Scribd
Upload
93 views

Lenevo Case Study

Lenovo uses strategy to succeed globally by acquiring companies like IBM to gain access to new markets, resources, and manufacturing capabilities. It pursues efficiency, flexibility, and learning. Lenovo's culture promotes talent development and knowledge sharing across borders to help it expand internationally. While products are standardized, Lenovo tailors some elements to local markets. It benefits from both global scale and local responsiveness.

Uploaded by

Apurbu Sarder Apu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
93 views

Lenevo Case Study

Lenovo uses strategy to succeed globally by acquiring companies like IBM to gain access to new markets, resources, and manufacturing capabilities. It pursues efficiency, flexibility, and learning. Lenovo's culture promotes talent development and knowledge sharing across borders to help it expand internationally. While products are standardized, Lenovo tailors some elements to local markets. It benefits from both global scale and local responsiveness.

Uploaded by

Apurbu Sarder Apu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

1. What is strategy? How does Lenovo use strategy to succeed in the global marketplace?

What strategies does Lenovo employ to maximize company efficiency and flexibility? What
does Lenovo management do to foster organizational learning?
Answer: Strategy is the long-term goal or roadmap for an organization, and how it plans to reach
them. Managers create and implement a strategy to make the most use of the company's
resources and core capabilities in order to acquire a competitive advantage.
Lenovo's strategy was a well-considered and simple strategy for mergers and acquisitions. They
first bought IBM's computer manufacturing division, which gave them access to many important
markets and the knowledge they required. Additionally, this ranked them as the third-largest PC
manufacturer globally. In the years that followed, Lenovo added NEC and Motorola to its
portfolio, increasing their manufacturing scale economies and giving them access to the
smartphone and tablet markets.
Lenovo must simultaneously pursue three crucial strategic objectives—efficiency, flexibility,
and learning—to maintain its position as the world leader in the industry. Lenovo's strategy
enables it to continuously improve its value chain activities while learning new skills and
acquiring necessary resources through mergers and acquisitions. Lenovo is now more aware and
adaptable about how to enter important overseas markets while safeguarding their Chinese home
market thanks to these smart acquisitions.

2. Describe Lenovo’s organizational culture. What are the characteristics of Lenovo’s


culture? How does the culture help Lenovo achieve its international goals?
Answer: Employees learn and eventually adopt the common occupational values, behavioral
norms, systems, regulations, and procedures that make up an organization's culture. In order to
provide new hires with a clear path to achieving their goals and realizing their full potential,
Lenovo has created initiatives like career maps. Lenovo's senior management has put in place a
method to socialize new managers by having them train and work at various locations throughout
the world. The flow of knowledge across borders is facilitated by this activity, which also gives
ambitious personnel access to new prospects. Programs like career planning and socialization
serve to bind the employee to the company. This camaraderie not only results in a more
productive worker for Lenovo, but also in a more devoted worker.
Lenovo hires the greatest talent, regardless of origin, to help it prosper in the global market.
Additionally, Lenovo promotes an environment at work where workers have the tools and
support they need to realize their full potential. By continually lifting the bar for delivering
ground-breaking innovations and great financial success, Lenovo has also created an
organizational culture. They provide direction for business choices, promote worldwide
information exchange, and are familiar with the culture and objectives of the company.
3. What is the nature of Lenovo’s international strategy? Is the firm’s strategy primarily
multidomestic or global? Justify your answer. What advantages does Lenovo derive from
the particular international strategy(s) that it pursues?
Answer: Lenovo continues to be committed to implementing its Protect and Attack strategy
across all geographies, driven by extraordinary success and ongoing, steady growth. Lenovo has
effectively expanded internationally by using mergers and acquisitions to get access to the skills,
resources, flexibility, and manufacturing scale economies required from partner companies. They
have been able to develop into new markets and regions all over the world by adhering to and
maintaining this strategy.
When it comes to the items it creates and sells, Lenovo has a multi-domestic strategy. Except for
components like keyboard layouts and software, which are tailored to the local market's
linguistic requirements, products are standardized globally.
Lenovo has benefited from advantages like a global distribution network, manufacturing scale
efficiencies, and technical know-how as a result of its acquisition of IBM and other businesses.
Through enhanced R&D and expanded managerial experience, this expertise has also assisted
them in the development of new products and services.

4. Examine Lenovo in terms of the integration-responsiveness framework. What are the


pressures that Lenovo faces for local responsiveness? What are the pressures that Lenovo
faces for global integration? What advantages do local responsiveness and global
integration each bring to Lenovo?
Answer: Lenovo is under pressure to integrate globally, among other things by attempting to cut
costs through economies of scale and arbitrage advantages. Lenovo needs to standardize its
goods globally in order to take advantage of new consumer trends and societal needs. Service
multinational clients consistently, engage in global sourcing, and identify and react to
international rivals.
Lenovo is under pressure to be locally responsive in a number of ways, including by
accommodating various distribution methods, responding to local competition, and adjusting to
cultural variations. In addition to supporting domestic market expansion, Lenovo also needs to
adapt to the new international markets it keeps expanding into.
Local responsiveness and global integration have several benefits for Lenovo, including the
ability to save costs, boost flexibility, learn new things, scale economies, and achieve global
efficiencies. Additionally, they can raise the standard of the finished item and the procedures
used to make it. A high-quality product aids in boosting brand recognition on a global scale and
improves consumer preference for Lenovo products over those of its rivals.

You might also like