Lenovo: Building a Global Brand
Submitted on: 03/29/2015
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Problem Statement: Lenovo, the largest PC maker in China, went ahead with its acquisition of the IBM Personal Computing Division in 2005.This acquisitions made Lenovo a player on the international stage, expanding operations rapidly and seeking to develop an international reputation for the Lenovo brand name. And to make it a possibility Deepak Advani, Lenovo’s chief marketing officer, mulled over a new brand architecture strategy and deduced that Synergy, hybrid branding strategy was best suited for Lenovo. Is this hybrid strategy the best alternative? SWOT Analysis
Strength: Lenovo at present ranks third in corporate sales but it shows tremendous capability for improvement due to high quality, high end products inherited from IBM. In addition, executives retained from IBM’s notebook division provide the valuable experience that a relatively new foreign player normally would not have in the corporate (especially US) market. Apart from this Lenovo’s strong China base and in-house manufacturing specialization allows for greater market share and lower marginal costs putting it in a better position for a price war. Weakness: Lenovo is a new player in the international market and thus in general, its team has less market knowledge than local experienced players in the US market like HP and Dell. Lenovo’s major weakness, however, is in the stigma associated with Chinese products and companies with a reputation for skimping on quality to achieve low costs. A customer is likely to mistrust the Lenovo brand in favor of the more well-known and trustworthy, American IBM logo. Opportunities: There has been in general a...
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