1. Competition in the global PC market 2 a) The strategies of the major competitors in PC industries b) Reasons for Lenovo’s increase in Market Share 3. Lenovo’s current strategy 4. Contribution of IBM for Lenovo in global market 5. Lenovo’s keys for generic successful global strategy

1. Research Analysis
Shady Khorshed

2. Content
1. Competition in the global PC market
2 a) The strategies of the major competitors in PC
industries
b) Reasons for Lenovo’s increase in Market Share
3. Lenovo’s current strategy
4. Contribution of IBM for Lenovo in global market
5. Lenovo’s keys for generic successful global strategy

3. Competition in the global PC market
• Top four companies in the PC market are estimated to account for
60 percent of the worldwide shipments of the PCs during the year
2015
• Companies compete in the PC market concentrates on prices and
product specifications
• Many existing leading competitors in the PC market focus
intensely on PC market as the reduction in sales forced diversified
companies to leave the market
• Overall, the nature of competition is very high in the global PC market
as there are large players in the market who compete to be the market
leaders in the industry

4. The strategies of the major competitors
in PC industries

5. Reasons for Lenovo’s increase in
Market Share
Reasons: Explanations:
Aggressive acquisitions on the
new technologies and
business scales
• Bought over IBM (US$1.75 billion)-IBM’s PC sales
• Bought over Digibras Industria (US$147 million)-Gadget & CCE Branded
electronic devices
• These have shown the strong position of Lenovo in the PC industry
(Forbes, 2015)
Appreciating and recruiting
talents
• IBM’s Research and Development (R&D) experienced managers and employee
• create the new products to generate the incomes
• the sustain its business opportunities in the new products
(Center For Strategic And International Studies, 2013)
Adopting technological and
cost innovations
• Technological Innovation (emphasizing on the product innovation with the
latest model series and functionalities)
• Cost Innovation (build the design and interface of the products, so that the
price of the products will be affordable by the customers to increase the sales
growth)
Accelerating Lenovo brand • International Olympic Sponsor
• Well-known PC manufacturer in the early year of 2000
• By being the sponsor and acquisition of other companies, Lenovo has
globalized a well-established brand with global markets channels and
corporate channels
(Center For Strategic And International Studies, 2013)

6. Reasons for Lenovo’s increase in
Market Share
Reasons: Explanations:
Adopting company’s transparency
habit
• Adopt transparency
• Revealing costing and operations, annual financial reports, annual performances, mergers and
products
• other Chinese companies do not adapt this business habit.
(Forbes, 2015)
Altering organization structure (Dual
Headquarters):
• Hong Kong, PRC. China
• North Carolina, the United States of America
• 2 different geographical divisional which targeting and entering on both respective markets
(Forbes, 2015)
Great leadership and business
culture
• Liu Chuanzhi (Year 2009), in-charge of the Lenovo’s global operations (Had gain the profitability
and expanding business by strengthening the areas for significant investments for emerging
markets towards North America PC markets)
• Mr. Yang had stepped-down and gave the authority to Mr. Liu to be in-charge of the Lenovo’s
global operations
• Mr. Liu had resigned the post and gave back the authority to Mr. Yang (Year 2011)
(Ling, 2006)
• Well-maintained for both different cultures for both IBM and Lenovo which lead by Mr. Yang
• IBM (more flexibility and the people are mostly experienced and skillful)
• Lenovo (more rigid and the people are usually young graduates and barely speak fluent English)
• Providing training, supports and workshops (For Lenovo employees)
• Providing the Chinese language training (For IBM employees who are interested)
• Internal visits within one another
(Dess, et al., 2010)

7. Lenovo’s current strategy
Protect PC Attack PLUS Business
Profit Pools 1. Chine PC Leadership
2. Delivery steady Think profits in
all regions
3. Drive Peripherals/
Monetization/Services
Mobile Business Group Enterprise Business
Group
ECS Business Group
Tablet
Leverage PC capabilities and
push innovation to drive
Tablet profitable growth
Smartphone
1. Drive China profitable
growth by focusing on
mainstream premium and
new business models
2. Ensure smooth integration
with Motorola and drive
quick turnaround
3. Expand aggressively in
emerging markets
1. Ensure business
continuity/ growth for the
IBM ×86 acquisitions
2. Launch NextGen
ThinkServer portfolio TTM
with the industry
3. Establish a fast response,
low cost model to address
China Data Center Market
Build ecosystem and
cloud service to better
serve our customers
every day and deliver an
excellent Lenovo user
experience
Profitable Growth 1. Reach healthy profitability in
Consumer PC
2. Continue to grow profitable SMB
business
3. Deliver customer-focused
innovations to drive profitable
growth
Internet Transformation
Embrace Internet Transformation in all businesses across all value chain
Innovation Leadership
Product Offerings & User Experience | New categories & Businesses | Global Branding
Operational Excellence
Global-Local Business Model | Cost Leadership in PC’s | Improve Time-to-volume & Perfect Order Fulfillment | Sustainable |
Quality Leadership
Global Culture
Meet commitments/ Take ownership | Execute 5P culture | Leverage Global Diversity | Customer Focuses

8. Contribution of IBM for Lenovo in
global market
1- Global Brand Awareness and Image
2- Sales Strategy Integration
A) Relationship model
B) Transactional model
3- Competitive Advantages
A) Growth Potential in the Asia Pacific Market
B) Distribution Networks
4- Co-Branding Strategy
Lenovo gained 5 years copy-right to use IBM’s brand, marketing and
corporate sales force

9. Lenovo’s keys for generic successful
global strategy
Value Creation
• Effective management systems and production cost optimization
• Supply chain enhancement
Corporate Culture
• Cultivate mutual respect and trust environment
• Promote transparency
• Fair rewards and recognition
Innovation Initiative
• Develop effective communication with customers
• Continuous innovation and improvement to create differentiated products
• Quick responsiveness and adaptability in rapid changing environment

10. Lenovo’s keys for generic successful
global strategy
Global Intellectual Property
• Stringent in intellectual property management
• Implement intellectual property rights protection
Global Investment
• Acquisition of IBM - key of international expansion
• Strategic partnership with NEC
Global Branding and Marketing
• Apply co-branding strategy
• Involve world-renowned events sponsorship