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TABLE OF CONTENTS

1.0-Executive Summary......................................2
2.0-Company Summary......................................3-4
3.0-S.W.O.T Analysis..........................................5
4.0-P.E.S.T Analysis............................................6
5.0-Product Description.....................................7-8
6.0-Market Analysis............................................9-10
6.1-Target Market
7.0-Industrial Analysis........................................11
8.0-Marketing Strategy.......................................12-13
9.0-Conclusion....................................................14
10.-References....................................................15

1.0-Executive Summary
In the recent years , Lenovo has comes up with a lot of unique and
competitive strategies in order to achieve a rapidly part of the share
of personal computer and notebook in the market. After acquiring the
company of IBM , soon Lenovo has become one of the largest
personal computer manufacturers in the world. With the IBM
technology , reputation and branding has led Lenovo success to
become part of the international corporation of personal computer
and notebook in market.
However, Lenovo is still continuing to optimize their strategies to
compete with the existing company in the market such as Dell , Sony
Vaio , HP , Asus and etcetera. This will also help them to have a
strong positioning of holding share in the corporation of personal
computer and notebook in the market.
In this paper , we will analyze and attempt the issue of how Lenovo
improve their strategies and compete in the competitive market with
the new product of Y-series IDEAPAD.

2.0-Company Summary
Before the existing brand of Lenovo , the company has a much
longer history background. The company was actually formed as a
brand of IBM in 1984 and would be grow to be the largest company in
china. In 2004, the company of IBM was actually acquired by legend
holdings and changed company name to Lenovo.
Liu Chuan Zhi founded Lenovo with 10 of computing engineers in
1984 in China,Beijing. They started to seek for employees in 1988 with the limited
budget in order to start the business. In 1990, Lenovo started to manufacture and market
computers using its own brand name. Yang Yuan Qing joined the company of Lenovo
since 1989 , he get promoted very quickly and until today , he was the CEO of the
company. He is one of the main person who acquisition the IBM company. Under his
leadership, Lenovo has been in China best selling PC brand since 1997.

Today , Lenovo has become the second largest personal computer


vendor in the world at the value of US$30 billion company. They have
more than 30 000 employees in more than 60 countries all over the
world to serve their customers. They have headquarters in Beijing
,China and Morrisville , North Carolina , US. Lenovo research center
located in Yokohama, Japan and Beijing , Shanghai , Wuhan,
ShenZhen in China.
Lenovo is not just a personal computer and notebook company ,
but also they create a full range of personal technology which
including tablets and smartphones. Lenovo will keep on create new
categories of products that may enhance customer experiences and
let customer differentiate them from the competition .

Vision and Mission


Lenovo mission is to become one of the greatest personal technology
company in the world . Vision will led the success of mission as the 3
point stated.
Personal Computers : Lead in personal computer and be
respected for our product innovation and quality.
Convergence : Lead the industry with an ecosystem of
devices,services,applications and content for people to
seamlessly connect to people and web content.
Culture : Become recognized as one of the best, most trusted and
most well-respected companies to work for and do business with.

3.0-S.W.O.T Analysis
Strength
Lenovo is dominating in China share market by compared to other competitors like Dell
and HP. Lenovo is one of the leading brands in China and has maintained over 10 years.
Therefore , this enable them to have a strong research and development in personal
computer and they get a lot of knowledge about the market so they can aim for whats the
consumer needs . Moreover , Lenovo produce a very decent specifications of gadgets
with low cost in order to target the whole market.

Weaknesses
Lenovo has a very poor brand perception , although they have a very strong image in
China , but not over the world. Besides that, Lenovo also produce a very similar products
that the competitors might produce also in the market , this caused their products become
a very low differentiation from others.
Opportunities
Lenovo actually has a very good growing rate in the Indias market , especially Lenovo
smartphone. Lenovo tablets market is also growth to all over the world , this business
could actually increase their market share by introducing a better quality products. Other
than that , if Lenovo wants to sustain its growth , it needs to obtain more patents and the
best way is to acquire the other firm , as what Lenovo did to IBM company.
Threats
While all the competitors produced the similar products , Lenovo growth rate in the
laptops market will actually slowing down. This caused them face a very serious problem
which their profit margin declined on hardware products. After that , a rapidly change of
technological also caused Lenovo hard to compete in the intense competition. Besides
that , clone market and software piracy also caused the revenue of Lenovo company
falling down.

4.0-P.E.S.T. Analysis
Political
Majority of the manufacturing operations of Lenovo are based in China. Since their
company was state-owned in China therefore they get to enjoy the most favourable
political environment. China is a country that has a very stable political atmosphere.
Lenovo company are doing the brisk business under the given political atmosphere and
non of the political issue is against to their company.
Economical
The computer manufacturing and selling business is a labour intensive business.
Increased commoditization of the computer business in last few years has made it highly
cost driven business. Since the political in China was stable , economic policies also have
a stable ruling. In fact, China has become one of the biggest manufacturing centers in
most of the product lines.
Social
Computer has become a necessary for various operations across all the social class
throughout the world. Computer literacy has also increased manifold across all countries
and new generation is now well versed in the uses of computer. This situation makes the
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demands of the computers increased and the growth of the company as well.
Technology
Technology is an important aspect from the strategic management point of view. This
helps create competitive advantage. With the backup of IBM, the company is well poised
for the exploitation of the new technologies that may come time to time. IBM has given
them all necessary technological inputs with their managerial talent the company is all
geared up with full force to exploit the new technologies.

5.0-Product Description

Lenovo IdeaPad Y400 is one of their latest product in the current


market. This laptop will take your extreme gaming and other
graphics , audio and processor intensive applications to a new
performance dimension. This laptop has the decent specifications in
the currently market and its in the budget level compare to the other
competitors product. IdeaPad Y400 installed the most recent
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Microsoft Windows 8 with 8GB memory ram to brings up the best


performance of system to the maximum point.
Ideapad Y400 also installed with the standardize GT750 DDR5 2GB
Ram graphics in order to aim the market of gamers. This graphics
card is very good in performance for a laptop and can almost run all
extreme graphics video games in ultra settings. Not only that , Y400
also come with a very new feature which is their UltraBay slot. This
ultrabay slot can let users instantly swapped out for dual graphics
capability , increased storage space or an additional fan for cooling.
The ultrabay feature is the selling point of this this product because it
is very unique by comparing to other brand of laptops.

The speaker used in Y400 is from Dolby Home Theater V4 with


premium JBL speakers which is a quite trendy and stereo speaker
used in a laptop. We can maximize volume output without any
distortion and still can experience a crisp , clear immersive surround
sound. The accutype keyboard boasts a modern look and feel with
flatter , slightly curved keys that improve your comfort while
increasing typing accuracy. Also this keyboard has a standard backlit
that could help you easily typing in low light conditions.
This ideapad also included integrated 720p HD webcam and Dual
digital array microphones which enhance your video call experience.
Optimized for the new windows 8 interface the intelligent touchpad
enables easy scroll , zoom and rotate functions for comfortable
control of your ideapad Y400 laptop. Always-on USB port lets you
recharge a mobile device or others gadgets even when the laptop is
powered off and unplugged from the main plug. Moreover , Y400 also
used the removeable 6 cell lithium battery which can last longer for 4
hour of normal usage and 2 hour of heavy usage.

6.0-Market Analysis
In this technological era, every company is jumping into the arena of gaming consoles.
There are a lot of gaming machine like PS4 and XBOX 720 , but somehow some games
require to run in a PC and its much more cheaper and low cost compare to play in a
gaming machine. So the market of gaming PC and laptop is still alive and with
technological advancement so the market is going to grow for a long term.
Lenovo is actually the first brand in Chinese IT industry. Lenovo overall share of
computer market in China has reached 21% . Lenovo business computer market share is
14% which is higher than domestic computer suppliers and strong brand ranks . Lenovo
also occupied 24% in the personal computer market share of monopoly status. According
to the survey of global authority consumer market and analysis institutions,
EUROMONITOR shows that Lenovo group ranked third in the world personal computer
manufacturers. But , Lenovo goals is to become the first ranked in world personal
computer manufacturers in the future, so they will keep on create new product in order to
achieve their goals.

6.1-Target Market
Lenovo will considers a few factors when choosing target market. First, they will create
a strong brand awareness to aim customers who have advanced concepts. In PC market ,
the impact of Lenovo is comparative advantage , so then choosing such target customers
can cater to the needs of such customer. Secondly is customers who is highly educated
and higher on admission which are below the age of 45. Last is Lenovo also want to enter
rural market because this is also part of formed purchasing power, so Lenovo will
actually do a lot of activities in order to get in to rural markets.
Lenovo has a wide range target market. But recently they released the almost highend and mainstream new laptop which they name it as Ideapad in order to aim the
gamers market. Their target for this Ideapad is teenagers and adults in between the ages
of 18 to 45. Lenovo released the Ideapad Y-series which comes up with a new feature and
they named it as Ultrabay.This new function allow gamers to instantly swapped out

for dual graphics capability , increased storage space or an additional


fan for cooling. With this unique feature , Ideapad has become very
innovative and different from other other laptops.
A gaming laptop required decent specifications and excellent
video graphics to run the games in ultra settings. So, Lenovo built up
this machine with all the requirements of a gaming laptop in a very
low cost in order to aim the whole gaming markets.Almost all of the
gaming laptop in the market is selling with a very high price , so this
machine could be affordable and becoming one of the best choice of
all the gamers.

7.0-Industrial Analysis
According to the report of market research , there are a lot of competitors such as
ASUS , DELL , APPLE , SONY and etcetera is competing with Lenovo in the
competitive laptop market. They put a lot of afford in the research and production of

similar technology such as Lenovo new technology Ultra Bay in order to control more
market share, especially in China market.
Global enterprise PC buyers have unique requirements that go beyond price to
include platform stability, global account management, support, service capabilities and fast
turnaround on warranty repairs. All this factors will affect customers in selecting the right
vendor for their PC needs.
Lenovo has consistently improved its position both in global capabilities and in
market understanding during the past several years, and its market share growth has
reflected these improvements. It continues to provide well-designed products at very
competitive prices. Lenovo is becoming a stronger option for organizations requiring global
PC deployments, and is a strong viable supplier for all business notebook and desktop
requirements.

8.0-MARKETING STRATEGY
According to the theory of American marketing expert Boughton(1964) .He produced a
mix concept of optimize the various controllable factors in order to achieve its goals of
the marketing which means marketing activities with the appropriate products , price and
channels. We will based on this theory to study how is Lenovo set their marketing
strategies.
Price Strategy
In the recent years , the production capacity of IT enterprises seriously exceeds , and this
causes to expand market share and the price war become worse. As a large computer
manufacturer , of course Lenovo is subjected to the impact of the price war. However ,
Lenovo did not reduce price , while the corporate image enchance , sales grew and
market share expanded , the effective price strategy has enabled Lenovo to compete with
the competitor in this price war.

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Based on the different levels of consumer , Lenovo create differentiated products to meet
different consumer groups with a different prices. Lenovo now has 19 species , more than
200 various models of products. We can see that Lenovo price strategy can according to
the products in accordance with the best performance of the physical value , brand value ,
the value of service and other form of value make Lenovo establish an independent
cognitive value in the eyes of consumer.

Product Strategy
Lenovo product strategy is same as target market and positioning.
Lenovo is mainly focus on middle and high end products and they
owns 70% of the market share in this section. Lenovo has designed
relatively low prices of mid level products , while high-end products
on the electrical chain and retail sales channels. For the rural market ,
Lenovo designs and develop products that have relatively simple
functions and low price to meets the need of users.

Focus Strategy
A focus strategy is aimed at a segment of the market for a product
rather than at the whole market. The benefit of Lenovo focus strategy
are it requires a lower investment in resources compared to a
strategy aimed at an entire market. Second is this allows
specialization and greater knowledge of the segment. Last is this let
Lenovo enter a new market with lower cost and much simple.

Website Marketing Strategy


Social media is also one of the important source to introduce or
increase the value brand of Lenovo. This allow Lenovo to raise
awareness of their brand to the market , broaden target segment and
also enhance older advertising campaign.
This website marketing strategy will rely heavily on social media.
Thus , there are several option to be implemented in order to get this
advertising work. Example of social media like a blog or forum can be
set up for people that have Lenovo computers and could optimized

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word-of-mouth. This also will help them to solve any problems with
technical issue and assisting them when they needs it. Other than
that , Google advertising tools is also a very good option. Google
advertising tools like google Adwords and google analytics will help to
display Lenovo ads in a lot pages.

9.0-CONCLUSION
Lenovo IDEAPAD y400 is still considered as a very innovative product and new in
the current market because of their unique feature Ultrabay slot. Therefore , with this new
technology Lenovo able to compete with all the competitors and allow Lenovo continue
to achieve to goal of success.

Based on the company analysis, we have suggested two


recommendations to enhance Lenovos future growth. Their
popularity in China has caused a lack of branding in outside markets.
This issue can be addressed through expansion into the world wide
market.
Lenovo has managed to maintain a relatively low cost of
production and distribution. Although they invest in research and
development, they lack diversity among their products and services.
This lack of diversity negatively affects their pricing power. This issue
can be addressed through product differentiation, specifically through
improving their customer and IT services outside of China.

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10.0-References
Anandtech.com. 2013. Lenovo IdeaPad Y400/Y500 Gaming Notebooks (with SLI!).
[online] Available at: http://www.anandtech.com/show/6583/lenovo-ideapady400y500-gaming-notebooks-with-sli [Accessed: 13 Nov 2013].
Blog.sina.com.cn. 2013. The PESTLE analysis of Lenovo__. [online]
Available at: http://blog.sina.com.cn/s/blog_6744ab8d0100hw19.html [Accessed: 13
Nov 2013].
Pilaniwala, P. 2013. Lenovo Y510p Gaming Laptop: You Just Can't Ask For More
[REVIEW]. [online] Available at: http://www.dazeinfo.com/2013/09/19/lenovoy510p-gaming-laptop-just-cant-ask-review/ [Accessed: 13 Nov 2013].
Software, P. 2013. Marketing Strategy Business Plan Sample - Market Analysis - Bplans.
[online] Available at:
http://www.bplans.com/marketing_strategy_business_plan/market_analysis_summar
y_fc.php#.UoM6BozPV-5 [Accessed: 13 Nov 2013].
Strategicmanagementinsight.com. 2013. Lenovo SWOT analysis 2013 | Strategic
Management Insight. [online] Available at:
http://www.strategicmanagementinsight.com/swot-analyses/lenovo-swotanalysis.html [Accessed: 13 Nov 2013].

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Environment Analysis
S.W.O.T Analysis
STRENGTH
-Strong brand recognition, especially in
China
-Low cost production
-Strategic Alliances and Supplies

WEAKNESS
-Poor brand perception
-Products low differentiation from
competitors

OPPORTUNITTY
-Acquisition of patents and company
-Fast growing international market
-Sales is growing as expected

THREAT
-Compete with clone markets
-Rapidly change of technology
-Similar products existed in market
-Price war

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Marketing MIX 7Ps


Product
Lenovo produced the new concept of IDEAPAD Y400 is to attack the gamers market.
This machine built up with unique carbon fiber skin and with a red backlit keyboard in
order to attract the attention of gamers. Thus, this machine also installed with the decent
specifications such as Microsoft Windows 8,high graphics cards and 8gm of rams to
ensure this machine run smoothly without any disturb.
The innovative and unique part of this machine is the removeable Ultra Bay . This
function allow users instantly swap out for graphic card , hard disk or an additional
cooling fan.
Price
Majority of the gamers is teenagers and young adults , they are all students or just starting
their career , therefore they still cant afford to buy any high costing or expensive
machine. With this point Lenovo produced this machine with a low production cost to
makes this machine is affordable by all the categories of consumer , especially teenagers
and young adults. With the low production cost , Lenovo also able to compete with all the
competitors in the market. This machine can purchase at 2 price points which are
RM2799 for single graphic card and RM3599 for the standard set which comes with dual
graphic card.
Place
There are a lot of retail outlets all over Malaysia that carry various Lenovo products so
purchasing this machine should not be difficult. All of the outlet will have some display
or demo unit to let customer to try on.Not only that , Lenovo will also provide a full
professional promoter to introduce their product to all the customers. Customer also can
order this machine by online method through Lenovo official website with shipping free.

Promotion
Advertisement is one of the important communication tools to introduce Lenovo new
product to the consumer. Lenovo will publish some news and details to consumer before
they release this new machine. Advertisement of this new machine will be publish
through social media such as television , magazines , internet , poster and etcetera to the
public. All of these commercial and advertisement could easily attract the attention of
people and alert them for this new product. In sum , Lenovo will also provide a user
package as a gift for those who bought their product which included a backpack bag and

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7 useful accessories tools.


People
Lenovo is a company which constantly seek to hire a diversity staff which equipped the
right attitude and skills with a specific standard in order to deliver a quality service to
customer. Lenovo have a system management which reward the right people with the
right results. Therefore, this can create a relaxed and friendly environment between
employer and employees. This will also ensure all the employees is always in satisfied
with their jobs and willing to work harder for employer. Thus , this will help to enhance
their productivity and attitude while serving to the customers.
Process
Lenovo is always willing to provide guidance or help for all their customers.They provide
free warranty services through

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