Global Strategy at Lenovo - Analysis of Operational Aspects and Market Conditions

Running head: GLOBAL STRATEGY AT LENOVO
Global Strategy at Lenovo
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1GLOBAL STRATEGY AT LENOVO
Table of Contents
1. Introduction............................................................................................................................2
2. How Lenovo became a global company................................................................................2
3. Analysis of different operational aspects and market conditions of Lenovo.........................2
PESTLE Analysis of Lenovo.................................................................................................2
SWOT Analysis of Lenovo....................................................................................................3
Porter’s Five Forces Analysis of Lenovo...............................................................................4
Value Chain Analysis of Lenovo...........................................................................................5
4. Risk Management in Lenovo.................................................................................................6
5. Advantages of Global Strategy..............................................................................................6
6. Conclusion..............................................................................................................................7

2GLOBAL STRATEGY AT LENOVO
1. Introduction
Lenovo, in the contemporary period, belongs to one of the dominant global producers
of personal computers, along with that of HP, Acer and Dell. With its base in China and
operations across the world, the company generates nearly $38 billion sales revenue, much of
which can be attributed to the robust global strategic framework and operations of the
company, over the years.
2. How Lenovo became a global company
The primary reason behind the global expansion of the concerned company, in an
increasingly competitive market of personal computers, is that of its emphasis on
organizational learning and also optimisation and continuous improvements in its value-chain
activities. The company mainly expands through relevant mergers and acquisitions, the
primary one of which was the acquisition of PC business of that of IBM in 2005 and the
merger with NEC, to infiltrate the Japanese market, in 2011. The company adopts a “Protect-
and-attack” strategy, thereby protecting and improving its business in core countries like
China and fiercely expanding in emerging markets of the developing economies, through its
diversified, user-friendly and affordable products.
3. Analysis of different operational aspects and market conditions of Lenovo
PESTLE Analysis of Lenovo
To understand the macro environmental factors affecting the business of Lenovo, the
PESTLE Analysis is conducted as follows:
Political Factors- The inherent political favour of the government of China, towards the local
brands can be seen to be benefiting Lenovo considerably. However, the political instability of
the developing countries, where the company tends to expand, being subjected to frequent
turbulence, can have adverse impacts on its business.