Chinese company strategy review on lenovo

Brand, Chinese suppliers

The case research indicates that Lenovo provides acquired IBM in order to go global and establish itself as a global brand. With all the intense standard of competition, Lenovo felt the need of going global, and as part of its technique, it has performed the purchase of IBM. here are different important facts relevant to such acquisition deal simply by Lenovo have been presented inside the given circumstance, and they have also been studied that there is the demonstration of different tactics as utilized by Lenovo in learning to be a reputed global brand.

The case analysis indicated regarding the history of Lenovo where it has been evaluated that Lenovo initially was known as Legend and it includes established alone as a significant seller of PC items across China markets. Lenovo has prepared itself as the utmost prominent company in China and tiawan with its core emphasis on advancement, quality and efficiency in the products and services offerings. The ability to improve and offer something totally new has been the primary feature that brought a higher level00 success and growth to Lenovo ahead of acquisition. This has been identified in the case examination whereby it is evaluated that Lenovo has been the first company that has launched Chinese-character card and it includes contributed substantially towards the regarding the organization. The as launched by the firm is targeted at translating the English dialect into Oriental and this is a huge significant contributor to the progress and identification of Lenovo in the Oriental markets.

Before the purchase of IBM, Lenovo has been operating a very small level, since the company features performed their operations only in the Oriental markets. However , the acquisition of IBM offers necessitated Lenovo to make significant changes throughout its business models in order that it can concentrate on its customers worldwide. It has been evaluated from the analysis the fact that main challenge immediately after the acquisition of IBM by Lenovo is that the organization has to execute the advertising management of its business at the global level. It needs to formulate strategies that are aimed at concentrating on its clients in the world industry. The second key challenge which has been evident in respect to Lenovo after the buy is that the firm has to produce adequate level of differences between the IBM companies Lenovo goods. This is due to the fact it needs to take care of two distinct brands individually and have to position their uniqueness in order to showcase both of them inside the global marketplace.

They are the major difficulties that have been immediately evident in respect to the efficiency of Lenovo after the purchase of IBM has become taken place. The managerial problems in the form of social differences through the two businesses and the need for maintaining independent business profile for the two Lenovo and IBM has been the utmost challenging challenge to the Lenovo’s administration after the acquisition.

An analysis in the advantages and disadvantages of these strategies while considered will be indicated the following: Master Company Strategy- This kind of branding approach implies that it will require businesses to target specifically just their learn brand while performing the promotion. The master logos strategy gets the advantage when it comes to better advertising of the master brand of the company. Contrary to this kind of, the disadvantage associated with this grasp brand technique is that this leaves with lesser general resources towards the firm in paying attention towards enhancing it is other sub-brands that are operational.

Property of Brand Approach: This logos strategy which involves the usage of large numbers of brands by the company to promote its performance. It requires contribution of solutions towards every sub-brand by the firm. The benefit of this marketing strategy is that it allows for sufficient standard of contribution or attention from the management to different sub-brands of the business, and non-e of them obtain missed. What is more, the disadvantage is the fact it detracts the attention from the management from focusing only their major brands and in the end, their overall performance might suffer.

The synergy approach to branding shows a marketing strategy where a expert brand has been promoted jointly with a “hero” i. at the. sub-brand. As in the provided case of Lenovo, the master brand is the Lenovo itself plus the sub-brand can be IBM. This plan has the benefit in the sense which the positive picture of the sub-brand assists proficiently in promoting master brand within just its concentrate on customers.

Lexus/Toyota Approach: This has been the fourth major strategy that has been suggested in the offered case. This tactic indicates that different styles of the company might represent independent luxury and mass marketplace offerings. This implies that several product could create their own brand photo and they can be marketed separately. In this regards, the main advantage of this specific strategy is that each independent brand of the company creates its image plus the resulting effects is that they are self-dependent. Nevertheless , the disadvantage is that in this personalisation strategy, the management require significant degree of efforts in building up it is different brands and leading them to higher level of success.

It has been recognized that a simple strategy of just one two punch is being considered by Lenovo whereby the organization focused on increasing its Lenovo brand and continue to enhance its ThinkPad product brand. This brand strategy as deemed by Lenovo has been very efficient from the point of view of catering towards the needs and expectations of the trademark. This is mainly because IBM possesses its own distinctive photo and at the same time, Lenovo has also accumulated its own exceptional identity inside the Chinese marketplace and is increasing its picture in the global market. This simple strategy of building the two brands independently has consequently been extremely efficient to the company.

On the basis of research of the case analyze, it is assessed that Lenovo has formerly been a Chinese manufacturer as it is its functions from China. However , the company after realized that it takes to go global, and in going after such global strategy, particular number of problems that will be evident in respect to Lenovo. These danger is mainly because of the fact that Lenovo is mainly a Oriental brand and it is often connected with features just like lower in quality. Such problems of associating the business with Cina by the customers could be overcome through focusing specifically on factors such as top quality. Even via adapting an expense efficient technique, Lenovo may still be a major global brand, however it needs to focus on aspects such as innovation, high quality etc . in order that it can create distinguished image within its customers.