Since its inception in 1984, Lenovo Group Ltd. has grown from a specialist in the distribution of imported for the largest computer company in the People’s Republic of China company s computers. Although Lenovo has managed to maintain its leadership position in the market, the competitive pressure from Dell, IBM, Toshiba and HP has increased, with the company taking great views, especially in the hands of Dell. Participate in a series of price wars to retain the consumer segment low range, Lenovo has also struggled to maintain its strength in corporate sales departments of government and Chinese schools. With the PC market is maturing rapidly in China, the main challenge was to develop a Lenovo business model that not only fight against direct sales model of Dell, but also enjoy the traditional strengths of the group. In order to meet the goal of becoming a Fortune 500 company in 2010 Group, Lenovo was looking to access international markets and explore strategies for product diversification in the local market. Lenovo’s plight highlights growing pains of many Chinese companies face in their efforts to become global players, while defending market share of their foreign competitors.
by
Yigang Pan,
Kavita Sethi
Source: University of Hong Kong
18 pages.
Date Posted: January 10, 2005. Prod #: HKU356-PDF-ENG
Lenovo: Dell combating Challenge event solution
Related Case Solutions:
Telemedicine
Jc Penny
Barclays Metals and Mining
Powell Logistics Inc.
Goddard Space Flight Center: Building A Learning Organization (B)
A Guide to Taxation and Mangement Decisions
Four star Industries Singapore
C.K. Coolidge Inc. (Abridged)
Ireland: Celtic Tiger
Charles Chocolates (B): September 2012