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  • Essay / Lenovo Case Study - 1041

    Company Focus: Internationalization of LenovoLenovo belongs to the Legend holding group of China and is the world's third largest personal computer (PC) manufacturer after Dell and HP. Lenovo is highly recognized in the domestic market for its success against well-known multinational corporations (MNCs) such as AST, Compaq, HP and IBM in the domestic market. Lenovo currently has the largest PC market share in China with around 30% of the market. under their control and recognized internationally for their acquisition of IBM's PC business in 2005, followed by the complete restructuring and change of ownership of the foreign company following the acquisition. Mergers and acquisitions (M&A) and their effects on LenovoYannan, T (2011) explained that China's entry into the WTO posed many challenges for Chinese companies, which were overshadowed by the opportunities presented to local companies to globalize. The author strongly explained the circumstances using the example of Lenovo. Lenovo's internationalization process has been accelerated thanks to China's entry into the WTO. As shown in the figure, the company has maintained a continuous process of merger and acquisition strategy to build its own brand image. A more explicit case was made in the next section of the essay on Lenovo's acquisition of IBM's PC business. Lui, C (2007), explained that Lenovo realized that it lacked several factors to go global, including a globally recognized brand, a strong global market presence, and the human talent needed to lead and manage the company. global business. Therefore, the M&A route taken by Lenovo benefited in three ways: • It was able to successfully develop an international brand • Gather manufacturing technology • Gain other international resources......mid of paper ...... top Executive, IBM Software and Systems) (Lenovo.com, 2014).• According to Phillipe de Marcillac of technology market research firm IDC, “Lenovo gets what it wants: a global presence . And IBM gets what it wants.” Lenovo's purchase of IBM's PC business ensures Lenovo's success, as its shares rose 9.44 percent. IBM, conversely, has the second largest server business with a 22.9 percent share. Therefore, IBM, through its strategic outsourcing agreements, will continue to sell and market Lenovo PCs through IBM Global Services and Lenovo, with the help of IBM, will sell its products under the name IBM (Lenovo. com. 2014).• This acquisition not only proved beneficial for Lenovo for its global entry into other countries, but also allowed both companies to achieve economies of scale with low labor cost. work, IBM focusing on other areas..