SlideShare a Scribd company logo
1 of 20
Download to read offline
Lenovo
Case
Study

December 15

2013

Prashant Panhale, Bhanu Bhatnagar &
Arun Khedwal
Contents
Sr. No.

Index

Page No.

1.

Executive Summary

2-4

2.

Definitions

5-6

3.

Global Market Summary

7-8

4.

Local Market Summary

9 -11

5.

About Lenovo

12 -13

6.

Financial Analysis

14

7.

Marketing Strategy

15

8.

S.W.O.T Analysis- Lenovo India

16

9.

Lenovo Smartphones in India

17

10.

Lenovo Tablets in India

18

11.

Conclusion

19

1
Executive Summary
- Worldwide combined shipments of devices (PCs, tablets and mobile
phones) are projected to reach 2.32 billion units in 2013, a 4.5%
increase from 2012, according to Gartner, Inc.
- By the end of this year, 6% of the global population will own a tablet,
20% will own PCs, and 22% will own smartphones.

Market

- On average, there will be two smartphones for every nine people on
earth, or 1.4 billion smartphones, by the end of 2013.
- Tablets are showing faster adoption rates than smartphones. It took
smartphones nearly four years to reach 6% penetration from when
the devices first started to register on a global level. Tablets
accomplished this in just two years.
- Indian tablet market size rose 107.4 % year-on-year and 27.2 %
quarter-on-quarter.
- Tablet PC market in India is set to cross $2 bn by 2013.
- The market is being driven by a shift to lower-priced devices in
nearly all device categories.
Drivers

Driver

- Low entry barriers
- Increasing popularity of initiative social networking sites
- Growing use of smartphones and tablets for playing games,
growing in-app purchases for free games
- Low cost data Plan and growing potential in emerging markets.
- This growth is largely fueled by the need of security on smartphones
due to increase in constant connectivity and demand for high
bandwidth applications
- Decreasing device and data costs.
Challenges
- Convincing consumers they need to upgrade their smartphones or

Challenges

tablets in every two year.
- Price-sensitive consumer. Exchange rate fluctuations.
- High excise & Import duty
2
- Competing to build superior products based on the same information
- The premium class of tablets & smartphones is generating the

Trends

majority of revenue in the global tablet & smartphone market.
- IDC also predicts Android will continue to be the dominant
smartphone & tablet market.
- IDC: 87% Of Connected Devices Sales By 2017 Will Be Tablets
And Smartphones
- The trend of customers upgrading existing mobile handsets to
smartphones and acquiring tablets, along with other mobile internet
services, such as dongles and data cards, has provided new growth
opportunities for the mobile communications sector.

- Samsung and Apple dominated the worldwide smartphone & tablet

Competition

market
- In operating system Android hold a 61 per cent market share
followed by Apple’s iOS, which have 25 per cent other platforms,
such as Windows and RIM’s Blackberry OS, are in single figures.

Smartphone Penetration

3
Tablet ownership, 2013 compared to 2012

4
Definitions
Cloud storage: - Internet-based data storage capacity which can be purchased or is
available free of charge; usually available on an as-needed basis and generally
expandable as more storage capacity is required.
Data usage: - Data usage includes all data transferred via uploads and downloads
from a smartphone or tablet. This data may be transferred through one of a number
of connections that the smartphone or tablet can utilise, including a WiFi connection
or a mobile network connection supplied by a mobile network provider such as
Vodafone, Airtel, Loop, BSNL, MTNL etc.
Mobile networks: Mobile networks are wireless networks which are used for
communications and are capable of transmitting data over significant distances. In
India, mobile networks are owned and operated by Vodafone, Airtel and Loop. Data
speeds over mobile networks can vary and may be defined as 2G, 3G or 4G (To be
launched).
 2G: Second generation mobile network (analog being the first) and first
generation digital mobile network which allows download speeds roughly
comparable with dial-up internet access. Users outside the range of 3G and
4G networks, but still with mobile coverage, will generally be able to transfer
data at 2G speeds.
 3G: Third generation mobile network which facilitates data transfer speeds
faster than speeds over a 2G network. Data transfer speed over 3G networks
in good coverage areas is roughly equivalent to speed over a fixed ADSL
connection.
 4G: Fourth generation mobile network which facilitates data transfer speeds
faster than 3G and 2G networks. Data transfer speed over 4G networks in
good coverage areas is faster than speeds over a fixed ADSL connection and
may be as fast as some cable internet connections. 4G coverage in India is to
be launched, but it is expected providers will greatly expand coverage in the
coming years.

5
Mobile apps: Mobile apps (short for applications) are software-based tools which
can be downloaded and installed on a smartphone or tablet to enhance the device’s
functionality. A piece of software that allows a user to view their banking information
on a smartphone or tablet is an example of a mobile app.
Operating system: The software that supports a computer’s basic functions such as
scheduling tasks, executing applications, receiving input from the user and
controlling the display. In India, the two most common operating systems for
smartphones and tablets are:
iOS: proprietary software used by Apple devices such as the iPhone and iPad. iOS
content is limited to content directly supported by Apple.
Android: an open-source platform that is used by a variety of smartphone devices,
including some of those manufactured by HTC, Motorola and Samsung.
Other operating systems available include:
Windows, including the newly released Windows 8: Microsoft’s latest operating
system, Windows 8, is now the primary operating system of Nokia smartphones and
Microsoft’s Surface tablet.
Blackberry OS: operating system of the Blackberry smartphone.
Symbian: Until 2011, Symbian was the operating system of Nokia smartphones,
which have since migrated to Windows 8 as their primary operating system. It is still
used as the operating system for some older model Nokia smartphones.
Smartphone: A smartphone is a mobile phone built on a mobile operating system,
with more advanced computing capability and connectivity. In particular,
smartphones are often characterised by the ease with which they can access
information online and their ability to have their functionality expanded through
custom-designed apps. Examples of smartphones include Apple iPhones, Android
phones, such as HTC Desire and Samsung Galaxy, Windows mobile phones, such
as the Nokia Lumia series and HTC Mozart, and Blackberries.
Tablet: A handheld, internet-enabled, wireless personal computer usually having a
touchscreen or a digital pen-enabled interface, and no hardware keyboard. Tablets
may have WiFi-only or WiFi connection plus mobile internet connectivity. Most noniOS tablets can also connect to the internet through a USB port.
6
Global Market Summary of Smartphone and Tablet
The smartphone and tablet technology marketplace is now global, with devices
typically launched simultaneously across multiple countries, accompanied by
worldwide marketing and, for high profile brands, multimedia events. As still makes
up a relatively small portion of the smartphone and tablet market, it does not have a
significant impact on global trends. Rather, global developments and trends may
have a strong bearing on developments and trends seen here, with pre-purchase
reviews easily accessible online, apps transcending international borders keep pace
with the latest global trends. With the power of super charged processor, open
platforms, consumer can now multitask & experience the wonder of mobile
applications like never before. This section examines the latest global trends and
developments to provide context for patterns observed in the marketplace for the
supply of smartphones and tablets.
 There are 6.8 billion mobile subscriptions worldwide.(Year 2013) Over half of
the world’s mobile subscribers are in Asia Pacific
 The top 12 countries account for more than 56%of the world’s total mobile
subscriptions.
 29 % of the world’s mobile users live in India and China.
 Gartner (February 2013): 1.746 billion handsets were sold in 2012, down 1.7
% from 2011. (These figures include feature phones & Smartphone sales).
 Gartner (February 2013): predicts mobile device sales will grow to reach 1.9
billion units in 2013. Smartphone sales are expected to hit 1 billion units in
2013, which means that for the first time smartphones will outsell feature
phones. The star performer is Samsung, which accounted for more than 2024 % of all handsets sold in 2012 and more than 30 % of smartphones.
 By the end of 2013, global smartphone penetration will have exploded from
5% of the global population in 2009, to 22%. That's an increase of nearly 1.3
billion smartphones in four years.
 On average, there will be two smartphones for every nine people on earth, or
1.4 billion smartphones, by the end of 2013.
 According to IDC, Android holds 79.3% share in global smartphone market.
Apple's iOS is second with 13.2% while Windows Phone is third with 3.7%
share.
7
 Globally today smart phones contribution stands at 27% of handsets sales,
going as high as 63 % & 51 % in the developed telecom markets of North
America & European Union respectively.
 It has led consumers to use their handsets in ways reaching far beyond the
rudiments of basic mobiles phones.
 It’s no surprise that the adoption of smartphones & tablets worldwide has
grown vertically in the short spans of last 2 years.

8
Local Market Summary of Smartphone and Tablet
Smartphone category in India is still very nascent at 8-10 %.Smartphone use is
booming in India and is quickly becoming the dominant way many of the country’s
900 million mobile phone users stay connected. Looking at recent trends, the country
may have as many as 40 million of these devices in use by early this year. The
dramatic growth is being driven by a desire among users to stay connected and have
instant access to social networking sites – a global trend that represents an
exponential growth opportunity in developing countries like India.
Indian Tablet PC market will cross $2 billion of revenue by the end of 2013. The
growth is lead by increased use of tablets in education and enterprise sectors.
 62% of recent smartphone buyers chose Android
 More than one in 10 smartphone owners intended to purchase a tablet
 Among users who paid for apps, 58% purchased games making it the most
popular category
According to MAIT, the apex body representing India's training and R&D services
sectors, IT hardware industry, tablet sales in 2012-13 were at 1.9 million units as
against 0.36 million units in 2011-12 witnessing a massive growth of 427 per cent.
CyberMedia Research (CMR) stated that the Indian tablet market increased 107.4
per cent year-on-year to 1,150,000 tablets in the second quarter of 2013. Global
research firm IDC stated that the overall tablet market in India has crossed 2.66
million units and will reach 6 million units in 2013. A recent IDC report stated that
tablet sales will surpass PCs in Q4 of 2013 and will surpass total PC shipments on
an annual basis by 2015 year end.
According to IDC, Google's mobile operating system has a 91% market share in the
country, giving it an overwhelming lead over its competitors. The second most used
mobile OS in the country is Windows Phone, which has a market share of 5.4%. The
figures from IDC, which tracks units of phones shipped in a market, are for the
second quarter of this year. Apple’s iOS, which powers iPhones, has a market share
of just 2.3%.

9
10
11
About Lenovo
Lenovo Group Limited is a US $ 34 billion company into personal technology,
company serving customers in more than 160 countries. It is largest personal
computer vendor in the world, having recently surpassed Dell & HP. Formed by
Lenovo Groups acquisition of IBM’s personal computer business in 2005. Lenovo's
acquisition of IBM's personal computer division accelerated access to foreign
markets while improving both its branding and technology. Lenovo paid US$1.25
billion for IBM's computer business and assumed an additional US$500 million of
IBM's debt. A global Fortune 500 company.
Lenovo’s business is built on product innovation, highly efficient global supply chain
& strong strategic executions.
Its product line includes Legendary Think-branded commercials PC’s era & Idea branded consumer PC’s, as well as servers, workstations, and a family of mobile
internet devices, including tablets & smartphones.
Lenovo has major research centres in Yamato, Japan; Beijing, China; & Raleigh,
North Carolina.
Approximately 35,000 employees worldwide.
Lenovo continued to drive its unique hybrid manufacturing strategy & invest in
vertical integration. Currently the manufacturing facility at Beijing, Shanghai,
Chengdu, Hefei, Huiyang & Shenzhen, China; Pondicherry, India; Monterrey,
Mexico; Itu, Brazil; as well as Whitsitt, North Carolina in the USA., with contract
manufacturing & Original Design Manufacturing Locations worldwide.
In 2012, Lenovo made a major effort to expand its market share in developing
economies such as Brazil and India through acquisitions and increased budgets for
marketing and advertising. While Lenovo has not revealed its total spending on
marketing, it did increase marketing and advertising expenditures by $248 million in
the fiscal year ending in 2012.

12
Lenovo – China
In China, Lenovo has a vast distribution network designed to make sure that there is
at least one shop selling Lenovo computers within 50 kilometres of nearly all
consumers. Lenovo has also developed close relationships with its Chinese
distributors, who are granted exclusive territories and only carry Lenovo products
Lenovo previously benefited from the Chinese government’s rural subsidy, part of a
wider economic stimulus initiative, designed to increase purchases of appliances and
electronics. That program of subsidies, which Lenovo joined in 2004, ended in 2011.
Lenovo enjoys consistent price premiums over its traditional competitors in rural
markets and a stronger local sales and service presence.

Lenovo – India
Lenovo has gained significant market share in India through bulk orders to large
companies and government agencies. For example, the government of Tamil
Nadu ordered a million laptops from Lenovo in 2012 and single-handedly made the
firm a market leader. Lenovo distributes most of the personal computers it sells in
India through five national distributors such as Ingram Micro and Redington.
Given that most smartphones and tablets are sold to individuals Lenovo is pursuing
a different strategy making use of many small state-centric distributors. Amar Babu,
Lenovo's managing director for India, said, "To reach out to small towns and the
hinterland, we have tied up with 40 regional distributors. We want our regional
distributors to be exclusive to us. We will, in turn, ensure they have exclusive rights
to distribute Lenovo products in their catchment area." As of 2013, Lenovo had
about 6,000 retailers selling smartphones and tablets in India. In February 2013,
Lenovo established a relationship with Reliance Communications to sell
smartphones. The smartphones carried by Reliance have dual-SIM capability and
support both GSM and CDMA. Babu claims that the relative under-penetration of
smartphones in India represents an opportunity for Lenovo.
In India, where Lenovo is relatively unknown, Lenovo grants distributors exclusive
territories, but allows them to sell computers from other companies. Lenovo uses its
close relationships with distributors to gain market intelligence and speed up product
development.

13
Lenovo Financials
Year over year, Lenovo Group Limited has been able to grow revenues from $29.6B
USD to $33.9B USD. Most impressively, the company has been able to reduce the
percentage of sales devoted to cost of goods sold from 88.35% to 87.97%. This was
a driver that led to a bottom line growth from $473.0M USD to $635.1M USD

14
Marketing Strategy
Lenovo Group, the Chinese computer maker which has rapidly gained market share
over the last three years on the back of a string of acquisitions around the world, is
now aggressively eyeing the emerging markets, including India. The company is on
track to become the world's largest PC maker, trailing market leader HP by a slim
margin, according to research group IDC.
The “Protect & Attack” strategy is a key to Lenovo’s success, the right strategy for
PC Plus world. It is driving record market share, improve profitability & a more
balanced business for Lenovo.

Source: Lenovo Annual report

15
SWOT Analysis
Lenovo has consistently improved its position both in global capabilities and in
market understanding during the past several years, and its market share growth has
reflected these improvements. It continues to provide well-designed products at very
competitive prices. Lenovo is becoming a stronger option for organizations requiring
global PC deployments, and is a strong viable supplier for all business notebook and
desktop requirements.
Strengths
 The Lenovo goods and services have good quality
 The brand recognition and traditional reputation of Lenovo are very good
 Expanding global markets strategy of the marketing
 The diversification of products
 Owns very convenient and beautiful images
 Good public relationship and sponsorship
Weaknesses
 Single marketing channel, the products and services are mainly sold by
monopolized stores
 Large number of product lines lie in the expansion of overseas
 Product styles are too fewer to choose
 Marketing sources are not rich
 Prices are not cheap
Opportunities
 Takeover Lenovo to become the largest computer seller
 Specialty business computer industry takes larger market in the world
 European countries‟ market exploration, such as England, France, Italy,
Germany, and so on
 Division of products
Threats
 There are too many cheap products appearing in the world
 Competition from other shoppers embedding on form factors more pleasing to
the consumer
 The market protect in some countries is strong
 Foreign exchange rate fluctuations
16
Lenovo Smartphones in India
Lenovo smartphones are priced between Rs 4,999-Rs 28,999 and have Android
operating system in four different series A, S, P & K.
K Series- Premium, Ultra-Slim Smartphones: State-of-the-art smartphones
featuring the latest processor, display, and camera technology.
S Series Elite Entertainment Smartphones: Sleek smartphones designed for
video, music, and gaming with powerful processors, high resolution displays, and
studio-class audio.
P Series Professional Smartphones with Epic Battery Life: Extra-long battery life,
IPS displays, and powerful processing will keep you connected on the road and in
the office.
A Series Action series smartphones for the young Doers: Entry level
smartphones with extensive feature sets offering a great experience at a low price.

Source: Google Images

17
Lenovo Tablets in India
Lenovo Tablets are priced between Rs 6,999-Rs 39,990 and have Android operating
system in four different series A, S, Lynx & Yoga.
Tablets with Calling Facility

Tablets without Calling Facility

18
Conclusion
From the strategic marketing theory and applied research, we can see that the
marketing strategy of the Lenovo competition is not watching competitors, and only
targeting to market shares, but the Lenovo must choose the correct target markets
and market positioning, This position must be conducive to the long-term competitive
edge in the market building, and the development of marketing strategies must
support the market, help enterprises in voluminous and complex competition in the
market environment find a way out for the development of enterprises. Obviously,
the strategic marketing is the only way for facing with the new changes in the market
economy and Lenovo does those and its marketing strategy and operations are
market-orientated.

___________________________________________________________________

19

More Related Content

What's hot

Smartphone industry samsung market analysis
Smartphone industry samsung market analysisSmartphone industry samsung market analysis
Smartphone industry samsung market analysisTaylor Pickering
 
Sony VIAO - Dilemma of Richard Lopez
Sony VIAO - Dilemma of Richard LopezSony VIAO - Dilemma of Richard Lopez
Sony VIAO - Dilemma of Richard LopezAnkit Uttam
 
PESTE analysis - Nokia
PESTE analysis - NokiaPESTE analysis - Nokia
PESTE analysis - NokiaPankaj Saharan
 
4Ps of marketing Samsung.pptx
4Ps of marketing  Samsung.pptx4Ps of marketing  Samsung.pptx
4Ps of marketing Samsung.pptxAsmita Yadav
 
Disruptive Innovation - the key drivers behind today's unprecedented rate of ...
Disruptive Innovation - the key drivers behind today's unprecedented rate of ...Disruptive Innovation - the key drivers behind today's unprecedented rate of ...
Disruptive Innovation - the key drivers behind today's unprecedented rate of ...Dino Talic
 
Sony marketing strategy_v9
Sony marketing strategy_v9Sony marketing strategy_v9
Sony marketing strategy_v9kthosani
 
Lenovo - Becoming a Leader
Lenovo - Becoming a LeaderLenovo - Becoming a Leader
Lenovo - Becoming a LeaderAdma MAHARJAN
 
tiffany case study
tiffany case studytiffany case study
tiffany case studyMA AiMi
 
Nokia Pricing Strategy Case Study
Nokia Pricing Strategy Case StudyNokia Pricing Strategy Case Study
Nokia Pricing Strategy Case StudyAgniva Sinha
 

What's hot (20)

Smartphone industry samsung market analysis
Smartphone industry samsung market analysisSmartphone industry samsung market analysis
Smartphone industry samsung market analysis
 
Lenovo
LenovoLenovo
Lenovo
 
Sony VIAO - Dilemma of Richard Lopez
Sony VIAO - Dilemma of Richard LopezSony VIAO - Dilemma of Richard Lopez
Sony VIAO - Dilemma of Richard Lopez
 
Samsung Electronics
Samsung ElectronicsSamsung Electronics
Samsung Electronics
 
PESTE analysis - Nokia
PESTE analysis - NokiaPESTE analysis - Nokia
PESTE analysis - Nokia
 
presentation on samsung
presentation on samsungpresentation on samsung
presentation on samsung
 
4Ps of marketing Samsung.pptx
4Ps of marketing  Samsung.pptx4Ps of marketing  Samsung.pptx
4Ps of marketing Samsung.pptx
 
Lenovo
LenovoLenovo
Lenovo
 
Nintendo Presentation
Nintendo PresentationNintendo Presentation
Nintendo Presentation
 
Disruptive Innovation - the key drivers behind today's unprecedented rate of ...
Disruptive Innovation - the key drivers behind today's unprecedented rate of ...Disruptive Innovation - the key drivers behind today's unprecedented rate of ...
Disruptive Innovation - the key drivers behind today's unprecedented rate of ...
 
Failure of nokia
Failure of nokiaFailure of nokia
Failure of nokia
 
Sony marketing strategy_v9
Sony marketing strategy_v9Sony marketing strategy_v9
Sony marketing strategy_v9
 
Lenovo - Becoming a Leader
Lenovo - Becoming a LeaderLenovo - Becoming a Leader
Lenovo - Becoming a Leader
 
Sony vaio case study
Sony vaio case studySony vaio case study
Sony vaio case study
 
Lenovo
LenovoLenovo
Lenovo
 
The Fall Of Nokia
The Fall Of NokiaThe Fall Of Nokia
The Fall Of Nokia
 
tiffany case study
tiffany case studytiffany case study
tiffany case study
 
Nokia Pricing Strategy Case Study
Nokia Pricing Strategy Case StudyNokia Pricing Strategy Case Study
Nokia Pricing Strategy Case Study
 
Samsung ppt
Samsung pptSamsung ppt
Samsung ppt
 
Laptop
LaptopLaptop
Laptop
 

Similar to Lenovo assignment on Smartphones & Tablets - L.I.M.E-5 Case Study

Mobile Changes Everything
Mobile Changes EverythingMobile Changes Everything
Mobile Changes EverythingCoreMedia
 
The potential of digital publishing in an emerging market : John Wheeler
The potential of digital publishing in an emerging market : John WheelerThe potential of digital publishing in an emerging market : John Wheeler
The potential of digital publishing in an emerging market : John WheelerFootnote Summit
 
Nielsen global mobile report
Nielsen global mobile reportNielsen global mobile report
Nielsen global mobile reportElif Terzi Tezel
 
Mobile Operating Systems
Mobile Operating Systems Mobile Operating Systems
Mobile Operating Systems Anant Lodha
 
IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)
IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)
IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)IAB Brasil
 
Global Mobile Consumer Report 2013
Global Mobile Consumer Report 2013Global Mobile Consumer Report 2013
Global Mobile Consumer Report 2013Dung Tri
 
Mobile Workforce Report Q4 2012
Mobile Workforce Report Q4 2012Mobile Workforce Report Q4 2012
Mobile Workforce Report Q4 2012iPass
 
deloitte-nl-tmt-global-mobile-consumer-survey-2014
deloitte-nl-tmt-global-mobile-consumer-survey-2014deloitte-nl-tmt-global-mobile-consumer-survey-2014
deloitte-nl-tmt-global-mobile-consumer-survey-2014Arseni Storojev
 
Adp 1003 powrpoint
Adp 1003  powrpointAdp 1003  powrpoint
Adp 1003 powrpointcollopen
 
10 Mobile Trends for 2014 and Beyond (May 2014)
10 Mobile Trends for 2014 and Beyond (May 2014)10 Mobile Trends for 2014 and Beyond (May 2014)
10 Mobile Trends for 2014 and Beyond (May 2014)Karen Sanchez
 
Understanding today’s smartphone user
Understanding today’s smartphone userUnderstanding today’s smartphone user
Understanding today’s smartphone userDavid Martin
 
Global internet society report 2015
Global internet society report 2015Global internet society report 2015
Global internet society report 2015Tuan Anh Nguyen
 
Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013Thierry Pires
 
Mobile Technology - Tablets and Workplace Integration (Whitepaper)
Mobile Technology - Tablets and Workplace Integration (Whitepaper)Mobile Technology - Tablets and Workplace Integration (Whitepaper)
Mobile Technology - Tablets and Workplace Integration (Whitepaper)Fuji Xerox Australia
 
The state Of Mobility Post 2012
The state Of Mobility  Post 2012The state Of Mobility  Post 2012
The state Of Mobility Post 2012Sumit Roy
 

Similar to Lenovo assignment on Smartphones & Tablets - L.I.M.E-5 Case Study (20)

Mobile Changes Everything
Mobile Changes EverythingMobile Changes Everything
Mobile Changes Everything
 
The potential of digital publishing in an emerging market : John Wheeler
The potential of digital publishing in an emerging market : John WheelerThe potential of digital publishing in an emerging market : John Wheeler
The potential of digital publishing in an emerging market : John Wheeler
 
Nielsen global mobile report
Nielsen global mobile reportNielsen global mobile report
Nielsen global mobile report
 
Nielsen Mobile Consumer Report 2013
Nielsen Mobile Consumer Report 2013Nielsen Mobile Consumer Report 2013
Nielsen Mobile Consumer Report 2013
 
Smartphone Analysis
Smartphone AnalysisSmartphone Analysis
Smartphone Analysis
 
Mobile Operating Systems
Mobile Operating Systems Mobile Operating Systems
Mobile Operating Systems
 
IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)
IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)
IAB Digital Morning 2015 - Mobile: ontem, hoje e amanhã - Felipe Mendes (Gfk)
 
Global Mobile Consumer Report 2013
Global Mobile Consumer Report 2013Global Mobile Consumer Report 2013
Global Mobile Consumer Report 2013
 
Mobile Workforce Report Q4 2012
Mobile Workforce Report Q4 2012Mobile Workforce Report Q4 2012
Mobile Workforce Report Q4 2012
 
deloitte-nl-tmt-global-mobile-consumer-survey-2014
deloitte-nl-tmt-global-mobile-consumer-survey-2014deloitte-nl-tmt-global-mobile-consumer-survey-2014
deloitte-nl-tmt-global-mobile-consumer-survey-2014
 
Adp 1003 powrpoint
Adp 1003  powrpointAdp 1003  powrpoint
Adp 1003 powrpoint
 
JWT: 10 Mobile Trends for 2014 and Beyond (May 2014)
JWT: 10 Mobile Trends for 2014 and Beyond (May 2014)JWT: 10 Mobile Trends for 2014 and Beyond (May 2014)
JWT: 10 Mobile Trends for 2014 and Beyond (May 2014)
 
10 Mobile Trends for 2014 and Beyond (May 2014)
10 Mobile Trends for 2014 and Beyond (May 2014)10 Mobile Trends for 2014 and Beyond (May 2014)
10 Mobile Trends for 2014 and Beyond (May 2014)
 
Understanding today’s smartphone user
Understanding today’s smartphone userUnderstanding today’s smartphone user
Understanding today’s smartphone user
 
Global internet society report 2015
Global internet society report 2015Global internet society report 2015
Global internet society report 2015
 
Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013Nielsen Research: Mobile consumer report 2013
Nielsen Research: Mobile consumer report 2013
 
Mobile future
Mobile futureMobile future
Mobile future
 
Mobile Technology - Tablets and Workplace Integration (Whitepaper)
Mobile Technology - Tablets and Workplace Integration (Whitepaper)Mobile Technology - Tablets and Workplace Integration (Whitepaper)
Mobile Technology - Tablets and Workplace Integration (Whitepaper)
 
The state Of Mobility Post 2012
The state Of Mobility  Post 2012The state Of Mobility  Post 2012
The state Of Mobility Post 2012
 
Com score 2012 mobile future in focus
Com score 2012 mobile future in focusCom score 2012 mobile future in focus
Com score 2012 mobile future in focus
 

More from Arun Khedwal

International Marketing
International Marketing International Marketing
International Marketing Arun Khedwal
 
Product Policy & Brand Management
Product Policy & Brand Management   Product Policy & Brand Management
Product Policy & Brand Management Arun Khedwal
 
Service Management
Service Management Service Management
Service Management Arun Khedwal
 
Retail Management & Retail Mix
Retail Management & Retail MixRetail Management & Retail Mix
Retail Management & Retail MixArun Khedwal
 
Social Network - Facebook
Social Network - Facebook Social Network - Facebook
Social Network - Facebook Arun Khedwal
 
Dubai Tourism Industry
Dubai Tourism IndustryDubai Tourism Industry
Dubai Tourism IndustryArun Khedwal
 
Market research on Smartphones & Tablets
Market research on Smartphones & TabletsMarket research on Smartphones & Tablets
Market research on Smartphones & TabletsArun Khedwal
 
Lime 5 lenovo case study-3 minutes
Lime 5 lenovo case study-3 minutesLime 5 lenovo case study-3 minutes
Lime 5 lenovo case study-3 minutesArun Khedwal
 
Outsourcing & Offshoring
Outsourcing & OffshoringOutsourcing & Offshoring
Outsourcing & OffshoringArun Khedwal
 
Working Capital Basic's
Working Capital Basic'sWorking Capital Basic's
Working Capital Basic'sArun Khedwal
 
Cadbury Dairy Milk
Cadbury Dairy Milk Cadbury Dairy Milk
Cadbury Dairy Milk Arun Khedwal
 
Direct Cash Transfer Scheme India
Direct Cash Transfer Scheme IndiaDirect Cash Transfer Scheme India
Direct Cash Transfer Scheme IndiaArun Khedwal
 
Cash transfer scheme
Cash transfer schemeCash transfer scheme
Cash transfer schemeArun Khedwal
 
Leadership : : The Mysterious Talent
Leadership : : The Mysterious TalentLeadership : : The Mysterious Talent
Leadership : : The Mysterious TalentArun Khedwal
 

More from Arun Khedwal (20)

International Marketing
International Marketing International Marketing
International Marketing
 
Advertising
AdvertisingAdvertising
Advertising
 
Product Policy & Brand Management
Product Policy & Brand Management   Product Policy & Brand Management
Product Policy & Brand Management
 
Service Management
Service Management Service Management
Service Management
 
Retail Management & Retail Mix
Retail Management & Retail MixRetail Management & Retail Mix
Retail Management & Retail Mix
 
Consumer Behavior
Consumer BehaviorConsumer Behavior
Consumer Behavior
 
Market Research
Market Research Market Research
Market Research
 
Social Network - Facebook
Social Network - Facebook Social Network - Facebook
Social Network - Facebook
 
Dubai Tourism Industry
Dubai Tourism IndustryDubai Tourism Industry
Dubai Tourism Industry
 
Market research on Smartphones & Tablets
Market research on Smartphones & TabletsMarket research on Smartphones & Tablets
Market research on Smartphones & Tablets
 
Lime 5 lenovo case study-3 minutes
Lime 5 lenovo case study-3 minutesLime 5 lenovo case study-3 minutes
Lime 5 lenovo case study-3 minutes
 
Outsourcing & Offshoring
Outsourcing & OffshoringOutsourcing & Offshoring
Outsourcing & Offshoring
 
Business Ethics
Business Ethics Business Ethics
Business Ethics
 
Working Capital Basic's
Working Capital Basic'sWorking Capital Basic's
Working Capital Basic's
 
Cadbury Dairy Milk
Cadbury Dairy Milk Cadbury Dairy Milk
Cadbury Dairy Milk
 
Direct Cash Transfer Scheme India
Direct Cash Transfer Scheme IndiaDirect Cash Transfer Scheme India
Direct Cash Transfer Scheme India
 
Cash transfer scheme
Cash transfer schemeCash transfer scheme
Cash transfer scheme
 
Cadbury India
Cadbury IndiaCadbury India
Cadbury India
 
Leadership : : The Mysterious Talent
Leadership : : The Mysterious TalentLeadership : : The Mysterious Talent
Leadership : : The Mysterious Talent
 
Euro crisis
Euro crisis Euro crisis
Euro crisis
 

Recently uploaded

PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 

Recently uploaded (20)

PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 

Lenovo assignment on Smartphones & Tablets - L.I.M.E-5 Case Study

  • 2. Contents Sr. No. Index Page No. 1. Executive Summary 2-4 2. Definitions 5-6 3. Global Market Summary 7-8 4. Local Market Summary 9 -11 5. About Lenovo 12 -13 6. Financial Analysis 14 7. Marketing Strategy 15 8. S.W.O.T Analysis- Lenovo India 16 9. Lenovo Smartphones in India 17 10. Lenovo Tablets in India 18 11. Conclusion 19 1
  • 3. Executive Summary - Worldwide combined shipments of devices (PCs, tablets and mobile phones) are projected to reach 2.32 billion units in 2013, a 4.5% increase from 2012, according to Gartner, Inc. - By the end of this year, 6% of the global population will own a tablet, 20% will own PCs, and 22% will own smartphones. Market - On average, there will be two smartphones for every nine people on earth, or 1.4 billion smartphones, by the end of 2013. - Tablets are showing faster adoption rates than smartphones. It took smartphones nearly four years to reach 6% penetration from when the devices first started to register on a global level. Tablets accomplished this in just two years. - Indian tablet market size rose 107.4 % year-on-year and 27.2 % quarter-on-quarter. - Tablet PC market in India is set to cross $2 bn by 2013. - The market is being driven by a shift to lower-priced devices in nearly all device categories. Drivers Driver - Low entry barriers - Increasing popularity of initiative social networking sites - Growing use of smartphones and tablets for playing games, growing in-app purchases for free games - Low cost data Plan and growing potential in emerging markets. - This growth is largely fueled by the need of security on smartphones due to increase in constant connectivity and demand for high bandwidth applications - Decreasing device and data costs. Challenges - Convincing consumers they need to upgrade their smartphones or Challenges tablets in every two year. - Price-sensitive consumer. Exchange rate fluctuations. - High excise & Import duty 2
  • 4. - Competing to build superior products based on the same information - The premium class of tablets & smartphones is generating the Trends majority of revenue in the global tablet & smartphone market. - IDC also predicts Android will continue to be the dominant smartphone & tablet market. - IDC: 87% Of Connected Devices Sales By 2017 Will Be Tablets And Smartphones - The trend of customers upgrading existing mobile handsets to smartphones and acquiring tablets, along with other mobile internet services, such as dongles and data cards, has provided new growth opportunities for the mobile communications sector. - Samsung and Apple dominated the worldwide smartphone & tablet Competition market - In operating system Android hold a 61 per cent market share followed by Apple’s iOS, which have 25 per cent other platforms, such as Windows and RIM’s Blackberry OS, are in single figures. Smartphone Penetration 3
  • 5. Tablet ownership, 2013 compared to 2012 4
  • 6. Definitions Cloud storage: - Internet-based data storage capacity which can be purchased or is available free of charge; usually available on an as-needed basis and generally expandable as more storage capacity is required. Data usage: - Data usage includes all data transferred via uploads and downloads from a smartphone or tablet. This data may be transferred through one of a number of connections that the smartphone or tablet can utilise, including a WiFi connection or a mobile network connection supplied by a mobile network provider such as Vodafone, Airtel, Loop, BSNL, MTNL etc. Mobile networks: Mobile networks are wireless networks which are used for communications and are capable of transmitting data over significant distances. In India, mobile networks are owned and operated by Vodafone, Airtel and Loop. Data speeds over mobile networks can vary and may be defined as 2G, 3G or 4G (To be launched).  2G: Second generation mobile network (analog being the first) and first generation digital mobile network which allows download speeds roughly comparable with dial-up internet access. Users outside the range of 3G and 4G networks, but still with mobile coverage, will generally be able to transfer data at 2G speeds.  3G: Third generation mobile network which facilitates data transfer speeds faster than speeds over a 2G network. Data transfer speed over 3G networks in good coverage areas is roughly equivalent to speed over a fixed ADSL connection.  4G: Fourth generation mobile network which facilitates data transfer speeds faster than 3G and 2G networks. Data transfer speed over 4G networks in good coverage areas is faster than speeds over a fixed ADSL connection and may be as fast as some cable internet connections. 4G coverage in India is to be launched, but it is expected providers will greatly expand coverage in the coming years. 5
  • 7. Mobile apps: Mobile apps (short for applications) are software-based tools which can be downloaded and installed on a smartphone or tablet to enhance the device’s functionality. A piece of software that allows a user to view their banking information on a smartphone or tablet is an example of a mobile app. Operating system: The software that supports a computer’s basic functions such as scheduling tasks, executing applications, receiving input from the user and controlling the display. In India, the two most common operating systems for smartphones and tablets are: iOS: proprietary software used by Apple devices such as the iPhone and iPad. iOS content is limited to content directly supported by Apple. Android: an open-source platform that is used by a variety of smartphone devices, including some of those manufactured by HTC, Motorola and Samsung. Other operating systems available include: Windows, including the newly released Windows 8: Microsoft’s latest operating system, Windows 8, is now the primary operating system of Nokia smartphones and Microsoft’s Surface tablet. Blackberry OS: operating system of the Blackberry smartphone. Symbian: Until 2011, Symbian was the operating system of Nokia smartphones, which have since migrated to Windows 8 as their primary operating system. It is still used as the operating system for some older model Nokia smartphones. Smartphone: A smartphone is a mobile phone built on a mobile operating system, with more advanced computing capability and connectivity. In particular, smartphones are often characterised by the ease with which they can access information online and their ability to have their functionality expanded through custom-designed apps. Examples of smartphones include Apple iPhones, Android phones, such as HTC Desire and Samsung Galaxy, Windows mobile phones, such as the Nokia Lumia series and HTC Mozart, and Blackberries. Tablet: A handheld, internet-enabled, wireless personal computer usually having a touchscreen or a digital pen-enabled interface, and no hardware keyboard. Tablets may have WiFi-only or WiFi connection plus mobile internet connectivity. Most noniOS tablets can also connect to the internet through a USB port. 6
  • 8. Global Market Summary of Smartphone and Tablet The smartphone and tablet technology marketplace is now global, with devices typically launched simultaneously across multiple countries, accompanied by worldwide marketing and, for high profile brands, multimedia events. As still makes up a relatively small portion of the smartphone and tablet market, it does not have a significant impact on global trends. Rather, global developments and trends may have a strong bearing on developments and trends seen here, with pre-purchase reviews easily accessible online, apps transcending international borders keep pace with the latest global trends. With the power of super charged processor, open platforms, consumer can now multitask & experience the wonder of mobile applications like never before. This section examines the latest global trends and developments to provide context for patterns observed in the marketplace for the supply of smartphones and tablets.  There are 6.8 billion mobile subscriptions worldwide.(Year 2013) Over half of the world’s mobile subscribers are in Asia Pacific  The top 12 countries account for more than 56%of the world’s total mobile subscriptions.  29 % of the world’s mobile users live in India and China.  Gartner (February 2013): 1.746 billion handsets were sold in 2012, down 1.7 % from 2011. (These figures include feature phones & Smartphone sales).  Gartner (February 2013): predicts mobile device sales will grow to reach 1.9 billion units in 2013. Smartphone sales are expected to hit 1 billion units in 2013, which means that for the first time smartphones will outsell feature phones. The star performer is Samsung, which accounted for more than 2024 % of all handsets sold in 2012 and more than 30 % of smartphones.  By the end of 2013, global smartphone penetration will have exploded from 5% of the global population in 2009, to 22%. That's an increase of nearly 1.3 billion smartphones in four years.  On average, there will be two smartphones for every nine people on earth, or 1.4 billion smartphones, by the end of 2013.  According to IDC, Android holds 79.3% share in global smartphone market. Apple's iOS is second with 13.2% while Windows Phone is third with 3.7% share. 7
  • 9.  Globally today smart phones contribution stands at 27% of handsets sales, going as high as 63 % & 51 % in the developed telecom markets of North America & European Union respectively.  It has led consumers to use their handsets in ways reaching far beyond the rudiments of basic mobiles phones.  It’s no surprise that the adoption of smartphones & tablets worldwide has grown vertically in the short spans of last 2 years. 8
  • 10. Local Market Summary of Smartphone and Tablet Smartphone category in India is still very nascent at 8-10 %.Smartphone use is booming in India and is quickly becoming the dominant way many of the country’s 900 million mobile phone users stay connected. Looking at recent trends, the country may have as many as 40 million of these devices in use by early this year. The dramatic growth is being driven by a desire among users to stay connected and have instant access to social networking sites – a global trend that represents an exponential growth opportunity in developing countries like India. Indian Tablet PC market will cross $2 billion of revenue by the end of 2013. The growth is lead by increased use of tablets in education and enterprise sectors.  62% of recent smartphone buyers chose Android  More than one in 10 smartphone owners intended to purchase a tablet  Among users who paid for apps, 58% purchased games making it the most popular category According to MAIT, the apex body representing India's training and R&D services sectors, IT hardware industry, tablet sales in 2012-13 were at 1.9 million units as against 0.36 million units in 2011-12 witnessing a massive growth of 427 per cent. CyberMedia Research (CMR) stated that the Indian tablet market increased 107.4 per cent year-on-year to 1,150,000 tablets in the second quarter of 2013. Global research firm IDC stated that the overall tablet market in India has crossed 2.66 million units and will reach 6 million units in 2013. A recent IDC report stated that tablet sales will surpass PCs in Q4 of 2013 and will surpass total PC shipments on an annual basis by 2015 year end. According to IDC, Google's mobile operating system has a 91% market share in the country, giving it an overwhelming lead over its competitors. The second most used mobile OS in the country is Windows Phone, which has a market share of 5.4%. The figures from IDC, which tracks units of phones shipped in a market, are for the second quarter of this year. Apple’s iOS, which powers iPhones, has a market share of just 2.3%. 9
  • 11. 10
  • 12. 11
  • 13. About Lenovo Lenovo Group Limited is a US $ 34 billion company into personal technology, company serving customers in more than 160 countries. It is largest personal computer vendor in the world, having recently surpassed Dell & HP. Formed by Lenovo Groups acquisition of IBM’s personal computer business in 2005. Lenovo's acquisition of IBM's personal computer division accelerated access to foreign markets while improving both its branding and technology. Lenovo paid US$1.25 billion for IBM's computer business and assumed an additional US$500 million of IBM's debt. A global Fortune 500 company. Lenovo’s business is built on product innovation, highly efficient global supply chain & strong strategic executions. Its product line includes Legendary Think-branded commercials PC’s era & Idea branded consumer PC’s, as well as servers, workstations, and a family of mobile internet devices, including tablets & smartphones. Lenovo has major research centres in Yamato, Japan; Beijing, China; & Raleigh, North Carolina. Approximately 35,000 employees worldwide. Lenovo continued to drive its unique hybrid manufacturing strategy & invest in vertical integration. Currently the manufacturing facility at Beijing, Shanghai, Chengdu, Hefei, Huiyang & Shenzhen, China; Pondicherry, India; Monterrey, Mexico; Itu, Brazil; as well as Whitsitt, North Carolina in the USA., with contract manufacturing & Original Design Manufacturing Locations worldwide. In 2012, Lenovo made a major effort to expand its market share in developing economies such as Brazil and India through acquisitions and increased budgets for marketing and advertising. While Lenovo has not revealed its total spending on marketing, it did increase marketing and advertising expenditures by $248 million in the fiscal year ending in 2012. 12
  • 14. Lenovo – China In China, Lenovo has a vast distribution network designed to make sure that there is at least one shop selling Lenovo computers within 50 kilometres of nearly all consumers. Lenovo has also developed close relationships with its Chinese distributors, who are granted exclusive territories and only carry Lenovo products Lenovo previously benefited from the Chinese government’s rural subsidy, part of a wider economic stimulus initiative, designed to increase purchases of appliances and electronics. That program of subsidies, which Lenovo joined in 2004, ended in 2011. Lenovo enjoys consistent price premiums over its traditional competitors in rural markets and a stronger local sales and service presence. Lenovo – India Lenovo has gained significant market share in India through bulk orders to large companies and government agencies. For example, the government of Tamil Nadu ordered a million laptops from Lenovo in 2012 and single-handedly made the firm a market leader. Lenovo distributes most of the personal computers it sells in India through five national distributors such as Ingram Micro and Redington. Given that most smartphones and tablets are sold to individuals Lenovo is pursuing a different strategy making use of many small state-centric distributors. Amar Babu, Lenovo's managing director for India, said, "To reach out to small towns and the hinterland, we have tied up with 40 regional distributors. We want our regional distributors to be exclusive to us. We will, in turn, ensure they have exclusive rights to distribute Lenovo products in their catchment area." As of 2013, Lenovo had about 6,000 retailers selling smartphones and tablets in India. In February 2013, Lenovo established a relationship with Reliance Communications to sell smartphones. The smartphones carried by Reliance have dual-SIM capability and support both GSM and CDMA. Babu claims that the relative under-penetration of smartphones in India represents an opportunity for Lenovo. In India, where Lenovo is relatively unknown, Lenovo grants distributors exclusive territories, but allows them to sell computers from other companies. Lenovo uses its close relationships with distributors to gain market intelligence and speed up product development. 13
  • 15. Lenovo Financials Year over year, Lenovo Group Limited has been able to grow revenues from $29.6B USD to $33.9B USD. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold from 88.35% to 87.97%. This was a driver that led to a bottom line growth from $473.0M USD to $635.1M USD 14
  • 16. Marketing Strategy Lenovo Group, the Chinese computer maker which has rapidly gained market share over the last three years on the back of a string of acquisitions around the world, is now aggressively eyeing the emerging markets, including India. The company is on track to become the world's largest PC maker, trailing market leader HP by a slim margin, according to research group IDC. The “Protect & Attack” strategy is a key to Lenovo’s success, the right strategy for PC Plus world. It is driving record market share, improve profitability & a more balanced business for Lenovo. Source: Lenovo Annual report 15
  • 17. SWOT Analysis Lenovo has consistently improved its position both in global capabilities and in market understanding during the past several years, and its market share growth has reflected these improvements. It continues to provide well-designed products at very competitive prices. Lenovo is becoming a stronger option for organizations requiring global PC deployments, and is a strong viable supplier for all business notebook and desktop requirements. Strengths  The Lenovo goods and services have good quality  The brand recognition and traditional reputation of Lenovo are very good  Expanding global markets strategy of the marketing  The diversification of products  Owns very convenient and beautiful images  Good public relationship and sponsorship Weaknesses  Single marketing channel, the products and services are mainly sold by monopolized stores  Large number of product lines lie in the expansion of overseas  Product styles are too fewer to choose  Marketing sources are not rich  Prices are not cheap Opportunities  Takeover Lenovo to become the largest computer seller  Specialty business computer industry takes larger market in the world  European countries‟ market exploration, such as England, France, Italy, Germany, and so on  Division of products Threats  There are too many cheap products appearing in the world  Competition from other shoppers embedding on form factors more pleasing to the consumer  The market protect in some countries is strong  Foreign exchange rate fluctuations 16
  • 18. Lenovo Smartphones in India Lenovo smartphones are priced between Rs 4,999-Rs 28,999 and have Android operating system in four different series A, S, P & K. K Series- Premium, Ultra-Slim Smartphones: State-of-the-art smartphones featuring the latest processor, display, and camera technology. S Series Elite Entertainment Smartphones: Sleek smartphones designed for video, music, and gaming with powerful processors, high resolution displays, and studio-class audio. P Series Professional Smartphones with Epic Battery Life: Extra-long battery life, IPS displays, and powerful processing will keep you connected on the road and in the office. A Series Action series smartphones for the young Doers: Entry level smartphones with extensive feature sets offering a great experience at a low price. Source: Google Images 17
  • 19. Lenovo Tablets in India Lenovo Tablets are priced between Rs 6,999-Rs 39,990 and have Android operating system in four different series A, S, Lynx & Yoga. Tablets with Calling Facility Tablets without Calling Facility 18
  • 20. Conclusion From the strategic marketing theory and applied research, we can see that the marketing strategy of the Lenovo competition is not watching competitors, and only targeting to market shares, but the Lenovo must choose the correct target markets and market positioning, This position must be conducive to the long-term competitive edge in the market building, and the development of marketing strategies must support the market, help enterprises in voluminous and complex competition in the market environment find a way out for the development of enterprises. Obviously, the strategic marketing is the only way for facing with the new changes in the market economy and Lenovo does those and its marketing strategy and operations are market-orientated. ___________________________________________________________________ 19