Critical Analysis Of Lenovo

SITUATIONAL ANALYSIS

“Lenovo”, a Chinese firm previously called Beijing Legend Computer Group enjoys a top position in PC market of china with 21.5 percent share in 1999. Lenovo had plans to expand globally and especially Asia as Asian markets provides a huge potential number of buyers.

India had 7.5 million PC’s compares to 4o million in China, so it presented a huge opportunity for Lenovo to increase the market share. India was a major part of Lenovo’s strategy for growth and image building. But unlike China, company was not able to replicate same growth model in India pertaining to diverse factors.

• People perceive it as a Chinese company and it was not able to come up as prestigious brand because people think of Chinese products as

OPTIONS

• Providing extra benefits and variety to customers

• Growth of channel partners

• More focus on Corporate Social Responsibility

CRITERIA

• Increase penetration in India so as to generate more revenue by increase in market share.

• Building image as consumer centric to provide edge over competitors

• Changing perception among consumers.

• Image building among corporate

Evaluation of Options

• Providing extra benefits to customers-

Criteria-

o Increase penetration in India so as to generate more revenue by increase in market share. o Building image as consumer centric to provide edge over competitors

Providing customers with extended warranty options including replacement of product in case of hardware fault will increase trust among consumers. Moreover, it will have edge over competitors who provide limited warranty in which only parts are replaced or repaired. Freebies such as laptop bag, headphones, mice can be given alongside of laptops as it generates consumers interest when he doesn’t has to pay extra money. It instills confidence in consumers that products are high quality that will replace its image as Chinese

This would lead to more consumer friendly experience and will increase sales. o Image building among corporate- Increased network of dealers and distributors will help in image building strategy, as more people will be connected to company. It will help improve its operational efficiencies and strengthen awareness about the Lenovo brand.

• More focus on Corporate Social Responsibility

Criteria- o Changing perception among consumers -Increase corporate social responsibility among other parts of country. It can launch schemes relating some part of earnings from laptops to be spent on education of children. This will increase reputation of company

o Image building among corporate -It will help in image building among corporates and relationship building with them. It can increase business of company because big corporates would also like to associate with a company who is involved in social responsibility. This will indirectly increase business network and increase sales among enterprise sector.

RECOMMENDATION

Growth of channel partners is recommended to increase market share and building