Consumer Behavior Through Website Analysis of Lenovo
Loading...
Files
Date
2020-09-30T06:29:53Z
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Executive summary Lenovo, the largest PC business in China faced the intensified competition of its own market by global level companies such as HP and Dell. In attempt to expand the market internationally, Lenovo made the acquisition of IBM’s PC division. Since two organizational cultures were different, the synergy of the merged Lenovo-IBM was required. Lenovo entitled to IBM landmark and “Think” products to move to international market and enabled to increase the market power by over night after the acquisition. Together with IBM sales forces and distribution expertise, Lenovo employed it cost-efficiency and technology expertise in respond to the global demand. Moreover, it allows Lenovo to gain market power and rapid growth in the global level by the acquisition. Essentially, sale activities, distribution network and services and solutions which IBM focuses in global level could benefit Lenovo in the future prospect.
From IBM’s PC division point of view, acquisition also required large amount of funds which could quickly boost the losses of IBM’s PC division of nearly $ 1 billion since 2001. Furthermore, it also provided the opportunity for IBM to enter Chinese market and focused more on services while manufacturing function Lenovo could cope with very well. Although two different companies have the similar focus and vision in terms of consumers-oriented and full range of services, they are quite different in internal level and their business. Problems identification after acquisition
, one of the problems that Lenovo - IBM faces is the organizational culture. Essentially, when two culture - different firms are formed, this could lead to the difficulty after integration. Potential reasons are firstly the differences in target market where Lenovo focuses on Low-end market trying to achieve the cost leadership, while IBM targets High-end market offering the innovation, good quality products and service.
Description
Keywords
Adhesh Dheeraj, 1NH18MBA03