Strategic Planning For LENOVO: North South University
Strategic Planning For LENOVO: North South University
Strategic Planning For LENOVO: North South University
This report highlights Lenovo‟s ins and outs of the recent years. Lenovo is currently one
of the biggest technological company in the world. In our report we focused on the current
market trend to set strategies for Lenovo. We discussed the problems they are facing in the
industry and also the strategies currently adopting by them. This report represents the strategies it
can adopt from year 2017-2022. We recommended the corporate level, business level, functional
level and technological level strategies they can use for the betterment of the company. Also in
the report we described how they can implement those strategies successfully to become the
Under the name of Legend Group Lenovo first established their business in 1984. Its Chairman
Li Chuanzhi started the business New Technology Developer Inc. with 10 other business partner.
In 2003 Lenovo was launched under the brand Legend for further expansion. In the year 2004,
Lenovo acquired IBM‟s personal computer division by an agreement(Wang, Chu, Chen, & Kuo,
2005). Levono sponsored 2006 Winter Olympic which was held at Torino in Italy by giving
350servers, 1000 notebooks and 5000pcs desktop. This business is a multinational personal
technological company worth of $39 billion serving in more than 160 countries. They are one of
the largest PC Company(Lin, Manolis, Srinivasan, Sun, & Yang, 2008). They are committed to
build exceptional and coordinate PCs, mobile, internet devices, laptops, tablets etc. Product
innovation, strong global supply chain and effective strategy is their foundation. Its product lines
included Thinkpad for premium performance, Ideapad for diverse style and signature
performance ,and Yoga with awesome models. They also produce tablets smartphones, server
workstations and mobile internet devices. Today, becoming the market leader in a global scale is
Tangible
a) Financial Strength: Lenovo has a strong financial plot. From 2010 to 2015 they had
consistency in profit margin growth .But in 2016 they it fall a bit. (Lenovo, Annual Report,
2015-2016)
b) Physical Resources: Lenovo Group has several regional headquarters and corporate offices all
c) Human Resource: Lenovo has a huge number of skilled human work force in their
Intangible
Brand Reputation: Lenovo has a strong brand name and well reputed market position in this
industry.
Capabilities
Organizational Culture
Organizational Structure
The structure is flat and employees can share their ideas with the department heads and also has
Lenovo always try to hire people of who are creative and work in implication of new ideas and
Controlling Process
Lenovo follows a geocentric way of management and this helps them to work in better way and
Industry Analysis
Lenovo is in the Computer Hardware and Electronics industry as they are making personal
Threat of new entrants: It is very low in the personal computer industry as the industry is in
the maturity and any new comer will have to spend so much on R&D and employment that
software supplier and service suppliers, so the firms can easily switch between the suppliers.
Bargaining Power of Buyers: As the customers have more options to look for, the bargaining
cost with best quality. Firms may compete in terms of innovation, distribution channel or
services, but price competition is relatively high, and it will remain the same in future as
Threat of substitute and complements: It may be difficult for new entrants to affect but for
the substitute products, it is very easy, as products like Smartphone, Tablet etc are more
flexible and also contains most of the necessary features. So in future it can happen that
either these two industries may merge together or drastically affect each other. Forecast says
about 87% sales in 2017 will be of smart phones and tablets. So threats of substitutes in this
The Computer Hardware industry is now in a maturity stage as the growth has stopped, firms
working in this sectors have a certain amount of market share, everyone is trying to differentiate
through pricing, the competition is really high, to get more market share one has to take market
share of some other company. Lenovo started its journey on 1984 in Beijing, later it incorporated
in Hong Kong in 1988.In 2005 Lenovo bought the IBM‟s personal computer business. Soon
Lenovo introduced their laptop in the market. So Lenovo is at the maturity from 2008 and still its
Political
Lenovo has its operations and manufacturing plant in several countries and its operations and
manufacturing plants are affected by those countries' political situation. Recently Lenovo
computers faced some difficulties in China. They are accused to spying on government
officials.(Nash, 2016). On the other hand, they have also got political advantages in India as
Tamil Nadu laptop schemes helped Lenovo to become number 1 laptop brand in India.(Reporter,
2015) They maintains a good relationship with every government in order to run their operations
smoothly. If any employee of Lenovo‟s participate in politics that would be on their personal
behalf not on Lenovo‟s behalf. That‟s how they keep their political environment clean.(Lenovo,
2017)
Economical
Stable Economic condition is very important for Lenovo. As it has its operation in several
countries. Economic condition of those countries are very much affects Lenovo‟s operation.
Slow economic condition in china and the great opportunity in India has created a healthy profit
for Lenovo. Due to bad economic condition in China the sales are declining. But their sales in
other countries improved which made them number 1 pc seller in India and so on. (Sen, 2016)
Social
Lenovo considers themselves as global company and don‟t want to keep themselves in local
based company from China. But people perception toward technology is changing as they are
Technological
Lenovo is one of the leading tech giant in the world. They are continuously developing their
products by R&D and offering various kind of products and gaining competitive advantage over
other companies (Lenovo Group Ltd in Consumer Electronics (World). On the other hand
technological advancement of many operating countries like China, India and so on made them
Environmental
Lenovo is one of the most environmental friendly company. They have ISO 14001:2015 certified
environment management system (EMS). They have standard water and waste management
system, continuously fighting for climate change, packaging are recyclable and eco-friendly, and
Legal
Lenovo is affected by different countries law as it is an international brand and have to follow
every countries' laws where they are operating. They manage every legal issue a customer can
face through Lenovo Line, and runs it through strict code of conduct and legal management
SWOT Analysis
Strength
Brand Image: They are established in the world market and has well recognition and
good reputation all over the world.(Wang, Chu, Chen, & Kuo, 2005)
Strong relationship with customers. (Wang, Chu, Chen, & Kuo, 2005)
Weakness
Opportunities
Expansion Internationally: Lenovo has captured a huge market in ASIA region, and also
they have that opportunity to grab the market of Europe and USA also because, Lenovo
use the Protect and attack strategy and by this strategy they can leverage into the
international market. So in this way they can capture the Europe & USA market. Such
that they have a large customer base on the market like India, their local maker and also
Tablet Markets Growth: Lenovo has one of the highest selling rate of tablets over their
captured market, and also their demand is growing in the market. They have currently
achieved the position of 4th biggest seller. They can grab more market share of tablets by
Lenovo can sustain their growth through obtaining more plants through acquisition of
firms holding because it supports their current strategy of protect and attack.(Wang, Chu,
Threats
Cheaper products are arriving in the markets nowadays with a better outlook.(Wang,
market.(Dozier, 2015)
Rapid change and development of technology might be a threat to the Lenovo‟s market.
Lenovo's Business
Mission
To become one of the world‟s biggest personal technology companies. Lenovo wants to achieve
Personal Computers: Lead in PCs and be respected for our product innovation and quality.
Convergence: Lead the industry with an ecosystem of devices, services, applications and
Culture: Become recognized as one of the best, most trusted and most well-respected
Vision of Lenovo
To create personal devices more people are inspired to own, a culture more people aspire to join
and an enduring trusted business that is well respected around the world. This vision guides us in
pursuit of our mission to become one of the world's great personal technology companies.(our-
culture, 2017)
Lenovo's Distinctive Competencies
Lenovo's distinctive competencies come from their resources, both tangible and intangible, and
also their capabilities of manufacturing and supplying products with utmost efficiency.
1. After acquiring the personal computer division of tech giant IBM, Lenovo now has the
2. They are one of the biggest innovators in this sector, and it has only been possible
because of their intelligent minds working in the research and development sector. (Bao,
2016)
3. They have a brand value worth 4.1 billion US Dollar which comes from their goodwill,
demand, and this helps them to differentiate their products according to customers'
2. They have the lowest management cost in the industry among all other competitors doing
business in China, and for this, they have the capability to go for competitive pricing,
3. They have the most efficient way to manage their distribution process. (Liu, 2005)
Besides all these, Lenovo has designed one of the best knowledge management system in the
industry which runs based on statistics and contribution from the employees.
Competitor Analysis
The competitor of Lenovo personal computers are mainly Dell and Hp.(Lin, Manolis, Srinivasan,
Sun, & Yang, 2008). Dell is currently one of the top producer and supplier of personal computer
in the world and on the other hand Hp in now conquers the second position. Lenovo was the
biggest PC maker on 2016with 55.5 million PCs, from this shipping 3% decline from the 57
million shipped in 2015. IDC said thatLenovo has a 21.3% share of the PC market
On the other hand HP, Inc. position itself in second position whose market share is very close to
Lenovo, however, with the shipments of 54.2 million PCs in 2016 and up to 1.3% year over year.
The main strength of Dell is they offer cheap price for their personal computer and have a
strong product support. The brand name value of Dell is $7.5 billion (Jurevicius,
2013)which makes them the biggest personal computer brand in the world.
Hp maintained its second position and improving significantly over years as they are very
much efficient to launch new and innovative products. (Lin, Manolis, Srinivasan, Sun, &
Yang)
Dell updated its product line so that it can compete with other competitors in today‟s
Financial Analysis
Current ratio
2015 the current ratio of Lenovo Corporation was 0.90.(Lenovo, Annual Report, 2014-2015) In
2016, Lenovo corporation current ratio .82 (Lenovo, Annual Report, 2015-2016)and 2017
current ratio 0.81.(Lenovo, Annual Report, 2016-2017). Which seems that the company current
ratio is decreasing. Decreasing current ratio is not good for Lenovo Corporation which means
Net Profit
In 2015 Lenovo corporation net profit was 839.6 million US dollar which was satisfactory
level(Lenovo, Annual Report, 2014-2015)However, in 2016 massively decline net profit. This
happened because of acquisition of Motorola and System Xto build future growth which
increased their operating expenses. It has increased by 20% due to restructuring costs. Pc
demand has slowly decreased in 2016 which caused reducing profit and sales. However, we can
see that in 2017 net profit increased by 530.4 million US dollar.(Lenovo, Annual Report, 2016-
2017) The expense has decreased for restructuring expenses which has incurred in last year. It
Return on investment capital ratio indicate Lenovo profit earned on the capital investment. In
Report, 2014-2015) However, in 2016 the value has decreased by -0.27.(Lenovo, Annual Report,
2015-2016) This happened for generating loss in 2016 which means that the investment capital
has not effectively operated. Moreover, in 2017, Lenovo Corporation return on investment
capital increased by 10.18, which indicated that the company doing well in this year.(Lenovo,
Debt to equity
As we can see from above data, Lenovo corporation debt to equity is less than 1 which indicate
that the company are less risky in terms of leverage. But personal computer manufacturers are
not capital concentrated. Debt equity ratio is under 0.50. From the year 2015-2017, Lenovo
corporation debt to equity has increased from 0.46 to 0.92 that means they are focusing in debt.
But Lenovo Corporation has still taken relatively little which can be said that they are operating
effectively. Comparing to industry average 0.50, they should minimize it to 0.50 within
Primary Activities
Lenovo Group will finance over $1.2 billion in research and development sector over next four
years (Nekkei, 2017). They will work with Amazon.com, Google for their product improvement.
From 2007/08 to 2015/16, they have increased their investment from 229.76 million US dollar to
1491.37 million US dollar. (ETTelecom, 2017). They have research center in Morrisville,
Beijing, Shenzhen, Shanghai, Xiamen and Japan. Lenovo Group has more than 22,000 patents in
On February 7, 2017 Lenovo has developed PC manufacturing system by newly patent pending
Low Temperature Solder (Lenovo, 2017). It will conserve energy and increase consistency. The
newer tin-based method need extremely high temperatures where it can produce more
consistently. They have several manufacturing plants including the biggest one in the industry,
and customers are allowed to visit in two facilities. Lenovo is planning to produce laptop in India
besides Japan and China, as it is now 3rd leading seller of PCs in India. If it counts on market
share, it has reshaped its total chain of portfolio pointing the young and the business people. It
helps them to keep the price at competitive levels(PTI, 2016), (Location, 2017).
Lenovo is charging competitively to create balance between brand value and price. Lenovo has
elite and multi brand outlets. For this reason, Lenovo sales via E-commerce chains, modern
retail, and mostly from the huge quantities of IT and exterior shops. Typically, Lenovo runs
through network sales where suppliers are connected with each other. These suppliers in turn
give to individual retailers and channel dealers. Lenovo is concerned for producing consumer
demanded product through customer requirement. They are very good for meeting customer
needs. (Cardinal, 2016). Besides, on their adverts, they try to link between productivity and the
Lenovo is improving its PC after-sales service with its new system called „Quick Response
Time‟. By this initiative, it can assure an answer within thirty minutes when a query or complaint
will be received (Bureau, 2017). Lenovo was the pioneer to proceed after sales service on digital
platforms Customers will get a call from the Toll free number for complain or query.
Support Activities
Infrastructure
Lenovo constructs on its leading position in China to raise universally. They first introduced
their product from their China sector then launched it globally. Lenovo has constantly expanded
worldwide PC market. It is the fastest rising PC firms in the world. (aimmatul, 2012). They have
Operational centers, Research centers, Sales center and Manufacturing center in worldwide.
(Location, 2017).
Lenovo employees are using common language regardless of their location. It makes a tie that
binds their employees. They respect each other which makes the varieties of employees to
improve their culture for fulfilling the needs of their customers all over the world. (Lenovo
Human Resources Generalist Salary, 2017)Recently, Lenovo India has made favorable policy for
their employees by using title of 'Now every day is Friday.(Bureau E. , 2015). For this reason,
employees will be allowed to wear business casuals for changing the mood of employees in
workplace.
Materials Management
Lenovo believes in sustainability. For this reason, they are pretty much aware about their
shipment of product on time. So they have implemented many programs for their full supply
chain. They are using over twenty-five key indicators to identify supplier performance,
coordination, they are using Vendor managed inventory which is a unified method for retailer–
vendor management (Xu & Qi, 2013). The VMI method is used to diminish inventory and
logistics operating expenses and increase management skills and operational effectiveness.
Technology
Lenovo has established a supply chain system for their in-house system. The system
automatically transmits latest supply and demand information from sales to manufacturing and
headquarter. It helps them to monitor their overall market demand (Lan & Unhelkar, 2006)
Lenovo is using Wanquan server based on Intel frame and I2 software. Basically, Lenovo has
From our point of view, Lenovo has competitive advantages over other companies, and these are,
Lenovo has the power to go for competitive pricing and provide high quality product
The demand of the Lenovo products are less price elastic than the other competitor
product,
The customers have a good brand image and goodwill about Lenovo (Mourdoukoutas,
2015)
The wide variety of the product and one stop shopping facility across nations,
The largest production facility in the industry bought from IBM (Mourdoukoutas, 2015)
2015)
Business Model
Awareness of developing
Developing innovation.
wide range of
product by
offering array of
service.
Designing
manufacturing
and sales
distribution
across nations.
Key Resources Channels
R&D, Distribution,
marketing, Laptops
Variety of sectors,
product, Retailers,
resources,
Strong
distribution
channel.
Product development.
Recommendations to improve profitability
Lenovo is the largest Laptop producer in the world. They are currently following protect and
attack strategy by which they are becoming the best PC manufacturer in this industry. The
“protect and attack” means they are protecting their base market share which is 30% of their
sales and attacking in international market.(Roos, 2014) Internationally they are improving day
by day. But the industry is at its maturity stage, and its changing rapidly. And Lenovo‟s financial
ratios are not in their favor because their ratios are below industry average. So in order to
They need to focus more on R&D as the technology is changing rapidly. They need to go
beyond limits. Come up with new technology. This will attract customer more and
increase sales.
They are currently following VMI method in order to decrease operational expenses. So
they need to emphasize on this method more effectively which will give them more
As industry is in matured stage they can target more developing countries to operate by
Lenovo has strong brand image, quality products, low cost infrastructure, diversified product and
strong customer relationship management. This indicates they can produce quality products at a
cheaper price. But they are not taking proper advantages of their strengths. They have a high
market share but not enough. Their marketing side is too poor in their operating countries. They
need to reach more target customers and give them knowledge about their quality product and
this will push their sell more, generate more revenue and more profitability. They need to focus
on customized product besides their wide range of diversified product. Of course they should
take their opportunities as first priority by using their strength they can acquire new companies in
different countries in order to get more efficient supply towards market. As they have low cost
production and they can produce easily in that geographical area by merger or acquisition rather
than exporting products to that country. This will give them more sustainable profitability.
Overcoming weaknesses and threats
Lenovo has some weaknesses like their product is poorly designed and their brand perception in
developed countries is negative as it is a Chinese brand. In order to overcome the first weakness
they need to design their product more attractively by following people‟s perception, choice and
so on. They maintain their product quality. But people in developed countries believe about
Chinese brand and their low quality product which decrease their sale. So they need to work on
this belief of people. They can introduce trial ability of their product which will increase trust
among customers. Moreover they can educate customers about themselves, about their R&D,
production which will help customer know about Lenovo and attract more customers. Another
thing they can do is creating a Lenovo community which will get them more WOM and this will
help to gain more customers trust. On the other hand cheaper products are coming to market with
better outlook which is a great threat to Lenovo. So, in order to get rid of it they can differentiate
themselves by their distinctive competencies in the market. Another major threat is rapid changes
of technology, Lenovo has a highly efficient R&D, they need to come up with new technology in
production and product itself in order to sustain in this industry. Moreover they also should keep
track of target markets economy as continues currency value change, economical changes can be
a threat to Lenovo.
Lenovo's corporate level strategies should take measures based on the market trends of its
different business units and a proper model integrating different functional divisions.
Pushing R&D sector: Different divisions of the tech industry have become so competitive that
the bigger the innovator is, the bigger the market share it will have. Innovation can only be
possible if the R&D sector is working on full throttle. The corporate strategists of Lenovo should
fund the R&D sector aggressively so that the products are ahead of the competitors. This can
Resource Allocation: Tech industry and its different products have different markets, and the
corporate level managers should allocate resources according to the following suggestions:
PersonalComputers: Its market is on the declining stage and has B2B sales. As Lenovo has the
production unit of IBM, it should focus on differentiation. The corporate level managers should
Laptops: Laptops are user-friendly mobile version of PCs and used both by officials and
students. This market is extremely price sensitive. Therefore, the corporate level managers must
set its resources in such a way that they can go for a price war.
Tabs & Smartphone: This market is extremely competitive and frequent update of product is
necessary. For this, it needs more resources than any other sector so that it can run a strong R&D
Policies for global market: To become a bigger entity in the global market, Lenovo's corporate
1. HR policies have to change so that the best people from different sectors are working on
different parts of the globe. This will ensure a better market data set resulting in mass
3. Differentiated training programs for different parts of the globes will ensure strong teams
working around the globe, around the clock. This will result in a competitive advantage.
corporate strategy should focus of a basic unified training so that things work in the 'LENOVO
WAY'. Moreover, to keep the employees motivated, the minimum wages should be in such a
level that they get to afford the finished goods Lenovo produces.
Customer Relationship Management: Lenovo has a few customer service sectors out sourced,
which ensures lower cost structure, but this is resulting in lack of control. To co-operate with
other strategies, customer relationship management has to be top notch. This will result in long-
term profitability‟s.
The main goal of business level strategies is to position a company in the marketplace to gain the
competitive advantage. Lenovo is currently the largest laptop producer in the world but question
is will they sustain in the same position in the long run. To face the challenge in the long run
they need to bring new innovation by the R&D sector and gain competitive advantage or they
can come up with new policies for the global market. Here we will be discussing the business
level strategies that Lenovo can implement in next five years so that it supports its corporate
level strategy.
Mass Differentiation
Current market of Pc industry is so competitive and whoever introduced the latest technology in
their product, grabs the market immediately. That‟s why Lenovo should work on its R&D
department for the innovation of products having the latest technology. Lenovo can distinguish
them in the market by launching differentiated products which the competitors cannot introduce
immediately. Lenovo can gain competitive advantage by ensuring the superior reliability, better
design & features of their product. This will allow Lenovo to charge a premium price and also
helps to grow the demand of their product as well captures the market share from the
competitors.
As in the tech industry innovation of new technology is so much important to grab the market
share, Lenovo should strengthen its R&D sector. All the competitors are producing the same
product where Lenovo need to gain the competitive position by differentiated their product over
the rivals. In today‟s market people are more likely to use smaller size products but having all
kind of features, so Lenovo need to shrink the size of pc and laptops and innovate ideas to put all
the latest features on them. In the Pc market, laptop market or tab & Smartphone market Lenovo
need to come up with the latest technology so that the consumers prefers Lenovo than the other
rivals. In all sector Lenovo shouldn‟t compromise with the quality of their product which will
give them the competitive advantage. If Lenovo implement this generic level strategy in next
five years it will support the corporate level strategy and it can gain above average profitability
also.
Lenovo's functional level strategy for next five years (2017-2022) should support its corporate
and business level strategies. Here are the functional level strategies that Lenovo should follow
To win format war and gaining competitive advantages, investing in R&D section is important.
Lenovo should focus on developing R&D sector by constructing new facilities that supports
R&D sector. They should hire new employees under this sector. Their main focus should be on
mobile phone unit as its market is still growing. They should invest to develop new technologies,
features, parts for mobile phones. Though tablet market is not very interesting nowadays but a
simple push of technology can boom this market as it is the only device between a mobile and a
laptop. So, Lenovo should hire more people to think about the possible technology that can
Production Department
Lenovo's production department has a lot to do to remain competitive in the market. Being a
Chinese manufacturer, Lenovo is already enjoying a lots of benefits like cheap suppliers, cheap
workers, cheap parts for products etc. Lenovo should integrate all the advantages into action. If
their production department can utilize all these benefits and can reduce their production cost
they can beat the price sensitive Laptop market and remain competitive for the upcoming years.
So Lenovo's strategy should focus on being more efficient on utilizing their resources for
production.
Lenovo should make quasi integration with its suppliers. They should use the power of their long
term relationship with the suppliers to attract them in this integration. This will help them to
To dominate the world, it is important to have soldiers from all over the world. So Lenovo's
human resource management should hire qualified personnel from all over the world to create
diversity in the organization. This will allow them to have a diverse brainstorming system which
To give basic unified training, Lenovo should undertake training campaign where they will train
their diversified employees to enlighten them in the "Lenovo Way". This will bring unity among
the employees which can make them efficient and will help them to be self-motivated. They can
also create a training/workshop center where they will provide training to the employees based
on their need. Psychiatric consultancy to the employees can also motivate them when they are in
bad condition.
Marketing & Sales Department
Marketing & Sales department are very important for any kind of organizations. To promote
Lenovo's Smartphone in US and Europe they need to do a lot of promotions and campaign
because those market is already dominated by Samsung, apple, Huawei and few other cheap
Chinese companies. So, it will be hard for them to compete in the market. But if they can run
successful marketing campaign and create brand awareness among the consumers, they can be
successful. Lenovo already bought Motorola Mobility which is already very popular in western
market. So they should focus on the existing mobile brand motto and try to make super
service centre. Nowadays people are more interested in after-sales service; they thoroughly
investigate about this matter before buying any tech-product. So, Lenovo should establish more
service centre around the world. Online support would be another neat addition.
Lenovo needs to build its technological strategies in such a way that it coherent with the
corporate level strategies and business level strategies. First and foremost, they need to interpret
what customers will need to gain competitiveness over other companies. It will help them to
Well integrated information technology Though they have a proper inventory management
system, and other sectors use their own intra-office information technology, Lenovo still needs a
well-integrated system so that based on access level; a person in R&D can know what a customer
service operator is facing with any device. This will help in coming up with better product and
mass differentiation.
Well-designed procedure manual software should be available. It will help to maintain the
quality of customer service. In this system, a customer service provider can look into a step by
step process to guide a customer or solve problems. This software will have all the knowledge
The overall distribution management should have a state of the art IT system to know about
shipments and supply information‟s. The Lenovo should have all the detailed information about
the supply and delivery of the products so that it doesn‟t face any shortage on the stock.
Format War
The technological strategies should also be made in such a way that any customization or adding
new features to the existing products are readily available upon request of the customers. The
next generation will be much more advanced in technology and their demand will be far more
complicated. The consumers must feel that the products are creating value for them. As we see
from the corporate level and business level strategy that Lenovo should follow differentiated
strategy so they need to continuously upgrade their products. They can pursue an aggressive
pricing and marketing to win the format war or Lenovo‟s R&D department can introduce a new
technology so that the consumers adopt them immediately and kill the competing format.
No, Lenovo don‟t need any change in the company‟s governance to support my strategies. Firstly under
this CEO and governance the company is running smoothly. The company is making profit. The CEO is
well disciplined and maintains everything strictly. Which has a great impact on Lenovo‟s operation. As
the culture is well structured and maintained. After failure of previous CEO William Amelio, the
chairman Yang Yuanqing took over the position, since then the organization is going smoothly. And
under this governance this strategies will work well because of this strict monitoring and efficient work
environment.
Recommend a strategic
Lenovo is following Multi-divisional structure. This is helping them very well. Which gives them
different Division as employees can be more creative and spread them into the horizon. So the workforce
become more efficient. They can implement lean production which will help them to get economies of
scale. They can emphasize more on R&D sector in order to develop more product. Which will help them
to remain as a leader in the industry. On the other hand as the peoples demand is changing and people are
choosing more handy devices like mobile phone, Tab etc. So, they need to concentrate more on Tablet
PC, implement new design, and discover new technology. Which will help them to grab the highly
When it comes to company culture, Lenovo takes it seriously. According to them their culture is their
DNA and they call it "The Lenovo Way". The Lenovo Way is embodied in the statement: We do what we
say and we own what we do. That culture also drives how Lenovo work every day, utilizing what they
PERFORM as promised.
As the company already have a well-established company culture, we think it is not necessary to revise its
culture. In our recommended strategy, we wanted to shift the Lenovo's business from laptop industry to
mobile and tablet industry. The both industry is almost similar and their existing culture is well enough to
take the opportunities and strategies to work accordingly. So, if we want to implement any new culture
now, it may have negative effect. While employees work in a existing culture, they set their minds
according to that environment. So, when they make new products or applications, they can show their
creativity more efficiently if the culture is not touched. But if we try to change their culture now, they
might find it difficult to take their decisions which will decrease the overall company efficiency. Besides,
it takes a long time to establish a new culture in the company which Lenovo cannot afford in the
Entry mode will be merging and acquisition based. We will enter into the market by exporting our
goods and services to the local market. Nowadays exporting technological goods and services to other
countries market has less restriction. So company can easily develop their position in other countries
market.
Distribution will be totally localized. We will give the authorization to the local company so that they
shifting into tablets, mobile phone. Everyone wants their product to be highly durable and better in
performance from others. So standardization is possible in this industry by developing product durability,
performance, and other extra services. Such as; better camera resolution, battery durability, fast
performance etc.
Customer Care service will be provided by the distributor itself where their service provider will be
trained by the Lenovo‟s own service specialist. And there will be a technical personal available in
distributor service center who will provide the required information about the product and services.
Standardization the promised value, which is delivered and acknowledged by Lenovo for the ethical
External Stakeholders- we are going to focus on the external stakeholders. Which are the customer,
supplier, general user, and creditors. We are going to give them vertical integration facility to those whom
are we dealing with a long time and importing our product directly through us.
Internal stakeholders-Lenovo will integrate knowledge, information and flow management to the flow
management department. By this, Lenovo‟s integration knowledge management will be more executable
not only more authoritative, but also will practicable in feasible means. Because all the decision of posts,
flow and organization, took by management department and enjoy authoritativeness within the company.
Agency theory- Lenovo will follow agency theory because, they want to Deal with business relationship
stockholders and senior management. Their problems and decisions will be delegated from one person to
another. Before taking the decision they will consult with the stockholders and also prefer their opinion.
Lenovo will maintain a basic core of ethics. Where employee rules and regulation will be mention.
Employee will have to face standard evaluation in six months period. Also they will got bonus according
their performance.
Bibliography
4. Bao, R. (2016). WW Analytics and operation. Presentation at The Chief Data &
Analytics Officer Forum, Singapore.
5. Best Brands. (n.d.). Retrieved June 5, 2017, from Inter Brand: http://interbrand.com/best-
brands/best-global-brands/2016/ranking/lenovo/
6. Bureau, C. (2017, March 20). Lenovo enhances PC after-sales service, offers guaranteed
response within 30 minutes. Channel Drive. Retrieved from
http://channeldrive.in/lenovo-enhances-pc-sales-service-offers-guaranteed-response-
within-30-minutes/
7. Bureau, E. (2015, July 10). Now, Lenovo India relaxes dress code for employees.
Economic Times. Retrieved from http://economictimes.indiatimes.com/jobs/now-lenovo-
india-relaxes-dress-code-for-employees/articleshow/48011830.cms
8. Cardinal, D. (2016, January 14). How Lenovo is succeeding despite a shrinking market
for PCs. Extreme Tech. Retrieved from
https://www.extremetech.com/computing/221043-how-lenovo-is-succeeding-despite-a-
shrinking-market-for-pcs
9. Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
10. Dozier, B. (2015). Lenovo: Chinese multinational Computer Technology Company.
Retrieved from https://barbradozier.wordpress.com/2014/12/21/lenovo-chinese-
multinational-computer-technology-company/
11. Ekekwe, N. (2011, February 21). Beyond Core Competence. Harvard Business Review.
Retrieved from https://hbr.org/2011/02/beyond-core-competency
12. ETTelecom. (2017, April 15). Lenovo to invest over $1.2 bln in R&D into AI, IoT, to
launch Amazon Alexa-based smartphone. Economic Times. Retrieved from
http://telecom.economictimes.indiatimes.com/news/lenovo-to-invest-over-1-2-bln-in-rd-
into-ai-iot-to-launch-amazon-alexa-based-smartphone/58190206
13. Gao, F. (2015, June). Lenovo: Driving Business Success Through Innovation. WIPO.
Retrieved from http://www.wipo.int/wipo_magazine/en/2015/03/article_0002.html
15. Haselton, T. (2017, April 12). The PC market is finally picking up again, and HP is the
big winner. CNBC. Retrieved from http://www.cnbc.com/2017/04/11/pc-market-first-
growth-since-2013-idc.html
18. Lan, Y.-c., & Unhelkar, B. (2006). Global Integrated Supply Chain Systems. Sydney,
Australia: Idea Group. Retrieved from
https://books.google.com.bd/books?id=ssnpNSIM5EUC&pg=PA164&lpg=PA164&dq=p
roduction%2Binformation%2Bsystem%2Bin%2BLenovo&source=bl&ots=_Xo9OT4Pf
R&sig=WVUBCbPBkVR3nPHEKPk1EDWLEdI&hl=en&sa=X&redir_esc=y#v=onepag
e&q&f=false
19. Lenovo. (2014-2015). Annual Report. Lenovo Group Limited. Retrieved from
https://static.lenovo.com/ww/lenovo/pdf/E_099220150527.pdf
20. Lenovo. (2015-2016). Annual Report. Lenovo Group Limited. Retrieved from
https://static.lenovo.com/ww/lenovo/pdf/report/E_099220160603a.pdf
21. Lenovo. (2016-2017). Annual Report. Lenovo Group Limited. Retrieved from
https://static.lenovo.com/ww/lenovo/pdf/report/E_099220170605a.pdf
22. Lenovo. (2017). Lenovo Code of Conduct. Lenovo Group Limited. Retrieved from
https://www.lenovo.com/social_responsibility/us/en/Employee_Code_of_Conduct_Leno
vo.pdf
24. Lenovo Group Ltd in Consumer Electronics (World. (n.d.). Retrieved from
www.marketresearch.com.
25. Lin, M., Manolis, K., Srinivasan, S., Sun, B., & Yang, W. (2008). Lenovo: Competitive
Strategies for Dominance In the. Retrieved from
http://www.mcafee.cc/Classes/BEM106/Papers/2008/Lenovo.pdf
30. Mourdoukoutas, P. (2015, March 11). The Global Rise Of Lenovo. Forbes. Retrieved
from https://www.forbes.com/sites/panosmourdoukoutas/2015/03/11/the-global-rise-of-
lenovo/#61825ba7534d
32. Nekkei. (2017, April 14). BRIEF-Lenovo to invest over $1.2 bln in R&D into AI, IoT.
Reuters. Retrieved from http://www.reuters.com/article/brief-lenovo-to-invest-over-12-
bln-in-rd-idUSFWN1HM00M
34. PTI. (2016, October 3). Lenovo plans to manufacture laptops in India. Economic Times.
Retrieved from http://economictimes.indiatimes.com/tech/hardware/lenovo-plans-to-
manufacture-laptops-in-india/articleshow/54659134.cms
37. Sen, A. (2016, February 18). For Lenovo, India is the land of big bangs. The Economic
Times. Retrieved from http://economictimes.indiatimes.com/tech/hardware/for-lenovo-
india-is-the-land-of-big-bangs/articleshow/51036425.cms
38. Wang, W. C., Chu, Y. C., Chen, Y. C., & Kuo, C. (2005). The Strategic Marketing
Management Analysis of Lenovo Group. Retrieved from
http://www.jgbm.org/page/19%20Wang%20Wen%20Cheng%20.pdf
41. Xi, W., & White, S. (2004). Sequential learning in a Chinesespin-off: the case of Lenovo
GroupLimited. Blackwell Publishing Ltd. doi:10.1111/j.1467-9310.2004.00349.x
42. Xu, A., & Qi, Y. (2013). How to apply inventory management in a PC company. Thesis,
Gävle University College, Department of Industrial Development, IT and Land
management. Retrieved from http://www.diva-
portal.se/smash/get/diva2:704893/FULLTEXT01.pdf