Lenovo Case Study Example | Topics and Well Written Essays - 1000 words

Lenovo - Case Study ExampleLenovo has declared its might in its website, detailing the expanse of its operations. To restate Lenovo is a US$21 billion personal technology smart set... We have more(prenominal) than 26,000 employees in more than 60 countries serving customers in more than 160 countries We are defining a new demeanor of doing things as a next generation global company (Lenovo 2012). It is interesting, hence, to know that Lenovo has had humble beginnings and, more importantly, it is a technology company that emerged from China, a developing economy and outside of the Silicon Valley. The company started modestly as a spinoff of Chinas Institute of Computing Technology, a research institute of the Chinese honorary society of Sciences (Tsui, Bian and Cheng, 2006, p.303). From there on, it began supplying parts and building computers for technology companies such as IBM. Lenovo, which operated under the name of fable Holdings during its early years, gradually became a d ominant PC maker in China. By 2003, it began its internationalization ambition. harmonize to its CEO, Chuanzi Liu, With a 30 percent share of the Chinese PC market, Lenovo realized that its opportunity for further house servant expansion was limited, and that Since the global PC market was estimated at around $200 billion, it could pose huge authorization for us (p.574). ... In order to tackle market globalization, there are many barriers involved and the emblem of operations management required is radically different from its own. The organization has effectively identified these problems themselves 1) the organization did not have a brand name that could invoke worldwide recognition 2) Lenovo did not have a strong presence in the world market and, 3) there is a lack of merciful resources to effectively run and manage a truly global company (Liu, p.574). In internationalization and, much more, in the case of being a multinational company, the operations such as those involving organizational culture and human resources are very international in scope and must adhere with international standards and norms while ensuring a high degree of integration and responsiveness at the same time. Lenovo was able to address the problem and its complexities in a bold and ambitious move. In 2005, it acquired IBMs PC business. This strategy addressed several critical challenges that it had identified previously. It boosted the organizations global brand by piggybacking on IBMs reputation and the companys products such as the ThinkPad brand (see Lenovos performance during this period in Fig. 1). This enabled the company to circularize lucrative markets such as the United States, as well as additional market segments that IBM and its encyclopaedisms were particularly known for such as large enterprise, midmarket and, most particularly, laptop computers (Gupta, Wakayama and Rangan, 2012, p. 195). The OM involved is aligned with the springboarding approach that involves t he acquisition of critical resources at home and abroad in order to penetrate markets, compete with rivals and