Lenovo: Challenger to Leader




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

This case discusses Beijing-based multinational technology giant, Lenovo Group Limited’s (Lenovo), success story in China and its emergence as the global brand from China. In early 2013, Lenovo emerged as the clear leader in the global Personal Computer (PC) market.

Industry experts opined that the company’s success was attributable to several strategies it had adopted in China – aggressive pricing in its home market – China — and its acquisition strategy in mature markets such as Germany and Japan, made it a market leader in the global PC market.

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Issues

The case is structured to achieve the following teaching objectives:

  • Critically analyze the strategies to be adopted by Lenovo to maintain its market leadership position in the lucrative Chinese PC market.
  • Understand the issues and challenges faced by a Chinese PC company in growing its business
  • Study how Lenovo achieved a balance in catering to global customers while customizing its practices to suit the needs of its Chinese consumers.
  • Understand the strategies to be adopted by Lenovo to defend its market share in the global PC market considering the demand in the global PC industry was decreasing.
  • Analyze Lenovo’s Protect and Attack strategy.
  • Examine whether Lenovo could increase its dominance in the Chinese smartphone market and become a leading player in the Chinese smartphone market.
  • Examine the strategies Lenovo should adopt to enter and make a mark in the US smartphone industry.
  • Examine the challenges faced by Lenovo in gaining a presence in the intensely competitive US smartphone market.

Contents
Introduction
About Lenovo
Globalization Strategies
Ruling The China Market
Protect And Attack Strategy
The Results
The Challenges
Looking Ahead
Exhibit

Keywords

Lenovo, IBM, Global PC market, Chinese smartphone market, Pricing strategy, Acquisition strategy, Protect and Attack’ strategy, PC Plus strategy, Retail strategy, Globalization, Localization, Competitive advantage, Sales channels, Global brand, Brand recognition, Distribution, Brand channel, Tablets, Smartphones, Enterprise PC business, Samsung, Legend, Chinese Academy of Sciences, Smart connected devices, Apple, HP, Dell, iPhone

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