Are Porter’s Five Competitive Forces still Applicable? A Critical Examination concerning the Relevance for Today’s Business Author: Fabian Dälken University of Twente P.O. Box 217‚ 7500AE Enschede The Netherlands f.dalken@student.utwente.nl Abstract‚ Porter’s Five Forces model is a powerful management tool for analysing the current industry profitability and attractiveness by using the outside-in perspective. Within the last decades‚ the model has attracted some criticism because of the developing
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* There might be a complex and inefficient cost composition as there was a 84.5% drop in net profit. * It has to implement the brand transition from IBM to Lenovo‚ so it needs to maintain strong and consistent marketing messages for its PCs. Opportunities: * Many small and medium enterprises would like to choose Lenovo due to its penetration into
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Lenovo’s business strategy has witnessed a massive transformation over the past seven years. Surpassing rivals Dell and Acer‚ Lenovo became the world’s second largest pc vendor behind Hewlett Packard in its fiscal year of 2011. Recently‚ new target market segmentations have been established to endure this rapid trend of accomplishments. Lenovo’s current target markets include city customers‚ rural customers with strong brand awareness‚ customers with advanced concepts and a high level education.
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On the international scale‚ Lenovo ranks third in corporate sales behind Hewlett-Packard and Dell. It shows tremendous capability for improvement‚ however‚ due to its clearly superior reputation for high quality‚ high end products inherited from IBM. In addition‚ executives maintained from IBM’s notebook division provide the valuable experience that a relatively new foreign player normally would not have in the corporate (especially US) market. However‚ Lenovo already has a strong base in China
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Stock Code: 992 IDEAS EVERYWHERE Lenovo Group Limited Annual Report 2007/08 TM NEW WORLD. NEW THINKING. TM CONTENTS ABOUT LENOVO Lenovo (HKSE: 992) (ADR: LNVGY) develops‚ manufactures and markets high-quality‚ secure and easy-to-use technology products and services worldwide and is dedicated to building the world’s best-engineered personal computers. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division‚ Lenovo’s heritage in both emerging and developed
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LENOVO CASE ANALYSIS Facts Surrounding the Case Competing at a global scale requires profound brand equity. Lenovo is a well-known brand in China (as Legend) but it cannot become a global technology giant like Dell or Hewlett-Packard‚ by merely acquiring the Personal Systems Division of IBM‚ whose products are popular across the world. Normally‚ the key challenge in establishing global brands lies in devising the manner in which a company can position its brands in customers’ mindsets‚ while
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Lenovo is one of the world"s largest manufacturers formed as a result of the acquisition by the Lenovo Group of the IBM Personal Computing Division. Lenovo’s business level strategies is that to differentiate their product from competitor’s products. Lenovo ues the new technology‚ unceasingly develops the new product‚ causesown commodity throughout to be at colleague’s industry leadingposition . The value Chain Model Each activity On value chain Primary activities: Inbound Logistics;
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Market Research Methods Lenovo Advertisement Analysis The Lenovo bought the IBM PC group in 2004‚ (Musil‚ 2004) then‚ they use and develop the IBM PC technology and improve their own computer quality. We can find out that the Lenovo advertisements are focus on showing the audiences the quality of the laptop. IBM is famous of its quality of product and their services. Lenovo want through the advertisement to give a message to its audiences that they can do as well as IBM did and they can be trusted
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Lenovo Reboots Contents The Chinese PC maker has bounced back by focusing on emerging markets. Now‚ can it make some real money? Listen Select: CORPORATIONS The Chinese PC maker has bounced back by focusing on emerging markets. Now‚ can it make some real money? LENOVO GROUP CHAIRMAN YANG YUANQING WAS WORKING AT the company’s North Carolina offices and spending a good deal of his time studying English and taking executive courses when his longtime mentor‚ Lenovo founder Liu Chuanzhi‚ urged
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PORTERS Five Forces Model The porter’s five forces model argues that the more limited is the ability of the firm to raise the prices and earn greater profits. A competitive force plays an important threat in reducing the profit to the company. Bargaining power of Suppliers Suppliers always play vital role in any industry because the quality of the raw materials will influence the value of the finished goods that are delivered by that organization. If the supplier’s power is high it will increase
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