International strategic alliance between lenovo and ibm

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International strategic alliance between lenovo and ibm

  1. 1. LENOVO AND IBM
  2. 2.    An strategic alliance is an agreement for cooperation among two or more independent firms to work together toward common objectives. It is a collaboration with aim of synergy where each partner hopes for greater benefit than as individual efforts. When firms of different company alliance together it is called international strategic alliance.
  3. 3.  Enables to gain competitive advantage in new economy  Grow and expand more quickly and efficiently  Learning from partners and developing competencies that may be more widely exploited elsewhere  To get benefits from established channels of distribution , marketing, brand reputation etc
  4. 4. ALLIANCE BETWEEN LENOVO AND IBM
  5. 5.    Lenovo Group Limited is a Chinese multinational technology firm with headquarters in Beijing, China It sells personal computers, tablet computers, Smartphones, workstations, servers, electronic storage devices, IT management software and smart televisions Lenovo has operations in more than 60 countries and sells its products in around 160 countries and has now become the 3rd pc provider in the world.
  6. 6.    IBM is an American multinational technology and consulting c orporation headquarter in New York, United States manufactures and markets computer hardware and software, and offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology
  7. 7.    ALLIANCE: December 8th, 2004 VISSION: to develop and deliver industry specific, integrated technology solutions for enterprises, small and mid-market businesses and individuals AGREEMENT: The agreement aligns Lenovo's expertise in building the best engineered personal computers with IBM's extensive IT services and technology capabilities
  8. 8.    Meet the business needs of clients in industries such as healthcare, financial services, education, retail and government IBM market and sell Lenovo PCs through IBM Global Services and its strategic outsourcing deals. Through this agreement, customers will now have the opportunity to include the purchase of Lenovo’s best engineered PCs within the context of their overall technology solutions.
  9. 9.  Lenovo had little business outside the country  The increasing fierce competition from aggressive foreign rivals such as Dell and HP  Both the companies was financial problems  Shares of the Lenovo dropped nearly 60 per cent in the year 2004
  10. 10.  Lenovo intended to expand its business globally  Lenovo needs a well-developed worldwide distribution network  IBM’s presence in the world’s fastest growing IT market  China is a tough nut to crack especially for outsiders
  11. 11.    FINANCIAL ASPECTS-the pressure from the market leader Hewlett-Packard and Dell and low confidence of the shareholders BRANDING-‘Lenovo’ name is almost unknown outside of China, it is hard for marketers to build an international brand from scratch CULTURAL CLASHES- The differences can be caused from the different corporate cultures or national cultures.

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