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Swot Analysis Of Lenovo

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This report is to show the system risks, security and recovery is important to the future of a company. Its starts with giving background information of the Lenovo Company and together the current market in operation. The report discusses two models are SWOT analysis and Porter’s five forces to understand the position held in the market. After that, the report discusses problems in the operation system and from them two suggested IT solutions are required. As we know, everything has good impact besides have also bad impact would be recommendation. The risks involved in the solution are projected and the security measures to obstacle the risks projected are discussed. Finally, a recovery mechanism is discussed in case there is loss of any information …show more content…

Secondly, Lenovo has faced a high shipment growth in its product in the emerging market. According to Ahrens & Zhou (2013) Lenovo has increased its shipment growth in the emerging market by 50% in the financial year 2010-2011; moreover, about 30% growth in Chinese market share still keeps the company competitive locally (See figure 2). Thirdly, after the loss in 2009, the company has made incremental profit to its shareholders till 2013 (See figure 3) (Lenovo Group Limited, 2013). Fourthly, unlike majority Chinese firms, Lenovo has built an unChinese and multicultural corporate environment by making English its official language and recruiting many senior foreign executives making it a strong point in global arena (The Economist, 2013). Fifthly, Lenovo has always been customizing and localizing its products line upon penetrating into new global or local market which is its core strategy (Dalsant, 2014). Sixthly, for effective strategic management and global expansion, the firm decided to carry out several M&A transaction throughout the last decade. For example, it acquired the PC division of International Business Machines (IBM) in 2005, acquired control of Medion AG, a Germany-based computer manufacturer and the PC unit of Tokyo-based NEC Corp. in 2011 and acquired Brazil-based consumer …show more content…

While Lenovo took over IBM’s PC division in 2005, such risk was exposed since IBM’s ThinkPad sector was not profitable (Ahrens & Zhou, 2013). Other threats such as political or regulatory threats has always been minimal in case of Chinese companies, i.e. Lenovo.
2. Threats of Substitutes
The threat of substitutes for Lenovo’s product lines is currently medium to high, since it mainly depends on PC manufacturing and selling. As mentioned earlier, the demand for PC may decline in the future and other portable and nano-technological devices may replace it, Lenovo needs to expand its product line with variety, portability and user-oriented functionality.
As of now, its product lines include Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile Internet devices, including tablets and smart phones; however, which are still at a minimal stage of production and revenue generating sector for the company (Ahrens & Zhou, 2013). Thus, Lenovo can market these products at globally with cheaper rate and customer-demanded features to stay

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