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PESTLE and SWOT analysis of Lenovo 2017


By: Jonathan Kush


Lenovo is a Chinese technology firm founded by Liu Chuanzhi in 1984, currently engaged in the design, manufacture and marketing of personal computers, tablets, smartphones, smart televisions, servers as well as related software, accessories and third party applications. Lenovo is the bestselling PC brand in China as well currently being the largest producer of personal computers in the world accounting for over 21.3% of the global market share, ahead of closest rivals Hewlett Packard and Dell. Key products include ThinkPad and Yoga tablets. But a recent report by Mintel (2017) shows Lenovo lagging behind Apple in terms of overall market volume share when it comes to tablet computers. It also lags behind Chinese rivals Huawei, BBK (which offers the Oppo and Vivo brands) and Xiaomi in the Chinese smartphone market. It further lags behind both Apple and Samsung in the global market for smartphones. In other words, Lenovo is stuck in the middle. Nevertheless, current macro trends actually favour Lenovo to expand global market share in the desktop, laptop and tablet computer markets if it can utilize its innovative strengths and market opportunities. Using PESTLE, SWOT, Lenovo’s BCG matrix and Porters Five Forces framework, the report thus examines how Lenovo can take advantage of certain core strengths such as new innovations, as well as opportunities arising out of a very competitive external environment (see Toshiba section) in order to benefit. Some of the favourable trends Lenovo can benefit from include firstly, the exit of Toshiba from the European PC market in 2016 which has already had a positive impact on the volume share of other major players in the UK computer market and others detailed in the report.


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