Analysis: How can Lenovo increase its competitiveness from the deal with IBM – from a strategic alliance perspective

According to Lenovo?s 2004/2005 Annual Report, Lenovo has evermore aspired to become a world-wide friendship. However, it had encountered obstacles for its raise expansion and development. Firstly, though Lenovo is the largest PC maker in mainland China with more than a fourth of the tradeplace share, it does lesser business remote the country. Secondly, the increasing fierce rival from scrappy abroad rivals such as Dell and HP in the retiring(a) few grades in Chinese trade has put further pressures on Lenovo?s margins (Electronics News, 2005), forcing it to expand its merchandise base. Its process rate in 2003 lagged behind the market ingathering rate. Thirdly, the company also suffered financial problems, earlier in the division 2004, Lenovo confessed that its performance over the past three years had start fiddling of internal targets (Burt J.,2005). Fourthly, shares of the company dropped nearly 60 per penny in 2004. Therefore Lenovo sees the desperate need to refine its merchandise strategy in differentiate to maintain growth. On April 30th, 2005, Lenovo complete the landmark acquisition with IBM?s PC variability, hoping that it fuel take up its try outed brand disclose to foster global expansion, piece credibility in foreign markets in a concisely time and to establish its have got brand. However, an interesting stratum to chew out of is that if IBM?s PC Division is so powerful, then why would IBM like to withdraw from this sphere of influence of business and transform into a service company preferably?

IBMs PC business whole disconnected $258 million in 2003 and $139 million in 2004. In less than four years, IBM lost nearly a jillion dollars sell PC (Musthaler, L., 2005). In this article, I would study how Lenovo can heed in the field where IBM failed. The merchandise management progeny in the buying out would be discussed in toll of what Lenovo should do to... Good article. However, it has not yet answered the psyche on what is Lenovos point of differentiation? Innovation? Efficiency? or both? or something else?If you indispensableness to get a bountiful essay, order it on our website: Ordercustompaper.com

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