联想的国际化战略英文lenovosinternationalstrategy.docx
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联想的国际化战略英文lenovosinternationalstrategy.docx
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联想的国际化战略英文lenovosinternationalstrategy
Lenovo’sInternationalStrategy
Step1:
Abstract:
Inthe21stcentury,theglobalizationhasbecomeanunconvertibleobjectiverealityand“globalthinking,globalacting”hasalreadybeenaruleformultinationalcompaniestoobserve.FormostChinesecompaniesthathavebeenorisgoingtobeinternationalcompanies,thereisonlyonewaytobecomea“visionarycompany”andgainlastingcompetitiveness:
thatistoinvolvethemselvesintheglobalizationtrendandfacethechallengeinthefuturepositively.TheLenovoGrouphasbeenanvanguardfortheChineseITcompanies,andafteritsacquisitionofIBMPCdivision,LenovohasbecomeanimportantPCmanufacturer.
ThepurposeofthispaperistorevelatoryandindicativetotheNewLenovoandothercompaniesthatdesiretobecomegreatglobalcompaniesthroughdeepstudyofthesuccessandfailureofLenovo’sinternationalpracticesduringthepasttwentyyears.
Introduction:
Origins:
Thecompanywasfoundedin1984byagroupofelevenengineers,headedbyLiuChuanzhi,inBeijing.OriginallyknownasLegendGroupLtdandNewTechnologyDeveloperIncorporated,thelistedholdingcompanywasincorporatedin1988inHongKong.ThecompanyhadbecomethebiggestPCmanufacturerofdomesticanddistributedthirdpartyproductsthroughitswholesalebusiness.
Thecompanyunderwentrestructuringandseparatedintotwoentities.TheywereLenovoandDigitalChinaHoldingsLimited.LenovobecamethepersonalcomputermanufacturerandDigitalChinatookonthewholesaleanddistributionofITproductsandservices.
In2005LenovopurchasedIBM'sPCDivisionwhichtransformeditintoamajorinternationalpersonalcomputermanufacturer.Lenovopaid$1.27billiontoIBMwhichconsistedof$655millionincashand$600millioninLenovostock.Asaresultoftheacquisition,LenovogainedtherightstotheproductlinesaswellaslicensedtrademarkssuchasThinkVision,ThinkPad,ThinkVantage,ThinkCentre,Aptiva,andNetVista.AsofMay1,2005,IBMowned19.9%ofLenovo.
development:
1980s
1981:
IBMPCDintroducesitsfirstpersonalcomputer,theIBMPC.
1984:
IBMPCDintroducesitsfirstportablecomputer,theIBMPortablePC,weighing30pounds.WithaninitialcapitaloutlayofonlyRMB300,000(US$30,000)Lenovo’sfoundingchairmanLiuChuanzhi,togetherwith10like-mindedcolleagues,launchestheNewTechnologyDeveloperInc.(thepredecessoroftheLegendGroup)fundedbytheChineseAcademyofSciences.
1986:
IBMPCDannouncesitsfirstlaptopcomputer,thePCConvertible,weighing12pounds.
1987:
IBMPCDannouncesthePersonalSystem/2personalcomputer.LegendsuccessfullyrollsouttheLegendChinese-charactercard.
1988:
Legend’sChinese-charactercardreceivesthehighestNationalScience-TechnologyProgressAwardinPeople'sRepublicofChina.LegendHongKongisestablished.
1989:
BeijingLegendComputerGroupCo.isestablished.
1990s
1990:
TheveryfirstLegendPCislaunchedinthemarket.Legendchangesitsrolefromthatofanagentforimportedcomputerproductsintothatofaproducerandsellerofitsownbrandedcomputerproducts.LegendPCsareratifiedandacceptedbytheChinaTorchProgram.
1992:
IBMPCDintroducesThinkPadseries,theindustry’sfirstnotebookwitha10.4inchcolorThinFilmTransistor(TFT)displayandaTrackPoint(redball)pointingdevice.LegendpioneersthehomePCconceptandLegend1+1homePCsentertheChinesemarketplace.
1993:
LegendentersthePentiumera,producingPeople'sRepublicofChina’sfirst“586”PC.Legendestablishes1+1retailnetwork.
1994:
IBMPCDintroducestheindustry’sfirstnotebookwithintegratedCD-ROM,theThinkPad755CD.LegendislistedontheHongKongStockExchange.TheLegendPCbusinessdivisionisformallyestablished.
1995:
IBMPCDintroducesthe“butterfly”keyboard.LenovomovesfromBocaRaton,Florida,toRaleigh,NorthCarolina.LegendintroducesthefirstLegend-brandserver.
1996:
LegendbecomesthemarketshareleaderinChinaforthefirsttime.LegendintroducesthefirstLegendbrandlaptop.
1997:
IBMPCDintroducestheindustry’sfirstnotebookequippedwithaDVD-ROM,theThinkPad770.LegendsignsanIntellectualPropertyagreementwithMicrosoft,themostvaluabledealevermadeinChinaatthetime.Legendlaunchesthefirstmulti-functionlaserprinter.
1998:
IBMPCDintroducestheThinkLight,asmalllightthatilluminatesthekeyboardforuseinlow-lightworkenvironments,suchasaboardanairplane.ThemillionthLegendPCcomesofftheproductionline.IntelChairmanAndyGroveattendstheceremony,andtakesthePCforIntel’smuseumcollection.LegendestablishesthefirstLegendShop.
1999:
IBMPCDintroducestheindustry’sfirstsub-notebook,weighingunderthreepounds,withstandardportsandakeyboardthatis95percentthesizeoffull-sizekeyboards.Lenovoannouncesitsexitfromtheretailbusiness.IBMPCDintroducestheindustry’sfirstPCwithanembeddedsecuritychip.LegendbecomesthetopPCvendorintheAsia-Pacificregion,andheadstheChinesenationalTop100ElectronicEnterprisesranking.LegendlaunchespioneeringInternetPC,withits“one-touch-to-the-net”feature,whichenablesmillionsofChinesePCuserstoeasilyaccesstheInternet.
2000s
2000:
IBMPCDshipsits10-millionthThinkPadnotebookPC.LegendbecomesaconstituentstockoftheHangSengIndex-HK.Legendrankedintop10ofworld’sbest-managedPCvendors.
2001:
AnIBMnotebookwithanembeddedsecuritychipbecomestheindustry’sfirstnotebookwithasecuritychipdesignedtotheTrustedComputingGroupspecification,anindustrybodysettingdatasecuritystandards.LegendsuccessfullyspinsoffDigitalChinaCo.Ltd.,whichisseparatelylistedontheHongKongStockExchange.LegendappointsYuanqingYangasPresidentandCEO.Legendfirstintroduces“digitalhome”conceptandlaunchesaccessories-enablingPC.
2002:
LenovoPCoutsourcingpactwithSanmina-SCI.LegenddebutstheDeepComp1800supercomputer.ItisPeople'sRepublicofChina’sfirstcomputerwith1,000GFLOP(floatingpointoperationspersecond)andPRC'sfastestcomputerforcivilianuse,ranked43rdintheTop500listoftheworld’sfastestcomputers.Themobilehandsetjointventureannounced,markingLegend’sformalentryintothemobilehandsetbusiness.
2003:
Lenovointroducesanotebookwithbatterylifeupto11hours.LenovointroducesitsThinkCentredesktopPCline.IBMPCDshipsits20-millionthThinkPadnotebookPC.
2004:
IBMPCDintroducestheThinkCentredesktopPC.Lenovoshipsits100-millionthPC.LenovobecomesanOlympicworldwidepartner.Lenovolaunchesthe“Yuanmeng”PCseriesdesignedforhomeusersinsmallvillages.LenovoandIBMannounceanagreementbywhichLenovowillacquireIBM’sPersonalComputingDivision,itsglobalPC(desktopandnotebookcomputer)business.
2005:
LenovocompletestheacquisitionofIBM’sPersonalComputingDivision,makingthecompanytheworld'sthirdlargestcomputermanufacturer(afterHewlett-PackardandDell).LenovoannouncesitclosedaUS$350millionstrategicinvestmentbythreeleadingprivateequityfirms:
TexasPacificGroup,GeneralAtlanticLLCandNewbridgeCapitalLLC.LenovoestablishesanewInnovationCenterinResearchTrianglePark,N.C.LenovointroducestheThinkPadX41TabletandZ60.WilliamAmelioisappointedasCEOandPresidentofLenovo.
2006:
Lenovointroducesdual-coreThinkPadnotebookPCs.Lenovosuppliesthe2006OlympicWinterGamesinTorino,Italywith5,000desktopPCs,350serversand1,000notebookcomputers.ThefirstLenovo-brandedproductsoutsideofChinadebutworldwide.
2007:
LenovointroducestheThinkPadR61andT61notebookPCs.ThesearethefirstnotebookstousethenewSantaRosaplatformfromIntel.
2007:
LenovoannouncesthattheyaretostartsellinglaptopstobusinessandconsumerswithLinuxpre-installedontheirmachines.
2008:
LenovoenterstheWorldwideconsumerPCmarketwiththenew"Idea"Brand.Lenovoannounces3newIdeaPadlaptops,theY510andY710desktopreplacementcomputersavailablebytheendofJanuaryandtheultraportableU110availablebyMarch2008
Products:
Lenovoproducesdesktops,laptops,servers,handheldcomputers,imagingequipment,andmobilephonehandsets.Lenovoalsoprovidesinformationtechnologyintegrationandsupportservices,anditsQDIunitofferscontractmanufacturing.LenovoalsooffersInternetaccessthroughitsFMportal.
LenovoGroupLimitedisthefourthlargestpersonalcomputermanufacturerintheworldtoday,afterHewlett-PackardandDelloftheUS,andAcerofTaiwan.
ItsexecutiveheadquartersarelocatedinBeijing,People'sRepublicofChinaandinMorrisville,NorthCarolina,USA.ItisincorporatedinHongKong.
Step2:
ReasonsforInternationalStrategy:
Background:
2001to2004,thediversificationstrategywhichisdesignedbyYang(thechairmanoftheboard)isultimatelylost,endingupasafailure.
Afterstrategicreflection,Yang’sfinalchoiceisthetighteningstrategy,andputtingthefocusbacktoPCbusiness.PCagainbecomethetoppriorityoftheconpany.
Becausethecapacityofthedomesticmarketlimits,aswellastheintensifiedcompetition.InternationalizationisLenovo’sinevitablechoice.
Increasemarketshare:
Since1996,Lenovohadbecomethetop1sellerfor11yearsindomesticmarket,.Inthesecondquarterof2002,salesofLenovodesktopcomputersbecametheworld'stopfiveforthefirsttime.Untiltheendof2003March,LenovoGrouphasbeenthefirstinAsia-Pacificmarket(excludingJapan)for12consecutivequarters.
So,Lenovohasoccupiedthedomesticmarket,Lenovoneedstoopenupoverseasmarkets,heneedsaspringboardtoincreasethemarketshare
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