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Latest posts by Mariam Peyton (see all)

    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) showed 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 and SWOT, this 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.

    Kush, Jonathan (2018) "Pestle and Swot Analysis of Lenovo 2017" 123 Writing [Online] at https://www.123writing.com/free-sample/pestle-and-swot-analysis-of-lenovo-2017

    Lenovo Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Understand the broad macro-environment of Lenovo and the global smartphone industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
    • Use our swot analysis example to gain an overall understanding of Lenovo's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
    • To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.

     

    Analyse the internal and external environment of Lenovo & the global PC & smartphone industry using Pestle and Swot.

    1.0 INTRODUCTION


    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. Key products include ThinkPad and Yoga tablets, smartphones as well as desktops and laptop PCs under the Think and Lenovo brand names. Lenovo’s global turnover totalled US$43bn for the fiscal year ending 2016 (Annual Report 2016). 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 (Annual Report 2016; Fortune 2016). 

    On the other hand, according to Mintel (2017), it lags 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 (Dunn 2017) as well as Apple and Samsung in the global market for smartphones.

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