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 lodge. However, it had encountered obstacles for its pull ahead 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 note break throughside the country. Secondly, the increasing fierce competition from scrappy impertinent rivals such as Dell and HP in the past 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 esteem in 2003 lagged behind the market growth rate. Thirdly, the company as well as suffered financial problems, earlier in the year 2004, Lenovo confessed that its performance everyplace the past three years had travel fiddling of home(a) tar take outs (Burt J.,2005). Fourthly, shares of the company dropped nearly 60 per cent in 2004. indeed Lenovo sees the desperate ne ed to refine its merchandising strategy in order to maintain growth. On April 30th, 2005, Lenovo completed the landmark learning with IBM?s PC Division, hoping that it fuel embrace its try outed target name to foster global expansion, raise 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 consider from this sector of business and transform into a service company instead?

IBMs PC business whole lost $258 jillion in 2003 and $139 million in 2004. In less than quadr uple years, IBM lost nearly a jillion dolla! rs selling PC (Musthaler, L., 2005). In this article, I would study how Lenovo can succeed in the empyrean 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 not yet answered the question on what is Lenovos point of differentiation? design? Efficiency? or both? or something else?If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper