2. OVERVIEW
Lenovo Group Ltd is a Chinese multinational technology
company.
Founded on 1 November 1984
32 years ago as Legend in Beijing, China and was incorporated by the
name of Lenovo in 1988.
USP
Sturdy and robust product at economical price
HEADQUARTERS :
Beijing ,China and
Morrisville, North Carolina ,United States.
Website : www.lenovo.com
Tagline/ Slogan:
For Those who do
4. Acquisitions :
Lenovo acquired IBM's personal computer business in 2005,
including the ThinkPad laptop and tablet lines. Lenovo's
acquisition of IBM's personal computer division accelerated
access to foreign markets while improving both Lenovo's
branding and technology. Lenovo paid US$1,250,000,000 for
IBM's computer business and assumed an additional US$500
million of IBM's debt. This acquisition made Lenovo the third-
largest computer maker worldwide by volume.
On 29 January 2014, Google announced it would sell Motorola
Mobility to Lenovo for US$2.91 billion in a cash-and-stock deal.
When Google and Lenovo first announced the acquisition of
Motorola, they said the purchase would be funded with $660
million in cash, $750 million in Lenovo stock, and a $1.5 billion
promissory note due in three years. As of February 2014, Google
owns about 5.94% of Lenovo's stock. The deal includes
Smartphone lines like the Moto X and Moto G and the Droid
Turbo. Lenovo also got the future Motorola Mobility product
roadmap. Google will retain the Advanced Technologies &
Projects unit and all but 2,000 of the company's patents. Lenovo
will receive royalty free licenses to all the patents retained by
Google.
5. Product Mix
It designs, develops manufactures and sells
Personal computers
Tablet Computers
Smartphone's
Workstations
Servers
Electronic storage devices
IT management software
smart televisions
Peripherals
printers etc
7. Segmentation , Targeting and
positioning strategy
Segment Target Group Positioning
China Small and
medium size
enterprises
Building new
products at
affordable
prices
Middle East
Countries
Public Sector
Divisions
Africa Students and
home makers
who need
systems for
their daily work
India etc
8. Branding:
Branding is another successful strategy used
by Lenovo
The organization has used the IBM name in the
most efficient manner. The brand IBM has build
a strong name for the organization.
IBM has also helped Lenovo in order to retain
the customers in the corporate market. Lately,
Lenovo has manufactured certain high range
accessories such as ThinkPad & IdeaPad
without using the brand IBM.
Branding their products without using the brand
IBM would help to market their products in the
long run.
9. Marketing Mix
Product:
As mentioned Lenovo manufactures laptops, PC’s,
workstations, software’s, accessories, storage devices etc
The number of IT software’s offered by Lenovo are marketed
under the name Think Vantage & has been generating about
half of the revenues in China & greater Asia/Pacific regions.
Lenovo’s major chunk of business comes from selling
desktops, laptops & notebooks & the workstations. The
highest revenue generating countries refers to Japan, China
& US.
Price:
The prices offered by Lenovo are higher as compared its
competitors i.e. Dell, Apple, HP, etc. Though the prices are
high but, the quality offered by Lenovo is better as evaluated
with its competitors.
10. Place:
Lenovo is currently operating in China , US , Africa , India and
Middle East Countries etc with many centers spread almost all
across the globe.
Promotion:
Promotion of the products manufactured by Lenovo is done by
the through virtual marketing on the official sites, promoting its
products on various search engines
Very actively promotes brand through TVC / Print / Digital
mediums etc.
11. SWOT Analysis
Strengths
It manages its cost very effectively, to achieve
high effectiveness with innovative leadership
Lenovo’s good marketing and distribution
strategies through a network of
channel partners, retail stores, Teleweb, and
Lenovo authorized dealers across the globe
helps it to lead
Strategic alliance with suppliers
Lenovo is very quick at responsiveness, they
have 24*7 technical support centers
They have strong R&D, which they have
taken over from IBM
12. Weaknesses
Unable to maintain sustained growth rate
in all market segment, it focused on china
only in the past
Market share growth is slow due to
competition; fake products/ imitations
affects sales
Opportunities
Increasing global demand for PC
Specialty shops proving one stop platform
for distribution
Government organizations increasing their
spending on IT
Internet boom
Increasing product portfolios/ product lines
13. Threats
Competition threat from both local
and international markets/ Price war
Software piracy and clone market
Emerging small firms
International competitors forming
alliances with local competitors
