联想的国际化战略英文 lenovo's international strategy-USB迷|专注于互联网分享

2024年3月18日发(作者：沙运莱)

Lenovo’s International Strategy

Step 1:

Abstract:

In the 21st century, the globalization has become an unconvertible objective

reality and“global thinking, global acting ”has already been a rule for

multinational companies to observe. For most Chinese companies that have been

or is going to be international companies, there is only one way to become a

“visionary company” and gain lasting competitiveness : that is to involve

themselves in the globalization trend and face the challenge in the future

positively. The Lenovo Group has been an vanguard for the Chinese IT companies,

and after its acquisition of IBM PC division, Lenovo has become an important PC

manufacturer.

The purpose of this paper is to revelatory and indicative to the New Lenovo

and other companies that desire to become great global companies through deep

study of the success and failure of Lenovo’s international practices during the past

twenty years.

Introduction:

Origins:

The company was founded in 1984 by a group of eleven engineers, headed by

Liu Chuanzhi, in Beijing. Originally known as Legend Group Ltd and New

Technology Developer Incorporated, the listed holding company was incorporated

in 1988 in Hong Kong. The company had become the biggest PC manufacturer of

domestic and distributed third party products through its wholesale business.

The company underwent restructuring and separated into two entities. They

were Lenovo and Digital China Holdings Limited. Lenovo became the personal

computer manufacturer and Digital China took on the wholesale and distribution

of IT products and services.

In 2005 Lenovo purchased IBM's PC Division which transformed it into a major

international personal computer manufacturer. Lenovo paid $1.27 billion to IBM

which consisted of $655 million in cash and $600 million in Lenovo stock. As a

result of the acquisition, Lenovo gained the rights to the product lines as well as

licensed trademarks such as ThinkVision, ThinkPad, ThinkVantage, ThinkCentre,

Aptiva, and NetVista. As of May 1, 2005, IBM owned 19.9% of Lenovo.

development：

1980s

1981: IBM PCD introduces its first personal computer, the IBM PC.

1984: IBM PCD introduces its first portable computer, the IBM Portable PC,

weighing 30 pounds. With an initial capital outlay of only RMB300,000 (US$30,000)

Lenovo’s founding chairman Liu Chuanzhi, together with 10 like-minded

colleagues, launches the New Technology Developer Inc. (the predecessor of the

Legend Group) funded by the Chinese Academy of Sciences.

1986: IBM PCD announces its first laptop computer, the PC Convertible,

weighing 12 pounds.

1987: IBM PCD announces the Personal System/2 personal computer. Legend

successfully rolls out the Legend Chinese-character card.

1988: Legend’s Chinese-character card receives the highest National

Science-Technology Progress Award in People's Republic of China. Legend Hong

Kong is established.

1989: Beijing Legend Computer Group Co. is established.

1990s

1990: The very first Legend PC is launched in the market. Legend changes its

role from that of an agent for imported computer products into that of a producer

and seller of its own branded computer products. Legend PCs are ratified and

accepted by the China Torch Program.

1992: IBM PCD introduces ThinkPad series, the industry’s first notebook with

a 10.4 inch color Thin Film Transistor (TFT) display and a TrackPoint (red ball)

pointing device. Legend pioneers the home PC concept and Legend 1 + 1 home

PCs enter the Chinese marketplace.

1993: Legend enters the Pentium era, producing People's Republic of China’s

first “586” PC. Legend establishes 1+1 retail network.

1994: IBM PCD introduces the industry’s first notebook with integrated

CD-ROM, the ThinkPad 755CD. Legend is listed on the Hong Kong Stock Exchange.

The Legend PC business division is formally established.

1995: IBM PCD introduces the “butterfly” keyboard. Lenovo moves from Boca

Raton, Florida, to Raleigh, North Carolina. Legend introduces the first

Legend-brand server.

1996: Legend becomes the market share leader in China for the first time.

Legend introduces the first Legend brand laptop.

1997: IBM PCD introduces the industry’s first notebook equipped with a

DVD-ROM, the ThinkPad 770. Legend signs an Intellectual Property agreement

with Microsoft, the most valuable deal ever made in China at the time. Legend

launches the first multi-function laser printer.

1998: IBM PCD introduces the ThinkLight, a small light that illuminates the

keyboard for use in low-light work environments, such as aboard an airplane. The

millionth Legend PC comes off the production line. Intel Chairman Andy Grove

attends the ceremony, and takes the PC for Intel’s museum collection. Legend

establishes the first Legend Shop.

1999: IBM PCD introduces the industry’s first sub-notebook, weighing under

three pounds, with standard ports and a keyboard that is 95 percent the size of

full-size keyboards. Lenovo announces its exit from the retail business. IBM PCD

introduces the industry’s first PC with an embedded security chip. Legend

becomes the top PC vendor in the Asia-Pacific region, and heads the Chinese

national Top 100 Electronic Enterprises ranking. Legend launches pioneering

Internet PC, with its “one-touch-to-the-net” feature, which enables millions of

Chinese PC users to easily access the Internet.

2000s

2000: IBM PCD ships its 10 -millionth ThinkPad notebook PC. Legend becomes

a constituent stock of the Hang Seng Index - HK. Legend ranked in top 10 of

world’s best-managed PC vendors.

2001: An IBM notebook with an embedded security chip becomes the

industry’s first notebook with a security chip designed to the Trusted Computing

Group specification, an industry body setting data security standards. Legend

successfully spins off Digital China Co. Ltd., which is separately listed on the Hong

Kong Stock Exchange. Legend appoints Yuanqing Yang as President and CEO.

Legend first introduces “digital home” concept and launches

accessories-enabling PC.

2002: Lenovo PC outsourcing pact with Sanmina-SCI. Legend debuts the

DeepComp 1800 supercomputer. It is People's Republic of China’s first computer

with 1,000 GFLOP (floating point operations per second) and PRC's fastest

computer for civilian use, ranked 43rd in the Top 500 list of the world’s fastest

computers. The mobile handset joint venture announced, marking Legend’s

formal entry into the mobile handset business.

2003: Lenovo introduces a notebook with battery life up to 11 hours. Lenovo

introduces its ThinkCentre desktop PC line. IBM PCD ships its 20-millionth

ThinkPad notebook PC.

2004: IBM PCD introduces the ThinkCentre desktop PC. Lenovo ships its

100-millionth PC. Lenovo becomes an Olympic worldwide partner. Lenovo

launches the “Yuanmeng” PC series designed for home users in small villages.

Lenovo and IBM announce an agreement by which Lenovo will acquire IBM’s

Personal Computing Division, its global PC (desktop and notebook computer)

business.

2005: Lenovo completes the acquisition of IBM’s Personal Computing Division,

making the company the world's third largest computer manufacturer (after

Hewlett-Packard and Dell). Lenovo announces it closed a US$350 million strategic

investment by three leading private equity firms: Texas Pacific Group, General

Atlantic LLC and Newbridge Capital LLC. Lenovo establishes a new Innovation

Center in Research Triangle Park, N.C. Lenovo introduces the ThinkPad X41 Tablet

and Z60. William Amelio is appointed as CEO and President of Lenovo.

2006: Lenovo introduces dual-core ThinkPad notebook PCs. Lenovo supplies

the 2006 Olympic Winter Games in Torino, Italy with 5,000 desktop PCs, 350

servers and 1,000 notebook computers. The first Lenovo-branded products

outside of China debut worldwide.

2007: Lenovo introduces the ThinkPad R61 and T61 notebook PCs. These are

the first notebooks to use the new Santa Rosa platform from Intel.

2007: Lenovo announces that they are to start selling laptops to business and

consumers with Linux pre-installed on their machines.

2008: Lenovo enters the Worldwide consumer PC market with the new "Idea"

Brand. Lenovo announces 3 new IdeaPad laptops, the Y510 and Y710 desktop

replacement computers available by the end of January and the ultraportable

U110 available by March 2008

Products：

Lenovo produces desktops, laptops, servers, handheld computers, imaging

equipment, and mobile phone handsets. Lenovo also provides information

technology integration and support services, and its QDI unit offers contract

manufacturing. Lenovo also offers Internet access through its portal.

Lenovo Group Limited is the fourth largest personal computer manufacturer

in the world today, after Hewlett-Packard and Dell of the US, and Acer of Taiwan.

Its executive headquarters are located in Beijing, People's Republic of China

and in Morrisville, North Carolina, USA. It is incorporated in Hong Kong.

Step 2:

Reasons for International Strategy:

Background:

2001 to 2004, the diversification strategy which is designed by Yang (the

chairman of the board) is ultimately lost, ending up as a failure.

After strategic reflection, Yang’s final choice is the tightening strategy, and

putting the focus back to PC business. PC again become the top priority of the

conpany.

Because the capacity of the domestic market limits, as well as the intensified

competition. Internationalization is Lenovo’s inevitable choice.

Increase market share:

Since 1996, Lenovo had become the top 1 seller for 11 years in domestic

market,.In the second quarter of 2002, sales of Lenovo desktop computers became

the world's top five for the first time. Until the end of 2003 March , Lenovo Group

has been the first in Asia-Pacific market (excluding Japan) for 12 consecutive

quarters.

So, Lenovo has occupied the domestic market, Lenovo needs to open up

overseas markets, he needs a springboard to increase the market share in

worldwide.

Return on investment:

The president Liu and Mary Ma and his entourage visited London, Edinburgh,

New York, Boston, Denver,LA, made a total of more than 60 speeches to the Fund.

At the same time, Lenovo share price raise from HK $ 5.3 to HK $ 8.2. Mainly

because the major fund investors and the managers of Lenovo had deep

communication, deepen the confidence in the management of Lenovo. Investors

are very optimistic about the current situation and prospects of the Chinese

economy. So it’s important to show the foreign investors some confidence,to let

global markets to justify the capital outlays.

Economics of scale or learning:

Lenovo needs a further expand of the scale of the enterprise. The international

market is able to offer opportunities for Lenovo to share resource and technology

with other giants in the industry as well as learning experience.

Location advantage:

We have lower cost labor in China, which is a good advantage, but we are lack

of brand awareness in foreign market. And IBM ,as a PC giant in US have great

brand loyalty and the key suppliers.

Step 3:

Lenovo’s International Strategy:

Business-Level International Strategy--International Differentiation:

Brand differentiation:

In 2008,Lenovo created a new brand "idea" facing the global consumer PC

market, and the Think brand would focus more on the commercial market. Such an

action would break the Lenovo’s past plight of lacking product diversity in the

international market. Lenovo’s chairman Yang Yuanqing said that in the future

there would be only Think and idea--the two major brands in the world, other

existing sub-brand would gradually transit to the two brands. This strategy has

been very clearly shown that in the overseas market, Lenovo is planning to use the

IBM brand identity as well as Lenovo's own brand.

Given of the Lenovo brand is not yet recognized by the international market,

the implementation of the dual-brand strategy is the best choice. Early in the

integration, the brand identity of IBM played a crucial role in stabilize customers,

agents and overseas staff,.With the help of the giant IBM, Lenovo’s PC sales

increased 30%, overseas customers has also been impressed by the Lenovo brand

and good quality of computers. In foreign countries,the brand Think is a very

well-known, so Lenovo’s brand strategy in foreign markets is to enhance the

visibility, using the IBM brand to expand the international market,then Lenovo

would begin trying to dilute IBM brand g brand loyalty in the world

wide is the ultimate goal of Lenovo, diluting the IBM brand is inevitable, sooner or

later.

Product differentiation:

Product differentiation is that the corporate design a series of products to

distinguish the products of competitors’. Lenovo sell more than products, it

emphasizes the product's features. Lenovo focus on product design, research and

development and also the quality, to ensure to always stay ahead in technology, so

as to provide users comprehensive and reliable he same time

Lenovo has always been concerned about the individual needs of the user, so the

design is very fashion and unique, to meet all kinds of users’ preferences. Lenovo

also develop a variety of softwares to make PC more friendly. Lenovo gain

competitive advantage through technological innovation. Lenovo technological

innovation is divided into three stages--product technology innovation, functional

technology innovation and core technology innovation. Lenovo’s successful

differentiation strategy is based on maintaining the technological leadership

through innovation. Innovation is the core competitiveness of the enterprise,in

fact, the “novo”in Lenovo is a latin root, which means innovation.

Service differentiation:

The entire industry is restructuring from product-oriented to service-oriented ,

Lenovo is also trying to achieve innovation in all aspects, seeking service

differentiation. According to Lenovo’s policymakers, Service is the main line of

development throughout the Lenovo, is Lenovo's core values. Lenovo Benefit

much from this , after which, in the face of the new situation after the accession to

the WTO, Lenovo would do service work more practical. "They think that

technology is always impersonal, technology will only be accepted by more people

if it is developed more friendly and has emotional communication functions.

Therefore, in the final analysis, who are willing to stand at the view of consumers,

who can provide consumers best service, will firmly grasp the initiative in the

market, will finally become a truly outstanding enterprise.

In order to turn from a product-oriented to a service-oriented enterprise one,

Lenovo made a promise of “4-hour response, 48-24-hour repair”to meet the

needs of customers’quick repair, which is the first in the industry to commit repair

time vendors. To improve the quality of service of the service personnel, Lenovo

has developed a strict system of Training and auditing mechanisms, which play a

significant role in improving maintenance these methods, Lenovo

build a good image of allowing users to not only buy the best, but also receive the

best service. According to the latest market survey, over 50% of constomers

claimed that Lenovo was their first choice for a personal computer. Through these

service innovation, Lenovo is able to shape the brand and establish a differential

advantage.

Corporate-Level International Strategy--Global Strategy:

In order to shape their own international brand, Lenovo has implemented a

three-step strategy of globalization:

First:

Lenovo announced a global brand change . Legend is the English name

adopted in Hong Kong in 1988. After 19 years, the Lenovo brand name has grown

from the earliest product’s name to a brand that worth more than 600 billion

today. However, when it is to embark on a journey to become an international

brand, there comes some ing to Liu(the Chairman of the Board):

"When I established the company which was named Legend at the first time. Hong

Kong had already has many Legends, for example, in auto industry, there’s almost

dozens of Legend companies, and hundreds of Legend products "In the world,

there’s more companies named LEGEND and it is almost impossible to buy them

all. "At first, I just want to make a living, so I did not think about the international

problem." Liu said. Without a simple logo, how could Lenovo start the

international expansion, so in 2003, Lenovo global changed their brand name from

Legend to Lenovo. “Le”refer to legend, which shows the determination to make

a legendary company. “novo” is a latin root which means innovation, pointing

out the significance of creative thinking. From then,Lenovo has taken their first

step to real internationalization and the world's top 500. At that time,Lenovo and

IBM were still in secret contact. Lenovo’s acquisition of IBM PC business is still

unknown, but Liu’s determination to build a global enterprise has been set.

Second:

tthe acquisition of IBM PC paid $ 1.5 billion in cash and stock

in total in the acquisition of IBM PC business and at the same time Lenovo set up

a new joint venture company. This meant that Lenovo would promote as the

world's third-largest PC manufacturer. The acquisition range of IBM PC business

included notebook and desktop PCs. After the acquisition, Lenovo would have the

right to use IBM's famous "Think" brand! After the completion of the acquisition,

the new Lenovo Group’s global headquarters is located in New York and the main

operations centers are set up in Beijing and Raleigh (North Carolina). Two years

after the implementation of the investment strategy, Lenovo had branched in 60

countries around the world, throughout the sales network of the world's 160

countries. Lenovo now has not only the leading business notebook product,

leading R & D and leading product differentiation capacity, but also the more

powerful innovation capability and richer product mix. Lenovo and IBM formed a

long-term strategic alliance, IBM became Lenovo's preferred services and

customer financing provider and Lenovo became IBM’s preferred PC

suppliers,.So that IBM can provide a variety of PC solutions to its

overseas private investment institutions invested $ 350 million as share in the new

Lenovo Group after the merger. Lenovo stock soared all the way since issuance,

especially because Lenovo’s rising stock price-earnings ratio in the past six

months,. Its market value was almost the number of times exceed its total assets.

At that point, the Lenovo was not only international in product marketing network,

but also in the shareholding structure and financing channels.

Third:

support great international events in China(the Olympic Games and World

Expo).In march 26, 2004, Lenovo Group signed a cooperation agreement in Beijing

with the International Olympic Committee (IOC),announcing that it officially

became the sixth (2005-2008) Worldwide Partner of the International Olympic

Committee (referred to as TOP, TheOlympicProgramme). This was the first time

that a Chinese enterprise to become an Olympic top partner. Lenovo's Olympic

strategy helped Lenovo beat a lot of competitors. Lenovo also regarded "the

World Expo" as part of its planned market strategy for a long time. As early as

before the Beijing Olympics, Lenovo has begun an "Expo" project. First, this is the

responsibility as a national enterprise. Second, this was a fantastic opportunity to

demonstrate the Lenovo’s strength. It’s obvious that Lenovo never forget to pay

attention to seize the opportunity to complete its goal to build a multinational

enterprise.

Step 4:

Lenovo's Internationalization Strategy effectiveness analysis:

Beneficial effects:

 Expand the size of the the foreign markets. Increase revenue.

Lenovo has become more attractive after entering the international market.

 Promote the economies of scale and learning effects.

Lenovo’s international market expansion led a further expand of the scale of

the enterprise. The international market offered opportunity for Lenovo to

transfer its core competitiveness . it created the conditions for the resource

and knowledge sharing across borders. In addition, different markets and

different practice provided a lot of opportunity to learn.

 Make full use of the advantages of the company's capabilities and resources.

Lenovo not only establish a competitive position in the domestic market, but also

gained a competitive position in the international market.

 Disperse the business risks.

Lenovo established a wide range of market-based companies operating in

foreign markets, thus spreading the risks rather than entirely relying on the

domestic market.

 Improve the brand value .

Lenovo had become an international brand.

Adverse effects:

 Loss of customers.

After Lenovo's acquisition of IBM's PC division, a conservative expectation said

that lenovo may lose at least about $ 2 billion’s market value.

 Different corporate culture.

Lenovo and IBM has a huge difference between management and the laws of

enterprise, and how to fix it is a great challenge for Lenovo.

 Brand Risk.

Lenovo’s corporate brand need a lot of improvement in the international

market,and thinking about how to get rid of IBM’s effect is imperative.

 Sports market stategy is not very mature.

Lenovo had spent millions dollars on sport market to effectively

control its risks needs a lot of work.

Step 5:

Major risks and solutions:

Market risk:

After Think is acquired and the brand was owned by the Chinese.

Customers’brand loyalty needed attention. Lenovo had taken a lot of

measures: First, the establishment of two headquarters (in China and the United

States).

Second, ensure that the CEO is an foreigner.

Third, send 2000 IBM salemen to visit all big buyers to explain the situation.

At last, Think’s sales didn’t suffer a lot.

Staff loss:

Staff were worrying about that Lenovo’s large-scale investment would

receive less than expecting, and also were worrying about that the acquisition

would fail.

Culture conflict:

The so-called culture conflict is about how to make managers, especially top

ones work together effectively, which is one of the most fundamental factors to

decide if a company can develop financial crisis appeared, Lenovo took

a heavy loss. The surface reason for this is that the direct impact of the financial

crisis. Fundamentally, there are problems in management. So, on February 2, 2009,

the Board determined to reconstruct the months later, Lenovo not

only reached a strong growth in business above the market average, but also

achieved a good integration in team and culture.