(IBM) - stripe technology - consulting services - Chinese Academy of Science
IBM's historical overview
Company's roots in 19th century - Computing Tabulating Recording
1924 CTR renamed International Business Machine Corporation (IBM) - main actor of computing business – Strong R&D
International growth after II World War
1956 - Invention of the hard disk
1960s and 1970s – Magnetic-stripe technology (used on credit card) floppy disc
1981 – IBM PC
1994 – the first note book
Early 2000s- IBM refocused on consulting services, software bundled with server hardware
2004 – IBM sold its PC Division
1984 - Chinese Academy of Science founded the New Technology Developer, Inc (NTD)
1987 - Legend character card which translated English language operating systems into Chinese
1989 - NTD renamed Legend Computer Company
[...] http://www.rueducommerce.fr/ordinateur/images/produits/screenshots/DV6000-FACE.jpg < number > Building a Global Brand http://www.pclaunches.com/entry_images/0209/16/lenovo_logo2.jpg < number > < number > Building a global brand pc-images-notebook Historical background Mission and vision Market and competitiveness analysis SWOT analysis Strategy analysis Strategy recommendation Sources < number > < number > HISTORICAL BACKGROUND pc-images-notebook IBM's historical overview Company's roots in 19th century - Computing Tabulating Recording 1924 CTR renamed International Business Machine Corporation (IBM) - main actor of computing business – Strong R&D International growth after II World War 1956 - Invention of the hard disk < number > < number > HISTORICAL BACKGROUND pc-images-notebook IBM's historical overview 1960s and 1970s – Magnetic-stripe technology (used on credit card) floppy disc 1981 – IBM PC 1994 – the first note book Early 2000s- IBM refocused on consulting services, software bundled with server hardware 2004 – IBM sold its PC Division < number > < number > HISTORICAL BACKGROUND pc-images-notebook Lenovo Historical overview 1984 - Chinese Academy of Science founded the New Technology Developer, Inc (NTD) 1987 - Legend character card which translated English language operating systems into Chinese 1989 - NTD renamed Legend Computer Company < number > 31/10/19 Université Paris IV Sorbonne < number > HISTORICAL BACKGROUND pc-images-notebook Lenovo Historical overview 1990 - Legend launched its own computer – 1994 - Reorganisation of the company which was later listed on the HK Stock Exchange 2004 – Legend renamed Lenovo (Le + novo) The same year a deal with IBM PC Division was announced - “A match made in heaven” < number > 31/10/19 Université Paris IV Sorbonne < number > MISSION & VISION pc-images-notebook Lenovo Mission: becoming a global technology giant by 2010 & Vision: pursuing brand management, differentiation, diversification, globalisation < number > 31/10/19 Université Paris IV Sorbonne < number > MARKET ANALYSIS pc-images-notebook 2001 China's entry into the WTO open market to competitors lower quotas and tariffs on imports access to distribution network Main competitors (2004) Dell ( 17.9 HP ( 15.9 - & Chinese manufacturers Growth of the computer demand and price down < number > 31/10/19 Université Paris IV Sorbonne < number > MARKET ANALYSIS pc-images-notebook After the deal Lenovo counted 20,000 employees and 138 locations and became the 3rd computer maker After the deal Lenovo revenue tripled in two years time < number > 31/10/19 Université Paris IV Sorbonne < number > SWOT ANALYSIS STRENGTHS WEAKNESSES National image (best known PC brand in China) Knowledge about local market Strong R&D (innovation) Quick responsiveness Local player advantages Affordable products thanks to mass-manufacturing capability Unknown to the rest of the world (poor brand perception abroad) Limited knowledge of global market pc-images-notebook < number > 31/10/19 Université Paris IV Sorbonne < number > SWOT ANALYSIS OPPORTUNITIES THREATS Increasing global demand Internet boom Growing wireless PC market Market reaching maturity Huge competition (rise of foreign and local competitors) Market no longer protected (Chinese entry into the WTO) pc-images-notebook < number > 31/10/19 Université Paris IV Sorbonne < number > STRATEGY ANALYSIS pc-images-notebook The strategic alliance with IBM Main characteristics of the deal: 2004: LENOVO acquires IBM's PC division Lenovo has the right to use the IBM logo on products for five years Lenovo acquires the ThinkPad laptop brand and product line < number > 31/10/19 Université Paris IV Sorbonne < number > STRATEGY ANALYSIS pc-images-notebook Lenovo's objectives: Moving quickly into the international market place Increasing the range of product categories (diversification) in order to maximize the number of customers and to face fierce competition Growing profitably (the sales of the new Lenovo group are expected to triple) < number > 31/10/19 Université Paris IV Sorbonne < number > STRATEGY ANALYSIS pc-images-notebook Why IBM? [...]
[...] A world-famous brand (highly popular ThinkPad brand) Efficient international management Shared values: customer focus, innovation and trustworthiness Strong complementarities between IBM and LENOVO: < number > 31/10/19 Université Paris IV Sorbonne < number > STRATEGY ANALYSIS pc-images-notebook To succeed after the deal, Lenovo chose: To keep on innovating providing consumers with better quality, reliability and better design) e.g.: the new ThinkPad Z60 To differentiate through operational excellence, efficiency (quick responsiveness to opportunities, adaptability ) To create a corporate culture focused on trust and compromise To focus on customer satisfaction = customers decide what is the best strategy < number > 31/10/19 Université Paris IV Sorbonne < number > STRATEGY ANALYSIS pc-images-notebook Small business market Consumers Targets Offer (PC focused) Prices Mainly Lenovo PCs At a slight premium vs. [...]
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