The SWOT Analysis of Lenovo IBM Acquisi
The SWOT Analysis of Lenovo-IBM Acquisition
Case study: The acquisition case of American IBM Personal Computer by the Chinese computer company Lenovo. This article uses SWOT matrix to analysis the post-merger situation of Lenovo’s PC business and try to demonstrate a possible roadmap for future business.
On December 8th of 2004, Lenovo announced its merging of IBM’s world personal computer (PC) business which included the ThinkPad line of PCs. This deal costing Lenovo $1.25 billion, including $650 million in cash, 600 million shares and an additional $500 million of IBM's debt.
The merger makes two companies formed a complex joint venture. For Lenovo, even the cost is relatively high for it to purchase IBM PC at 2004, it benefits a lot for Lenovo in a long term development. Lenovo took over IBM’s PC business and potentially took over IBM’s customers, distribution and marketing channels as well. As the consequence, the IBM purchase puts Lenovo in the world's third-largest PC Corporation and make it in the dominant position in the world's personal-computer industry. Since then Lenovo became the head leader of China’s PC industry and, thereby, won the attention of the world. However, after the merger and acquisition, Lenovo encountered various problems, including culture conflicts, inefficient integration of human resource, supply chain issues and the financial distress.
In order to describe and analyze the strength and relative obstacles faced in front of Lenovo’s computer business, the established SWOT matrix analysis are used in this article. At first, the history and the background information of Lenovo’s merging IBM’s PC department as well as the situation of IBM’s PC business will be illustrated. Secondly, the SWOT analysis method will be used to demostrate Lenovo’s computer business after acquires IBM PC division in more detail. At last, the author will try to demonstrate a possible strategy roadmap of Lenovo’s business future.
At 2004, Lenovo encountered
Case study: The acquisition case of American IBM Personal Computer by the Chinese computer company Lenovo. This article uses SWOT matrix to analysis the post-merger situation of Lenovo’s PC business and try to demonstrate a possible roadmap for future business.
On December 8th of 2004, Lenovo announced its merging of IBM’s world personal computer (PC) business which included the ThinkPad line of PCs. This deal costing Lenovo $1.25 billion, including $650 million in cash, 600 million shares and an additional $500 million of IBM's debt.
The merger makes two companies formed a complex joint venture. For Lenovo, even the cost is relatively high for it to purchase IBM PC at 2004, it benefits a lot for Lenovo in a long term development. Lenovo took over IBM’s PC business and potentially took over IBM’s customers, distribution and marketing channels as well. As the consequence, the IBM purchase puts Lenovo in the world's third-largest PC Corporation and make it in the dominant position in the world's personal-computer industry. Since then Lenovo became the head leader of China’s PC industry and, thereby, won the attention of the world. However, after the merger and acquisition, Lenovo encountered various problems, including culture conflicts, inefficient integration of human resource, supply chain issues and the financial distress.
In order to describe and analyze the strength and relative obstacles faced in front of Lenovo’s computer business, the established SWOT matrix analysis are used in this article. At first, the history and the background information of Lenovo’s merging IBM’s PC department as well as the situation of IBM’s PC business will be illustrated. Secondly, the SWOT analysis method will be used to demostrate Lenovo’s computer business after acquires IBM PC division in more detail. At last, the author will try to demonstrate a possible strategy roadmap of Lenovo’s business future.
At 2004, Lenovo encountered
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