS (Five Forces Analysis)………………3
INTERNAL ANALYSIS…………………………………………...5
STRATEGY FORMULATION (Product Matrix)……………….8
CONCLUSION……………………………………………………..10
BIBLOGHRAPHY…………………………………………………11
APPENDIX:
Originality Report…………………………………………….
Financial Statement of LENOVO…………………………….
Financial Ratios (working)…………………………………
INTRODUCTION
Lenovo Group Ltd is a China based Personal- Computer (PC) manufacturer and has been ranked the third in selling Personal computers. Lenovo Group acquired IBM in 2005, since then Lenovo has been a threatening competitor for other PC manufacturing companies. Lenovo has been focusing more rapid expansion of there operations and is keen on developing a brand name internationally. In 2006, Lenovo entered United States by acquisition and setting up their manufacturing units. This was the first time when they marketed their products in a foreign country.
INDUSTRIAL ANALYSIS- FIVE FORCES ANALYSIS
PORTER’S FIVE FORCES MODEL
Threat Of Entry
First and foremost threat of entering a new market is the loyalty towards current brand in the market. China’s IT industry is present with a distinctive trait of vertical integration. Current PC companies have achieved enough loyal customers and have been maintaining their market status while stopping them from entering the market. Lenovo has been covering one-third of the market share for PC industry in China and also leading in all the other segments. It is stimulating for the new entrance to stake their economies of scale. Moreover, there is a huge amount of investment in Research and Development in PC industry, which might not attract new entrants to this market.
NAME: Aditi Srivastava
UOB NO: 12031297
DATE: 12TH NOVEMBER 2013
LECTURER: Mr. GV Nathan
A CRITICAL ANALYSIS ON LENOVO GROUP TLD’s PERSONAL COMPUTERS
CONTENT
INTRODUCTION………………………………………………… 2
INDUSTRIAL ANALYSIS (Five Forces Analysis)………………3
INTERNAL ANALYSIS…………………………………………...5
STRATEGY FORMULATION (Product Matrix)……………….8
CONCLUSION……………………………………………………..10
BIBLOGHRAPHY…………………………………………………11
APPENDIX:
Originality Report…………………………………………….
Financial Statement of LENOVO…………………………….
Financial Ratios (working)…………………………………
INTRODUCTION
Lenovo Group Ltd is a China based Personal- Computer (PC) manufacturer and has been ranked the third in selling Personal computers. Lenovo Group acquired IBM in 2005, since then Lenovo has been a threatening competitor for other PC manufacturing companies. Lenovo has been focusing more rapid expansion of there operations and is keen on developing a brand name internationally. In 2006, Lenovo entered United States by acquisition and setting up their manufacturing units. This was the first time when they marketed their products in a foreign country.
INDUSTRIAL ANALYSIS- FIVE FORCES ANALYSIS
PORTER’S FIVE FORCES MODEL
Threat Of Entry
First and foremost threat of entering a new market is the loyalty towards current brand in the market. China’s IT industry is present with a distinctive trait of vertical integration. Current PC companies have achieved enough loyal customers and have been maintaining their market status while stopping them from entering the market. Lenovo has been covering one-third of the market share for PC industry in China and also leading in all the other segments. It is stimulating for the new entrance to stake their economies of scale. Moreover, there is a huge amount of investment in Research and Development in PC industry, which might not attract new entrants to this market.