Lenovo

Slide Introduction

Lenovo Group Ltd. is a $46 billion personal technology company serving customers in more than
160 countries. It is the largest personal computer (PC) vendor in the world, having recently
surpassed Hewlett-Packard (HP). Lenovo has operations in more than 60 countries, with principal
facilities are in Beijing, China and Morrisville, USA and research centers in China, Japan and the
US.

Lenovo was founded in Beijing in 1984 as Legend and was incorporated in Hong Kong in 1988.
The name Lenovo comes from a combination of Legend (the original name of the company) and
Novo (which is Latin for new). For the first 20 years of its existence, the company's English name
was "Legend" In 2002, the company decided to abandon the Legend brand name to expand
internationally.

Slide Product line

Lenovo acquired IBM's personal computer business in 2005, including the ThinkPad laptop and
tablet lines. Lenovo's acquisition of IBM's personal computer division accelerated access to foreign
markets while improving both Lenovo's branding and technology.

With regard to the purchase of IBM's personal computer division, the company's founder said, "We
benefited in three ways from the IBM acquisition. We got the ThinkPad brand, IBM's more
advanced PC manufacturing technology and the company's international resources, such as its
global sales channels and operation teams. These three elements have shored up our sales revenue
in the past several years.

Slide Product line 2

ThinkPads were originally an IBM product; they have been manufactured and sold by Lenovo
since early 2005, following its acquisition of IBM's personal computer division. The ThinkPad has
been used in space and is the only laptop certified for use on the International Space Station

ThinkCentre is a line of business-oriented desktop computers. ThinkCentre computers typically

include mid-range to high-end processors, options for discrete graphics cards, and multi-monitor
support.

The Thinkserver was developed under agreement with IBM. An additional feature of the server
design was a support package aimed at small businesses. The focus of this support package was to
provide small businesses with software tools to ease the process of server management and reduce
dependence on IT support

Lenovo ThinkStations are workstations designed for high-end computing.

The IdeaPad line of consumer-oriented laptop computers was introduced in January 2008. The
IdeaPad is the result of Lenovo's own research and development; Unlike the ThinkPad line, its
design and branding were not inherited from IBM.

All IdeaCentres are all-in-one machines, combining processor and monitor into a single unit.
Lenovo smartphones are marketed as the "LePhone" in Mainland China and the "IdeaPhone"
overseas. Motorola Mobility, ZUK Mobile and Medion, divisions of Lenovo, sell smartphones
under their own brands. As of September 2015, Lenovo is in the process of rebranding most of its
phones using the Motorola brandname. Lenovo has implemented an aggressive strategy to replace
Samsung as mainland China's top smartphone manufacturer.

Lenovo smart televisions use the Android operating system and are marketed as the "LeTV" in
Mainland China. Lenovo smart televisions use the Android operating system and are marketed as
the "LeTV" in Mainland China.

The Smartband went on sale in October 2014 Lenovo started offering a wearable device for sale on
its website without a formal product announcement. The "Smartband," has a battery life of seven
days. It has an optical heart-rate monitor and can be used to track distance and time spent running
and calories burned. It can also notify the user of incoming calls and texts.[115] It can also unlock
computers without the use of a password.

Slide Operations

Lenovo's manufacturing operations are a departure from the usual industry practice of outsourcing
to contract manufacturers.

The company instead focuses on vertical integration in order to avoid excessive reliance on original
equipment manufacturers and to keep down costs.

After 2009, Lenovo decided to make at least 50% of Lenovo's manufacturing in-house.

An excessive number of "key performance indicators" (KPIs) were making Lenovo's expansion
expensive and creating unacceptably slow delivery times to end-customers.

Lenovo responded by reducing the number of KPIs from 150 to 5, offering intensive training to
managers, and working to create a global Lenovo culture.

Slide Operations: International

Lenovo also doubled-down on vertical integration and manufacturing near target markets in order to
cut costs at a time when its competitors were making increased use of outsourcing off-shoring.
By 2013, Lenovo ranked 20th on Gartner's list of top 50 supply chains, whereas in 2010 the
company was unranked.

Slide: Customer Service

Lenovo acquired websites such as notebookreview.com to learn more about customer needs and
complaints.

This enabled the company to interact with customers directly.

Lenovo aligned marketing, sales, service and many other departments to accelerate changes and
improvements to the customer experience.

This alignment lead to a 20% decrease in laptop service call volumes, an increase in customer
service agent productivity, a shortened product problem-resolution cycle and an increase their Net
Promoter Scores.

Slide Competitors
Lenovo is the global market leader in terms of shipments of PC's. It's close competitors are HP,
Dell, Apple and Asus

Slide Competitors: Market share expansion

In 2009, Lenovo became the first personal computer manufacturer to divide countries into emerging
markets and mature markets. Lenovo then developed a different set of strategies for each category.
Lenovo's competitors have widely adopted the same approach.

In 2012, Lenovo made a major effort to expand its market share in developing economies such as
Brazil and India through acquisitions and increased budgets for marketing and advertising.

In China, Lenovo has a vast distribution network designed to make sure that there is at least one
shop selling Lenovo computers within 50 kilometers of nearly all consumers.

Lenovo has gained significant market share in India through bulk orders to large companies and
government agencies. Lenovo's strategy has been to create awareness, maintain a broad selection of
phones at all price points, and develop distribution networks. In India, Lenovo grants distributors
exclusive territories but allows them to sell computers from other companies. Lenovo uses its close
relationships with distributors to gain market intelligence and speed up product development.

Lenovo reported a year-on-year increase of about 951% in tablet sales in India for the first quarter
of 2014. Canalys, a market research firm, said Lenovo took market share away from Apple and
Samsung in the country

Slide Recommendations

Lenovos strategy is largely one of common sense that could probably be described with the
business school buzzword fast follower. However, the company may be able to use its strengths
to become a leader in research, development and innovation.

Today, a lot of tech companies are diversifying their product portfolio, especially as the smartphone
market and PC become more saturated. For this reason Lenovo may consider entering other sectors
such as wearables. Also, it may be possible to implement horizontal integration to manufacture
home appliances (which is also a tech industry).

Lenovo may further customize their products to suit local markets. For example: increased battery
power for regions that experience power shortages or for travellers.

Lenovo has been very successful at acquiring other businesses and forming new partnerships. The
company may build on this strength and continue to improve.