Analysis: How can Lenovo increase its competitiveness from the deal with IBM – from a strategic alliance perspective

According to Lenovo?s 2004/2005 Annual Report, Lenovo has always aspired to become a world-wide caller- turn out. However, it had encountered obstacles for its pass on expansion and development. Firstly, though Lenovo is the largest PC maker in China with more than a quarter of the tradeplace share, it does lesser clientele outside the country. Secondly, the increasing fierce competition from scrappy contrary rivals such as Dell and HP in the former(prenominal) few grades in Chinese market has put further pressures on Lenovo?s margins (Electronics News, 2005), forcing it to expand its market base. Its process straddle in 2003 lagged behind the market growth rate. Thirdly, the company in like manner suffered financial problems, earlier in the year 2004, Lenovo confessed that its performance everyplace the past three years had travel fiddling of inherent tar countenances (Burt J.,2005). Fourthly, shares of the company dropped nearly 60 per cent in 2004. and then Len ovo sees the desperate need to refine its merchandising strategy in order to maintain growth. On April 30th, 2005, Lenovo completed the landmark learnedness with IBM?s PC Division, hoping that it fuel embrace its try outed distinguish name to foster global expansion, produce credibility in foreign markets in a short time and to establish its own brand. However, an interesting stratum to talk of is that if IBM?s PC Division is so powerful, then why would IBM like to take on from this sector of business and transform into a service company instead?

IBMs PC business whole lost $258 zillion in 2003 and $139 mi llion in 2004. In less than tetrad years, I! BM lost nearly a jillion dollars selling PC (Musthaler, L., 2005). In this article, I would study how Lenovo can succeed in the field of battle where IBM failed. The marketing management progeny in the buying out would be discussed in toll of what Lenovo should do to... Good article. However, it has non yet answered the question on what is Lenovos point of differentiation? instauration? Efficiency? or both? or something else?If you want to get a full essay, order it on our website: OrderCustomPaper.com

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