MKT11109: Analyzing Lenovo's Marketing in a Dynamic Environment

This report provides a comprehensive analysis of Lenovo's marketing strategies within the context of a rapidly changing technological environment. It examines the impact of technological advancements on Lenovo's competitive advantage, exploring how the company adapts its segmentation, targeting, and positioning strategies to meet evolving consumer needs. The report delves into the influence of technology on Lenovo's branding efforts and investigates shifts in customer behavior, highlighting the importance of trust, privacy, and personalization. Furthermore, it identifies and assesses growth opportunities for Lenovo within its macro-environment, particularly in relation to technological advancements and favorable government policies. The analysis is underpinned by marketing theory, demonstrating a critical evaluation of Lenovo's approach to building a high-performing organization.

Running head: MKT11109 1
MKT11109 Marketing and Building High Performing Organisations: LENOVO
By (Student’s Name)
Institutional Affiliation

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Table of Contents
Summary statement of the change in the technological environment of Lenovo Group:...............3
The potential impact on marketing strategies under the following headings:.................................3
Competitive advantage:................................................................................................................3
Segmentation:...............................................................................................................................5
Targeting:.....................................................................................................................................5
Positioning:..................................................................................................................................6
Branding:......................................................................................................................................7
The potential impact on customer behavior and how it might change:...........................................7
Opportunities for growth within Lenovo Group MACRO environments:......................................9
Advancing technology and awareness within the markets:.........................................................9
Favorable government policies regarding patents and acquisition:...........................................10
References......................................................................................................................................11

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Summary statement of the change in the technological environment of Lenovo
Group:
The technological environment is one of the forces that are within the marketing function
and in the immediate task environment of Lenovo (Armstrong, Kotler, Harker & Brennan, 2018).
Lenovo being a technology company, has its most significant and far-reaching opportunities as
well as threats stemmed from technology as a macro-environmental factor. In this manner,
technology has a major impact on the marketing strategy of the company is linked to the
development of technological advancements as well as breakthroughs. Technology forms the
basis for new product design, branding, and production, or even the promotional strategy
(Glowik, 2016). The advancements of technology, such as equipping mobile phones with more
complex and advanced cameras, have, therefore, resulted in the development of more
sophisticated marketing approaches for the company's products such as mobile phones and
computers. The continuing breakthroughs in technology have also made the marketing team of
the organization conduct periodical marketing research in order to be aware of the ongoing
trends and changes in technology. This, therefore, enable the organization to stay competitive by
identifying the implication of the changes (Wu, Pangarkar & Wu, 2016).
The potential impact on marketing strategies under the following headings:
Competitive advantage:
The current technological change has resulted in stiff competition among various firms
within the information technology sector, such as Lenovo. Lenovo, as an organization in the

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technology industry, makes PC's, Tablets, and mobile phones. Currently, the industry has been
under the influence of advanced technologies and the making of more technologically
sophisticated products than the other. For this reason, in order for Lenovo to stay on top of the
global technology market, the organization has to produce a more advanced product at
reasonable consumer prices (Hao & Song, 2016). The company faces stiff completion from large
and well-established companies such as Apple, Sony, Samsung, HP, and Co-brand Compaq.
Therefore, remain at the top, the company is using the changing technological environment to
provide its customers with more advanced products.
In order to gain an advantage over the competitors, the company is currently developing a
multipurpose gadget, which is the common technological trend (Balaj & Roy, 2017). According
to articles published by the organization, the company is developing multipurpose products to
enable individuals to work from anywhere. Therefore to gain a competitive edge, the
organization has made four products that are technically advanced and made as per the current
ongoing trends. The Lenovo group has made ThinkPad X1Tablet is a multipurpose gadget and
can do more tasks more than any other gadget from any other firms within the industry.
ThinkPad X1Tablet is designed in a way that its screen detaches from the keyboard enabling to
use it as a tablet, and you can also attach the keyboard and use it as a computer and has a
modular design which enables and individual to transform it to a projector for presentations
(Varki, 2016). ThinkPad X1 Yoga is another product developed by the Lenovo group to gain a
competitive edge. This product is also made in a convertible way, and it is upon the customer to
configure the product, as it can work in four different ways as a laptop and a tablet, among other
functions. Lenovo Group has also Yoga 900, which is an advanced Core I technology convertible
with the same hinge as ThinkPad X1Yoga. The convertible product design enables the various

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consumer to have a light and easy to carry a computer as a result of the increasingly changing
technological environment.
Lenovo has also produced Ideapad Miix 700, which has been given a name a business
war horse based on its super conversion mechanism. The gadget works both as a laptop and a
tablet. It is equipped with optional 4G connectivity and has as Trusted Module chipset, and the
gadget is much lighter than all the existing models from the competitors. The company has since
become more competitive as most of the firms in other industries prefer these gadgets for their
taskforce.
Segmentation:
The Lenovo Group marketing strategies have transformed over the past years due to the
increasing technological change, advancement, and breakthroughs. The organization
manufactures products made for both commercial and home purposes. The company's market
segmentation is based purely on the technological development of the target market. As a result,
Lenovo has its market segmented into three major segments (Gosling & Urrutia, 2019). The first
segment is composed of the city customer; this segment is perceived by the organization as a
strong brand and technology awareness. The company chooses to meet the needs of this segment
as it is highly influenced by technology change. Another segment is learned customers under the
age of 45 years. The company also provides for the need for this segment based on technology
awareness and need the high-end product. The final segment is developed in rural markets where
technology is still advancing, and the crowd is much aware of their products and technological
trends.

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Targeting:
Based on the increasingly changing technology, the company has changed its target
market based on technological and product awareness. The company targets mostly the city
consumers with their advanced products such as super portable tablets and laptops. The city
technology advances must faster, and the organization has to meet the changing consumer needs
as per the technology trends. The company also targets learned individuals age 45 years and
below whom they believe can highly be influenced by the changing technology (Gellert, 2016).
The organization also targets crowds within the developed rural areas. Finally, the company
targets companies in other sectors with products such as ThinkPad X1Tablet, which has
numerous uses and can benefit to the workforce and creation of a competitive edge.
Positioning:
Lenovo Group's marketing is highly influenced by technology advancements. The
marketing position of the company is therefore considered in three categories as high-end,
middle-end, and low-end. The division of the company products as to belong to high-end, Low-
end, and middle-end is purely based on the type of technology used to make the products. Under
the high-end position, Lenovo provides highly developed computers and mobile phones, which
not only guarantee a profit but also help build a long term image in their consumer's mind
(Gellert, 2016). Therefore to maintain a high-end position, the company makes more and more
advanced products such as ThinkPad X1 Tablet and ThinkPad X1 Yoga to meet the
technologically increasing customer demands. The middle-end is also composed of advanced
products and also ensure that the company remains at its current position. The company ensures
that both the middle-end and the high-end products generate 3units and above of profit than the

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low-end products, which are normally produced by the organization to provide low-cost products
to their consumers. Moreover, due to technological demand, the company is currently creating a
position based on the production of high technologically advanced products with low energy
consumption (Gosling & Urrutia, 2019).
Branding:
Lenovo has a unique branding technique, which is also influenced by technological
change. According to the Lenovo Group director David Roman, the company takes a marketing
and branding standpoint where each and the product produced by the company has its own
unique identity (Qi, 2017). The company develops products that are very simple, with the
company name written with sleek color. Further, as noted form the company branding, the
organization is trying to create unique products that enable each and every customer the ability to
identify with the product. However, based on the increasing technology, the Lenovo Group is
currently creating products with specific security and privacy feature that only its consumers are
able to enjoy. This will, therefore, be a branding feature for the company that each and every
consumer will enjoy, but so for the company branding is unique and diverse. Arguably, including
specific security and privacy feature in all their products as a branding technique will increase
consumer loyalty (Schmid & Polat, 2018).
The potential impact on customer behavior and how it might change:
The increasing technological advancement in mobile, tablets, and PC development has
resulted in the currently noted habits in consumer behavior. Further changes in consumer
behavior are expected to change further with the rapidly advancing technology. To begin with,

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the advancing technology in the Information technology industry has resulted in an increased
consumer expectation (Hosseini, Mohammadi & Safari, 2018). As the companies within the
technology industry produce more advanced products, consumer expectations have been going
up at the same rate. Moreover, the increasing production of high technology mobile phones,
computers, and tablets has presented consumers with more options, which has further accelerated
their expectations. Taking, for instance, the increasing competition among firms in the
technology industry to come up with a single multifunctional gadget has raised consumer
expectations. Therefore, most consumers making a mobile phones, PCs, and tablet purchases to
demand for single products that can fulfill all their needs at a time (Bognar, Puljic & Kadezabek,
2019). For this reason, companies such as Lenovo are under pressure to develop a multipurpose
product such as ThinkPad X1Tablet, which works as a laptop, a tablet and also has a modular
shape design in which consumers to use it as a projector.
The increasing technology advancement has also resulted in the enables need for
increased trust and privacy among the consumers. Research evidence shows that consumer
loyalty and value are built upon trust. The technology has advanced, and currently, the world is
integrating cloud storage techniques. For this reason, the consumer requires PC's, tablets, and
phones with high security and privacy features. This tends to have forced companies to increase
add security and privacy features in their products.
Another impact on the consumer behavior that has been an impact of the change in the
technological environment is the increasing desire for a great feeling. Consumer feeling and
experience is one of the determinant factors of behavior and loyalty. The advancement of
technology has increased the consumer taste and needs, and this will continue to increase with
time. In order to fulfill this need and provide consumers with more experience, Lenovo has

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resolved into manufacturing more advanced with more than one function and quality features.
For example, the company is currently equipping its products with super cameras to meet the
consumers, increasing the desire for high tech cameras, and photograph experience (Qi, 2017).
And finally, there is a need for the organization to meet the demand for consumers' need for
personalization. Based on the current technology growth, there is an increasingly high demand
for personalization of customer experience. The organization is trying to create a personalized
experience for the customer, and this is oriented towards meeting such demands. The impact is
expected to continue with the advancement in the technological environment. However, the
company can meet all the increasing consumer needs by increasing the levels of advancement.
Opportunities for growth within the Lenovo Group MACRO environments:
The macro-environment of the company with elements that it can use to its advantage.
The macro macro-environment of the firm has various elements that the company can exploit
with the implementation of new strategies and set objectives (Schmid & Polat, 2018). The two
major opportunities that are presented to the organization from within its environments include:
o Advancing technology and awareness within the markets
o Favorable government policies regarding patents and acquisition
Advancing technology and awareness within the markets:
In as much as increasingly advancing technology may be a challenge to an organization,
the technological environment presents Lenovo with several growth opportunities. The
advancing technology presents Lenovo with product promotion platform where the company is
able to exploit such platforms to promote their products (Gu & Dong, 2017). The social media

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platforms also enable the company to respond quickly to consumers' feedback messages. The
immediate response to consumer response enables the company to build consumer loyalty
through quick response and mitigating consumer unsatisfactory demands (Rad & Ahmada,
2017). This is, therefore, a growth opportunity for the organization to meet new clients and
maintain new clients.
Favorable government policies regarding patents and acquisition:
The political environment is another force that presents Lenovo with a growth
opportunity. The Chinese government has flexible policies that allow firms within the country to
acquire patents easily through acquisition (Marković, Rakita & Filipović, 2016). Lenovo had
taken this opportunity once by acquiring IBM's Compaq and Motorola. These acquisitions
provided Lenovo with the opportunity to easily acquire materials that are needed for the
production of its products. It has also presented the organization with the opportunity to expand
easily and established itself in the various markets in which the acquired companies had
established a marketing force. Therefore, the company has the opportunity to obtain more patent
rights through acquisition (Zhang & Yang, 2018). Moreover, by obtaining these patents, the
organization is able to expand to new markets through acquisition, which is a growth
opportunity.
Conclusion
Changes in the technological environment presents an organization with challenges as
well as growth opportunities. Changes in technology has for this reason impacted business
activities in Lenovo both in positive and negative manner. In terms of negativity, technological
advancements have resulted in to stiff competition in the technology industry. However, on the

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other hand, technology advancements have presented organization with growth opportunities
including the increasing use of social media to reach their target markets. The marketing strategy
should therefore, have a clear knowledge on the effect of change in the technological
environment and align their strategies to conform to the changes.

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References
Armstrong, G. M., Kotler, P., Harker, M. J., & Brennan, R. (2018). Marketing: an introduction.
Pearson UK.
Balaji, M. S., & Roy, S. K. (2017). Value co-creation with the Internet of things technology in
the retail industry. Journal of Marketing Management, 33(1-2), 7-31.
Bognar, Z. B., Puljic, N. P., & Kadezabek, D. (2019). Impact of Influencer Marketing On
Consumer Behaviour. In Economic and Social Development (Book of
Proceedings), 42nd International Scientific Conference on Economic and
Social Development (p. 301).
Gellert, F. J. (2016). Lenovo: a case study on strengthening the position in the European market
through innovation. In Multinational Management (pp. 95-109). Springer,
Cham.
Glowik, M. (2016). Market Entry Strategies: Internationalization Theories, Concepts, and Cases
of Asian High-Technology Firms: Haier, Hon Hai Precision, Lenovo, LG
Electronics, Panasonic, Samsung, Sharp, Sony, TCL, Xiaomi. Walter de
Gruyter GmbH & Co KG.
Gosling, L., & Urrutia, J. (2019). Analytics Driving Supply Chain Segmentation for Lenovo.