AdvertisingStrengths: * Its brand name is renowned in China and become more familiar worldwide. E. g. it is the top vendor in Asia-Pacific region, and it’s the top ten best managed PC vendors in 2000. * There are regional bases and support centres to provide sale support all over the world e. g. New York, Paris, Beijing. * It enjoys the leading position in China, which being oligopoly in the market (with a share of 34%).
* It has higher growth rate than other companies (36%, compared to market rate 16%).
It holds the no. market position in other Asian countries, proving it is a reliable brand to them. * Root of its manufacture and research is in China to save cost and operations; therefore its price is competitive to foreign competitors like Dell and HP. * It has good research facilities in Japan and US. * Its image has changed to a value-conscious PC brand from a stereotype one, i. e. it is seen as equal with leading PC brands like HP and Dell. * It has created many collectors’ items (e. g. laptop cover), making more people know its name. It acquired IBM’s PC division, making it owns 8%market share of the world’s PCs. * It will be selling IBM’s ThinkPad brand and its PC services, which enable it to push its brand name to a premier position in the global market. * It is the partner of many famous brands and ventures, e. g. American Airlines, NBA, Coca-Cola. i. e. its brand appears frequently in foreign regions and global events, to expand brand recognition. Weakness:
... advertising and brand awareness than competitors * Little brand loyalty in China * Lack of innovation in product development for China * Lack of market information ... when a multinational company is entering a new international market such as China. ” (Waller, 2012) The price must cover ... of foreign direct investment in 2007. With a current position as the world’s fourth-largest economy (in ...
* It had a low profit margin from 2002 to 2006 (2. 3% only, whilst the industry average is 2. 9%).
There might be a complex and inefficient cost composition as there was a 84. 5% drop in net profit. * It has to implement the brand transition from IBM to Lenovo, so it needs to maintain strong and consistent marketing messages for its PCs. Opportunities: * Many small and medium enterprises would like to choose Lenovo due to its penetration into offices of companies that are closely related to the government. * It is an Olympics worldwide partner, which provides technology support. Its appearance in Olympic Games helps gaining global recognition.
The global PC market was expected to grow 10 percent in 2007 * Desktop sale was proved to be the most profitable for Asia-Pacific PC market, whilst Lenovo is selling desktops. * There are emerging markets for PCs, e. g. India and small and medium enterprises. Threats: * The PC industry is intensified with strong international brands such as Apple Company, Dell, Toshiba, so Lenovo will face a keen competition. * Some small-scale competitors are providing low cost PC system; some users may switch to these cheaper PCs. Competition will be more intense due to standardization and easy accessibility of PCs, it will affect price thus profit margin of sellers, including Lenovo.
* The two closest competitors, HP and Dell, have already established themselves in the worldwide market, while Lenovo is still in progress. * HP is also providing similar technologies and services to the same group of customers as Lenovo, it enjoys benefits as a strong market leader, which is adverse to the still-developing Lenovo. * Lenovo has to face aggressive pricing by its competitors and operational issues related to US-Asia combination.