Lenovo: Sustaining the Global Market Leadership
By: Ronald Lau
This case provides students an opportunity to learn how to assess the competitiveness and profitability of the global computer industry through the SWOT analysis framework. By analyzing the…
- Length: 18 page(s)
- Publication Date: Sep 14, 2021
- Discipline: Strategy
- Product #: ST104-PDF-ENG
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This case provides students an opportunity to learn how to assess the competitiveness and profitability of the global computer industry through the SWOT analysis framework. By analyzing the effectiveness of Lenovo's business growth strategy, enabled by a dual supply chain approach for achieving both responsive and efficient objectives, students will also understand how Chinese companies can successfully transform themselves from operating merely as an OEM to OBM with a recognized global brand.
Learning Objectives
After analyzing the case, students will be able to:
Understand the implications of the smiling curve for a company to develop capabilities both upstream (design and development) and downstream (marketing and brand) in the supply chain
Apply the SWOT analysis to assess the competitiveness and profitability of the computer industry
Develop a competitive strategy that leverages the global supply chain opportunities and manufacturing excellence to counter the shortening product life cycle of computer products
Discuss the transformation of many Chinese manufacturing companies from OEM to ODM and eventually OBM in order to create a global brand
Discuss how Lenovo has successfully avoided the many geopolitical issues and sanctions imposed on many Chinese technology companies
Sep 14, 2021
Discipline:
Geographies:
China, Europe, Hong Kong SAR, United States
Industries:
Electronics manufacturing
The Hong Kong University of Science and Technology
ST104-PDF-ENG
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Lenovo: A Case Study on Strengthening the Position in the European Market Through Innovation
- First Online: 30 January 2016
Cite this chapter
- Franz Josef Gellert 2 , 3
1 Citations
Lenovo is a Chinese company operating in the computer and ICT area with great success in its domestic market. The product range is spread over computers (laptops) as well as smartphones for private and for professional users. Lenovo’s strengths are the high quality of electronic devices, ease of use, and selling the devices for an acceptable and fair price. The supply chain of Lenovo is very strong and effective as well as efficient. Lenovo and its specific product segments can become a world brand. The increase in sales and market shares was achieved by mergers and acquisitions which are limited by nature. So, it might be a challenge for Lenovo, when the time is ripe, to further develop its business with its own resources.
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Ahrens, N., & Zhou, Y. (2013). Chinas Competitiveness. Myths, Reality and Lessons for the United States and Japan . Case Study: Lenovo, CSIS, Center for Strategic & International studies; Washington.
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Gellert, F.J. (2016). Lenovo: A Case Study on Strengthening the Position in the European Market Through Innovation. In: Segers, R. (eds) Multinational Management. Springer, Cham. https://doi.org/10.1007/978-3-319-23012-2_6
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Fortifying with partner experience
- Call for Change
- When Tech Meets Human Ingenuity
- A Valuable Difference
- Meet the Team
Call for change
In the enterprise computing market, the dominant channel of distribution for manufacturers comes through indirect business channels. Lenovo got over 80% of its revenue through its partners, but they noted the company’s challenges when compared to its competitors in “ease of doing business” and digital capabilities.
Lenovo’s 80,000 partners ranged from very large to small distributors and local resellers. On the back of multiple mergers, Lenovo’s partner operations were run region wise. This resulted in fragmented systems that made it slower than competitors to quote prices and verify claims and led to lower service attachment rates.
Lenovo needed to reimagine its partner experience so that doing business with it was simple, predictable and profitable.
When tech meets human ingenuity
Lenovo collaborated with Accenture to undertake a partner experience transformation enabled by digital capabilities & intelligent automation. With the overriding concern of easing partner friction, the program was structured around three key tasks:
- Creating a unified, end-to-end global portal.
- Enhancing various aspects of the partner program including boosting service attachment rates.
- Creating a new “Price to Win” pricing strategy that relied on automation to speed up the quote process.
Personalizing to ring in the X factor
The new portal delivers content based on the user’s needs. Service attachment rate saw investment in new incentives. Price to Win empowered Lenovo’s salespeople to make better decisions on the discounts they offered to buyers.
A valuable difference
Early results of the transformation program show a positive impact with external partners—and internally.
The new portal provides partners a one-stop shop for all needs to efficiently grow their business and even combine hardware and service offerings. Measures of quality for partner experience are expected to vastly improve. Quote turnaround time is expected to shrink from days to minutes for more than 90% of partner transaction bids. The new intelligent pricing strategy, Price to Win, helps identify optimal price points for transactional deals and improves win rates.
The cross-functional team is able to execute and respond more quickly, and the new partner experience has tightened communication between the Lenovo field team and partners, which helps contribute to loyalty and continuing business.
Lenovo’s service attachment rates are on target contributing to substantial increase in revenues from services as well as a higher average deal size.
Meet the team
David Sovie
Mark Gaylard
Mark Wachter
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THE CASE STUDY OF THE LENOVO
Creating a coworking community with childcare
Supported by Lenovo, Blush is building a safe, empowering space for women to work, meet, connect, and have their children close by.
“Having Lenovo come in and implement equipment has helped us grow and helped us support our Women's Work program. My goal with Blush is to create a community of interconnected people, and having reliable technology tools is really critical to that.”
Alison Rogers
Founder, Blush Cowork
At-a-Glance
- Customer: Blush Cowork
- Industry: SMB
- Product Family: Laptops
- Region: North America
- Topic: Productivity and Collaboration,IT Transformation ,Industry-specific Solutions,Workforce Transformation
Blush is a women-focused coworking space with on-site childcare in Cary, NC, and winner of the 2023 Empowering the Carolinas contest for small businesses that contribute to their local community—a Lenovo Evolve Small initiative. Supported by Lenovo, Blush is building a safe, empowering space for women to work, meet, connect, and have their children close by.
Customer Problem
As the sole person responsible for day-to-day operations at Blush, founder Alison Rogers is a busy woman. The equipment she used to check in members and take credit card information was not fit for purpose.
Lenovo Solution
The Lenovo Evolve Small program enabled Alison to upgrade the check-in experience with a new point-of-sale solution, and equip the coworking space with Lenovo laptops and monitors.
Business Impact
Today, Alison can deliver a smoother, more efficient check-in experience, while members and visitors can connect to Lenovo laptops and monitors to support their work or even apply for jobs.
“Having access to Lenovo technology in the space really enables us to support people for all kinds of needs, be it job searching, doing their daily work, or meetings.”
Alison Rogers, Founder, Blush Cowork
- · Improves the check-in experience
- · Helps members to work productively
- · Supports women affected by job loss
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35% NET Home. BEU VS/Small (n=1,227), Medium (n=1,450), Large (n=1,449) Majority of employees prefer to continue working from home. Younger employees are more likely to be among those who prefer to work primarily in the office. Note: NET Office consists of WFO 100% and WFO Mostly; NET: Home consists of WFH 100% and WFH Mostly.
Fill out this form and a member of the Customer Marketing Team will contact you. Share success story. Learn how our customers are solving their IT & digital transformation challenges. ️Case studies & customer success stories from industries manufacturing health life sciences to retail & public sectors.
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