Case Summary

Lenovo: Building a Global Brand

The case discusses Lenovo’s efforts to go global by acquiring IBM’s PC division. Lenovo acquires IBM in order to operate on a global scale and establish itself as a global brand. At first, Lenovo mainly focused on the Chinese industry.  Arguably, the firm was the best-known brand in China.  Lenovo was virtually unknown in the other parts of the world. The major part of the company’s revenues came from its domestic operations. 

However, with increased competition, it became necessary to go global.  As a part of its strategy to go global, it began the acquisition of IBM.  The case analysis also discusses the success or failure of Lenovo before and after the acquisition.  It considers the benefits and costs of strategies considered by the firm in globalizing its brand.  As a new multinational, the firm would need a global branding and marketing strategy to extend its global reach. This meant designing a product line that matched what the business stood for.

Key questions

Should Lenovo introduce a branded product line designed for the market?

What is the disadvantage of implementing a global marketing program?

Criteria to make decisions

Differences in consumer usage patterns, needs and wants for products

Competitive environment

Need for more focused customer targeting

Riskiness of implementing the decision

Alternatives

Standardization of products

Customization of products

Decision

Lenovo should customize its products to suit different consumer markets.  While standardization would help Lenovo achieve maximum productivity, global economies of scale and incur low unit costs, the global market poses many challenges due to unique differences that characterize global audience. By customizing its products, Lenovo would take into considerations some important factors such as individual market expectations and specifications.

Reference

Quelch, J., & Knoop, C. I. (2006). Lenovo: Building a global brand. HBS Publ..

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