- Protect and Attack Strategy
The biggest competitor of Lenovo, Apple Tablet PC achieved a remarkable performance, but a product can not meet all the requirements of the consumers. (Tang, J. 2011).
Lenovo PC in mature markets has reached 80% coverage in urban centers. Lenovo decided to put the main market on emerging market. Now Lenovo has step in the first place in global emerging markets. In this area Apple does not have good products.
- Current Performance
- The global PC market grew 7% during the first quarter of this year – largely fueled by tablets (Canalys, 2011). Lenovo had a 9.5% share of shipments which has increased by 17% from the same time last year. The Growth rate is on the second place that only behind Apple.
- After expanded into emerging market, the net profit for the quarter ending in March is US$42 million which is more than tripled.
- Human Resources
Lenovo maintains good relationships with local governments around the world. Lenovo strives to adhere to the highest standards of integrity and accountability when dealing with government rules and regulations (Lenovo Sustainability Report, 2010).
Lenovo had 27,039 employees at 31 March, 2011.
Lenovo implements remuneration policy, bonus and long-term incentive schemes with reference to the performance of the Group and individual employees. The Group also provides benefits such as insurance, medical and retirement funds to employees to sustain competitiveness of the Group (Lenovo 2010-2011 Annual report, 2011)
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- Financial Resources
- At March 31, 2011, Lenovo had bank deposits, cash and cash equivalents totaled US$2,997 million.
- Lenovo had a 3-year US$300 million loan facility with a bank in China, a 5-Year US$300 million loan with a bank of on July 17, 2009, and another 5-Year US$500 million loan.
- Global Supple Chain
Lenovo is a member in SmartWay, and with being a partner with the U.S. Environmental Protection Agency (EPA), Lenovo measures and maintains an efficient Canada and U.S. shipping tasks.
Lenovo is actively engaged with their suppliers as a responsible corporate citizen to promote improvements in their entire supply chain that improve the quality of life at work and at home.
- Major Competitors Analysis
- The Customer Analysis
There are five main reasons why people buy tablets:
- Portability
Tablets are lighter and easier to carry compares to the normal computers. Comparing with the Smartphone, people would like to have a bigger screen to view the entire Web page and videos.
- Productivity
For the business person, a tablet will be very useful for handling some basic tasks, such as checking E-mails, making plans, managing schedules, etc.
- Entertainment
A better way to have a rest.
- Adaptability
Installing applications on a tablet is much simple than customize a computer.
- Battery Life
A major reason why customer would buy a tablet is the longer battery life.
- The External Environment Analysis
- Political Analysis
After computers discovered from last century, they have been used in almost everywhere and been useful for our lives. But new problems come up such as pollutions. Due to this issue, the EUP instruct of The European Union which control the pollution of computer industry formal effective in 2007. The China government also encourages the green IT which leads to lower noise pollution and lower energy consumption. In noise pollution section, Lenovo has achieved (Lenovo, 2005).
Most of the Lenovo products meet the requirements of the following environment programs:
- Electronic Product Environmental Assessment Tool (EPEAT)
- ENERGY STAR
- TCO Certified EDGE
- GREENGUARD
- Restriction of Hazardous Substances (RoHS) Directive
- Economic Analysis
There appears a downturn in the world economic due to the influence by the 2008 economic crisis. Chinese government published the new economic policy and offered 400 million RMB to encourage economic development. It is a good chance to develop Chinese IT industry.
There is also a negative impact by globalization opening up more markets, because it will bring more competitors for Lenovo Tablets. Increasing income of the society will benefits the technological developments.
- Social Analysis
Lenovo’s main industry is located in China, and China has a large population which means lower labor costs.
Much more competitors enter into the market to satisfy higher customers demanding which is led by the increasing globalization.
By the increased income and increased educational levels, people have become more service sensitive as well as technique and quality orientated.
- Technological Analysis
11 scientists who worked in Chinese Academy created the Legend of Lenovo. They have offered a good technology support. Lenovo has completed the acquisition of IBM, so the technology of IBM also supported Lenovo by making high quality products (Lenovo, 2005).
- SWOT Analysis
- Marketing Objectives
- Target at least 20% tablet market share in China at the end of this year.
- Release series of new tablets within one year.
- Double the sales of tablets at the end of this year.
- References
Lenovo, 2011. Annual report 2010-2011.
Lenovo, 2010, Sustainability report 2010.
Lenovo, 2008, Environment report.
Reisinger, D., 2011, Lenovo Jumps into Tablet Market: 10 Features They Need to Succeed. [online] Available at: < > [Accessed 3 October 2011].
Laptop Buying Guide, 2011. Lenovo’s three strategies in Tablet PC market. [online] Available at: < > [accessed 3 october 2011].
Haselton, T., 2011, Tablets fuel 7% growth in global PC market, report says. [online] Available at: <> [Accessed 2 October 2011]
Scribd, 2011, RIM Playbook SWOT analysis. [online] Available at : [Accessed 4 October 2011]
ITBloggen, 2011, Lenovo tablet in China market. [online] Available at: <> [Accessed 5 October 2011]
Wright, R. and Yeraswork, Z., 2011, With No U.S. Lauches, What Exactly Is Lenovo’s Tablet Strategy? [online] Available at: [Accessed 5 October 2011]
Lenovo, 2011, Lenovo’s commitment to social responsibility. [Online] Available at: <> [Accessed 5 October 2011]
Wong, W.M., 2011, Acquisition of Medion. [e-book] Available through: Lenovo website <> [Accessed 5 October 2011]
Parrish, K. 2011, Lenovo Says Apple Can’t Dominate Tablet Market Forever. [Online] Available at: <> [Accessed 5 October 2011]
Rodriguez, A., 2011, The Top 5 Reasons to Buy a Tablet. [Online] Available at: <> [Accessed 6 October 2011]
