Introduction:
Lenovo is an innovative, international technology company now. After the acquisition of IBM’s personal computer business, it has become a new leader in the global PC market. Lenovo’s aims are to let customers achieve their goals for productivity in business and enhancement of personal life. Although the company becomes more competitive and globalize, it still faces lots of threats and risks. Hence, a SWOT analysis (Swot analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues.) is used to explain the complex situation which Lenovo is facing.
Strengths:
? Lenovo has a considerably strong domestic PC market share. During the year 2004 and 2005, the market share for PC products reached 27 and 26 percent respectively, which was more than double of the second vendor, Founder. Technical innovation made the significant contribution, and also the close relationship with the Chinese government.
? Establish the customer-oriented sales model. Lenovo built a network comprising 110 sales zones spanning 18 regions in China, which allowed Lenovo to meet customer needs more efficiently and to improve its control of customer information.
? Implementation of an effective customer segmentation strategy. This strategy ensured Lenovo to meet the demands by modifying its product lines. For instance, the computer series of Tianjiao is for the high-end consumer market and the series of Yuanmeng is for the poor consumers at the affordable prices.
? The dominant competitiveness in its mobile handset business. Lenovo’s mobile handset unit shipment jumped 63 percent year-over- year by building its sales ...