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“MARKETING AND SALES OF LENOVO

DESKTOPS AND LAPTOPS


AND IT’S COMPETITOR ANALYSIS”

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TABLE OF CONTENTS

TOPIC Page No.

Chapter1. INTRODUCTION
 Section 1.1 PROBLEM DEFINITION
 Section 1.2 COMPANY PROFILE

 Introduction
 Ownership
 History
 Origin of Name
 Management
 Financial Analysis

 Section 1.3 RESEARCH OBJECTIVES


 Section 1.4 RESEARCH METHODOLOGIES
 Section 1.5 LIMITATIONS

Chapter2. LITERATURE REVIEW


 COMPUTER INDUSTRY IN INDIA
 MARKETING OF LENOVO
 BRAND MARKETING OF LENOVO

Chapter 3. FINDINGS
 MARKET PLAYERS
 PRODUCT OFFER
 COMPETITOR ANALYSIS
 DATA INTERPRETATION AND ANALYSIS

Chapter 4. SUMMARY OF FINDINGS

Chapter 5. CONCLUSION & SUGGESTIONS

BIBLIOGRAPHY

Appendix (Questionnaire)

INTRODUCTION

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Problem Definition

Reviewing and analyzing data collected on the PC market and


management context and on the existing site conditions and facilities
should allow the overall shortcomings of the present system to be
identified. The types of analysis that can be attempted will be limited by
the availability of data, but should include, at least, a description of the
existing market channels and an overall idea of the volume of trade that
is passing through an existing market or might pass through a proposed
market.

Due to the wide range of the laptops and upcoming advance technology it
becomes a very difficult task to collect information on a particular range
of product in the market.

COMPANY PROFILE

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Lenovo Group Limited (simplified Chinese: traditional Chinese: pinyin:
Liánxiǎng

Lenovo strives to be a new world company that makes award-winning PCs for
Lenovo’s customers. We operate as a company uninhibited by walls or
organizational structures using worlds Lenovo’scing to harness the power of
innovation across Lenovo’s global team. We design innovative and exciting
products and services to meet Lenovo’s customers’ needs.

A new world company .


Lenovo, a new kind of PC company, defies geographic and organizational
boundaries on a global scale:

 We develop, produce, and deliver Lenovo’s products across 6 continents

 Lenovo’s global company has no single corporate headquarters Lenovo’s


American CEO is based in Singapore, Lenovo’s Chinese Chairman
works from North Carolina

Lenovo’s Competitive Spirit


.
Lenovo’s
thirst for excellence extends from Lenovo’s products to Lenovo’s sponsorships.
Lenovo is proud to show the world we value the spirit and ideals of competitive
sports as a sponsor partner of Vodafone McLaren Mercedes Formula One
Racing.

WorldsLenovo’scing
WorldsLenovo’scing is Lenovo’s answer to globalization. Lenovo’s strategy
unleashes the power of innovation across Lenovo’s global team.
WorldsLenovo’scing dramatically differs from outs Lenovo’scing, the original
globalization model. With outs Lenovo’scing, developed markets manage
innovation, marketing, and general management, while low-cost emerging
markets manage raw materials, labor, and manufacturing.
WorldsLenovo’scing means Lenovo’sces, opportunities, and ideas can be
found everywhere around the world ...

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We locate hubs of excellence where they create the most value. Lenovo’s hubs
enable us to solve customers’ needs with outstanding products. We can then
deliver these products expediently and efficiently thanks to Lenovo’s supply
chain and logistics.

How Lenovo practices worlds Lenovo’scing?

.
Lenovo’s “innovation triangle” is a strategy and structure which enables
innovation to deliver real results. .

Lenovo believes WorldsLenovo’scing fuels innovation, resulting in award-


winning PCs for Lenovo’s customers. Lenovo’s Thinkpad brand remains at the
heart of this business model. Let’s look at how it works:

 ThinkPad customer research and product planning happens in the US

 Market-leading notebook hardware designs come from Yamato, Japan.

 The team in China builds and tests ThinkPad products.

 Finally, we ship ThinkPads to every region of the world.

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Solving real customer challenges
For Lenovo’s Think line of products, we focus Lenovo’s R&D efforts on
solving challenges companies face: managing their PC population efficiently,
realizing a low total cost of PC ownership, and protecting valuable data from
theft and damage. For Lenovo’s Idea line of products, we focus on individual
and small business customer needs such as superior audio experience, personal
data protection, and a entertainment environment.
Lenovo translates this market knowledge into these innovative product features
in Lenovo’s Think line:

 Design features, like the spill-resistant keyboards with a liquid drain hole,
protect ThinkPads from accidental spills

 Reliability features like magnesium roll-cage technology and one-button


system recovery on Lenovo’s ThinkPad notebooks ensure data protection.

 Productivity features like the ThinkVantage Productivity Center simplify daily


tasks such as wireless connectivity, driver upgrades, and password protection.

 Energy-efficient “green” systems meet EPEAT Gold and EnergyStar 4.0


standards.

 Security features like chassis intrusion detection, fingerprint reader login,


embedded security chip, and USB enable/disable switches to protect data and
assets from theft or damage.

 Cutting edge personal data protection with VeriFace™ faces recognition


software and integrated camera. Dolby© Home Theater™ premium audio
system offering theater-like sound.

An elegantly designed, centralized Multimedia Control Center for simplified


control of media In today’s economy, Lenovo believes customers judge
companies solely by the level of value they deliver to customers worldwide.
Therefore, Lenovo promises customers and partners to deliver award-winning
PCs with an unequalled ownership experience.

Jítuán Yǒuxiàn Gōngsī SEHK: 0992, OTCBB: LNVGY) is mainland China's


largest and the world's third largest personal computer manufacturer (the latter

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since its 2005 purchase of IBM's PC division), after Hewlett-Packard and Dell
of the U.S. and Acer of Taiwan.

Lenovo produces desktops, laptops, servers, handheld computers, imaging


equipment, and mobile phone handsets. Lenovo also provides information
technology integration and support services, and its QDI unit offers contract
manufacturing.

Its executive headquarters are located in Beijing, China and in Morrisville,


North Carolina, USA. It is incorporated in Hong Kong.

Ownership

As of October 31, 2008, 50.4% of Lenovo is owned by public shareholders,


42.3% by Legend Holdings Limited, 6.6% by Texas Pacific Group (TPG
Capital), General Atlantic LLC and Newbridge Capital and 0.7% by the

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directors. Because the Chinese Academy of Sciences, a Chinese government
agency, owns 65% of Legend Holdings, effectively the Chinese government
owns about 27% of Lenovo and is the largest shareholder. [6]

IBM became the owner of 18.9% of Lenovo in 2005 as part of Lenovo's


acquisition of the IBM personal computing division. Since then IBM has
steadily lowered its shareholding in Lenovo. In July 2008 the IBM
shareholding went below the 5% reporting disclosure threshold. In February
2009 the CEO Bill Amelio was replaced with Yang Yuanqing.

History

Lenovo was formed in 1984 as a spin-off of the Chinese Academy of Sciences


new technology unit. The company initially began as a reseller, distributor and
later CM for foreign brands, including IBM, entering the Chinese market. In
1990, Lenovo started to manufacture its own PCs and by 1997 became the
market leader in China. In 2004, Lenovo made the strategic choice to expand
abroad and bought IBM’s PC business for $1.25billion in order to facilitate this
transition. The acquisition of IBM’s ThinkPad brand represented a shortcut to
brand building for Lenovo and provided the firm with an unprecedented global
presence and access to new technologies and designs.

Company history

1980- IBM PCD introduces its first personal computer, the IBM PC

1981- IBM PCB introduces its first personal computer, the IBM PC

1984- IBM PCD introduces its first portable computer, the IBM Portable
PC, weighing 30 pounds.

1985 - With an initial capital outlay of only RMB200,000, (US$25,000)


Lenovo’s founding chairman Liu Chuanzhi, together with 10 like-minded
colleagues, launches the New Technology Developer Inc. (the predecessor of the
Legend Group) funded by the Chinese Academy of Sciences.

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1986 - IBM PCD announces its first laptop computer, the PC Convertible,
weighing 12 pounds.

1987 - IBM PCD announces the Personal System/2 personal computer.


Legend successfully rolls out the Legend Chinese-character card.

1988 - Legend’s Chinese-character card receives the highest National


Science-Technology Progress Award in China. Legend Hong Kong is
established.

1990 - The very first Legend PC is launched in the market. Legend


changes its role from that of an agent for imported computer products into that
of a producer and seller of its own branded computer products. Legend PCs are
ratified and accepted by the China Torch Program.

1994 - IBM PCD introduces the industry’s first notebook with integrated
CD-ROM, the ThinkPad 755CD.

1999 - IBM PCD introduces the industry’s first mini-notebook, weighing


under three pounds, with standard ports and a keyboard that is 95 percent of full-
size.

2002 - Legend launches its first technological innovation convention,


“Legend World 2002,” which opens up Legend’s “Technology Era”. Legend
introduces its visionary concept for the future of technological development and
applications, its Collaborating Applications project, as well as its strategies for
implementing Collaborating Applications
2004 - Renovo and IBM announce an agreement by which Lenovo will
acquire IBM’s Personal Computing Division, its global PC (desktop and
notebook computer) business. The acquisition forms a top-tier (third-largest)
global PC leader.

2005 - Lenovo announces the closing of a US$350 million strategic


investment by three leading private equity firms: Texas Pacific Group, General
Atlantic LLC and Newbridge Capital LLC
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2006 - Lenovo technology flawlessly supports the 2006 Olympic Winter
Games in Torino, Italy, supplying 5,000 desktop PCs, 350 servers and 1,000
notebook computers. Lenovo also hosts seven Internet i.lounges for use by
Olympic athletes and visitors.

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