Lenovo: A Chinese Dragon in a Global Village

Description

The fast rise of Lenovo among its competitors in the computer industry raised a series of questions regarding the sustainability of its competitive position, as well as the choices it had made in its efforts toward globalization. First, how could Lenovo establish and sustain a leadership role in an industry where competitive positions were increasingly unstable? Next, how could the Chinese firm build a solid competitive position in an industry characterized by smaller and smaller margins? Finally, after the acquisition of IBM’s PC business and the subsequent accelerated international expansion, could Lenovo still be considered an entirely Chinese entity or was it a truly global enterprise of Chinese origin?A video interview with Lenovo's strategy and corporate development vice-president, Lenovo: A Chinese Dragon in the Global Village - DVD, is also available.

Learning Objective

This case aims at three major pedagogical goals relevant to any course in strategic management. The first is to formulate a strategic diagnosis of the sustainability of Lenovo’s competitive position. The second is to illustrate the various kinds of leverage that a computer firm may use in order to increase (or at least maintain) its margins and market share. The third is to identify the strategy implemented by Lenovo in its international expansion. The case is suitable for graduate management students (MSc or MBA). It is equally suitable for engineering students specializing in computer science.

Keywords

China global Growth strategy International Expansion