Lenovo Strategic Plan free essay sample

This thesis practices the baud five powers model theory, the value chain theory, the core competition theory and the SWOT analysis theory to analyze and study the inner and outer surroundings of Lenovo group. Company background Lenovo Group was established in 1984 in the Chinese Beijing, the company mainly produces desktop computer, notebook computer, server, printer, palmtop computer, motherboards, mobile phone and other electronic products. Is a leading global PC business, the original Lenovo and IBMs personal computer division and combination. Lenovo reelected since 1997 Chinas domestic market sales of the first, in 1994 and listed in Hongkong. Corporate positioning Associations engaged in the development, manufacture and sales of the most reliable, secure and easy-to-use technology products. Their success is the result of tireless efforts to help customers improve productivity, enhance the quality of life. Core values Customer success we are dedicated to the satisfaction and success of every customer. Innovation we pursue innovation that matters to our customers and the company, at the same time, quickly and efficiently to promote its implementation. Integrity we always trust, honesty and sense of responsibility, whether internal or external. Multiple win-wins: we promote mutual understanding, value diversity, and global perspective to look at our culture. PESTEL analysis The political environment Lenovo has strong political background and he national support. Lenovo Group was founded by Chinese Academy of science and technology investment in computing science and technology research, and the Hongkong Lenovo Inc by the Chinese Institute of science and technology of Lenovo Group and Hongkong joint venture founded. Economic environment Good economic environment, economic environment consists of factors affect consumer purchasing power and spending patterns, analysis of Chinas current economic environment, we draw the following conclusion: the financial crisis led to the economic environment of tightening, but the computer industry chain to maintain good growth trend. Social environment The social demand for products, China and the world is still great purchasing power, once the enterprise in orbit, the value of the enterprise is reflected. Technology environment Lenovo Group was founded by Chinese Academy of science and technology investment in computing science and technology research, and the Hongkong Lenovo Inc by the Chinese Institute of science and technology of Lenovo Group and Hongkong joint venture founded. Chinese Academy of Sciences, computing has more than 1800 kinds of computer professionals, strong technical strength, in the field of computer technology on behalf of the state to the highest level, known as the birthplace of China computer technology. Legal environment analysis The domestic legal support, perfect legal system Nature environment analysis. China is rich in natural resources, is conducive to the development of the manufacturing industry, traffic facilities are perfect, manufacturing centralized distribution Five powers model theory Industry potential the threat of new entrants The first is the foreign digital giants to enter the Chinese market The second is now do downstream products suppliers and retailers The third is a self-contained entrepreneurship in China PC Market The competition in the industry Industry concentration is high, growth speed, with the progress of technology, cost and not too much change All products have a clear positioning; the user is usually on the transformation of existing products. To improve the productivity of the industry The computer industry is a high profit and high risk Substitute product After Chinas entry into the WTO, foreign market to improve participation will increase the threat of substitutes for the existing professional business enterprise. The extensive use of mobile phone (Internet), reduce computer sales to a certain extent. Bargaining ability with suppliers PC is a sophisticated instrument, major CPU vendors only two, AMDINTEL, PC hard drive manufacturers have Samsung, patriotic and other main business for PC manufacturers, has weakened the bargaining power of manufacturers. Overall, most of the PC hardware are provided by the suppliers, not by the manufacturers, strong ability of PC manufacturers bargaining. But many suppliers in foreign countries, for the China PC market, local brands have obvious advantages. Bargaining ability with buyers The products’ price is cheaper, customer bargaining ability are stronger, just as Chinese domestic computer, small profits but quick turnover, the price as a competitive advantage. When it comes to high-priced products, customer bargaining ability is weak, is a price taker, but will be improved in performance and other aspects of satisfaction. SWOT analysis The strength It had gained large-scale production, reduce the cost Computer quality is high Ensure that each computer novel style, complete function Localization of strong, to adapt to market changes Has a strong sales network Excellent after sale service, high brand awareness The weakness No core technology, keep up with the trend of INTER The staff overall quality to be improved, The huge gap between the capital and the channel with the opponent Marketing means is too single, Lenovo cuts Acquisition of the IBM, the business was not fully integrated The opportunity More and more consumers buy Computer Brand computer will become fashion Home appliances to the countryside Competition, some lack of operational capacity of the manufacturers will be eliminated Application of AMD series CPU, will give the computer market live into new nourishment Application of digital technology The threat Foreign well-known computer manufacturers to establish a base in China, the competition will be more intense Acers rise Manufacturers cut one anothers throats frequent price wars The new brand computer, cause market turbulence Open market after WTO, a Foreign Company, in our country Analysis of Lenovo’s advantage novo Group has three production bases, which are located in the Beijing Shangdi, Shanghai Pudong, Guangdong Huiyang, annual production scale of 5000000 computer, realize large-scale production, reduce the cost, can resist the price war. At room temperature, high temperature test test procedures in strict accordance with the standards and technical parameters, to ensure that each factory product quality and excellent quality of computer. A huge R D syst em, ensure that every computer novel style, complete function. Localization of business to Lenovo to better understand consumer demand, adapt to market changes Has a strong sales network, and further strengthen the terminal control. By virtue of high-tech, information technology industry leading, provide cover pre-sales, sale, after sale service throughout the professional IT product service brand for its. Service to the customer to the sunlight warm, thoughtful, meticulous, omnipresent. Have a higher brand awareness. Analysis of the disadvantages of Lenovo No core technology, keep up with the trend of INTER. Company staff is numerous, the staff overall quality to be improved. Funds compared with channels and foreign competitors, there is a huge gap Marketing means is too single, difficult to move forward in the international market. Lenovo Lenovo headquarters layoffs, although that is given adjustment, but in the industry view, the profit is too low is the fundamental reason. Although the merger and acquisition of IBMs PC business, but no full integration, promote the whole development of Lenovo is not too large. Lenovo opportunity analysis The development of the domestic computer market rapidly, more and more consumers buy computer. With the improvement of peoples living level, the brand of computer will become fashion, gradually replacing assembling machine. In 2009 the government launched the home appliances to the countryside activities Competition, some lack of operational capacity of the manufacturers will be eliminated. Application of AMD series CPU, will give the computer market live into new nourishment. Application of digital technology, will be more to stimulate consumer buying computer and computer replacement Lenovo threat analysis Foreign well-known computer manufacturers (such as HP, Dell) to establish a base in China, the competition will be more intense. Acer Taiwan enterprises rise Domestic manufacturers to cut one anothers throats price war frequently cause the computer to the industry average profit rate, market price system disorder; foreign manufacturers have also joined the ranks of lower prices, has been close to the domestic manufacturers of the price, the market competition further intensified. A large number of new brand computer manufacturers have caused confusion in the market. With Chinas accession to the WTO, the market gradually opening up, foreign companies are more likely to enter the Chinese market. The policy response For Lenovo notebook product layout confusion, consumption and lack of innovation in. Lenovo notebook should integrate the ThinkPad business and Ideapad consumption in the production line, have a clear positioning, in different market increase innovation, improve the two production lines after sale service. Lenovo notebook to seize market share, blind prices reduce corporate profits, damages the high-end business machine brand awareness. Therefore Lenovo notebook with reasonable profit maximization as the goal, business and consumer the market subdivision, differentiated pricing. In order to meet the different channels, Lenovo notebook for large customer industry can build customer department, take a similar way of direct marketing Sales promotion is not enough, advertising heavily made ineffective, negative effects of two public relations crisis. So in the advertisement marketing: ThinkPad to refined style, Idea pad taken at the bombing of popularizing strategy. And to strengthen the governments relationship marketing, manufacturing media event marketing, to eliminate the negative effects of. As long as the association to cope with the market requirements, and make positive and effective countermeasures, Lenovos future will give better.