The World-shaking Development of Lenovo

Since the global financial crisis, IT industry has been heavily hit, even such IT giants as Intel and Nokia suffered sharp decline in business growth, but there is an exception for Lenovo who achieves multi-aspects development whether in the weak PC field or in the new smartphone area.

In the environment of almost all other PC manufacturers declining shipments, Lenovo achieves growth at 10.3%, reaching 16% market shares, becoming world’s largest supplier of PC, according to market research firm Gartner. Moreover, Lenovo is positively layouting global strategy, such as the acquisition of Brazil’s largest PC manufacturer CCE further which will promote Lenovo’s development in the huge emerging market, so from which in the field of PC, Lenovo creates a miracle development.

Then as for smartphone development, according to Gartner, Lenovo’s smartphone market share rose from 1.7 percent in 3Q11 to 14.8% in 3Q12, making it now the No. 2 smartphone brand, ahead of Apple (6.9 percent) and behind Samsung (16.7 percent), due to the household brand recognition, nationwide distribution, strong portfolio and reasonable pricing. As now the only local smartphone player that can compete with global top brands in China, Lenovo will dominate Chinese smartphone market in 2013 through marching into the mid-to-lower end smartphone market which is where global brands are less competitive.

Furthermore, it is reported that Lenovo is layouting smart TV, creating a kind of home entertainment concept integrating PC, smart phones, and TV into one part. And Lenovo will gradually fade out the core business of PC, focusing on Tablet PC and smartphone.

Based on above Lenovo development strategy, we can find factors promoting the success of Lenovo. First, grasping market trend plays an important role in Lenovo development, which can be showed in its positively developing Tablet PC and smartphone—the darling of market. Second, excellent product architecture wins position and market shares. Lenovo has always developed products covering high-end, middle-end and low-end markets. For instance, ThinkPad aims at commercial market; Yang days faces SMEs, while Idea is for ordinary consumer base. Furthermore, international management also contributes to Lenovo’s prosperity.