External analysis of Lenovo

Macro Analysis: - PEST model analysis - opportunities and threats

Micro Analysis: - Customer - Industry

Macro Analysis

Political
1. Government encourage global business 2. China joined WTO 3. Government helps the industries increase the production and interest.

Economic
Positive : 1. In 2008, the GDP increased 2. the IT market becomes bigger 3. US dollar decreaseeasy to enter to America IT market 4. Low cost, can corporation with IBM Negative: Influence by the economic crisis Market expending fee is costly

Society culture
China aspect 1. The population growth 2. the education level has increased & high demand 3. a huge market for Lenovo 4. The social culture of China 5. Adjust culture to match IBM Global aspect 1. The population growth 2. The education level has Increased & high demand 3. The globalization affection

Technological
Positive :

Negative: 1. Lenovo Lack of core PC skill but IBM PC skill is high for laptop 2. Lack of innovation of new products, eg, Apple products 3. The personal computer is replaced by such as ipad in U.S.

1. Many scientists worked in Lenovo 2. In 2004, Lenovo purchase IBM, technology transfer 3. The communications costs and increased technology

Legal
1. The government encourages legal power 2. The government encourages apply scientific management method 3. Give the award to the organizations to achieved or beyond the international standard

Ethical
1. The increased of education level. 2. Build a good reputation 3. Faith and good service

Opportunities
China aspect 1. China joined WTO 2. Lenovo Purchasing IBM open global market 3. Specialty shops providing one stop platform for distribution Global aspect 1. Fast growing international market 2. Increasing global demand 3. Import barrier

Threats
China aspect 1. Competitive rivalry that exist in PC market globally 2. New entrants to the market 3. Exposed fluctuations in currency market world wide 4. High competition Global aspect
1. Competition threats from local and international competitor 2. Price war and mature market 3. US economy and the dropping value of the dollar 4. International competitors forming alliance with local competitors 5. Threat of price competition with clone PC makers

Micro Analysis
Customer Analysis Consumer Expectations-low Consumer perceptions-low Industry Analysis Five forces analysis Competitor attributes: Dell, HP of PC Supplier substitute: Accer Buyer
COMPETITIVE RIVALRY

Five forces analysis

Potential entrants

Threat of entrants power is small

Suppliers Bargainin g power is strong

COMPETITIVE RIVALRY (strong)

Buyers Bargainin g power is strong

Threat of substitutes is strong Substitutes

Global market share

External analysis Outcome

Market share Asia market: market share 35.5% in china America market: market share 7.5% Europe market: on first 5th Global market: DELL 12.0%, Lenovo 13.7%, HP 18.1% Outcome: Lenovo has its market and customer, but still need to improve cohesive ability for global market.