(8264348440) 🔝 Call Girls In Safdarjung Enclave 🔝 Delhi NCR
L201429100131 edmond assila lenovo swot
1. LENOVO SWOT
Presented by
Edmond Assila
Edassila@hotmail.com
ID:L201429100131
Zhejiang University Of
TechnologyID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
2. • Name Lenovo Group Limited
• Industries served Computer hardware and Electronics
• Geographic areas served Worldwide
• Headquarters China and U.S.
• Current CEO Yang Yuanqing
• Revenue $ 29.57 billion (2012)
• Profit $ 472 million (2012)
• Employees 27,000 (2012)
• Main Competitors Apple Inc., Samsung Electronics Co.,
Microsoft Corporation, Dell Inc., Hewlett-Packard Company, Sony
Corporation, Fujitsu Limited and many others.
Company Background
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
3. Lenovo is a $30 billion electronics company and the world’s
second-largest PC vendor. It employs 30,000 people,
operates in more than 60 countries and serves customers in
more than 160 countries. Lenovo has been the fastest
growing major PC company for more than 3 years.
You can find more information about the business in its
official website or Wikipedia’s article.
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
4. Click here to
add your text.
streng
hts Vertical integration
Knowledge of China’s
market
Low cost production
Strong patents portfolio
Competency in
mergers and
acquisitions
Synergy of knowledge
and diverse workforce
Poor brand perception in the
developed economies
Low differentiation
Commodity (computer
hardware) products
Growing India’s
smartphone market
Growth of tablets market
Obtaining patents through
acquisitions
Tablet market growth
Profit margin decline on
hardware products
Slowing growth rate of the
laptops market
Saturated smartphone
markets in developed
countries
Rapid technological change
Intense competition
Strengths
Weaknesses
Opportunities
Threats
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
5. Strengths
Vertical integration. Lenovo’s strategy to vertically integrate has paid off. The business can
keep costs low, keep up with the pace, control inventory and rely less on original equipment
manufacturers (OEM).
Knowledge of China’s market. Lenovo has emerged in China and continues to be one of the
largest players in homeland market. The firm’s knowledge of China’s market and the ability to
suit Chinese tastes resulted for the wide acceptance and support for the business' products.
Low cost production. Lenovo manufactures nearly half of its hardware and has set up
production plants in low cost regions such as China, Brazil and Argentina to benefit from higher
margins. It is also able to manufacture low cost products that are price competitive.
Competency in mergers and acquisitions. Lenovo has been continuously acquiring firms to
bring patents, new capabilities, assets and skills to the company. Most importantly, through
successful acquisitions and joint ventures, Lenovo accessed new markets and distribution
networks. Compaq is the most notable and successful Lenovo’s acquisition to date.
Strong patents portfolio. With an acquisition of Compaq and Stoneware and a help of firm’s
R&D, Lenovo has gathered an important patents portfolio related to its PC and software
businesses.
Synergy of knowledge and diverse workforce. Instead of traditional headquarter model,
Lenovo manages 3 centers of excellence around the world (US, China and Singapore).
Combining different skills and resources results in synergy and premium quality products.
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
7. Poor brand perception in the developed economies. Lenovo’s
primary market is Asia, where it sells most of its production.
The company finds it hard to access US and Europe markets
as its brand perception is low there.
Low differentiation. Apart from the low price, Lenovo products
are little differentiated from competitors’ products and are in
competitive disadvantage if the price offered by competitor is
lower.
Commodity products. The large stream of Lenovo’s revenues
comes from computer, especially laptop, sales, which is a
commoditized product. Computer hardware (commodity)
products are sold with a very low profit margin.
weaknesses
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
9. Growing India’s smartphone market. India’s smartphone
market is one of the least penetrated among Asia/Pacific
countries. Lenovo could easily penetrate India’s market
with its already successful low price LePhone.
Growth of tablets market. Lenovo currently ranks as 4th
biggest tablets seller. The business could increase its
market share by introducing better quality products.
Obtaining patents through acquisitions. If Lenovo wants
to sustain its growth, it needs to obtain more patents and
the best way to do that is to acquire the firms holding
them, as it did with IBM’s Compaq.
Tablet market growth. Tablet market is expected to grow
in double digits for the next few years and the company
has a great opportunity to release new tablet models and
benefit from the market growth.
Opportunities
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
11. Profit margin decline on hardware products.
Lenovo’s main income is from selling
hardware products, which prices will increase
in the future due to rising raw material prices.
This will add to costs for Lenovo and will
further cut the profit margin.
Slowing growth rate of the laptops market.
Growth rate of the computer market is
slowing down and in the near future the
markets will become saturated. It will prove
hard for Lenovo to compete in such market
and continue to grow its market share.
Saturated smartphone markets in
developed countries. Although Lenovo does
not compete in the developed economies
with its smartphones it will have difficulties in
growing its smartphone division and entering
developed economies later as the
smartphones market there is already
saturated.
Rapid technological change. The serious
threat that Lenovo and the other tech
companies are facing is a rapid technological
change. Companies are under the pressure
to release the new products faster and faster.
The one that cannot keep up with the
competition soon fails.
Intense competition. The company faces
intense competition in all its business
segments. It competes in terms of price,
quality, brand, technology, reputation,
distribution and range of products, with Acer,
Apple, Dell, HP and Toshiba.
Threats
(四) 市场威胁
其一，价格战的威胁。目前，国
际品牌的定位转移，开始挖掘中低端
市场。随着价格优势的逐步降低，给
联想带来了市场威胁。
其二，面对拥有品牌、规模以及
资本明显优势的国际品牌的围攻，如
何挖掘在服务、成本、渠道及人才方
面的固有优势，同时将技术突破转换
为稳定的产品品质，这也是联想要解
决的当务之急。
ID:L201429100131 _Edmond
Assila Zhejiang University Of
Technology
