Lenovo Challenge Essay Sample

10 October 2017

What challenges did Lenovo face after the acquisition?

The rise of Lenovo is based on two factors-internal and external. Internally. China opens her market and allows personal concern turning. Externally. U. S. and Japan leads the planetary selling and fabrication scheme. China has luck to plays an of import function in this industrial windstorm. Nowadays. Chinese company could raise enormous capital from its domestic market and put in oversea concern. such as Geely Automobile acquired Volvo. Lenovo is the innovator of such investing. And Lenovo show a good illustration that Chinese company and entrepreneurs could play globally. and play reasonably.

It is merely 30 old ages that China opens her market. Although Chinese people and concern adult male have experience of planetary trading historically. the universe seems unusual after the state enduring 20 old ages war clip and 20 old ages political motion. The entrepreneurs need to larn the regulations of modern concern. And they need to larn how to run concern globally and survive from the rough competition. In amount. the capableness of the Management of Legend decides if Lenovo could last after the acquisition. It seems they did a good occupation during the last 9 old ages since 2004. at least. better than Dell. But to me. it is non good plenty.

Challenge 1: Whether Lenovo could last from the cultural and operational merge?

Answer: Yes. Due to the less channel difference ( Lenovo focuses on desktop. IBM focuses on Laptop ) . there is so less struggle in operation. Like the article cites: It is a lucifer made in Eden. And fortunately and respectfully. Lenovo adopt IBM direction without give major replacing for planetary concern. In other universes. Lenovo embrace American civilization and regulations for the company. It is wise but riskily. There are failure illustrations. such as TCL ( a Chinese transnational electronics company. In 2010 it was the world’s sixth-largest telecasting manufacturer ) went on escapades in Europe. but non rather success. The chief ground is the direction in Europe doesn’t work good with China head one-fourth.

Lenovo moves its head one-fourth to New York State. It is a cardinal point of success. Basically. I guess Lenovo learnt from TCL and don’t want to lose the control of oversea direction. ( 12 hours of clip difference between US and China ) . It will supply Management of caput one-fourth a quicker and accurate judgement based on the selling motions ( U. S. is the chief market and way of laptop gross revenues ) . And how Lenovo survived from the civilization unifying? Lenovo gives its reply: “trust the other person” . Possibly due to the long term of IBM’s investing of industry in China. or history of Lenovo’s distributing of imported computing machines. the two combined Management didn’t have excessively much problem in working together. And they have one united end: to go better.

Challenge 2: Whether the invention would decelerate down. quality would endure?

Answer: No. The invention remains an acceptable velocity to run into industrial criterion. The quality doesn’t go down. but goes up. The increasing portion of Lenovo shows that the quality is accepted by consumer in marketing wise. Right now. Lenovo push its new merchandise “Yoga” . which is a taking construct in laptop. It has touch screen. high criterion constellation. Furthermore. Yoga can be folded 180 grade to organize a tablet. Lenovo continues IBM’s taking invention in laptops. I still retrieve the commercial that a truck runs over a Think tablet. and the laptop is still working! IBM uses to be the manner of laptop. It uses to be the most sure laptop chasing by concern individual. However. Lenovo meets Steve Jobs. And the ulterior one alterations everything. Right now. iMac dominates the part. Lenovo needs a interior decorator. or a leader to construct a light weight. lasting usage laptop to vie with iMac. It takes clip. But Lenovo has to make that. Otherwise. it will stop up every bit Dell.

Challenge 3: Whether the local trade name Legend could win credence of planetary market?

Answer: Yes. The article spends a batch of paragraph on the trade name edifices. the schemes and hazards of Lenovo. It seems Lenovo did a good occupation. The replies are likewise to the first challenges. However. credence is non equal to urge. As I noticed in US market. HP. Dell. and Apple are still major participants. Maybe it is difficult for a foreign company to construct trade name value inside US comparing with domestic company. However. two things need to be done to do the alteration – a higher public presentation of laptop than industry degree ; a competitory monetary value.

Possibly it is clip to near the 4th strategy- Lexus/ Toyota scheme. If it is so difficult to draw up the whole trade name value. it is easier to construct a luxury trade name. A trade name represents luxury manner and concentrate on concern section. The trade name will be brought out to vie with iMac straight. I am non certain Think tablet is a good campaigner. But Yoga is a good measure frontward.

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