International Business: Case Study Analysis of Lenovo's Operations

This report presents a comprehensive case study analysis of Lenovo's international business operations, examining its strategic and operational considerations. The analysis begins with an introduction, followed by an overview of Lenovo's stages of operational and strategic operations, highlighting its 'protect and attack' strategy and its two business models (relationship and transactional). A detailed SWOT analysis is presented, outlining Lenovo's strengths, weaknesses, opportunities, and threats. The report then explores Lenovo's competitive advantages, including its brand image and marketing strategies, while acknowledging the challenges posed by competitors. Further, the report delves into Lenovo's business ethics and corporate governance, emphasizing its commitment to ethical conduct and stakeholder interests. The report concludes with a summary of key findings and insights into Lenovo's global business strategies and ethical practices.

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Management

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Executive Summary
Lenovo deals in the manufacturing of the personal computers and related services. The
business model of the organization is relied on the innovation with the operational efficiency.
The approach of the organization is focused to increase the satisfaction level of customers.
This report will include the stages of operational and strategic operations of Lenovo. This
organization has expanded the sales through investing in emerging markets. Further
discussion covers the strengths, weaknesses, opportunities, and threats of the Lenovo. This
report will also include the competitive advantages of Lenovo. It has the high brand image
that enables it to invite huge base of customers. Further report will discuss the business ethics
and corporate governance of the Lenovo. It is committed to conduct the business practices
ethically and legally.

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Contents
Introduction...........................................................................................................................................3
Stages of operational and strategic operation.........................................................................................3
SWOT analysis......................................................................................................................................4
Competitive advantages of Lenovo.......................................................................................................5
Business ethics and corporate governance.............................................................................................5
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

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Introduction
It is true that competition has increased largely. This has influenced the organisations to work
on their strategies and operations. From the unit, it is learned that international and growth
strategies is quite important to maintain the organisational position globally. Lenovo has also
worked on its corporate government and strategies in order to grow. Due to its brand image, it
might have string market share. The increasing competition from several global firms is
putting threat on Lenovo.
Stages of operational and strategic operation
In international market, Lenovo adopts the “protect and attack” strategy. This strategy tends
to combine the offensive and defensive elements. By expanding the sales to emerging market
and leveraging the acquired assets, Lenovo carry out its operations and seek to grow. In order
to carry out this strategy, it follows the two models named relationship and transactional
business model. The transaction model of Lenovo gives emphasis on the sales to retail
consumers. As compare to this, the relationship model targets the customer such as
government, and education institutions as well as large business. In the initial, this strategy
has however caused the operational losses. This period of unprofitability endured with the
clear objective in mind: one the double digit market share is achieved; it will switch to the
priority of attaining the continued profitability and growth (Herrera and White, 2017).
However, it has not effective work on its operations as not gives emphasis more on the
premium products. The major competitor of Lenovo named Apple works effectively on
targeting the premium customers where it fails.

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SWOT analysis
Strengths Weaknesses Opportunities Threats
 Traditional
reputation and
brand
recognition.
 Good
sponsorship
and public
relationship.
 Expansion of
global market
strategy in
effective
manner.
 Marketing
sources are
not rich.
 High prices
as compare to
some other
brands.
 Most of the
Products and
services are
sold through
the
monopolised
stores.
 In the
recent time,
the growing
computer
industry
offers
several
opportunitie
s.
 Lenovo can
do
expansion
in several
countries.
 It can also
enter into
new product
line due to
its strong
brand
image.
 Availability of
several cheap
products in the
market.
 Increasing
competition
also puts
several threats
to the Lenovo.
 Political issues
might arise
between the
countries that
might ban the
government to
use hardware
of Lenovo or
nay other
product.
 Apple has also
started treating
Lenovo as its
main
competitor.
There is
possibility of
some threat to
Lenovo if it
will not take

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any string
action.
From the swot analysis, it can be said that Lenovo is still required to work on its strategy
through product development. At the same time, it still lacks in effectively expanding its
product globally due to giving less emphasis on the premium products.
Competitive advantages of Lenovo
Lenovo put promotional cost and high ad in order to expose its new laptop products. It is true
that companies in PC industry have gained the sufficient loyalty in order to maintain the
market share. Due to its high brand image in the market, it is able to gain the huge market
share. In spite of this, it has to face huge competition from HP, Apple, Acer, Samsung and
some other manufacturers. All these companies are required to demand on the extensive
Information Communication Technology. However, it still required to work on several other
innovative and technical aspects in order to remain competitive and achieve growth (Liu and
Luang, 2017).
In order to succeed or survive in the global competitive business environment, Lenovo was
having no choice left instead of becoming an international firm in the PC business. It is true
that the market share of Lenovo was at top ion the Chinese market but after the Dell and
some other competitive brand; its market share has dropped. Even after it has decided to
expand itself in the market, it has failed. After the acquisition of IBM PC division in the year
2004, Lenovo has got great opportunity to expand its business outside Asia. By undertaking
this, Lenovo has to establish itself as the international company in order to succeed by
ensuing innovation.
Business ethics and corporate governance
At the core of its corporate governance, it has effective BOD (Board of directions) that is
followed by chairman and senior management. The primary goal of its corporate governance
is to attain as well as ensure the well-established practices of corporate governance. It also
ensures the interest sake of different stakeholders including suppliers, customers, general
public as well as employees. Due to this, it strictly abides by the governing regulations and
laws where it observes and operates the applicable guidelines (Grove and Clouse, 2018).

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In Lenovo, code of conduct is the cornerstone of its commitment in conducting business
ethically, legally as well as with integrity. This code applies to all employees (including part
time, full time, or supplemental) of Lenovo. Lenovo effectively recognise the significance of
privacy for every individual everywhere: website visitors, customers, employees as well as
every member. For this, Lenovo tends to follow the Global Privacy Program led by the legal
department. Under this, it supports for the contract, govern internal and external policies,
audit and do assessment (Schmid and Polat, 2018).
Conclusion
In the limelight of above discussion, it can be concluded that Lenovo is working well in the
different countries of the world. Through its best and unique quality, it is able o survive in the
tough competitive environment. It is also committed to the business ethics and corporate
governance in order to fulfil the corporate social responsibility of the organisation too. It also
ensures the interest sake of different stakeholders including suppliers, customers, and many
more.

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References
Grove, H. and Clouse, M., 2018. Focusing on sustainability to strengthen corporate
governance. Corporate Governance and Sustainability Review, 2 (2), pp.38-47.
Herrera, M.E.B. and White, S., 2017. Lenovo’s venture philanthropy: Evaluating and
planning. In The Role of Corporate Sustainability in Asian Development (pp. 29-53).
Springer, Cham.
Liu, C. and Liang, N., 2017. Execution is the Strategy: The key to Lenovo’s success in IBM
PC division acquisition. In From World Factory to Global Investor (pp. 137-155). Routledge.
Schmid, S. and Polat, C., 2018. Lenovo: From Chinese Origins to a Global Player.
In Internationalization of Business (pp. 125-154). Springer, Cham.