¶ … Lenovo in India
Lenovo is a Chinese-based PC manufacturer that has developed to be the world's third largest computing firm. The company has a net profit of $520 million as per the fiscal year 2011 (Doole & Lowe, 2008). Today, Lenovo has entered the Indian market. This essay will highlight one opportunity and one issue facing Lenovo in the Indian smartphone market respectively.
A major opportunity is the growing India's smartphone market. Lenovo, one of the world's leading PC vendors, has expanded its smartphone business in the Indian market (Qiao & Conyers, 2014). This expansion is driven by increasing distribution network and new product launches. The Indian smartphone market is growing at a tremendous rate. It is projected to grow more because people are exploring more things that they do with smartphones. Moreover, the price points have come down; this is one of the factors driving the growth. In fact, Lenovo, which just entered the smartphone market in India a few months ago, is already recording growth (Qiao & Conyers, 2014).
This Beijing-based Corporation has seen an opportunity to replicate the success it has experienced in its PC business despite the intensifying rivalry. Lenovo is considered a strong, giant multinational enterprise with a powerful...
In this regard, Lin and Lin add that, "The Chinese personal computer manufacturer wanted to increase its share in Western markets. The acquisition hoisted the manufacturer from 9th place to 3rd place in terms of PCs sold. These acquisitions illustrate China's desire to spend low-cost money to acquire existing brands and distribution access, as well as securing additional outlets for other Chinese produced goods" (2008, p. 32). Planning and control. Although
According to Liao (2006), "The companies have entered into significant, long-term agreements that give Lenovo customers preferred access to IBM's world-class customer service organization and global financing offerings. This will enable Lenovo to take advantage of IBM's powerful worldwide distribution and sales network. Lenovo's customers are able to count on the entire IBM team - including sales, services and financing - for access to IBM's legendary end-to-end it solutions"
Intensity of Rivalry within the Smartphone Manufacturing Industry 1. Number and Relative Size of Competitors 1 2 3 4 5 Top 4 competitors combined industry market share <40% (X 40-50%) 50-60% 60-70% >70% The worldwide smartphone manufacturing industry is significantly competitive. The top four competitors in the smartphone manufacturing industry comprise of Samsung, Apple, Huawei and OPPO. In accordance to statistics from the 3rd Quarter of the 2016 fiscal year, Samsung
Company-specific, sales, quote and order processes, customer service, and warranty and returns KPIs all reflect financial performance, over time, for any company. By measuring these KPIs and engraining them into the company culture, Citrus can create a sustainable differentiator in exceptional performance as well. The bottom line is that Citrus must turn accountable and measurable performance into a lasting competitive advantage over the long-term. Analyzing Industry-Wide KPIs for PC Manufacturers Areas
China There are a number of key opportunities in the Chinese market. McFarlan (2008) notes that China is in the midst of a profound long-run change, opening its economy gradually in an attempt to lift its entire population out of poverty. The central government has spearheaded this process, and retains a strong guiding role in the methods by which the economy will be opened. The Chinese market is huge, so any
L billion in 2007. This growth can be seen to represent the increasing interest of Chinese firms in acquiring resources, technology and brands outside of their own country (Carpenter & Wyman, 2009). Lenovo was able to seal the deal essentially by acting like a Western firm. It did not approach the deal from the same perspective as say, the way that CNOOC did with its unsolicited bid and ultimately failed bid
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