Strategies for Success Lenovo

¶ … 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 brand acceptance (Kotler & Armstrong, 2014). They have proven themselves through huge success in their PC business thus no reason why they cannot replicate it in their smartphone business. The Indian smartphone market opportunity is great. Besides, the purchase of the buying behavior of the Indian consumers has evolved. The trend has dramatically changed in that the buyers are willing to provide a chance to every company. Even some brand loyalists are willing to give chances and try new technologies. Moreover, this is where Lenovo introduces the differentiation because of innovation (Qiao & Conyers, 2014). Lenovo is extremely confident that the Indian journey will enable them to repeat their success.

The pressing issue relates to Lenovo acquisition of Motorola's mobile phone business in 2014. This begs the questions, how will Lenovo handle the Motorola phones brand in India? Besides Motorola's brand, strong presence in America and engineering expertise, Lenovo has inherited an operationally challenged business (Kotler & Armstrong, 2014). Previously, Motorola has made serious losses. This remains a challenge for Lenovo on how it not only becomes a profitable global smartphone brand but also becomes the third-largest vendor by volume. Therefore, gaining a foothold and moving up the price-tiers in the smartphone segment in key subsidiary driven markets are the key to remaining profitable by balancing overall costs and generating enough scale.