The Lenovo Group Ltd.
The Lenovo Group Ltd. has appeared in the market recently, but dynamically and confidently. It has already gained a big niche next to the internationally known competitors. The processes of globalization, which has accompanied the company since its foundation until its modern performance, clearly shows the favorability of its products. The company owns its scientific and technological developments and possesses strong international economic relations.
The story of success of the Lenovo Company has become an example of how the original scientific and technical integration can help the company to become the largest producer of the computer equipment. Gradually, the company has been growing into the major producer of laptops and servers in the Asian region, expanding from the Chinese domestic market and mastering global sales (Sun, 2012). The first step in the globalization of production was made when the company bought the manufacturing division of IBM for $ 1.25 billion. It allowed Lenovo to sell its products through the IBMs distributors: CIS countries, Europe, USA, and Pacific region countries (Mathews, 2006). This long-term cooperation has been the impetus to the further development of Lenovo brand.
Due to the beneficial cooperation with the Japanese manufacturer NEC in 2011, Lenovo quickly entered the international market and improved its products. The further global advances of Lenovo had reached Europe, where the acquisition with the successful company Medion (Germany) representing the fields of PCs and other communication tools allowed company to capture the Western European market. The third leading position in this market segment brought the strategic plans of the company to the new level.
In 2012, Lenovo became the successful supplier of PCs in the world arena which led the company to the first place in this market. The new agreement between the Lenovo Group Ltd. and the IBM Corporation in 2014 gave the possibility to expand the companys sales. In the same year, due to a leading position in the world and the range of unique products, the company had purchased a unit of the mobile devices production owned by Google Inc. Thus, the rapid implementation of production and sales in other countries was based not only on the nature of the company, its strategic and tactical behavior, but also on its huge experience in the international business affairs.
The company focuses geographically to form the international business structure. The headquarters of the Lenovo Group Limited are located in the United States, and the units and research centers are present in China and Singapore, where the company was registered. The production covers many countries around the world. This coverage contributes to the investment policies of other countries that encourage production in their area rather than importation of the finished products. It brings not only additional savings of resources to the Lenovo Group Limited, but also reduces its costs.
The increasing power and product sales of the Lenovo Group Limited in the different markets around the world have not hampered the companys plans to enter another market. This is the essence of globalization, because this company expands its activities with the single concept and the single line of production for all segments of the regional markets (Tang, Gao & Li, 2008). Thus, it avoids additional research and production costs. However, the company is still studying the demand and the needs of consumers to build the successful business strategy and adapt the computer and communication equipment for the specific local and/or regional market.
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Using the globalization strategy, Lenovo receives higher levels of revenue due to the fact that its presence in the domestic and regional markets makes competition tougher and stimulates the reduction of prices. Nevertheless, by entering the international market, the company receives benefits in the form of a smaller number of competitors, ability to accept globalization, and the opportunity to influence the prices. In the effort to increase the production and sales of PCs, monitors, smart phones, stations, servers, and software, Lenovo established plants in Europe and Russia (Liu, 2007).
The strategy of the company is aimed at meeting the needs of consumers for high quality computers and informational and communication products. As the global company, Lenovo understands that such strategy will provide recognition, trust, and loyalty. Being successful due to the professional approach to the development and implementation of innovative technologies, Lenovo makes responsible decisions regarding business venturing and innovative projects. Managerial decisions are tested for compliance with the mission, business vision and culture (Quelch, & Knoop, 2006). Commitment to innovation, polycentric activity, reliable manufacturing and financial base allow the company adopt any innovative offer. The openness of the global company to any kind of cooperation and feedback from customers within the structure allow it to introduce new kinds of products and/or improve existing lines. Skilled and talented employees around the world are the most essential resource for Lenovo. Decisions concerning new ideas about the development and improvement of existing technologies are taken promptly and willingly. The company has administrative locations in all large territorial points of its performance, which allow to implement its global mission in the world markets. As a result, Lenovo is picking up the new ways of solving problems and/or introducing innovative initiatives.
The performance of the Lenovo Group Limited in the global computer market shows the business that is based on leadership, innovation and responsibility. The dynamics of the constant growth are ensured by the opportunities presented by globalization and conquest of the customers trust around the world. By showing its benefits to different regional market segments, Lenovo currently has access to global resources and offers consumers the ability to use modern innovative technologies.
- Analysis of Lenovo Globalization Strategy and Enlightenment to Chinese Enterprises | SUN | Canadian Social Science