Lenovo Aims to Expand Global Reach, Become Top PC Brand

Strategic Insights -

Lenovo, the Chinese tech company, plans to expand its reach worldwide and become the best-known computer brand, according to its chairman Yuanqing Yang. With a focus on growth in emerging markets, particularly Brazil, India, and Russia, Lenovo aims to increase its market share beyond China, where it currently dominates computer sales. The company's core strategy includes focusing on commercial and small-business customers in mature markets, as well as increasing its market share in emerging markets.

Key Takeaways:

  • Lenovo plans to expand its reach worldwide and become the best-known computer brand, according to chairman Yuanqing Yang.
  • The company aims to increase its market share beyond China, where it currently dominates computer sales, with a focus on growth in emerging markets, particularly Brazil, India, and Russia.
  • Lenovo's core strategy includes focusing on commercial and small-business customers in mature markets, such as the United States and Western Europe.
  • The company plans to launch a global advertising campaign linked to the Winter Olympic Games in Turin, Italy, later this year, and a bigger splash for its sponsorship of the 2008 games in Beijing.
  • Research firm Gartner Inc. expects 13 percent worldwide growth in shipments this year, although revenue will climb less than 1 percent.
  • Lenovo's market domination in China does not guarantee success in other emerging markets, according to Roger Kay, president of Endpoint Technologies Associates Inc.
  • The company plans to provide thousands of computers to help run the Winter Olympic Games in Turin, Italy, and provide Internet access for athletes.
  • Lenovo is partially owned by the Chinese government and completed the $1.75 billion purchase of IBM's personal computer division in May.
  • The company plans to launch several upcoming ThinkPad models, including Z-series notebook models with wide screens, shock-resistant internal frames, and built-in technology for wireless broadband access.

Statistics:

  • 13 percent: expected worldwide growth in shipments this year, according to Gartner Inc. (1)
  • Less than 1 percent: expected revenue growth this year, according to Gartner Inc. (1)
  • $1.75 billion: price of the purchase of IBM's personal computer division by Lenovo (1)
  • 2006: year in which Lenovo will supply thousands of computers to help run the Winter Olympic Games in Turin, Italy (2)

Sources:

(1) Gartner Inc. (no date provided)

(2) The New York Times (January 16, 2006) - "Lenovo to Supply Computers for Winter Games" by Brad Stone

(3) Endpoint Technologies Associates Inc. (no date provided)

(4) Cox News (no date provided)

(5) Lenovo press release (no date provided)