Lcop September 9th Fuqua School Of Business Distribute


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  • I have broken our discussion down a little differently then I normally do and decided to cover these topics, each of which I will go into more detail with through the next hour or so. Feel free to ask questions as we go but I will also be sure to allow for some time a the end for a discussion or to capture any elements that you think are important that you would like more details on. <Next Slide> Doing business in china Corporate Strategy Branding strategy – what steps ? – elimination of IBM logo - Product strategy Marketing strategy – 4 P’s? Appealing to the senses (design) Our perception – mind over matter > matter over mind -> social marketing Presentation Author – Leo Curtis
  • My name is Leo Curtis for those of you that didn’t catch it the first time, and I work for Lenovo as a Senior consultant, mostly engaging in briefings with Large Enterprise clients interested in partnering with Lenovo, business partners and government agencies all with the purpose of providing them with a better understanding of who we are as a company, where we came from, where we are today, and where we are headed in the next 2-3 years. <color point> - Long term technology outlook <Next Slide>
  • Lenovo History – Three Era’s Throughout our history, Lenovo has experienced three progressive growth stages or Eras: The first Era, known as The Pioneering or ‘Start-up Era’, occurs between 1984 and 1993 The second Era, known as the PC Brand or ‘Development Era’ from 1994 through to 2003 and … The third Era, the one we are in currently is what we refer to as the ‘Globalization Era’ and began in 2004. <Segway to Next Slide> Lenovo’s history is very interesting and insightful into the mindset of the Chinese, and on how business is done ‘just a little bit differently’ here. There is an expression that most ex-pats become familiar with after living here for a while. “TIC” or “This is China” – we use this phrase to describe anything that occurs in our day that may make you shake your head in wonderment of not only the reasons for it, but the implications and the results that come from whatever it might be. Sometimes these things can have the most unexpected outcomes. To really understand us as a company and what makes Lenovo unique, and the right company to do business with it is important to spend a little time (as I mentioned earlier, maybe the next 60 minutes) getting to know us, I will touch briefly where we came from, but mostly I will concentrate on the present, and who we are today as a company, and what we intend to do in the future to make a difference in this industry. <Next Slide>
  • First of all, Lenovo has a standard management system and an integrity centered enterprise culture. These have helped the management to not only operate the company based on market principles, but also win trust from customers, investors and employees. These have also helped our smooth integration with IBM PCD. Next, Lenovo has created a highly integrated end-to-end dual business model. Based on different customer needs and preferences in products, service, and buying channels, Lenovo first segmented customers into the two types – relationship and transaction – and built complementary business models accordingly. The success of Lenovo ’ s dual model in China lies in the end-to-end integration of product development, marketing, sales, manufacturing and customer service. The model allows fast, yet disciplined, response to market shifts, enabling Lenovo to operate efficiently on an optimized cost structure. Third we attach great importance to developing sound strategies from the very start in Lenovo ’ s history, So unlike many of our peers in China who more thrived on chasing opportunities, Lenovo ’ s growth has largely been strategy-driven. Over years, we have developed the capabilities to design adaptable strategies with very effective execution. This means that we have different strategies in our different growth phases. Also, our strategy in each growth phase closely fits with the market environment
  • Lenovo has six attributes based on what differentiates Lenovo from its competitors, 3 of these attributes are core to our business model; Innovation, High Quality & Reliable Products, and Service Excellence. 1./ Lenovo means Innovation - Innovation is at the heart of what Lenovo does and is linked to our brand promise of providing “innovation that matters” to customers. But this Innovation is not limited to Products alone, it extends into how we do business as a company and every aspect of positioning ourselves as the industry leader of the future. 2./ High Quality & reliable Products - Customers require high quality and reliable products because personal computers have become central to their business and personal lives and success. Our customers and have come to expect this from us and Lenovo will continue to meet that expectation. Lenovo is the preferred PC provider to IBM and IBM’s customers. The same IBM people who put the quality, innovation and trust into ThinkPad and ThinkCentre brands are staying on the Lenovo team. All ThinkPad, ThinkCentre, and other Lenovo PC products are put through exceptionally rigorous tests to confirm that they can survive the trials of the business world. Lenovo, as a “Worldwide Olympic Partner,” has been entrusted by the International Olympic Committee to provide PCs, servers, storage, and printers. Lenovo equipment and staff will play an integral role to ensure all Games competition and events run smoothly and seamlessly for international spectators and fans. 3./ Service Excellence - Another key pain point customers have is service. Lenovo is committed to providing the best customer service to keep customers’ systems up and running so they can accomplish their goals. IBM will continue to offer service and support for ThinkPad and ThinkCentre products and offerings*. You can continue to depend on the service and support you’ve always relied on. For those who prefer to receive service and support from a business partner, Lenovo has 10,000 certified business partners around the world to meet your support needs. * Excludes the ThinkCentre A35 Tower 4./ International Company & Industry Leadership - To meet customers global needs yet match their local requirements Lenovo will leverage its international capabilities and worldwide resources. Lenovo is as an international brand with a strong local presence in the countries in which we operate. Worldwide Olympic Partner Executive headquarters in the US (New York) International executive team 2?,000 employees around the world Major development facilities in the US (Research Triangle Park, NC), China (Beijing and Shanghai) and Japan (Yamato). Innovation Centers in Research Triangle Park and Beijing Sales headquarters in New York, Paris, Beijing, and Sydney Manufacturing and distribution facilities in 8 countries: US, China, Japan, Mexico, United Kingdom, Hungary, Malaysia & Brazil Lenovo is taking a lead in challenging software piracy and actively promoting the benefits of legal software. 5./ Trustworthy - Customers want to do business with people they trust. As the Lenovo name is new to many customers we will need to earn their trust by backing our words with action and leveraging our relationship with IBM. Lenovo is the #3 PC vendor in the world Lenovo is the #1 PC vendor in Asia [Leverage in AP] Lenovo is the #1 PC vendor in China [Leverage in China] Lenovo is the preferred PC provider to IBM and its customers. Service & Support and Financing are available from IBM. IBM has a financial stake in the success of Lenovo (13% share). Lenovo has been entrusted by the International Olympic Committee to provide PCs, servers, storage, and printers in support of the Olympics. 6./ Easy To Do Business With - In China Lenovo is known for being easy to do business with. We intend to extend this trait to the rest of the world. With sales representation around the globe, Lenovo is everywhere you are. The same sales representatives and business partners Lenovo customers know will continue to work with you. IBM Global Finance will provide financing for ThinkPad and ThinkCentre PCs and other Lenovo PC products. Lenovo maintains Risk of Loss (RoL) during product transit, an immediate change from IBM policy. This simplifies claims against loss in transit.
  • Q2 2009 AP excludes Japan Placeholder - presentation title | Date - 6 April, 2006
  • Lenovo’s R&D mission is that “We will put more innovation in the hands of more people so they can do more amazing things”. This is the statement that led to the idea that Lenovo and our PC’s are so much more then just a PC.
  • Innovation? Prove it.
  • The world has changed, and the last thing we wanted to do was make the same mistake that IBM made in the past – Sitting back and resting on their laurels while opportunities passed them by to continue to be pioneers within the industry. It’s a new world, and it requires new thinking. <Next Slide>
  • Work to enhance international understanding
  • Name of Presentation March 2005 Who we are is important because it impacts: How we operate How we design How we build How we sell How we serve We are approaching the New World with New Thinking. We collaborate. We mine every pocket of the organization for great ideas and better ways to do business We view the world as a whole And we work hard to be a strong global citizen NEW WORLD NEW THINKING Collaborate Globally to deliver value > R&D world sourcing New world new thinking Combine the strengths of multiple cultures > New world new thinking – act local think local be global Have roots in and embrace emerging markets > BRIC Countries - leverage base Tier 5&6, act local think local be global Be efficient and fast to market > GSC – sojourn programs Engage with open dialogue with constituencies > Social Media Marketing Use new media to have the dialogue > viral marketing – You tube, Work to enhance international understanding > act local, think local, be global Be socially responsible > greener product packaging epeat etc
  • The new world requires a different approach to: Management and Organizational structure Hiring Procurement Sales and Marketing. Requires a new kind of global strategic thinking… At Lenovo, we are learning every day … … And we have adopted a strategy to address the changing rules: Source materials, innovation, talent, logistics, infrastructure, and production wherever best available Sell wherever profitable markets exist Harness the power of a decentralized, global workforce that understands the new global dynamic. We call it Worldsourcing … Defies traditional boundaries, borders and structures A decentralized business model that distributes management, operations, processes, and production in global hubs of excellence Created to drive efficiency … … and it has become an important operational edge Here is how we do it at Lenovo…
  • Research hubs in the US, China and Japan
  • World sourcing does have its drawbacks for those of us not in an emerging market country.
  • Worldsourcing is critical to innovation It enables us to harness the power of innovation from anywhere… and here is a great example One of our engineers had to explore how to solve certain hard drive failures. He looked at his environment and around the world to uncover an imaginative connection and conclusion. His story: One day in 1906, a group of Russian soldiers went across a bridge in step, suddenly the bridge broke down The reason was the soldiers’ walk frequency was the same as the bridges natural frequency From then on, a rule was set by the army: when passing the bridge, soldiers must go across at ease-march to avoid synchronized vibration and risks. Nov. 7,1940, American Tacoma Channel Bridge collapsed suddenly This was also caused by the wind and vibrations of the same frequency Vibration theory and test became the required courses for engineering after this event. CLICK TO STOP VIDEO CLIP CLICK AGAIN TO ADVANCE SLIDE
  • Now, with the suspended bracket for hard drives and a better understanding of how to ‘place’ a hard drive to avoid it’s natural vibration frequency from bouncing off the side of the chassis we can determine the best method to implement a mechanical hard drive into a customer measured case specifically to reduce sound power, sound noise and that previously unexplained hard drive failure.
  • Biomimicry, as an innovating process, generally comes from one of two directions. Sometimes, the innovator sees a process in nature and connects it to an existing technology or problem. Other times, the innovator studies an existing design problem and turns to nature for help. This is where biomimicry serves as a bridge between biology and engineering. The first step of solving a problem through biomimicry is to translate what you need out of a design into biological terms. For instance, what if you wanted to design a fire extinguisher with a longer range? Where in nature have organisms evolved to deal with a similar problem? Bombardier beetles might not deal with quenching a flaming stovetop, but they have evolved to squirt a heated, explosive stream of venom at predators. Once discovered, the next challenge is to take the lesson from nature and apply it back to your design. In the case of the bombardier beetle, researchers studied the insect's use of a high-pressure "combustion chamber" in its abdomen. Designers have begun applying this discovery to existing spray technology. You can find biomimicry in a number of different fields. Whatever the design challenge, there's a good chance a species on Earth has tackled a similar problem already. Consider these examples: Human need: Builders want a cheaper means of cooling large buildings. Nature's example: Certain African termite mounds must maintain a constant temperature of 87 degrees Celsius (189 degrees Fahrenheit) in order for the fungus crop to survive. To achieve this, they construct air vents that constantly move air throughout the mound, cooling or heating it to the same temperature as the mound itself. Biomimetic solution: Architects and engineers are building several large office complexes that mimic the termite approach to temperature control. Human need: Auto manufacturers want to develop an anti-collision system. Nature's example: Locusts avoid running into each other in swarms by using highly evolved eyes that allow these insects to see in several directions simultaneously. Biomimetic solution: Automobile designers mimicked the locusts' vision when developing sensors that detect movement directly surrounding a car and warn drivers of impending crashes. Human need: Chemical companies want a self-cleaning coat of paint. Nature's example: Lotus plants must keep the surfaces of their leaves clean, despite living in muddy ponds and swamps. The leaves' tiny ridges and bumps keep water droplets from spreading across the surface. As a result, the water beads and slides away, carrying particles of dirt with it. Biomimetic solution: Developers have applied this lotus effect to paint. When the paint dries, tiny bumps remain on the surface that help water droplets remove dirt. Human need: Health workers want a way to store vaccines without refrigeration. Nature's example: The African resurrection plant completely dries out during yearly droughts and then revives itself when the rains returns. The plants contain a polyphenol that protects against cell membrane damage during dehydration. Biomimetic solution: Researchers are seeking a way to use these sugars to preserve living vaccines through dehydration. All over the world, researchers are looking to nature for answers to their various design challenges. By studying how evolution overcomes challenges, biomimicry may one day help us solve problems ranging from soap scum to global sustainability issues.
  • Biomimicry is a new discipline that studies nature’s best ideas and then imitates these designs and processes to solve human problems. Chinese firms must continuously bring innovative and exiting products to market However consumer research is still in its infancy, “Chinese colleague told me that PCs are like fish – you need to serve them while they’re fresh…we don’t have time to use consumer data in our design, we use our instincts”. With the establishment of the COE in 2006 that is changing – data driven research, and user behavior studies. Lenovo’s goal for the desktop space is three fold… make computing simpler, lower the total cost of ownership and increase PC availability and control. In this case, lowering the total cost of ownership includes a greener, more Earth-friendly machine. Chinese firms typically launch basic products at entry level prices and scale up with more functionality once the product is accepted in the market. Vs. Western firms who launch products with all the features to early adopters in the hopes of high profit margins and ROI. “ Of course, that process has been under way for some time. Homegrown corporate giants such as Lenovo (OTC:LNVGY), which swallowed up IBM's personal-computing unit in 2005, and the appliance maker Haier, have made notable strides in design and innovation.” Fast Co. “The Next Cultural Revolution”, June 2007 Biomimicry (from bios, meaning life, and mimesis, meaning to imitate) is a design discipline that studies nature’s best ideas and then imitates these. biomimicry "The answers are all around us," says Janine Benyus, founder of the Biomimicry Institute , in a Wall Street Journal piece by June Fletcher (1/11/08). Biomimicry is a term Janine coined in 1997, and defined as the "practice of using solutions to problems found in nature to solve human challenges." It's a practice gaining in popularity among designers of "bathroom fixtures, draperies, paint -- even swizzle sticks." Moen, for example, has a showerhead "inspired by a Fibonacci spiral , the branching or spiral shapes often found in natural objects like the whorls of seeds in a sunflower.“ Moen says the showerhead "offers fuller coverage and three times the spray power of regular showerheads. David Trubridge , meanwhile, has designed lightfixtures "modeled on coral, sea-urchin shells and crayfish," said to create "an otherworldly, underwater feeling," that suggests a coral reef. A commercial air-conditioner from Ziehl-Abegg uses a fan blade that "mimics the serrated edges of the owl's wing" which it claims is "six to eight decibels quieter than the typical smooth fan blade." Interest in biomimicry appears to be growing, largely on the strength of "interdisciplinary university programs springing up here and abroad -- from six two years ago to 19 today."
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  • I view our strategy in very simple terms. Just like a boxer, we use our 2 hands to fight. [CLICK] First, our left hand, we use it to protect ourselves, our heart and our face, don’t allow our rivals to hit us. We must PROTECT our core businesses in China and the Global commercial markets. These businesses must be profitable for us to succeed. Second, our right hand, we use it to attack. We will ATTACK growth opportunities in emerging markets and the global transactional space, which includes consumers and SMB. Success depends on our ability to focus on execution!
  • Multicultural Executive Team Different GEO’s different outlooks, different strengths, experiences, and understanding
  • The 4 P’s can change depending on where you are in the world. A shift in the way we do business GEOs -> Markets Streamlines effort and focus to where it needs to be, allows minimal cost to address maximum target market – markets tend to strive towards the same goal, maximum productivity, whether that ‘productivity’ is defined in the pure ‘large enterprise’ definition of ROI’s. and P&L statements, or the consumers ‘need to differentiate, and be fashion conscious we still have the same thing happening the world over….however, there still remains different ways to get there, and that means understanding the local infrastructure, the way they do business or interact with one another, work & play, the best way we can think of to address this is a little differently then what we did previously (GEOS) and we think its touching on something important. Act Local, Think Local , Be Global Marketing, Design, Supply Chain Our mindset
  • DISCUSS WITH GSC to ensure points are still relevant, understand more clearly what message they want to convey and determine their existing ppt looks like
  • Tier 5 & 6 city traffic – haptic reality
  • GSC Regarding Global Supply Chain Professor Martin Christopher once said (1992) “The competition in the future is not going to be between individual organizations, but between the supply chains they are part of.” DISCUSS WITH GSC to ensure points are still relevant, understand more clearly what message they want to convey and determine their existing ppt looks like CO - Virtual teams enabled by the new 3-dimensional GSC organization will exceed expectations of both internal and external customers E2E - Achieve ‘end to end’ optimization and efficiency through cross-functional teams of centralized supply/demand planning and coordinated customer fulfillment. S – Drive in-depth expertise and excellence through dedicated functional teams in global procurement, global manufacturing and global logistics
  • Advertisements Social media After the acquisition of IBM PCD the most frequently asked question we received was ‘Are you going to change the quality of the ThinkPad, will the systems degrade now that it is owned by a ‘Chinese Company” will they cannibalize the systems in favor of reducing cost with lower quality parts? The best answer to that question came from our reviews after launching the first ThinkPad after the acquisition <Next Slide>
  • A question about a fundamental aspect of our humanity that we have asked time and again throughout history, in fact for most of us it has been hotly debated over our own lifetimes with those closest to us…in your case, your girlfriends and boyfriends, husbands and wives… <click> Are women smarter than men? <- until recently we didn’t have any definitive proof,…now it seems obvious. <click> … she IS using the ThinkPad
  • Placeholder - Presentation title | 6 April, 2006 Since all touch points impact brand perceptions, we must be certain to drive the Brand Promise through all parts of the business – Marketing, Sales: Field and Tele, Web, HR - including compensation, and R&D
  • Placeholder - Presentation title | 6 April, 2006 New AD campaign – A hipper cooler ThinkPad - ThinkPad Unleashed ‘ Carried by those that carry companies‘ = ThinkPad Edge ThinkPad Unleashed Exceptional Engineering Ideas Everywhere
  • WE CREATE It is the relentlessly persistent nature of Lenovo people to create, because an environment that fosters creativity results in surprising innovation – above and beyond expectations. That is how a New World company is built, and the ability to build the world’s best-engineered PCs relies on Lenovo people creatively working hand-in-hand, around the world. Today, ThinkPad can withstand spills up to 60cc’s, Lenovo engineers will not be satisfied until they achieve their ideal ThinkPad – one that is completely submersible. But until it is ready, keep your ThinkPad out of the bath.
  • Source: Laptop Logic 2005
  • 2010 rights to use the logo
  • Innovation Through design The Olympic Torch, long a symbol of inspiration to the world, is now a beacon of Lenovo’s technological and design innovation.
  • Protect & Leverage our base Gain share in growth segments Foster a winning team and culture Execute against strategic initiatives Build upon base; grow core business Offer new products and services (while maintaining the core relevancy of our business) Penetrate new market segments Consumer Server Unlock additional value Outlook Confident to deliver higher than market growth Invest to drive sustained future growth Increased focus on operational efficiencies Current performance is strong. Looking ahead: We will maintain our intense focus We will build our core business by delivering the best products We will offer new products in new market segments We will find new ways to unlock value We will deliver on our strategy Grow faster than market Invest in growth Be the most efficient
  • With our consumer launch, we are expanding our brand We are building on the momentum of Lenovo Capitalizing on the tradition, reputation and iconic status of Think And now launching the consumer business under the Idea brand Consistent with our brand DNA Resonates with our target audience Enables us to open up new opportunities to expand the business Dual business model Leading global brand Best Engineered PCs Lenovo is committed to being a leading brand through a distinct dual business model. With this in mind, relationship customers, through our Think line of products primarily but not exclusively destined for the larger enterprise and middle market can count on these key attributes: ultimate business functionality, rock solid build quality, design with the business user in mind and a clear focus on minimizing total cost of ownership. On the other hand, our new consumer line ‘IdeaPad’ is ideally positioned for the transaction space and is focused on offering cutting edge technology, trend setting design, and ease-of-use to stretch our brand into one of the fastest growing target segments in the industry – Consumer – ( Estimated to grow 10% YoY through 2011) Both brands share Lenovo’s commitment to building the worlds best engineered PCs and the best overall end-user experience On the other hand, our Lenovo 3000 line of products, developed specifically for the small and very small business are focused on offering worry free computing allowing users to focus on business rather than IT. They are more lifestyle design orientated and of course offer great value with the quality and reliability that customers should expect from Lenovo.
  • Take the ‘Kink Brand’ notebook platform, establish it as a foundation for extending the brand to other product types – notebooks, desktops, and mobiles to start sharing similar design points, and build a ‘Kink’ brand family for the consumer market/transaction customer. (A sub-brand of Lenovo) Lenovo ‘Think’ – Commercial – Productivity Tool –- Hand shakers, Deal Makers, Fast Trackers - 25+ Lenovo ‘Idea’ – SMB / SOHO -- Entrepreneurial, New-age nurturers, Individualists, Mature, - 20 + Lenovo ‘Kink’ – Consumer– Lifestyle Accessory –- First time computer buyers , Media Junkies, Mouse Potatoes, Playful Surfer, Student, Fashion Conscious, 13-25 3 differing product lines for 3 unique customer types
  • Define Ourselves differently… Establish Lenovo Kink as a ‘design aware’ consumer brand family Initiate the trend that certain companies in the industry (Sony, Apple, Microsoft, Samsung) have either consciously or subconsciously identified but have not yet formulated and act on it more aggressively with better execution and situated for a slightly different target market mix Advocate a program to elicit ‘family wide’ sales of like style products: traveling sales person bundled with the notebook, mobile and micro projector education bundled with the notebook/desktop, mobile, and printer SOHO bundled with desktop, mobile, fax, printer Etc. Ensure the entire product family enhances our cross BU interaction and makes people want to ‘accessorize’ their home/office/room with like designed fashionable concept product – this is where brand equity comes into play we do it first, we do it with a good brand name like ‘Kink’ (heavens please note ideapad/ideacenter does not convey the impression of ‘style’ for the consumer that I think we need to develop – one of our main problems here might be we are relying on ex-IBMers for concepts in this area (or they are influencing the decisions) where a ‘newer’ fresh perspective might be more market ‘in-tune’ with the consumers desire) Product offering similarities simplify several things, I can imagine sourcing vendors for components, materials, packaging etc could all be streamlined if we built a product that had similar design features – who knows, this could lead to a wider range of holdings through acquisition for Lenovo in the future if we decided to increase our spectrum instead of trying to increase our immediate market share – I consider acquisition of a low brand equity acquisition a short term gain where diversification in the product creation process is a long term investment allowing for longer term design control. Either way, having a standard design concept allows us at the very least to simplify design discussions and inevitably give our brand ‘image’ a boost by making ‘Lenovo recognizable products’ Common brand family Common brand packaging Common brand integration of devices Simple, clean, user-friendly, stylish, interchangeable options and accessories including docking or power options Suppliers, packaging, design focus can be shared by all BU’s on consumer brand line
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  • The Marketing Mix (The 4 P's of Marketing) Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix . Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, Product Decisions The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made: Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services Price Decisions Some examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination Distribution (Place) Decisions Distribution is about getting the products to the customer. Some examples of distribution decisions include: Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics Promotion Decisions In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include: Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget
  • How we view ourselves is an important element in making marketing decisions, the executives, and the ‘insiders’, the consultants, even the MBA grads only represent a certain amount of the population, and they learn and understand, like and relate to different things in different ways. There should be no ‘my way’, or ‘your way’, but there certainly is ‘another way’ The unfortunate thing is we all see ourselves as having the answer, that we know something they don’t, that our brains are more advanced and that we see others… <click>
  • As needing our advice... But the truth is, we don’t have all the answers and in fact we often aren’t the first ones to come up with them, it is the people who perceive a need that usually develop the solution, and more often then not, in today’s society we rely on what we know, and make due with what we have, that is where true innovation comes from.
  • Promotion : Localized Marketing Viral Videos Sponsorship Product Placement Social Media Brand what a customer thinks and feels about a product or company Principles every touch point establishes the brand identity a brand’s meaning converges with reality Touch points – social media marketing Since all touch points impact brand perceptions, we must be certain to drive the Brand Promise through all parts of the business – Marketing, Sales: Field and Tele, Web, HR - including compensation, and R&D Major principles for brand building at Lenovo Create innovative and quality products Focus and innovate in marketing Shape the customer experience
  • Lenovo adopts its marketing messages to the unique values of each geographic market segement. According to AC Nielsen figures, brand Lenovo grew from 38% awareness among Indian consumers in February 2006 to 74% in October 2006 and 85% in organisations. Lenovo at 10.3 per cent in terms of unit shipments during the second quarter, holds third place behind HP and HCL, IDC said. Mr Agarwal said: ``The response to the two has been very positive for us and helped us get brand recognition. Saif stands for pretty much what Lenovo is — young, innovative, experimental and exciting. "We wanted a celebrity that was best suited to project the three key attributes of the new Lenovo brand-innovation, excitement, and vibrant. Saif is vibrant and brings excitement. Taking Saif and Soha was an innovation. We did it first and now you see more people doing it," says Rahul Agarwal GM-Marketing, Lenovo India. Ajay Mittal, vice-president, brand and marketing, Lenovo India, explains that the target group for the Y-Series is mainly individuals using them for business or personal use. "Typically, laptops ask a person to key in a password to log onto the machine, which can be dangerous if hacked,” he says. "However, facial features are unique to a person, so this product ensures that your laptop is secure." Amitabh Bachchan
  •   Strengths 25+ years experience in Emerging Markets, Vendor component relationships, solid ‘home base’ with fastest growing market in the world, Supply Chain, Heritage, Differentiators, multi-cultural, new world, new thinking Weaknesses – Perception, Brand Recognition, Re-organization, ER ratio, sales teams, multi-cultural Opportunities – Consumer Market, untapped GEO markets, Threats – Economy, Industry competition Dear Colleague,   Today, Lenovo reported its fourth quarter and year-end financial performance . This annual milestone presents an opportunity to reflect on where we have been, assess our current situation and reaffirm together our commitment to achieve our goals and realize our future success.   Clearly, the past year has been the most difficult and the most challenging since our merger four years ago. Even so, we have accomplished a great deal.   Looking back on the past year, we can all remember and share with great pride the triumph of our flawless execution at the Olympic Games, as Lenovo took center stage on a global scale as never before.   I recall the many notes I received from Lenovo leaders around the world celebrating new global customer wins as our legendary Think brand continued to prove that it is the most exceptionally-engineered commercial PC in the world. I also remember the thrill and excitement of seeing our new Idea products showcased in retail and online outlets and hailed by reviewers and honored with awards as the most stylish and innovative new consumer PCs in the world.   And, I will never forget the unmatched commitment, bravery and passion that I saw from my Lenovo colleagues in the face of immense natural disaster and human tragedy. Our response to the earthquake in China – both from a business and a humanitarian perspective – was truly extraordinary. Our ability to step forward in the face of disasters around the world demonstrated that we are capable of making great contributions to our communities and to society. I am proud of our team.   Yet in recounting the year's achievements, we also must acknowledge the difficult challenges we faced and the economic realities that impacted our business worldwide. Our business has not performed well, especially over the last three quarters, and we must address these challenges directly and honestly as we set our sights on the future.   Beyond the financial results, we have had to face global restructuring, the loss of jobs for valued friends and colleagues, changes in leadership and an in-depth review of our strategic agenda. None of this has been easy, and I commend each and every one of you for the dedication and professionalism you have shown in dealing with these difficult times.   Now, as we acknowledge and look beyond how difficult the last few quarters have been, it is time for us to dedicate all of our energy, focus and effort to ensuring that the next year is much better for our company financially. This is our path forward, so that we can grow, become profitable and share the rewards that come with company success.   We have clarified our strategy. We will protect where we are strong – China and global commercial markets -- and build upon this strength for competitive advantage as the global economy recovers. We will attack where we can grow – emerging markets and in the global transactional market -- leveraging our core competencies in delivering the value and innovation that these customers demand.   We will lead the market with our premium Think products in the commercial space and innovative Idea brand in the transactional market. We will be faster and more nimble than ever, and we will strive to consistently be first to market with new products. We will be efficient in everything we do – from customer-driven R&D to marketing that focuses on generating demand.   We will implement a tightly integrated end-to-end business model that aligns our organization so that we have the speed, agility and discipline required to serve our customers, reduce our costs and beat our competition wherever we choose to compete.   And we will continue to invest in our culture, so that the spirit of entrepreneurship and commitment to trust and integrity that are at the heart of our company remain vibrant and strong worldwide.   As you explore our results, it's painfully evident that we lost money and that we also lost market share. But as you dig deeper, you will see, as I do, signs of a turnaround in China and our global commercial business. You will also see early indications that the strategic moves we made over the past year to address our cost challenges were the right moves and have already better positioned us to grow more quickly than our competition as the economy turns.   Yet, as hopeful as these signs are, they should not be seen as minimizing the formidable challenges before us. Each of us must do more, and we must do better, in order to achieve our goals. We must recapture the optimism, innovative energy and fighting spirit that have always been part of our culture and given us strength. Each employee makes a difference.   Every day, we must execute against our plans. It will take hard work and commitment. We must measure ourselves honestly, address weaknesses quickly and capitalize on opportunities with speed and passion. By doing these things, together we WILL be successful, we WILL grow our business, and we WILL win as individuals and as a company right now and well into the future.   Thank you,   Yuanqing Yang Chief Executive Officer Lenovo     In SWOT, strengths and weaknesses are internal factors. For example:A strength could be: Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service. A weakness could be: Lack of marketing expertise. Undifferentiated products or services (i.e. in relation to your competitors). Location of your business. Poor quality goods or services. Damaged reputation. In SWOT , opportunities and threats are external factors. For example: An opportunity could be: A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor. A threat could be: A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service. A word of caution, SWOT analysis can be very subjective. Do not rely on SWOT too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use SWOT as guide and not a prescription. Simple rules for successful SWOT analysis. Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity and over analysis SWOT is subjective. Once key issues have been identified with your SWOT analysis, they feed into marketing objectives. SWOT can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis . So SWOT is a very popular tool with marketing students because it is quick and easy to learn. During the SWOT exercise, list factors in the relevant boxes. It's that simple. Below are some FREE examples of SWOT analysis - click to go straight to them Do you need a more advanced SWOT Analysis? Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. its flexibility. Since SWOT analysis can be used in a variety of scenarios, it has to be flexible. However this can lead to a number of anomalies. Problems with basic SWOT analysis can be addressed using a more critical POWER SWOT . SWOT Analysis Examples A summary of FREE SWOT analyses case studies are outlined as follows (those in the table above are far more detailed and FREE!): Example 1 - Wal-Mart SWOT Analysis. Strengths - Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.Weaknesses - Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.Opportunities - To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. Threats - Being number one means that you are the target of competition, locally and globally. Example 2 - Starbucks SWOT Analysis. Strengths - Starbucks Corporation is a very profitable organisation, earning in excess of $600 million in 2004.Weaknesses - Starbucks has a reputation for new product development and creativity. Opportunities - New products and services that can be retailed in their cafes, such as Fair Trade products. Threats - Starbucks are exposed to rises in the cost of coffee and dairy products. Example 3 - Nike SWOT Analysis. Strengths - Nike is a very competitive organisation. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.'Weaknesses - The organisation does have a diversified range of sports products. Opportunities - Product development offers Nike many opportunities. Threats - Nike is exposed to the international nature of trade. Example 4 - Indian Premier League (IPL) SWOT Analysis. Where will you find the Mumbai Indians, the Royal Challengers, the Deccan Chargers, the Channai Super Kings, the Delhi Daredevils, the Kings XI Punjab, the Kolkata Knight Riders and the Rajesthan Royals? In the Indian Premier League (IPL) - the most exciting sports franchise that the World has seen in recent years, with seemingly endless marketing opportunities (and strengths, weaknesses and threats of course!). Example 5 - Bharti Airtel SWOT Analysis. Weaknesses - An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.
  • 25+ years experience in Emerging Markets, Vendor component relationships, solid ‘home base’ with fastest growing market in the world, Supply Chain, Heritage, Differentiators, multi-cultural, new world, new thinking, Innovation Leadership, Effective Business Model
  • Weaknesses – Perception, Brand Recognition, Re-organization, ER ratio, sales teams, multi-cultural
  • Opportunities – Consumer Market, untapped GEO markets, growth opportunities in emerging markets and the global transactional space, which includes consumers and SMB.
  • Threats – Economy, Industry competition, competing against mature market experience and perception of ‘America is better’
  • Advertisements Social media
  • We focus on Giving customers high user experience with innovative solutions! Human Factor Specialists Interactive Design Industrial Design Graphic & Multimedia design Mechanical Engineering Mechatronics Advanced Manufacturing Die & Mold Sociology & Anthropology
  • Today’s consumer market is a tough one. We not only need to target it, but we have to, it’s a matter of survival, not just of Lenovo, but for the whole PC industry. There is a decision going on right now, and the public – you - are the decision makers and perhaps you don’t even realize ….will it be PC or Mac in the future? Will it be Console or computer? Will it be TV or monitor? Will it be ultra portable or multiple devices? Will it be local storage or virtual storage? Will it be proximity recognition or location dependant architecture? Feature Simple or Feature Rich Increased complexity or increased simplicity Will the industry continue to rely on traditional methods of input and output, will interaction always be the same as it is and has been, or will new technologies bring forth new opportunities? <color point> Project Natal for the Xbox This question is what I imagine the entire industry is asking itself, but what is preventing us from getting there, from making all of these decisions today, right now? Well, I would love to say ‘nothing is stopping us’, because truly, if we wanted, we could make this decision, throw everything at it, and build a device for tomorrow…it could be the best thing since sliced bread, and you would love it…but what about the day after tomorrow? Is the technology changing so rapidly that we can’t keep up? Yes, and no, we can keep up, we just can’t build products utilizing every new technology that becomes available as certain ones never catch on, they are replaced by a more ‘appropriate technology’, or a ‘greater capacity’., or quite simply, the world isn’t ready for it yet. Fuel Cell batteries, - We lack infrastructure to recharge Projection computer – Gas that it is projected on is a carcinogen Organic Light Emitting Diodes – Dissolves in water or air I call this phenomenon the ‘Yin and Yang principle’ of our industry – the good and bad, the known and unknown, the decision between right and wrong. Or quite literally, success or failure. <color point> - IBM takes 3 years to make design changes – Lenovo takes 3 hours <color point> - Naitoh-san has a new outlook on what the best way to impact the industry with new technology is – by utilizing it. Lenovo has recently undergone several changes in our outlook on how to build a ‘better’ device, whether that means more ‘form’ or more ‘function’ is still to be determined, but what I do know is that it is a very exciting time for our internal team, where new ideas are coming alive as we speak, and they are bringing old ones back to life that use to be impossible. <Transition to next slide> This area, the consumer market, is a strength for Lenovo in China, but almost unheard of in the rest of the world, the good news is… <Next Slide> (We have an idea) ------------------------------------------------------------- We have bold aspirations for our transactional model (TM) because we know that replicating our success in China on a global scale will drive share growth, profitability and success across the globe. Our strategy is clear: In emerging markets, we are on the attack. Our goal is to double our TM share. In mature markets, we want to achieve moderate share growth while focusing on returning to profitability and extending the transactional model efficiently. In China, we must protect and expand our leadership position and continue to drive growth even as our competitors become more aggressive.
  • Sight , Sound, Smell, Taste, Touch – Sight – It is a beautiful product, full of color, full of energy, full of personality, but mre than that it has two technological features that involve sight: Veriface Technology & Easy
  • Associate Professor of Marketing Joann Peck ~ University of Wisconsin The study of touch in marketing is called “haptic” research. The word “haptic” comes from the Greek word hapticos, which means “able to lay hold of.” Psychologist J.J. Gibson adopted the term more than 40 years ago to refer to the active seeking and perception by the hands. There are several variables that only the sense of touch can properly assess—texture, softness, weight, and temperature. Not surprisingly, any product that can vary in these attributes is more likely to lead customers to touch before making a purchase decision. For example, you might pick up three different laptops to determine which one Is lightest for travel, The fourth type of touch has nothing to do with information gathering at all—yet it is perhaps the most critical in terms of its impact on marketing. In this type of touch, called “hedonic” or “autotelic” touch, the sensory experience of touching an object is an end unto itself. Running your hand over a cashmere blanket or holding a smooth piece of pottery in your hand—just for the sake of it—is part of the shopping experience. It’s also, we now know, closely tied to the purchasing patterns of certain kinds of consumers. See it, feel it, buy it Last summer the first-ever conference devoted to sensory marketing took place at the University of Michigan. The field is exploding as researchers consider new ways to explore the relationship between touch and perceived value, touch and taste, touch and pretty much everything imaginable. As more and more research becomes available on the importance of touch in product design, packaging, and marketing, businesses will have more information to determine the proper level of investment in tactile features. It’s clear that the age of sensory marketing has arrived—and companies will do well to pay increased attention to the role the five senses play in consumer decision-making. “New research in marketing is clearly moving toward multisensory areas,” Peck says. “It’s an exciting time to be investigating how consumers make sense of their world.” Source:
  • Sight, Sound, Smell, Taste, Touch – What’s wrong with appealing to all five? Sight – It is a beautiful product, full of color, full of energy, full of personality, Sound – with expanded sound and speaker systems engineered for true audio wound quality whether your watching a movie, listening to music, of voice chatting with friends half the world away… Smell - ? Why not, we built a phone with a receptacle in the back of it that you can pour perfume into it, and when the phone rang, the battery would heat up, and allow the scent of the perfume to drift into the air. Taste – lets look at this particular sense as one of fashion instead of dietary, and you have to admit, the product has style, has class, has panache. And lastly touch, a product truly after your heart and mind it appeals to the fingertips consciously and subconsciously by an inlaid design making it unique…
  • Whenever I have a choice I tend to buy environmentally friendly products Source: KPMG 2007 Annual National Shopping Database Survey
  • branding
  • Name of Presentation March 2005 This (refer to presentation) is our culture, it is who we are as a company, and as individuals. Its important because it impacts: How we operate How we design How we build How we brand How we sell How we serve We are approaching the New World with New Thinking. We collaborate. We mine every pocket of the organization for great ideas and better ways to do business We view the world as a whole And we work hard to be a strong global citizen NEW WORLD NEW THINKING Collaborate Globally to deliver value > R&D world sourcing New world new thinking Combine the strengths of multiple cultures > New world new thinking – act local think local be global Have roots in and embrace emerging markets > BRIC Countries - leverage base Tier 5&6, act local think local be global Be efficient and fast to market > GSC – sojourn programs Engage with open dialogue with constituencies > Social Media Marketing Use new media to have the dialogue > viral marketing – You tube, Work to enhance international understanding > act local, think local, be global Be socially responsible > greener product packaging epeat etc
  • Before I take questions I will leave you with a final thought. I think Ghandi said it best “Be the change you wish to see in this world” We do our best.
  • Monty Python in search of the holy grail
  • IAESTE stands for the International Association for the Exchange of Students for Technical Experience. IAESTE is a non-profit organization. Since its foundation in 1948, the IAESTE was able to initiate over 300.000 student exchanges. This does not only make IAESTE the exchange organization with most exchanges worldwide but also with most experience in the business! Every year approximately 7.000 student exchanges are organized. About IAESTE CHINA IAESTE CHINA is administered by Council for Practical Training and Exchange. It is part of an international association of over 80 member countries that aims: u to provide science, engineering and applied arts university students with training experience abroad relevant to their studies. u to offer Chinese employers well qualified and motivated foreign trainees. u to promote the international communication both in culture and technology for students, institutions and employers of China. Since its foundation in 2000, IAESTE CHINA has great achievement in advance the amount of exchanged students and enrollment of member employers and institutions. IAESTE CHINA is a non-profit organization supported by donation from employers, institutions and students now. More and more people get to understand the meaning of IAESTE program in the past three years and did their best to help us to maintain and develop our exchange work in China. Also we are in pursuit of the financial support from our government now. The financial status of IAESTE CHINA since year 2000 is as follows: Contribution Composition 2000 2001 2002 2003 Sponsors 80% 70% 45% 30% Volunteers - - 5% 5% Employers 20% 20% 30% 40% Students Fee - 10% 20% 20% Institutions - - - 5% More about the internship The internship position is to assist in cultural training of managers and supervisors. The intern has a flexible timetable allowing freedom to pursue personal projects or personal traveling time. Since more demands are coming from the company sides this 2008, we are organizing the students to visit one company for the duration of one month then move to another company so they can learn have more knowledge and understanding within the combinations. Benefits The student will have: The paid internship Contacts and network to managerial level executives from different companies Improve their cross cultural understanding as well as other skills (management, communication skills) Who are eligible to apply Any major students who can stay at least six weeks, who have excellent English and willingness to understand the Chinese culture are welcome to apply. Nomination package shall be sent to our office (package or e-version is acceptable) with the reference number: CHN2008-ECP- Further information can be obtained via email to: or [email_address] National Secretary: Fanfan Guo ( [email_address] ) Main Office : Executive Director: Ian Zhang ( [email_address] ) Exchange Coordinator: Venny Wang ( [email_address] ) Project Coordinator: Alix Bi ( [email_address] ) Add: Room 1405, Huaneng Union Building, No.958, Lujiazuihuan Road, Shanghai (200120), China Tel:+86-21-68866474-19 Fax:+86-21-68865310
  • Before I take questions I will leave you with a final thought. I think Ghandi said it best “Be the change you wish to see in this world” We do our best.
  • The following books are recommended by Cory Grenier to help students understand the business environment in China. Most of the authors have spent decades in China as businessmen, or journalists for newspapers and all can speak Mandarin. Disclaimer: The views and recommendations in this presentation are those of Cory Grenier and not necessarily those of Lenovo Group Ltd.
  • Yao Ying Jia Vice President, Lenovo Innovation Design Center, Beijing David W. Hill Vice President, Lenovo Corporate Identity and Design    Tomoyuki Takahashi     Design Center Manager, Lenovo Notebook Development, Japan
  • Appealing to your senses
  • Including Ordinary voting and no-voting shares
  • One of the most FAQ I get is ‘What is it like to work for Lenovo? Well, I can honestly say that it isn’t what you might expect, it’s an open and energetic environment full of new opportunities and the chance to make a difference. This is the main reason I love it so much. Now I am a little bit special in Lenovo as my office is 800sq meters of space dedicated to customers and showing them how the company operates. I am often shielded from any of the more ‘political maneuverings’ that occur in any Large Enterprise whichever country you might be working in. And I deal almost exclusively with people from other countries. It is often like my own little world here. For that reason I call myself the ‘bubble boy of Lenovo’ On the other end of the ladder I do have two reporting lines, one based in China and one in America…and you would think with two bosses it might get confusing, but my Chinese boss does not interfere with our operations and instead trusts and empowers us to make the right decisions to further our goals as a company…and my boss in America…. <click><wait> I think that says it all. For those of you that are American, no need to feel embarrassed…he is actually Canadian… unfortunately . But as you can imagine he is a pretty awesome guy despite his lack of stage presence. There are other elements about working in China that are difficult, but I wouldn’t trade the ups or the downs for anything else. The opportunity is amazing, and I recommend it to every student passing through these doors, the best school in the world is life, and the best teacher, experience. China is that experience for those of you looking for a more global perspective on business, or on life. <Next Slide>
  • 2007 USA Today/Psychology Today Poll asked business owners... It’s not just a number, it’s a reality. Even though China is slow to adopt this idea, Lenovo hasn’t been. The hiring criteria here at Lenovo is more of a global collective then it is location centric, we want people who not only represent a culture, but are also able to recognize that each culture has merits, specific advantages, and requirements that need to be met by acompany doing business internationally, and therefore, by each and every employee.
  • From Humble Beginnings Lenovo has grown relative to China’s amazing growth and expanding technological needs. <Color Point – Story - Gatehouse Analogy> In 1984 11 researchers from the Chinese Academy of Science (CAS) joined together to create a PC company with a shared vision. A vision to commercialize science and technology research results by creating a PC company for the people, built by the people. The first step in controlling our own destiny. (need wording for ‘in country’ manufacturing) With an initial capital investment of 200K RMB (Approximately $24K USD), the group of 11 set themselves up in this <bring attention to the slide> small little gatehouse outside of the CAS located in Zhong Guan Cun (a district currently referred to as ‘ China ’ s silicon valley ’ ) a Legend was born. (then referred to as New Technologies Development Company) - A company that embarked on an incredible journey to accomplish it ’ s vision, and after just over 20 years ’ of growth and development has become a multinational corporation with almost 25,000 (24,500) employees worldwide. You might have heard of it – we like to call it Lenovo. The first stage of Lenovo ’ s journey, the Start-up (or Pioneering) Era, was highly competitive. Numerous start-ups, joint ventures and multinational enterprises battled for market share. There were also many illegal smugglers selling PC hardware for cheap prices in China. <color point – Comment / Humor Point – Black Market + Shopping for Watches/iPod> Worse still during this time in China ’ s history the Government systems to support domestic businesses were outdated and underdeveloped. A bureaucracy within Customs and high import duties slowed our ability to obtain materials and discouraged international exports. Low access to foreign exchange reserves, and high taxes restricted our ability to compete. Finally, Chinese companies had to quickly learn how to compete in a newly open market. During this Stage Legend ’ s management was forced to refine its strategies to compete effectively. An enduring core value “ Trust and Integrity ” was incubated at this time so there was a ‘ zero-tolerance ’ policy for corruption within the company. <Color Point – Story about the 5 successors and the founder> Unethical actions were swiftly punished and the lessons made into case studies that were distributed to employees. We also created integrity awards to honor ethical behavior. This period shaped both our management structure and the core values of the company. It even went so far as to inspire our selling behavior. For example, in the early 90 ’ s when demand rose above supply we provided customers with higher-end models at no extra cost. Customers realized Lenovo honestly wanted to improve their daily lives through better technology. Some of the milestones during this era in Lenovo’s history include: 1984: A ‘Legend’ is Born ( Legend/Lenovo is founded) to distribute and service imported PCs 1987: Company develops the Chinese Character Insertion Card <color point – 2 Characters of my name> 1990: Launch of the first ‘Legend’ Branded PC In 1990 we stopped distributing PC products for IBM, HP and AST, and began selling our own branded units under the name “ Legend ” . This brand became well known in China and sales increased rapidly. During the years from 1990 – 1993 the company continued to gain marketshare and to simplify consumers’ lives with convenient products. 1993: Company enters the Pentium era, producing China’s first “586/Pentium” PC <Segway to Next Slide> Out of the competition of the Start-up (Pioneering) Era a small number of strong PC producers emerged. We termed this new era the ‘ PC Brand Era ’ or the ‘ Core Development Era ’ <Next Slide>
  • The development Era is marked most importantly by the vamping up of Lenovo’s Research and Development Some of the milestones during this era in Lenovo’s history include: 1994: Legend was listed on the HK stock exchange 1997: Company obtains #1 in market share in China. 1998: Sold it’s 1 millionth PC 1999: Company Invents the ‘One-Key Wonder’ Internet Access Keyboard 1999: Company became the top PC vendor in the Asia-Pacific region. 2002: Company Develops Dual Mode PC with LEOS Operating System 2003: Legend officially changes it’s name to ‘ Lenovo ’ Planning to expand internationally, Legend learned the brand-name was already registered in many countries. ‘ Legend ’ changed its name to Lenovo <Click><Legend Fade> – keeping “ Le ” from the word ‘ Legend ’ and adding “ novo ” the Latin root of the word for ‘ new ’ or ‘ innovation ’ . Effectively making the name ‘ The Legend of Innovation ’ where the Chinese name for the company 联想 ‘ Liang Shun ’ can be translated to ‘ New or The Spirit of Thinking ’ making the Chinese and English (or western) names a good fit for one another. novo : to make anew, refresh, revive, change, alter, invent de no·vo (dĭ nō ' vō, dā) adv. & adj. Over again, anew. <Segway to Next Slide> Our success and long term planning as a company during this era set the stage for the acquisition of IBM ’ s PCD business and marked the beginning of Lenovo ’ s Globalization Era . <Next Slide>
  • Global Clarity & Vision, its all about seeing the way things are going to go in the in industry and acting on them – with a plan. This is a new world , and it requires new thinking , and let’s face it, today’s IT environment is becoming more and more complicated, new ‘crit-sits’ or critical situations occur all the time, so as a company we needed to put our hearts & minds to work devising processes and methodologies (plans, practices, protocols) for coming up with solutions to these situations hopefully before they impact business. To create a ‘problem-free, worry-free ’ environment for you. When I say this I am talking about things like product innovation yes with the differentiators that make Lenovo product a better business decision, but also innovation in other areas, like in supply chain management, and delivering as a reliable global supplier, in our vender relationships and procurement, in our environmental and human resource policies, and of course in how to be the best business partner possible to our customers around the world like ( company name here ). This is the joint vision of our chairman, and our CEO and it is the foundation ( bulwark ) of how Lenovo as a company does business…. Act Local. Think Local. Inform (Be) Global. By this I mean that different countries and different companies have different needs, and in order to address these needs we first have to understand them, as a company Lenovo is committed to understanding what goes on in each country it does business, how the companies it does business with do business, and what their pain points might be so we can better focus our efforts. With the New Lenovo we also needed to bring about a newly defined mission statement <Click><Read> which aligned us perfectly for entering the global market, and enforced the key message that we are not ‘ Just another PC Company ’ . We have, and will continue to build innovative technologies, differentiators, and effective efficient business tools into our products and services. (Like IGRS, or ThinkVantage Technologies) and we will maintain focus on our long term strategy, build upon our legacy, and never be complacent in our efforts. In order to truly be a global company we are restructuring our manufacturing process, our global supply chain organization, and have created a division within the company called the ‘ COE ’ or ‘ Center of Excellence ’ to capture the ‘ best practices ’ of some of the worlds leading organizations, the ‘ Old ’ IBM PC Division and the ‘ New ’ Lenovo. What we consider our globalization Era began in…. 2004: Lenovo becomes the first ever Chinese ‘TOP’ Olympic Sponsor. 2005: Lenovo completes the acquisition of IBM’s Personal Computing Division. & builds the Innovation Center (Customer Centers) 2006: Lenovo Builds the new office complex in Morrisville, North Carolina, New manufacturing facilities in Huiyang, Shanghai and India (Pondicherry + Himachal Pradesh Expected by Aug. 2007 ) 2007: Completion of the VPro / CentrinoPro Accelerator Room A different Kind of Innovation: 2006: January – Lenovo, Google, Sun – Launch Anti-Badware group 2006: April 16 th – Full Integration into licensed versions of Windows OS 2006: December – Launched China-wide free recycling of Lenovo product 2007: February – Flex Thermo-formed Environmentally friendly, economical, full PC protection packaging – Chris Sattora <Segway to Next Slide> It is important to note the significance of our accomplishments. It is rare for a smaller company to acquire a larger one. It is rare for a company from a developing economy to acquire one from a mature economy. And it is rare for such an IT merger to be so successful. But it is not by chance that this happened, it is a result of a long term strategy, and Lenovo ’ s plan for the future. The pieces of the puzzle are finally coming together and now, in 2007 we expect to rise to even greater accomplishments, to drive home that Lenovo is making the worlds best engineered PC ’ s and that with the acquisition firmly behind us, and the departments integrated into a more efficient business organization, we are posed to expand our business, first in emerging markets, where we have 20 years of experience and can utilize our expertise to expand our brand awareness, launch the newly formed ‘ Lenovo Global Services ’ and bring to the global market the Lenovo China commercial & consumer product lines, services and innovations, setting the stage for what we believe will be a very bright future indeed. <Next Slide> Key Message: New World. New Thinking! Global Clarity & Vision… Act Local. Think Local. Inform (Be) Global.
  • Branding (Intro chart to set the stage - not a key message or theme) To capitalize on this we intend to reverse what I believe was a mistake in IBM ’ s past of removing the ‘ Think ’ line-up from the consumer marketplace and instead putting it back MARKETING/BRAND We’re delivering on our goal to build Lenovo into a strong master brand known for innovation, customer service and high quality while strengthening the Think product brand: Launched Lenovo's new global ad campaign during the Olympic Games; ads viewed by more than 27 million people worldwide Introduction of Lenovo 3000, first Lenovo-branded products worldwide Launched successful co-marketing campaigns in China with Disney, Coke and VISA Lenovo announced the launch of a new marketing and advertising campaign and other brand promotion activities with Ronaldinho in cooperation with FC Barcelona. The current FIFA1 World Player of the Year was recently named by Lenovo as a worldwide brand ambassador OLYMPICS Provided 360 hours of error-free support over 16 days, including all competitions and events during the Olympic Winter Games. Deployed 10,000 pieces of PC equipment throughout Torino Provided PC support for more than 200 competitions, including 62 in sub-zero temperatures Hosted seven Lenovo i.lounges in three Olympic Villages, averaging 1,800 athletes per day from 60 countries Lenovo customers during the Olympic Games included Visa, Bank of America, NBC and the U.S. Olympic Committee Hosted 400 customers from 30 countries worldwide Received more feature coverage than any other key technology provider We want to be known for: Innovative products, superior customer service and operational excellence; The highest standards of transparency (we believe one of the highest on the HKSE); Corporate policy best practices; A global company with global employees, global customers and global business partners.
  • David W. Hill Vice President, Lenovo Corporate Identity and Design, USA Yao Ying Jia Vice President, Lenovo Innovation Design Center, China Tomoyuki Takahashi Design Center Manager, Lenovo Notebook Development, Japan
  • When exploring the final frontier, every ounce matters. That’s why the Lenovo ThinkPad, one of the lightest and most powerful notebooks you will find, is the only PC currently certified for space flight by the National Aeronautics and Space Administration (NASA) in the United States.
  • WE DELIVER Lenovo people deliver, and we are not satisfied until we do so for our customers, our shareholders, and those who support us. Therefore, along with creating and delivering the world’s best-engineered PCs, we are also streamlining operational processes and aligning Lenovo expertise and resources globally to make us more efficient and competitive – and ultimately, more profitable. This approach and commitment is critical to Lenovo growing faster and more profitably than the PC industry.
  • We think that our strategy, products and approach to the market are important to our ability to deliver innovative products to you over the long term, because NOT EVERY COMPANY is ready for what is coming next in the global economy. The reality is … the world has changed … And it is time to rethink the world map: The worlds intellectual and consumptive center of gravity is shifting … Concentrations of population and wealth are shifting. Can ’ t cling to an outmoded, completely Western-centric point of view. Understand power growing in Asia – especially China and India. Understand influence of emerging markets around the world. We are seeing the emergence of: A bigger, more global, more sophisticated middle class … With more money to spend … A greater demand for connectedness, communications and technology … Greater competition for profit, for people, for resources. The years ahead will undoubtedly see the rise of global companies with roots in unexpected places. With knowledge, innovation, and the means to leverage them so broadly distributed, there ’ s no way to tell where the next winners will come from. That may be unsettling to defenders of the status quo, but to those with an appetite for reward and the stomach for risk, it ’ s an exciting prospect.
  • Show slides of something + something = innovation
  • Placeholder - presentation title | Date - 6 April, 2006 First, let’s look at our strategy. Simply put, there is no major change to our strategy. But we must simplify our strategy so that EVERYONE understands what we are DOING, where we are GOING and how EACH employee can help us achieve our goals. I view our strategy in very simple terms. Just like a boxer, we use our 2 hands to fight. [CLICK] First, our left hand, we use it to protect ourselves, our heart and our face, don’t allow our rivals to hit us. We must PROTECT our core businesses in China and the Global commercial markets. These businesses must be profitable for us to succeed. Second, our right hand, we use it to attack. We will ATTACK growth opportunities in emerging markets and the global transactional space, which includes consumers and SMB. Success depends on our ability to focus on execution!
  • More tha Build image : Launch Lenovo on the international scene, with emphasis on who we are and what we stand for rather than sheer brand awareness Drive business : Deliver a strong post-merger set of proof points on innovation and quality by showcasing the “mission critical” role of Lenovo technology & services at the Olympic Games n just the 16 day event – it’s a 360 day a year company investment
  • And we just completed one of the biggest IT deployments EVER! Consider the scope of our Olympic Endeavor… It began, of course, with the Torch, designed by our own global team to make an historic trip around the world. In Beijing, Lenovo was everywhere… From the airports … to the busses … to the buildings at the center of the Olympic experience. We hosted 300 customers and made a great impression… Our message: If we can bring the Olympics to life – with 30,000 pieces of equipment, 600 engineers, tens of thousands of athletes and media, hundreds of thousand of visitors and venues around China … … Imagine what we can do for YOU. We were visible online through advertising, partnerships and the first Olympic Blog platform … More than 100 athletes shared their experiences with the world using our IdeaPads and Lenovo’s i-Lounges in Beijing. And of course, we were on TV … nearly 200 times during these Games. We made a big bet. We made a bold move. We believe that our results will speak for themselves. Already, we know that we maximized our sponsorship in terms of media exposure and positive press. Our customers responded. They know more about us than ever before. Our employees are more proud and better connected with each other because of this experience.
  • The rolled-up scroll shape represents China's contribution to world culture through its invention of paper, said Yao, while the pattern of swirling clouds on the top third of the torch represents the interaction of people. "That looked like the Olympic spirit: People come together and share good experiences and look forward to the future," Yao said in an interview ahead of the unveiling. Building the Brand Worldwide – In the 2007/08 fiscal year, Lenovo will further boost its brand awareness through a new brand advertising campaign and more high visibility sponsorship activities. Lenovo became the worldwide sponsor of the Olympic Torch Relay in late April 2007. The Lenovo-designed torch, “ The Cloud of Promise ” , was chosen from more than 300 competitor themes and will be carried by torchbearers to 20 countries around the world preceding the Beijing 2008 Olympic Games.
  • 介绍要点: Key Points “ Lenovo’s Sunshine Service” is a service brand which integrates the service of presales, sales, and post-sales support. 解说词: Commentary As a sub-brand of Lenovo, “Lenovo’s Sunshine Service” centers on “One touch, Overall solution”. “ one touch” means this service will bring a new experience to customers which characterized by “professional, affinitive, timely and effective”. Once a customer contacts Lenovo by calling or browsing the website or visiting the real stops, he/she can receive and enjoy the “one stop service” “ Overall solution” is the required ability of the service platform. With the excellent management and full strength in service networks, information systems, technical support and backup performances, “Lenovo’s Sunshine Service” is able to solve any kind of problems of its clients. Besides 5000 retail stores spread throughout China, Sunshine hotline (800-810-8888) and Sunshine website ( supply customers with various services such as inquiries by call, online order, phone order, free delivery and installation. After registration, you will have your personalized profile “My Lenovo”. If you meet any problems during your usage, please log on Sunshine website or call Sunshine hotline directly. You’ll have access to “long-distance automatic restore for common troubles”, “24 hours email technical support”, “door-to-door service”. If you send the product to our repair center, you can check the status by Sunshine website or by Sunshine hotline. From the above introduction, we can conclude that no matter what kind of methods the customers use, they can enjoy our “professional, affinitive, timely and effective” service. To make this come true, we must have strong technical backup systems – “Overall solution”. Depending on advanced management skills of Lenovo, “Lenovo’s Sunshine Service” persistently input manpower and material resources into its service support system and performance management; “ Lenovo’s Sunshine Service” led the way in acquiring ISO9001 certificate in 1999; Service integration of presales, seals, and post-purchasing assures that we can offer individualized service in accordance with the requirements of different customers. Other than standard “refund, exchange, repair” service , customers can choose diverse personalized services. 3 layer technical support system, 7 regional backup component warehouses and efficient logistic operation make it possible to solve all clients’ problems effectively and in time; More than 3000 authorized engineers working in over 600 “Lenovo’s Sunshine Service” centers provide our services throughout more than 260 cities. Wherever the customers reside, they are able to receive the warm welcome from “Lenovo’s Sunshine Service”. First company passed COPC - 2000® international authentication, biggest call center in the field accomplished seamless combination of internet and phone system, speedy response to the demand of our service; Based on service process management theory, Lenovo designed a mighty information system. It can execute thorough supervision and monitoring on service processes and pre-control not remedy service processes so that it ensures the excellence of each service; Predominant management and service support in every aspect allow “Lenovo’s Sunshine Service” to have the low cost advantage. Our customers can always obtain high quality service by lower price. - Contact one point total solution – one point contact total solution to solve all your problems
  • Lenovo’s Strategy : Our aspiration is to Grow faster and more profitably than the industry by delivering the Best Engineered PCs and an unequaled ownership experience. How will we grow faster than the industry market average? Well, this will take shape through several improvements and activities, but none more important than our products and product strategy. Our Strategy has 3 Key Elements : Delight new and existing customers – (Protect and leverage our base) Highest customer satisfaction among industry peers Become number 1 in retaining customers worldwide Build a leading global brand – (Gain Marketshare in Growth Segments) Unaided awareness, consideration, and preference equal to top competitors Number 1 reputation in innovation, high quality products and service Develop a winning global team and social awareness (Develop a winning global team and social culture) Energetic entrepreneurship combining the best of East and West Ranked in Fortune Top 20 “Most Admired Companies” ---------- The New Lenovo: Strategic Aspirations Since May of 2005, the new company (New Lenovo) has been integrating and re-organizing while continuing to deliver new products and new technologies to the market. Our strategic aspirations are simple but ambitious. We will grow faster and more profitably than the industry by following these 3 simple guide points to success: Customer satisfaction is critical to growth. Good satisfaction levels are not enough. In the PC industry you have to deliver the best. We are already leaders in many countries around the world and we aim to do even better. Lenovo was little known outside of China until December 2004 when the decision to buy the IBM PC division shook the industry. Lenovo now ranks among the top 3 PC vendors. But, as might be expected, our brand name is less well known than our main rivals, Dell and HP. We want to become the most well known name in our industry. And we intend to achieve this on the basis of our strengths and our differentiators. Success also depends on having the best people , and having those people working together smoothly and efficiently. <Color Point – Story - Average age of the Lenovo Employee prior to the acquisition story> ----------------------------- As a company, we have an aspiration of: Growing faster and more profitable than the industry – this means winning against our competitors, ensures our shares become fully valued, and gives investors reason to buy and hold our shares. Delivering the best engineered PC’s is what we do…our heritage and our future . Providing unequaled ownership experience differentiates us against competitors with a customer experience that cannot be duplicated elsewhere. The Strategy that we chosen to pursue to achieve our aspiration has 3 Key Elements : Protect and leverage our base – leverage, build and protect our China and large enterprise customers. Gain share in growth markets – capturing disproportionate share in fasting growing areas (transaction customers, notebooks in mature markets, and emerging markets) is the way to grow faster and more profitably than the industry. Develop winning global team and culture – Winning depends on how we work with each other as a team to beat our competitors.
  • Lenovo identified 9 Strategic Initiatives : Our day-to–day actions to deliver on the strategy. Strategy is the roadmap, initiatives are the directions to follow. 4 Immediate Priorities to close gaps: Improve supply chain – current supply chain costs and serviceability are not competitive; aim is to close ½ of supply chain cost gap in FY ’08 and reach 95% serviceability level by end of FY’08. Return Desktop BU to profitability – we are exploring all options to help each Geo’s DT business reach breakeven or profitability by end of FY’08. Rollout Transaction Model – Full roll-out of the Transaction Business Model (successful in China and successfully piloted in India and Germany) provides basis to reach fast growing segment of SMB customers. Build Our Brand – Aims to communicate our value proposition (best engineered PC’s for every price, unequaled ownership experience) through tactics like sponsorships (NBA, Olympics), PR and advertising. 5 Other efforts to fuel future growth : 5. Install performance culture – aims to change our corporate culture and build/sustain one that helps us win as a team. 6. Extend Notebook leadership – aims to find ways for us to maintain and increase our lead over competitors for NB PCs. 7. Hyper-accelerate Services, Software & Peripherals growth – aimed at growing high margin SS&P several fold faster than growth rate we achieve with PCs. 8. Expand Relationship Model – focuses on re-establishing closer ties with large customers and explores opportunities to grow this business and profitability even more. 9. Pursue new opportunities – aims at exploring all growth areas including new routes to market (web direct/configure-to-order for PC business), and other product categories (consumer PCs, servers.)
  • The New Lenovo: Critical Success Factors Like any company targeting rapid growth in an international marketplace, we face a series of critical challenges or optimistically, ‘success factors’. For Lenovo, it was clear right from the start that cultural integration was one of the first steps to success. The marriage of Lenovo’s Chinese origins with the American roots of the IBM PC division combined two very different cultures and very different business methods. Fortunately, our respective backgrounds are complementary and our values similar,enabling us to benefit from our diversity. At the beginning: some of our people did not fully comprehend our new global position . Some had difficulty seeing beyond the boundaries of their home countries. Others saw themselves within the confines of a division of a much larger multinational corporation. Our thinking has changed dramatically. Today, all of us look beyond our own scope of work. Lenovo people understand the international impact of local decisions. We are convinced that individuals can make a difference. With this new mindset has come sharper, faster execution. As a focused PC vendor, we are becoming more dynamic, more flexible in the way we operate and satisfy customers. At the same time, we continue to perfect our operations, to ensure ongoing profitability. To enhance efficiency and reactivity to the market, we have streamlined our organization , transferring more responsibility to regional management and putting the people more in touch with one another, both virtually, and physically, by relocation. This transformation is allowing us to be more dynamic and pro-active. We not only have a greater ability to execute as a focused PC business , but we can achieve this with a speed critical for success in such a fast moving industry. Innovation and brand building are two critical success factors in generating first of all awareness and then consideration. You can have the best end to end business model, supply chain and customer satisfaction, but if nobody knows who you are, or if your products and services are no different from your competition, you will always struggle to stand out from the crowd. Extensive research and development and sponsorship of the 2008 Olympic Games in Beijing are just 2 examples of this. Finally, you cannot grow without hiring new people with new skills . As a dedicated PC company with many growth opportunities, we must address this potential, taking the best of 2 companies and adding new people with the right skills. But you cannot hire new people without growing. A catch 22 situation? Not necessarily. The solution is to not over commit on new hires, but at the same time, not ask too much of your existing employees. Let me tell you, this is a very difficult balancing act. People matter a great deal. Forgetting them would certainly be a critical failure factor.
  • Protect & Leverage our base Gain share in growth segments Foster a winning team and culture Execute against strategic initiatives Build upon base; grow core business Offer new products and services (while maintaining the core relevancy of our business) Penetrate new market segments Consumer Server Unlock additional value Outlook Confident to deliver higher than market growth Invest to drive sustained future growth Increased focus on operational efficiencies Current performance is strong. Looking ahead: We will maintain our intense focus We will build our core business by delivering the best products We will offer new products in new market segments We will find new ways to unlock value We will deliver on our strategy Grow faster than market Invest in growth Be the most efficient
  • Lcop September 9th Fuqua School Of Business Distribute

    2. 2. Lenovo Corporate Overview Leo Curtis Executive Senior Consultant Beijing, China [email_address] Lenovo Corporate Overview
    3. 3. The Three Era’s of Lenovo Start-up Era Development Era 1984 1993 2004 Globalization Era Year: 2008 1 ST Era 2 nd Era 3 rd Era
    4. 4. Lenovo Enduring Values Trust Integrity
    5. 5. 2. Hi g h Quality & Reliable Products 3. Service Excellence 1. Pioneering Lenovo Core Attributes
    6. 6. Over 2,000 Computing Patents Name of Presentation 1000+ Patents 1000+ Patents
    7. 7. Opportunity
    8. 8. Opportunity Source: IDC Q2 2009
    10. 10. Not just another PC company
    12. 13. 55 % of all PC Growth in BRIC Countries by 2010
    13. 14. “ Out of every 100 persons added to the population in the next decade… 97 will live in developing countries. ” Source: Hania Zlotnik, U.N. Chief of Population Estimates, 2005 97
    14. 15. A New World Culture Collaborate globally to deliver value Combine the strengths of multiple cultures Have roots in and embrace emerging markets Work to enhance international understanding Engage with open dialogue with constituencies Use new media to have the dialogue Be efficient and fast to market Be socially responsible
    15. 16. The Fourth Era - Worldsourcing Worldsourcing 2008 Year: Present 4 th Era
    16. 17. Fueling Future Growth: Worldsourcing Diverse global perspectives Input and ideas from everywhere Distributed decision-making No headquarters Operate in the time zone called “now” Serving markets anywhere
    17. 18. Lenovo Lives Worldsourcing… Yamato R&D China R&D Raleigh R&D Beijing
    18. 19. CHINA.
    19. 20. Worldsourcing Drives Innovative Solutions
    20. 21. Innovation Can Come From Anywhere
    21. 22. New Science in our Products Life Copy
    22. 23. Honeycomb Geometric shape
    23. 24. Learn from Nature
    24. 25. Shock Absorbing Feet - Evolution
    25. 26. Multiple Cultures Manufacturing Pondicherry, India
    26. 27. Strategy
    27. 28. clarity & vision while the future and the world around us may remain a blur, we have a goal… we have a plan
    28. 30. “ the front line”
    29. 31. <ul><li>Act Local </li></ul><ul><li>Think Local </li></ul><ul><li>Be Global </li></ul>
    30. 32. Global Sojourn Programs Supply Chain Marketing Design Virtual teams enabled by the new 3-dimensional GSC organization will exceed expectations of both internal and external customers Drive in-depth expertise and excellence through dedicated functional teams in global procurement, global manufacturing and global logistics Achieve ‘end to end’ optimization and efficiency through cross-functional teams of centralized supply/demand planning and coordinated customer fulfillment.
    31. 34. Global Supply Chain – Efficient & Fast to Deliver “ We have a great supply chain in China and now we are trying to get that same supply chain migrated across the world... ” Meeting Your Needs… Specialization E2E Responsibility Customer- Oriented
    32. 35. Branding
    33. 36. <ul><li>What does ‘brand’ mean? </li></ul>Q1
    34. 37. Are women smarter than men? … she is using the ThinkPad .
    35. 38. <ul><li>Brand </li></ul><ul><ul><li>what a customer thinks and feels about a product or company </li></ul></ul><ul><li>Principles </li></ul><ul><ul><li>every touch point establishes the brand identity </li></ul></ul><ul><ul><li>a brand’s meaning converges with reality </li></ul></ul>Page of 63
    36. 39. “ Where would we be without our imagination?”
    37. 40. ThinkPad Unleashed Campaign
    38. 42. “ ...[W]e can officially say Lenovo is continuing the ThinkPad heritage . It may be a little sleeker, a little more colorful, and a little less “IBM,” but it is still a ThinkPad ; tried and true .”
    39. 44. The next step
    40. 45.
    41. 46. Lenovo’s Brand Strategy – Key Elements
    42. 47. A New World Company The Ultimate Business Tool Rock Solid Thoughtful Design Lowest TCO <ul><ul><li>Engineered for People </li></ul></ul><ul><ul><li>Cutting Edge Capabilities </li></ul></ul><ul><ul><li>Trendsetting Design </li></ul></ul><ul><ul><li>Peace of Mind </li></ul></ul>
    43. 48. New Thinking Lenovo Brand Family Segmentation Commercial Consumer Relationship LE Transaction SMB Transaction Consumer ‘ Think’ Product Family ‘ Idea’ Product Family
    44. 49. ‘ Idea’ Brand Concept Overview Idea
    45. 50. Marketing
    46. 51. <ul><li>What are the 4 P’s of Marketing? </li></ul>Q2
    47. 52. Stop and think. How we view ourselves… Leo Curtis | © Lenovo 2009
    48. 53. How we view others… Doh’ Leo Curtis | © Lenovo 2009
    49. 54. Viral Videos Localized Marketing Social Media Product Placement
    50. 55. Saving your marriage.
    51. 57. <ul><li>What is a SWOT analysis? </li></ul>S W O T Q3
    52. 58. <ul><li>25+ years experience in Emerging Markets </li></ul>S
    53. 59. <ul><li>? </li></ul>W
    54. 60. <ul><li>? </li></ul>O
    55. 61. <ul><li>? </li></ul>T
    56. 62. Design
    57. 63.
    58. 64. Focus on Design Multi-Disciplinary Human Factor Specialists Interactive Design Industrial Design Graphics & Multimedia Design Mechanical Engineering Mechatronics Advanced Manufacturing Die & Mold Sociology & Anthropology
    59. 65. Capture the heart, and the mind will follow…
    60. 66. We have an …
    61. 67. Appeal to the senses…
    62. 68. An emerging market phenomenon you might be familiar with… The fifth sense ( haptic research )
    63. 69. Appeal to the senses…
    64. 75. Whenever I have a Choice Source: KPMG Annual National Shopping Database Survey
    65. 77. Going Green.
    66. 78. Sustainable Packaging Design
    67. 79. Be socially responsible
    68. 80. Be socially responsible
    69. 81. A New World Culture Collaborate globally to deliver value Combine the strengths of multiple cultures Have roots in and embrace emerging markets Work to enhance international understanding Engage with open dialogue with constituencies Use new media to have the dialogue Be efficient and fast to market Be socially responsible
    70. 82. Thanks for visiting Lenovo! All my best, Leo ,
    71. 83. questions
    72. 84. Lenovo Confidential | © 2009 Lenovo … my turn ;-)
    73. 85. Internship? Lenovo Contact: Nico Young [email_address] “ The world is the best classroom, and experience the best teacher.”
    74. 86. final thoughts
    75. 87. Supplemental
    76. 91. “ Lenovo is one of a handful of companies [in China] that seem to be getting it right.” - Andy Switky, Director of product design firm IDEO Shanghai; Plastic News Dec. 9, 2005
    77. 93. Shareholding Structure FY/08
    78. 94. What is it like working for Lenovo?
    79. 95. “ What trait do you consider most important when hiring a new employee?” Intelligence People who can think differently
    80. 96. Who is our biggest competitor?
    81. 101. Backup
    82. 102. The Start-up Era - Proud Heritage Humble Beginnings… 1984 - 1993 1993 1984
    83. 103. TO PUT MORE INNOVATION IN THE HANDS OF MORE PEOPLE SO THEY CAN DO MORE AMAZING THINGS. The Development Era – The Legend Continues 1994 - 2003 2003 1994 Building a Legacy…
    84. 104. TO PUT MORE INNOVATION IN THE HANDS OF MORE PEOPLE SO THEY CAN DO MORE AMAZING THINGS. Clarity & Vision… The Globalization Era – 2004 - 2008 New World. New Thinking!
    85. 106. Olympics Branding Strategy & Positioning Building a Global Brand Formula 1 Local Market Advertising NBA Pilot stores launched in HK, Germany & India
    86. 107. Lenovo Leads Industry in China for 10 Consecutive Years China PC Client Market Share* * Lenovo Data doesn’t include IBM PCD until 2005 Source : IDC Tracker 1Q07 Lenovo Dell HP
    87. 109. “ ...[W]e can officially say Lenovo is continuing the Thinkpad heritage. It may be a little sleeker, a little more colorful, and a little less “IBM,” but it is still a Thinkpad ; tried and true. ” Laptop Logic Tried and… True. True. Our Branding Strategy and Positioning…
    88. 113.
    89. 114.
    90. 116.
    91. 117.
    92. 118. The New World Landscape <ul><li>Time to rethink the world map: </li></ul><ul><ul><li>Centers of wealth, population are shifting </li></ul></ul><ul><ul><li>Bigger, more sophisticated global middle class </li></ul></ul><ul><ul><li>Greater demand </li></ul></ul><ul><ul><li>Greater competition </li></ul></ul><ul><ul><li>Winners from unexpected places </li></ul></ul><ul><ul><li>Demise of the status quo </li></ul></ul>
    93. 119. Imagination is the key to innovation
    94. 120. <ul><li>in⋅no⋅va⋅tion </li></ul><ul><li>[in-uh-vey-shuhn] </li></ul><ul><li>something new or different introduced </li></ul><ul><li>the act of innovating; introduction of new things or methods. </li></ul>Innovation
    95. 121. Or even bringing two things together to form a more productive product
    96. 122.
    97. 123.
    98. 124.
    99. 125.
    100. 126. profit focus customer focus cost focus trust operational focus 3 4 5 9 10 6 2 4 7 1 Source: McKinsey proprietary cultural survey; McKinsey analysis
    101. 127. Our Strategic Priorities
    102. 128. <ul><ul><li>Brand Equity </li></ul></ul><ul><ul><li>Business Objectives / ROI </li></ul></ul><ul><ul><li>Brand Repositioning </li></ul></ul><ul><ul><li>Internal Reward – Spirit & Motivation </li></ul></ul><ul><ul><li>Showcasing Products and Services </li></ul></ul><ul><ul><li>Altruism </li></ul></ul><ul><ul><li>Increase activity in specific geographical market </li></ul></ul>TOP Olympic Sponsorship Objectives
    103. 129. Lenovo Everywhere
    104. 132. Lenovo China: Sunshine Post-Sales Service China: Customer Service
    105. 133. Lenovo’s Commitment to Social Investiture Page of 10 The Heart of Business Lenovo commits of corporate income to its Social Investments 1%
    106. 134. Strategic Aspirations Delight New and Existing Customers Build a Leading Global Brand Develop a Winning Global Team and Culture Grow faster and more profitably than the industry by delivering the Best Engineered PCs and an unequaled ownership experience . Lenovo Strategy – 3 Key Elements What to Expect Next…
    107. 135. Install a performance culture Extend Notebook leadership Hyper-accelerate Services, Software & Peripherals growth Expand Relationship Model Pursue new opportunities <ul><li>Improve Supply Chain </li></ul><ul><li>Return Desktop Business Unit to Profitability </li></ul><ul><li>Rollout Transaction Model </li></ul><ul><li>Build Our Brand </li></ul>Lenovo Strategic Initiatives – Efforts to Fuel Future Growth What to Expect Next… Immediate Priorities to close the gaps 4
    108. 136. Lenovo – Critical Success Factors Cultural Integration Global Thinking Business Models Mindset Shift Organization Structure Speed of Execution Innovation Brand Building New Skills
    109. 137. Lenovo’s Strategy – Key Elements